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Not in My Backyard! How to Protect Your Turf with a Geofence
Most of the time the goal of a dealership's advertising is to reach car shoppers and convince them to visit your store. But what about the customers who are already in your dealership? You're probably thinking there's no need to advertise to them. If they're in your showroom, there's a pretty good chance you can close them. And you're right - unless one of your competitors makes them an offer they can't refuse, while the customer is standing right in front of you.
By now you've probably heard of geofencing as a mobile marketing strategy that can be used to lure customers out of a competitor's dealership and into your dealership. It works like this: Jane walks into Smith Chevrolet and immediately gets a push notification (or text, or email, or sees a banner ad) on her smartphone.
The notification informs Jane that Brown Chevrolet down the street has a lease special on a car she's interested in for only $159/month. Jane sees the special and is excited because that price is well below her monthly car payment budget of $200. She decides to go to Brown Chevrolet to check it out. After all, she can always come back to Smith Chevrolet later.
But of course, we know that once Jane leaves Smith Chevrolet, "later" is highly likely to turn into never.
How can you prevent this from happening? The simplest way is to create your own geofencing strategy so that when Jane arrives on your lot, she gets a push notification (or text, or email, or sees a banner ad) from your dealership.
Now, instead of seeing information about your competitor's lease special, Jane sees an offer for a $25 gift card if she takes a test drive right now at your dealership. She thinks, “Wow, how awesome is that?" Or, you send Jane a push notification of your own, informing her about a lease special or a free service maintenance contract with a purchase.
You may not get a lot of click-throughs or actions on these notifications and ads; more likely the customer will mention the offer to a salesperson. But you are making sure that when a customer is using a mobile app or browsing with their mobile device in your dealership, that your dealership brand is going to be there - and more importantly, that your competition is not going to be there.
How much is it worth to you to keep a customer in your showroom, actively engaged with a salesperson? You can bet your competitor is offering a compelling incentive along with a call-to-action. When you're protecting your turf, your ad messaging should be just as aggressive.
It's a good idea to thank your customers and let them know you appreciate their business. As a token of your appreciation, offer a gift card, freebie with purchase, or show competitive pricing information.
This strategy accomplishes two things: it prevents similar offers being shown to the customer from other dealerships, and reinforces in the customer's mind that they have made the right choice in coming to your dealership. Everybody likes to feel appreciated.
This type of geofencing strategy is also very economical. The perimeter around your store doesn't have to be large to be effective; in fact, smaller is better. Messages and ads are typically paid on a cost per thousand basis, so for a small monthly budget you can protect your turf and send your competition a message they'll hear loud and clear - they won't be poaching customers in your backyard!
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Not in My Backyard! How to Protect Your Turf with a Geofence
Most of the time the goal of a dealership's advertising is to reach car shoppers and convince them to visit your store. But what about the customers who are already in your dealership? You're probably thinking there's no need to advertise to them. If they're in your showroom, there's a pretty good chance you can close them. And you're right - unless one of your competitors makes them an offer they can't refuse, while the customer is standing right in front of you.
By now you've probably heard of geofencing as a mobile marketing strategy that can be used to lure customers out of a competitor's dealership and into your dealership. It works like this: Jane walks into Smith Chevrolet and immediately gets a push notification (or text, or email, or sees a banner ad) on her smartphone.
The notification informs Jane that Brown Chevrolet down the street has a lease special on a car she's interested in for only $159/month. Jane sees the special and is excited because that price is well below her monthly car payment budget of $200. She decides to go to Brown Chevrolet to check it out. After all, she can always come back to Smith Chevrolet later.
But of course, we know that once Jane leaves Smith Chevrolet, "later" is highly likely to turn into never.
How can you prevent this from happening? The simplest way is to create your own geofencing strategy so that when Jane arrives on your lot, she gets a push notification (or text, or email, or sees a banner ad) from your dealership.
Now, instead of seeing information about your competitor's lease special, Jane sees an offer for a $25 gift card if she takes a test drive right now at your dealership. She thinks, “Wow, how awesome is that?" Or, you send Jane a push notification of your own, informing her about a lease special or a free service maintenance contract with a purchase.
You may not get a lot of click-throughs or actions on these notifications and ads; more likely the customer will mention the offer to a salesperson. But you are making sure that when a customer is using a mobile app or browsing with their mobile device in your dealership, that your dealership brand is going to be there - and more importantly, that your competition is not going to be there.
How much is it worth to you to keep a customer in your showroom, actively engaged with a salesperson? You can bet your competitor is offering a compelling incentive along with a call-to-action. When you're protecting your turf, your ad messaging should be just as aggressive.
It's a good idea to thank your customers and let them know you appreciate their business. As a token of your appreciation, offer a gift card, freebie with purchase, or show competitive pricing information.
This strategy accomplishes two things: it prevents similar offers being shown to the customer from other dealerships, and reinforces in the customer's mind that they have made the right choice in coming to your dealership. Everybody likes to feel appreciated.
This type of geofencing strategy is also very economical. The perimeter around your store doesn't have to be large to be effective; in fact, smaller is better. Messages and ads are typically paid on a cost per thousand basis, so for a small monthly budget you can protect your turf and send your competition a message they'll hear loud and clear - they won't be poaching customers in your backyard!
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Join The Dark Side of Mobile
More than fifty percent of car shoppers are viewing dealership websites with their mobile devices, so having a mobile marketing strategy to connect with them is not only recommended, but critical for future survival. The benefits of "going mobile" are many and well documented, including the ability to make relevant offers to a specific target market, and the ability to identify and communicate with customers that are geo-physically close to your location.
Yet there is a dark side to mobile technology that auto dealers can't ignore. When customers are in your showroom and using their mobile devices, chances are they aren't checking email. Chances are, they're checking prices and offers at other dealerships. In fact, 62 percent of customers who use smartphones on your lot will visit another dealership within 24 hours.
This phenomenon -- called "showrooming" -- is on the rise, helped out by apps that allow car shoppers to scan a barcode or VIN and instantly see:
· How much other car shoppers in the same area paid for the same make and model
· How much your competition is charging for the same vehicle
When I talk about showrooming to dealers, I am reminded of a similar time back in the early days of the Internet. During that time, some dealers immediately realized the Internet was the future of car-shopping and raced to be early adopters, posting online ads and posting photos of inventory on their websites. Other dealers staunchly opposed the idea of all that transparency; their attitude was "in order to view my inventory, the customer has to come to my store."
In retrospect, this attitude seems pretty silly, but it was very real at the time. Today I often get a similar reaction from dealers when I tell them the best way to deal with showrooming is not to fight it, but to embrace it. Best Buy is one big-box retailer that initially tried to fight showrooming by blocking cell phone and wifi signals in its stores. The attempt failed dismally and eventually, Best Buy embraced showrooming by offering to price-match its competition and boosting its ecommerce presence. This strategy has worked.
Auto dealers can also make showrooming work for them instead of against them.
If they jump in now, they'll be similar to those trend-setters in the early days of the Internet who were well prepared as more consumers went down that path.
Here are a few steps that dealers can take to help them conquer the dark side of showrooming:
Ensure Your Entire Online Shopping Experience is Responsive.
Most dealers trust their website vendors to make their dealership website responsive. But sometimes extensions and other third-party add-ons can render in a way that disrupts the flow or function of a mobile page. The only way to know for sure what a customer's experience will be is to use your own mobile device to do everything a customer does, including: inventory search, getting a trade-in price, calculating payments, filling out a lead form and using online chat.
Ideally this process will be done on more than one mobile device. In fact, it may be a good idea to hold a sales meeting and lead the entire sales team through this process on their mobile devices. At the end of the meeting, all glitches should be identified and as a bonus, the salespeople will have a greater understanding of how half their customers are interacting with the dealership.
Check Out the Competition.
Now use your mobile devices to check out the car-shopping experience on your main competitors' websites. Note both their shortcomings and their strong points, and compare it to your own mobile car-shopping experience. Is there anything you think works that you'd like to add to your website? The goal is to offer the best mobile online shopping experience in town.
I would have an app for existing customers - and I would use it as a service application and for customer retention. I fly Delta and I use their app all the time - I use Spotify. A car-buying app - I am not going to use that every single day. Am I going to use it as a conquest car-buying application - I love apps for the right reasons. I have a strong opinion on executing on mobile apps.
Communicate With Mobile Customers.
Car shoppers using mobile devices rarely fill out lead forms, but they will chat and they will text. So learn to communicate with them using their preferred methods. Using a reliable vendor for these services is highly preferred over letting your salespeople send personal, informal texts. In general, if you want to own your messaging, keep it consistent and stay in compliance, a vendor is a better choice.
Draw Customers to Your Showroom.
Once you are in communication with your mobile customers, give them a reason to visit your dealership. Remember, these car shoppers are performing low-funnel activities like viewing inventory and researching pricing, so your messaging should be low-funnel too.
Avoid high-level messaging stating how great your dealership is or why you should shop there. Low-funnel messaging gives car shoppers a specific reason to visit your dealership today, and provides the answers and information those shoppers are looking for, such as:
1. Maps. Display your address and a map, and clickable directions from your customers' current location.
2. Offers. Give away a free visor or a gift-card just for coming in to take a test drive.
3. Incentives. Display special lease prices, cash-back bonuses and other offers. Offers can be customized to an individual's browsing history.
4. Pricing. Car shoppers want to know pricing and one way or another, they'll find it eventually. Why not be the dealership that gives it to them?
A very wise Jedi-trainer once said, "Fear is the path to the dark side. Fear leads to anger. Anger leads to suffering."
Showrooming may be the dark side of mobile but if Yoda's words are right, auto dealers who fear it may suffer from its ill effects; while those who embrace showrooming will learn to master it, and prosper.
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Join The Dark Side of Mobile
More than fifty percent of car shoppers are viewing dealership websites with their mobile devices, so having a mobile marketing strategy to connect with them is not only recommended, but critical for future survival. The benefits of "going mobile" are many and well documented, including the ability to make relevant offers to a specific target market, and the ability to identify and communicate with customers that are geo-physically close to your location.
Yet there is a dark side to mobile technology that auto dealers can't ignore. When customers are in your showroom and using their mobile devices, chances are they aren't checking email. Chances are, they're checking prices and offers at other dealerships. In fact, 62 percent of customers who use smartphones on your lot will visit another dealership within 24 hours.
This phenomenon -- called "showrooming" -- is on the rise, helped out by apps that allow car shoppers to scan a barcode or VIN and instantly see:
· How much other car shoppers in the same area paid for the same make and model
· How much your competition is charging for the same vehicle
When I talk about showrooming to dealers, I am reminded of a similar time back in the early days of the Internet. During that time, some dealers immediately realized the Internet was the future of car-shopping and raced to be early adopters, posting online ads and posting photos of inventory on their websites. Other dealers staunchly opposed the idea of all that transparency; their attitude was "in order to view my inventory, the customer has to come to my store."
In retrospect, this attitude seems pretty silly, but it was very real at the time. Today I often get a similar reaction from dealers when I tell them the best way to deal with showrooming is not to fight it, but to embrace it. Best Buy is one big-box retailer that initially tried to fight showrooming by blocking cell phone and wifi signals in its stores. The attempt failed dismally and eventually, Best Buy embraced showrooming by offering to price-match its competition and boosting its ecommerce presence. This strategy has worked.
Auto dealers can also make showrooming work for them instead of against them.
If they jump in now, they'll be similar to those trend-setters in the early days of the Internet who were well prepared as more consumers went down that path.
Here are a few steps that dealers can take to help them conquer the dark side of showrooming:
Ensure Your Entire Online Shopping Experience is Responsive.
Most dealers trust their website vendors to make their dealership website responsive. But sometimes extensions and other third-party add-ons can render in a way that disrupts the flow or function of a mobile page. The only way to know for sure what a customer's experience will be is to use your own mobile device to do everything a customer does, including: inventory search, getting a trade-in price, calculating payments, filling out a lead form and using online chat.
Ideally this process will be done on more than one mobile device. In fact, it may be a good idea to hold a sales meeting and lead the entire sales team through this process on their mobile devices. At the end of the meeting, all glitches should be identified and as a bonus, the salespeople will have a greater understanding of how half their customers are interacting with the dealership.
Check Out the Competition.
Now use your mobile devices to check out the car-shopping experience on your main competitors' websites. Note both their shortcomings and their strong points, and compare it to your own mobile car-shopping experience. Is there anything you think works that you'd like to add to your website? The goal is to offer the best mobile online shopping experience in town.
I would have an app for existing customers - and I would use it as a service application and for customer retention. I fly Delta and I use their app all the time - I use Spotify. A car-buying app - I am not going to use that every single day. Am I going to use it as a conquest car-buying application - I love apps for the right reasons. I have a strong opinion on executing on mobile apps.
Communicate With Mobile Customers.
Car shoppers using mobile devices rarely fill out lead forms, but they will chat and they will text. So learn to communicate with them using their preferred methods. Using a reliable vendor for these services is highly preferred over letting your salespeople send personal, informal texts. In general, if you want to own your messaging, keep it consistent and stay in compliance, a vendor is a better choice.
Draw Customers to Your Showroom.
Once you are in communication with your mobile customers, give them a reason to visit your dealership. Remember, these car shoppers are performing low-funnel activities like viewing inventory and researching pricing, so your messaging should be low-funnel too.
Avoid high-level messaging stating how great your dealership is or why you should shop there. Low-funnel messaging gives car shoppers a specific reason to visit your dealership today, and provides the answers and information those shoppers are looking for, such as:
1. Maps. Display your address and a map, and clickable directions from your customers' current location.
2. Offers. Give away a free visor or a gift-card just for coming in to take a test drive.
3. Incentives. Display special lease prices, cash-back bonuses and other offers. Offers can be customized to an individual's browsing history.
4. Pricing. Car shoppers want to know pricing and one way or another, they'll find it eventually. Why not be the dealership that gives it to them?
A very wise Jedi-trainer once said, "Fear is the path to the dark side. Fear leads to anger. Anger leads to suffering."
Showrooming may be the dark side of mobile but if Yoda's words are right, auto dealers who fear it may suffer from its ill effects; while those who embrace showrooming will learn to master it, and prosper.
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Customers Actually Prefer Businesses That Take the Lead
The multiple ways businesses can communicate with customers are constantly expanding - from telephone, to e-mail, to text messaging. With today’s technology, communication methods continue to evolve at unprecedented speeds. As smartphones have gotten smarter, the rise in the development of apps has introduced yet another way to communicate: push messaging. In fact, according to Openmind Networks’ CEO Alex Duncan, push messages represent an opportunity for mobile network providers to the tune of $10.9 billion. The reason? Consumers respond to push notifications at a higher rate than any other type of B2C communication, and they also prefer them. According to the study, 55 percent of consumers stated that they responded to push notifications versus 10-20 percent that responded to text messages, and 3.2 percent to e-mail. In addition, 23 percent ranked push notifications as their preferred mode of mobile communications for brands and organizations. See more information about the study here:
However, just as in any unprompted communication with a consumer, the message needs to be relevant and deliver value. Today’s phones are tracking everything customers do - from their heartbeat and health activities, to the places they visit - and our phones don’t forget! Have you ever been near a business you frequently visit and received a push message with an offer or prompt to stop in? The food industry does an excellent job of this. Walk past a Starbucks and chances are, at the very least, your phone will have your Starbucks card on its home screen in anticipation that you will be needing it soon.
Dealerships can take advantage of this exact same technology. Mobile network operators know where their customers are at all times. The fact that it is now being reported as a multi-billion dollar opportunity suggests that direct to consumer push messaging through mobile operators is on the horizon.
If over half of consumers respond to relevant push messaging, imagine the possibilities of having the ability to push out messages to consumers that are at your dealership. Or, better yet, on a competitor’s lot. With all other forms of communication, a dealership requires some piece of information - a phone number or e-mail address. With push messages - especially if done in cooperation with mobile network operators - dealerships don’t have to have any consumer information whatsoever. They can simply geo-fence their dealership (or a specified area) and push a message directly to THAT consumer’s phone - the one standing on their lot, or shopping across the road, at the competition. Rather than blasting messages via e-mail or text messaging, attempting to guess when a consumer is in-market, push messages allow you to send messages to people that are confirmed as being in market - and better yet, that are actively shopping for a vehicle at that very moment!
Smartphone mobile apps have taken communication and information sharing to a whole new level. The ability to push messages and relevant offers to consumers who actually prefer to receive communications in that very manner, and will respond to them, is marketing gold. Don’t end up being the dealership whose customers are receiving push messages from your competitors.
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Customers Actually Prefer Businesses That Take the Lead
The multiple ways businesses can communicate with customers are constantly expanding - from telephone, to e-mail, to text messaging. With today’s technology, communication methods continue to evolve at unprecedented speeds. As smartphones have gotten smarter, the rise in the development of apps has introduced yet another way to communicate: push messaging. In fact, according to Openmind Networks’ CEO Alex Duncan, push messages represent an opportunity for mobile network providers to the tune of $10.9 billion. The reason? Consumers respond to push notifications at a higher rate than any other type of B2C communication, and they also prefer them. According to the study, 55 percent of consumers stated that they responded to push notifications versus 10-20 percent that responded to text messages, and 3.2 percent to e-mail. In addition, 23 percent ranked push notifications as their preferred mode of mobile communications for brands and organizations. See more information about the study here:
However, just as in any unprompted communication with a consumer, the message needs to be relevant and deliver value. Today’s phones are tracking everything customers do - from their heartbeat and health activities, to the places they visit - and our phones don’t forget! Have you ever been near a business you frequently visit and received a push message with an offer or prompt to stop in? The food industry does an excellent job of this. Walk past a Starbucks and chances are, at the very least, your phone will have your Starbucks card on its home screen in anticipation that you will be needing it soon.
Dealerships can take advantage of this exact same technology. Mobile network operators know where their customers are at all times. The fact that it is now being reported as a multi-billion dollar opportunity suggests that direct to consumer push messaging through mobile operators is on the horizon.
If over half of consumers respond to relevant push messaging, imagine the possibilities of having the ability to push out messages to consumers that are at your dealership. Or, better yet, on a competitor’s lot. With all other forms of communication, a dealership requires some piece of information - a phone number or e-mail address. With push messages - especially if done in cooperation with mobile network operators - dealerships don’t have to have any consumer information whatsoever. They can simply geo-fence their dealership (or a specified area) and push a message directly to THAT consumer’s phone - the one standing on their lot, or shopping across the road, at the competition. Rather than blasting messages via e-mail or text messaging, attempting to guess when a consumer is in-market, push messages allow you to send messages to people that are confirmed as being in market - and better yet, that are actively shopping for a vehicle at that very moment!
Smartphone mobile apps have taken communication and information sharing to a whole new level. The ability to push messages and relevant offers to consumers who actually prefer to receive communications in that very manner, and will respond to them, is marketing gold. Don’t end up being the dealership whose customers are receiving push messages from your competitors.
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A Primer on Mobile Wallets and How Dealers Can Benefit From Them
If you have a smartphone, chances are you have Apple Wallet (formerly Passbook) or Google Wallet. These applications are mobile wallets that store, among other things, applications like Apple Pay that enable people to purchase things with their phones. Of course, it's very unlikely that anybody is going to purchase their vehicle by swiping their mobile device. For that reason, many dealers dismiss the notion that they need to know anything about mobile wallets.
However, mobile wallets are used for a lot more than just purchasing things. A mobile wallet is the digital equivalent to the physical wallets we carry in our pockets and purses. They can be used to store many things including drivers' licenses, social security cards, payment cards, login data for websites and loyalty cards. Mobile wallets are also used to store gift cards, coupons and authentication codes for boarding passes, public transport tickets, movie and sporting event tickets, and house and car keys.
For dealerships, the "keys" to getting your brand inside of a consumer's mobile wallet include loyalty cards, mobile advertising, coupons and special offers. The good news is, once you're in there you're likely to stay there, and your digital passcode can be easily updated so you can send customers push notifications offering them new coupons and specials.
Although mobile wallet usage is not yet mainstream, familiarity and usage have doubled since 2013, according to a recent study published by market research and consulting firm Chadwick Martin Bailey (CMB). Fifteen percent of respondents reported using a mobile wallet in the first half of 2015 and an additional 22 percent said they're likely to use it in the coming six months. If that's true, over one-third of consumers are now using their mobile wallets, at least on occasion.
This growing usage presents significant marketing opportunities for dealerships. Mobile wallets provide the perfect post-click destination for coupons, gift cards and incentives. Here are several ways that dealerships can leverage mobile wallets to ensure that your brand stays top-of-mind with consumers:
Digital Advertising
Early in 2015, Honda promoted its nationwide Honda Dream Garage Sales Event through a mobile wallet ad campaign that invited consumers to tap a banner ad and save the event to Apple’s Passbook (now Wallet) or Google Wallet. The mobile ads ran on ESPN.com, Allrecipes.com and the Washington Times. Once consumers stored the event, Honda sent reminders to them as the event date got closer. Individual dealerships could easily replicate this strategy.
Normal mobile ad campaigns can be forgotten soon after they are over. Mobile wallet marketing campaigns can be instantly updated to stay relevant to your customers' needs. Once your dealership has a digital passcode or "pass" into a customer's wallet, it's easy to push out reminders for a new promotion, much like Starbucks does.
Social Media and Mobile Apps
According to research firm Forrester, smartphone owners spend 80 percent of their time in five apps: Facebook, Maps, YouTube, Pandora and Gmail. For dealerships that advertise on Facebook, the growing adoption of mobile wallets will almost certainly result in higher click-through and redemption rates of Facebook ads. Here's why:
When a consumer is sitting at home or at work and surfing Facebook, they may see your dealership's coupon or offer, but may decide not to redeem it because they don't anticipate an immediate need, or they may forget about it as they continue to read their friends' updates. That consumer may remember later on, but the thought of having to go back to find and retrieve the offer or coupon is sometimes just enough of a deterrent that it doesn't happen.
When a consumer is checking Facebook with their mobile device, storing coupons and offers is a snap: just click on the ad or offer, click on a button that says "Add" and their mobile wallet stores the coupon or offer for future use. This makes it easy to store and organize a nearly endless supply of coupons and offers.
According to Vibes, a mobile wallet-marketing firm, 70 percent of consumers will save an offer to a mobile wallet when presented with the option and these offers have a 64 percent higher conversion rate over static mobile web coupons.
Location Targeting/Geo-Fencing
When a consumer stores a coupon, offer or event in their mobile wallet, your dealership has the ability to "ping" that customer when they enter a pre-defined area near your store. So if they stored information about your sales event and then drive by your dealership on the day of the event, they will receive a notification reminding them about the event. Or, if a consumer has stored a service coupon your dealership can send them a push notification reminding them about the coupon when that customer is within a one-mile radius of your store.
Loyalty Cards
This summer Apple confirmed it is bringing loyalty programs to Apple Pay, starting with retailers like Kohl's, Walgreens, JCPenney and Dunkin' Donuts. Could auto manufacturers be far behind? The ability to link a stored loyalty card to a local dealership's coupon, combined with the ability to notify customers about new offers, may create the "perfect storm" of incentives that will drive customers to your store.
Last year about this time, 2015 was being hailed as the year of the "mobile tsunami." I predict the next wave in 2016 will be the "mobile wallet tsunami." Innovative dealerships will be experimenting with digital advertising campaigns, social media ads and loyalty card programs. The goal is to get into the consumer's mobile wallet, which in effect gives your dealership permission to continue sending that consumer offers, coupons and gift card incentives.
A word of warning: this privilege should not be abused by sending out a continuous stream of push notifications and sales messaging. Instead, the mobile wallet should be viewed as a vehicle for building a long-term relationship with the customers that literally opened their wallet to let your dealership brand in.
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A Primer on Mobile Wallets and How Dealers Can Benefit From Them
If you have a smartphone, chances are you have Apple Wallet (formerly Passbook) or Google Wallet. These applications are mobile wallets that store, among other things, applications like Apple Pay that enable people to purchase things with their phones. Of course, it's very unlikely that anybody is going to purchase their vehicle by swiping their mobile device. For that reason, many dealers dismiss the notion that they need to know anything about mobile wallets.
However, mobile wallets are used for a lot more than just purchasing things. A mobile wallet is the digital equivalent to the physical wallets we carry in our pockets and purses. They can be used to store many things including drivers' licenses, social security cards, payment cards, login data for websites and loyalty cards. Mobile wallets are also used to store gift cards, coupons and authentication codes for boarding passes, public transport tickets, movie and sporting event tickets, and house and car keys.
For dealerships, the "keys" to getting your brand inside of a consumer's mobile wallet include loyalty cards, mobile advertising, coupons and special offers. The good news is, once you're in there you're likely to stay there, and your digital passcode can be easily updated so you can send customers push notifications offering them new coupons and specials.
Although mobile wallet usage is not yet mainstream, familiarity and usage have doubled since 2013, according to a recent study published by market research and consulting firm Chadwick Martin Bailey (CMB). Fifteen percent of respondents reported using a mobile wallet in the first half of 2015 and an additional 22 percent said they're likely to use it in the coming six months. If that's true, over one-third of consumers are now using their mobile wallets, at least on occasion.
This growing usage presents significant marketing opportunities for dealerships. Mobile wallets provide the perfect post-click destination for coupons, gift cards and incentives. Here are several ways that dealerships can leverage mobile wallets to ensure that your brand stays top-of-mind with consumers:
Digital Advertising
Early in 2015, Honda promoted its nationwide Honda Dream Garage Sales Event through a mobile wallet ad campaign that invited consumers to tap a banner ad and save the event to Apple’s Passbook (now Wallet) or Google Wallet. The mobile ads ran on ESPN.com, Allrecipes.com and the Washington Times. Once consumers stored the event, Honda sent reminders to them as the event date got closer. Individual dealerships could easily replicate this strategy.
Normal mobile ad campaigns can be forgotten soon after they are over. Mobile wallet marketing campaigns can be instantly updated to stay relevant to your customers' needs. Once your dealership has a digital passcode or "pass" into a customer's wallet, it's easy to push out reminders for a new promotion, much like Starbucks does.
Social Media and Mobile Apps
According to research firm Forrester, smartphone owners spend 80 percent of their time in five apps: Facebook, Maps, YouTube, Pandora and Gmail. For dealerships that advertise on Facebook, the growing adoption of mobile wallets will almost certainly result in higher click-through and redemption rates of Facebook ads. Here's why:
When a consumer is sitting at home or at work and surfing Facebook, they may see your dealership's coupon or offer, but may decide not to redeem it because they don't anticipate an immediate need, or they may forget about it as they continue to read their friends' updates. That consumer may remember later on, but the thought of having to go back to find and retrieve the offer or coupon is sometimes just enough of a deterrent that it doesn't happen.
When a consumer is checking Facebook with their mobile device, storing coupons and offers is a snap: just click on the ad or offer, click on a button that says "Add" and their mobile wallet stores the coupon or offer for future use. This makes it easy to store and organize a nearly endless supply of coupons and offers.
According to Vibes, a mobile wallet-marketing firm, 70 percent of consumers will save an offer to a mobile wallet when presented with the option and these offers have a 64 percent higher conversion rate over static mobile web coupons.
Location Targeting/Geo-Fencing
When a consumer stores a coupon, offer or event in their mobile wallet, your dealership has the ability to "ping" that customer when they enter a pre-defined area near your store. So if they stored information about your sales event and then drive by your dealership on the day of the event, they will receive a notification reminding them about the event. Or, if a consumer has stored a service coupon your dealership can send them a push notification reminding them about the coupon when that customer is within a one-mile radius of your store.
Loyalty Cards
This summer Apple confirmed it is bringing loyalty programs to Apple Pay, starting with retailers like Kohl's, Walgreens, JCPenney and Dunkin' Donuts. Could auto manufacturers be far behind? The ability to link a stored loyalty card to a local dealership's coupon, combined with the ability to notify customers about new offers, may create the "perfect storm" of incentives that will drive customers to your store.
Last year about this time, 2015 was being hailed as the year of the "mobile tsunami." I predict the next wave in 2016 will be the "mobile wallet tsunami." Innovative dealerships will be experimenting with digital advertising campaigns, social media ads and loyalty card programs. The goal is to get into the consumer's mobile wallet, which in effect gives your dealership permission to continue sending that consumer offers, coupons and gift card incentives.
A word of warning: this privilege should not be abused by sending out a continuous stream of push notifications and sales messaging. Instead, the mobile wallet should be viewed as a vehicle for building a long-term relationship with the customers that literally opened their wallet to let your dealership brand in.
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What Are You Doing to Reach Mobile Customers?
There’s no doubt that people are in love with their phones. As a result, memes and jokes constantly circulate the Internet about how some people no longer participate in “normal” activities because they simply can’t put down their phones. People aren’t reading newspapers anymore - at least not in print - and they’re fast-forwarding through commercials. So where are they? You guessed it. On their phones.
In a recent article on eMarketer.com, a respected publication that covers the global digital ecosystem: digital marketing, media and commerce, it was reported that 2015 is “a benchmark year for ad spending in the US, as mobile surpasses desktop spending for the first time.”
In fact, eMarketer estimates that mobile will account for almost 52 percent of all digital spending by the end of the year. It attributes the shift to consumer demand and estimates that adults spend almost 3 hours per day on “nonvoice activities” on mobile devices – 1.5 hours of which is on mobile phones.
There’s a very simple - and good - reason companies are shifting ad budgets towards mobile marketing. That’s where consumers are. Not too long ago, when someone decided to go car shopping, the first thing they did was pick up the Friday newspaper to view the section with all of the dealership advertising. Now, they hop online and look through OEM, dealership and third party sites to obtain that information on demand. In fact, the more tech-savvy consumers conduct their research from their mobile device while they’re shopping – right in the store or dealership.
With this ever increasing trend in the use of mobile, I would advise dealers to investigate successful methods to capture the attention of these mobile shoppers. Technology is quickly developing including the strategic use of display ads, geo-targeting and push notifications. If you can reach out to a nearby customer actively shopping in your area and immediately inform them of sales, offers or specials -- without any effort on the part of that consumer -- you certainly could then have an edge over any competitors.
The technology exists today that allows dealers to do this relatively inexpensively, such as through the use of iBeacons, a class of Bluetooth low energy (LE) devices that broadcast their identifier to nearby portable electronic devices. This can be used to determine the device's physical location, track customers, or trigger a location-based action on the device such as a check-in on social media or a push notification. Facebook, for example, offers free beacons to auto dealerships that can be used to push messages to customers at the dealership through the use of Bluetooth and geo-location technology.
As consumers continue their migration away from desktops and rely more on mobile devices, marketing will continue its shift in that direction as well. Just as it is extremely important that your website is compatible with mobile devices, the same now applies to your marketing
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What Are You Doing to Reach Mobile Customers?
There’s no doubt that people are in love with their phones. As a result, memes and jokes constantly circulate the Internet about how some people no longer participate in “normal” activities because they simply can’t put down their phones. People aren’t reading newspapers anymore - at least not in print - and they’re fast-forwarding through commercials. So where are they? You guessed it. On their phones.
In a recent article on eMarketer.com, a respected publication that covers the global digital ecosystem: digital marketing, media and commerce, it was reported that 2015 is “a benchmark year for ad spending in the US, as mobile surpasses desktop spending for the first time.”
In fact, eMarketer estimates that mobile will account for almost 52 percent of all digital spending by the end of the year. It attributes the shift to consumer demand and estimates that adults spend almost 3 hours per day on “nonvoice activities” on mobile devices – 1.5 hours of which is on mobile phones.
There’s a very simple - and good - reason companies are shifting ad budgets towards mobile marketing. That’s where consumers are. Not too long ago, when someone decided to go car shopping, the first thing they did was pick up the Friday newspaper to view the section with all of the dealership advertising. Now, they hop online and look through OEM, dealership and third party sites to obtain that information on demand. In fact, the more tech-savvy consumers conduct their research from their mobile device while they’re shopping – right in the store or dealership.
With this ever increasing trend in the use of mobile, I would advise dealers to investigate successful methods to capture the attention of these mobile shoppers. Technology is quickly developing including the strategic use of display ads, geo-targeting and push notifications. If you can reach out to a nearby customer actively shopping in your area and immediately inform them of sales, offers or specials -- without any effort on the part of that consumer -- you certainly could then have an edge over any competitors.
The technology exists today that allows dealers to do this relatively inexpensively, such as through the use of iBeacons, a class of Bluetooth low energy (LE) devices that broadcast their identifier to nearby portable electronic devices. This can be used to determine the device's physical location, track customers, or trigger a location-based action on the device such as a check-in on social media or a push notification. Facebook, for example, offers free beacons to auto dealerships that can be used to push messages to customers at the dealership through the use of Bluetooth and geo-location technology.
As consumers continue their migration away from desktops and rely more on mobile devices, marketing will continue its shift in that direction as well. Just as it is extremely important that your website is compatible with mobile devices, the same now applies to your marketing
No Comments
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