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The Workhorses of Direct Marketing

Rod Stuckey | 07/01/2015

Some readers may not be aware that my background includes being a Dealer Principal for a 4-store powersports group and later a Chevrolet Buick dealership. I’m a Dealer Advocate, I can’t help but see things from a dealer’s perspective first.  It’s how I’m wired; it’s in my DNA. 

 

That’s why the very first question that I ask before we recommend a product or service to any of our clients is, “If this were my dealership, and my limited budget, is this how I’d choose to spend my hard earned money?” If the this answer is yes, then I’ll follow with this subsequent question, “Well, if you believe in this product so much, are you using it here at Powersports Marketing, and how is it working?”
 

 

Since starting Dealership University™ back in 2004, we’ve experienced consistent double-digit growth every year straight through the recession, and ultimately landing on the Inc. 5000 Fastest Growing, Privately Held Companies list by leveraging three main workhorses. Those do not include, Instagram, Snapchat, or Vine, not even LinkedIn, YouTube or Twitter. 

 

Based on a vast amount of experience in testing, spending, failing, and finally succeeding, I hold a strong conviction that Direct Mail, Email, and the Telephone are the best bang for the buck in niche businesses. I know these three aren’t as bright and shiny as the latest popular Silicon Valley startup, but they just plain work.

 

Both your business and mine are ‘niched’, by the way. Only 3% of the population ride motorcycles, so you marketing to the masses is about as efficient as me sending this newsletter to dry cleaners. 

 

As a dealer, I’ve invested hundreds of thousands of dollars into yellow pages, TV, and radio only to wonder if it was working. Then, when call tracking numbers came out, my suspicions were confirmed with hard data. It flat didn’t work regardless of what message I used. With data in hand, I was told by the media reps that the purpose of my ads wasn’t to drive traffic, it was to build our brand. It wasn’t until I became a student and implementer of real direct marketing that I learned this was total B.S. 

 

 

The truth is, the purpose of your marketing shouldn’t be to build your brand and get your name out there, it should be to drive traffic to your showroom, telephone, and website. And, when done properly you get branding as a happy byproduct. Oh yeah, and it should be measurable. 

 

I’m not saying that if you are Tide detergent or Crest toothpaste that there isn’t something to this whole branding thing. But trying to compare Nike’s advertising budget and agenda with yours is beyond apples and oranges. It is the manufacture’s job to create the brand, the demand, and top of mind awareness.

 

It is your job to drive those who already have an interest in what you sell to your dealership so you can increase market share and improve customer retention. 

 

 

When sent to the right target audience, with the right message, at the right time, direct mail is a proven winner.  Here are a few interesting stats about Direct Mail:

 

• 56% of consumers think printed marketing is the most trustworthy of all communication channels. 

 

• Direct mail has the highest rate of success in new customer acquisition at 34% compared with other marketing channels.

 

• 40% of consumers say that they have tried a new business after receiving direct mail.

 

• 70% have renewed relationships with businesses that they had previously ceased using because of direct mail.  

(Journal of Marketing, January 2013 | Source Direct Marketing Association survey, November 2013)

 

Direct Mail is a proven winner. But, it’s not meant to act as a standalone marketing channel. It performs even better when bolted onto an integrated email campaign. Here are some powerful stats on email.