Seven Advantages of Direct Mail
for the Automotive Industry

Written for AutoSuccess Magazine
April 2001

By Scott Joseph

There are hundreds of ways of getting your dealership's name and offers out to the general public. Most dealerships rely on the "shot-gun advertising" methods of billboards, newspaper, radio and TV. I have been marketing for the automotive industry for ten years, and regularly witness most dealers switch into automatic when figuring their advertising plan for the month. But rather than signing that next advertising contract out of habit, take a moment and reconsider the advantages of direct mail.

1. Direct mail is measurable. How can you tell if your ad in the Sunday paper was effective? If traffic in the showroom improves on Monday, you assume that the paper drew them in. The same holds true for radio, TV and billboard- if traffic seems to increase after these ads are put into place, then you conclude that the advertising worked. But this is an assumption. Only direct mail is immediately measurable. With customers walking through the door with a mailer in their hand, your response rate can be easily concluded. If you work with a reputable direct marketing company, they should track and analyze this data for you. I am currently working with an advanced Response Analysis Database that compiles and tracks every aspect of over 10,000 direct mailing events, and lets me fine-tune my client's next promotion, so that their advertising dollars work harder every event.

2. Direct mail is inexpensive. Running a direct mail campaign is perhaps the most cost-effective use of your advertising dollar, for two reasons:

a. You are paying only to get your message to those who are genuinely interested, not just to anyone who will listen. It simply costs less to do a laser-precise targeting than a scatter-shot campaign.

b. Every direct mail campaign should be more successful than your last. Using your response analysis data, you should be able to analyze each promotion and make your next campaign even more effective.

3. Direct mail is targetable. Rather than sending a generic message out to the general population, direct mail allows you to specifically target an audience who is interested in exactly your type of vehicle. Working with advanced databases, I have even sent out variable mailers- mailing different offers to different people depending on the particular demands of the audience. A reputable direct mail firm should be able to determine everything about your target audience, beginning with their previous buying habits and current vehicle needs, and ending with the type of message that they respond to. After all, the only secret to advertising is getting the right message to the right people at the right time.

4. Direct mail is planned. Think of direct mail as a surgical strike- with every detail of the promotion mapped out ahead of time. The audience is carefully chosen, the message crafted exclusively for that specific audience, and the details are thought through, down to the day of the week that the piece arrives in their home. Direct mail is also the only advertising that can be guaranteed to reach its audience. TV, radio, newsprint and billboards all rely to some extent on the luck of timing to reach any audience at all. Direct mail will reach the hands of the person who is interested in your offer.

5. Direct mail is secret. No, I don't mean that the idea of direct mail is secret- but what you do through direct mail can be kept secret from your competitors, which is a big advantage in today's market. The automotive market is getting tighter (this certainly isn't a secret), and your competitor down the road keeps an eye on what you offer, just like you keep an eye on their store. With direct mail, it is a private communication between you and your prospect. Any creative concept that you can muster can be kept exclusive for some time. Which brings me to my next point...

6. Direct mail is creative. People are naturally drawn to the new and different, but if you try something creative in most advertising, and it doesn't work- it can be a really expensive error. So, most dealers stick with the "tried and true, " which means that the newspaper ads, TV commercials, radio ads, and billboards all look the same. This doesn't differentiate you from any other dealer out there. With direct mail, the simple fact that it is an inexpensive way to advertise allows for more creative freedom. And, if you don't have creative people on staff- get with a marketing firm that does. It is worth it.

7. Direct mail is participatory. With the exception of the internet, every other advertising is passive. The audience can listen to radio or TV ads, or glance over your newspaper ad or billboard, but direct mail is the only truly interactive advertising medium available that you can control. The other advantage is that the recipient chooses when they are ready to receive the offer. That captive audience will open your mailer and read your offer when they are actively ready to hear what you have to say. Think of it as a line of customers in your showroom who are interested, and want you to tell them more! Plus, mail is fun. Nobody likes an empty mailbox, and most people evaluate every piece of mail that comes into their house. This unassuming little envelope can offer you a big bang for your advertising buck.

The advantages of direct mail are many- but they come with a word of caution. Unless you are extremely experienced with this type of marketing, this is not a do-it-yourself project. Success in this field is typically 40% dependent on the list, 40% on the offer, and 20% on everything else (creative, layout, paper stock, etc.). Gain the assistance of a reputable direct mail firm, and enjoy the rewards!

Next month: Testing and measuring the effectiveness of your advertising to improve your profit.

Read another AutoSuccess article:

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October 2001:
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November 2001:
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December 2001:
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January 2002:
Secrets to Improve Your Sales and Profit With Direct Mail

February 2002:
How to Sell One to Two More Deals for Each 100 Pieces of Mail You Send!

March 2002:
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April 2002:
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May 2002:
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July 2002
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August 2002
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September 2002
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