You’ve probably seen it before: Commercials and print advertisements urging you to text “WIN” to “55555” in order to be the next lucky sweepstakes winner. While that seems like something you would pass up, what if consumers could receive useful information through a text about financing and vehicle facts just by watching a commercial?
While the car buying process moves closer to being largely online-based, consumers are looking for a social, entertaining, instantaneous experience. They want information as easily accessible as logging onto Facebook and looking at a friend’s newsfeed. In response, car dealers and auto lenders are stepping up to the plate and bringing the car buying process into virtual reality.
FordDirect, for example, recently launched a mobile service that enables shoppers to receive prompt, targeted information about Ford vehicles by simply sending a text message from their mobile device. The program is being powered by mobile marketing and advertising company Hipcricket, an Augme Technologies, Inc. company.
“With consumers increasingly turning to their smart phones during their shopping process, it is becoming crucial for automakers and dealers to interact with auto customers through this medium,” said Valerie Fuller, Chief Operating Officer at FordDirect.
So if a consumer flips on his TV around midnight, with car shopping on the brain, he can send a text to a number revealed in the ad, and immediately get information on the vehicle he’s got his eye on. Additionally, the consumer can include his zip code in a follow-up text which will allow him to know what incentives are being offered by a local dealership’s captive in terms of leasing or financing.
At the same rate, myAutoLoan.com, an online finance company specializing in auto loans, recently launched an interest rate widget to help their consumers answer frequently asked questions in an instant.
If a customer asks, “When I apply, what interest rate or APR might I be approved for?” The Interest Rate Estimator, as they call it, allows customers to enter the type of auto loan they are interested in along with their zip code and credit score and click “Calculate”. The interest rate widget will populate and display a distribution curve with the current interest rates being offered by myAutoloan.com’s lenders for any standard credit profile. The website, which prides itself on lending transparency, is also trying to keep up with the times and offer its customers rapid-fire answers to their car-buying questions.
All that information without talking to a single person? That’s what people are looking for these days. It may seem impersonal, but convenience like that may have buyers in the showroom in days to come; eliminating excessive calls or emails from a dealership looking for business.
Through the FordDirect texting program, the consumer can opt to receive a follow-up call for more information on the prospective vehicle when they are ready. As for myAutoLoan.com, there doesn’t seem to be a contact phone number anywhere on the site. The goal of the site is to help consumers obtain auto loans through a technology-driven solution.
“Our mobile service enables customers to engage with us immediately while their questions are top of mind. The service also delivers additional customer referrals to Ford dealerships, enabling them to quickly reach out to the customer regarding the specific vehicle they are interested in,” Fuller of FordDirect said.
Anytime or anyplace, how easy is it for a consumer to send a text to their local car dealership or log onto a user-friendly site for information about a potential purchase? About three seconds easy.
According to FordDirect, the Mobile Marketing Texting Service has generated a 14% lead conversion rate since its inception this month.
Is there any doubt that this could have been written 60 days in advance? Better yet, keep it in mothballs for March as well. Everyone knew this would and will be the case when comparing year-over-year to 2008. It will likely take June or July of ’09 for that pattern to end.
Here is the good news. I am networked with thousands of retail dealers and communicate with at least 1000 every month. What I am being told is that February was a good to great month for many dealers – both franchise and independents. New cars were basically flat to +10% over January, but used vehicles were through the roof.
This doesn’t mean that dealers are out of the woods, indeed many have continued to fail and will do so just because they were so far behind the 8-ball at the end of Q42008, but the trend and optimism is up.
I still expect 1Q2009 to beat 4Q2008.