CDK's purchase of Auto/Mate may create a major disruption in the dealer management system (DMS) industry. Here is our take. DOWNLOAD
As you can see from the image, direct mail hasn’t changed much in the past 90 years (except for the prices!). Why should it? It works to get good looking information in front of a lot of people very quickly, and consumers have a financial mindset when looking through their mail because that is how all their bills come. I've done a $4,000 minimum trade-in guarantee direct mail piece that had a higher ROI of any digital advertising all year long.
Direct mail is also not what you would call bargain advertising. There are creative costs if you have an agency design it, production costs depending on card stock, and mailing costs with higher postage fees. However, the problem with direct mail is not the cost, but the lack of digital strategy to enhance the effectiveness of it.
It doesn't matter if you put an address or a QR code on the mailer, the consumer is still going to search online for your dealership and possibly any competing offers in your market.
Last but certainly not the least, TRACK everything from the direct mail promotion so you know what works and what doesn't. You should have a tracking code or marketing source inside your CRM dedicated to this direct mail piece. Any forms from your custom landing page should be tracked separately from internet leads. Make sure your staff knows what marketing campaign is being sent out, and have a talk track available for phone leads. I have even gone as far as to offer a spiff to the sales staff for the most tracked direct mail conversions.
Focusing on your whole marketing strategy and making sure you are aligned on every medium will get you the most traction out of your direct mail while generating massive ROI.
KPA Marketing Manager