This article focuses on ‘A2P’ SMS in the auto trade.
SMS marketing for the auto trade has tremendous benefits:
With phone call conversion rates of between 2% and 6% for professional call centres, this means for every 100 calls only 2 – 6 customers will be converted to a sale.
SMS marketing has an average conversion rate of 36%, however, this is not related to sales conversion, it is related to qualifying customers – and this is crucial.
If you could qualify 36 of every 100 customers BEFORE you rang them, then you could make better choices of who your call centre staff should ring.
If they only ring those customers that are ready to have their needs met, then your conversion rate would be significantly higher. In fact it would be so high, you would have ro revise your staff bonus structure.
SMS Marketing Example:
Current Status & Problems.
If you had 25 staff making 25 calls per day that would be 625 calls per day.
If the conversion rate was 4% that would be 25 sales per day, or 1 sale per member of staff – sounds familiar?
If the profit was £300.00 per car then you have made £300.00 profit per sales person per day.
Let us assume you have a database of 40,000 customers, that would take you 64 days to contact all your customers.
You would have converted 1,600 out of the 40,000 after 64 days.
You would have 38,400 customers who you did not sell too, furthermore, they may resent being contacted again by phone.
SMS Campaign Filtering & Solutions:
If we ran an SMS filtering campaign to 10,000 of these customers every week of the month, then we would be able to qualify approximately 3,600 of them every week.
We could then select the most responsive (approx. the top 20%) to allocate 625 to our contact staff – thus significantly improving their conversion rates.
At the end of 4 weeks we would have pre qualified all 40,000 of our customers, furthermore, only the most responsive would have been contacted by phone – so they DO NOT FEEL PESTERED.
We could further filter the other 35,000 and send them another text – this would not be an intrusion of their time and you will get a further batch of better qualified customers for the 2nd months calls, and so on.
Simple To Cost Out:
Any call centre manager / director would be able to do some calculations to assess the benefits of SMS flitering to their operation.
The ROI would be significant.
Let us play around with some figures, just to focus in on this:
Let us assume the cost for the 10,000 SMS campaign was £900.00 per week.
Let us assume that by filtering the most receptive customers to your professional call cantre staff, they increased their conversion rate from 4% to 20% – this is not unreasonable.
The sales would increase from one per day to five per day, or from £300.00 per day to £1,500.00 per day
That is an increase in profit of £1,200.00 per day per sales person.
£1,200.00 x 25 staff = £30,000.00
AN EXTRA £30,000 PROFIT FOR A COST OF £900.00 – IT’S A NO BRAINER!!!
So if the return was only 10% instead of 20% then this would still be a profit of £15,000 for a cost of £900.00
QUALITY OF LEADS IS CRUCIAL & SMS CAN MAKE THIS HAPPEN.
Your effectiveness would be noticed by the dealers and this could result in more work.
For a practical example of how an auto sector SMS Marketing Campaign may be initiated –
please text “JUICE AUTO“ to “60777“
Contact Free SMS Marketing for a free chat about our support services, pricing options and other aspects of specific support for those in the auto trade sector.
Ring 07931 326 164
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