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Jared Hamilton
From: Jared Hamilton
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Chris Purser

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Text Messaging Can Increase Sales by 328%

Unless you live under a rock, we are aware that the telephone conversation is a dying activity, being replaced largely by texting.   According to a Pew Institute survey, the number of text messages sent monthly in the US boomed from 14 billion in 2000 to 188 billion in 2010, and continues to grow.  In a TIME mobility poll, 32% of all respondents said they'd prefer to communicate by text than phone, even if a person they know very well.  This is also valid in the workplace where communication is between colleagues and customers who are often not friends at all.  Texting customers in the automotive, motorcycle and similar industries has become commonplace for maintaining contact with customers and used frequently by service departments; however, a recent study has found a greater benefit:  it can greatly increase conversion rates.

A new study conducted by Leads360 examined the impact of text messaging in the sales process. The study analyzed almost 3.5 million lead records from more than 400 consumers across multiple industries and discovered that text messaging is linked to above-average conversion rates, however, only after a relationship between the customer and sales has been developed.  The conversion rate of those texted only after a relationship has been developed was 112.6% above the average conversion rate of contacted leads, compared to a conversion rate of 4.8% below average for consumers contacted before a developed relationship.

Additionally, consumers contacted by text both before and after phone contact had a 19.6% higher conversion rate than the average for contacted leads; however, there's a better outcome when a text is sent after initial phone contact has been made. In fact, sending a text prior to contacting the prospect on the phone decreased the likelihood of contacting the lead by 39%.  Another important finding was that prospects who are accepting of multiple texts and sent more than 3 texts post-contact with reason were converted at a 328% higher rate than the average.

It's no surprise, text messaging in sales organizations can be a wonderful growth opportunity.  To get the best out of using text messaging, the salesperson should:  1)  Text a customer after a relationship has been established, and 2) Send at least 3 texts if the situation calls for it.  This is just another shot to capture leads and convert customers.

Additional source:  http://www.marketingcharts.com/wp/topics/research/texting-done-right-linked-to-significantly-higher-lead-conversion-rates-26478/

 

Justin DiPietro
Any thoughts on what percent of dealers use text messaging? Or how many have text messaging hooked up to their main lines?
Holly Kaplan
Hi Justin. I didn't find any percent of auto dealers using test messaging.What I've heard from a couple dealerships is the salesperson usually will text on their own, or, use a permission-based system that a third party can manage those opt-ins and opt-outs. A growing number also make sure this communication is trackable in their CRM.

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