Why You Should be Investing $2 Per Piece in Your Digital/Direct Mail Marketing, NOT 50 Cents Per Piece!

Posted: August 19, 2016 in Uncategorized
Tags: , , , , , ,

thinking

Would your car dealership earn a higher ROI doing “Test A” that is 10,000 pieces of direct mail for $5,000 or “Test B,” that is 5,000 pieces of Multichannel digital/direct mail for $10,000?

Obviously the less expensive mailer (Test A) with more pieces is going to be a “one channel only” direct mail piece.

The bigger investment (Test B) mailer will include several channels or as we call it “Multichannel digital/direct mail event.”

The closing ratio and an honest evaluation of your current management/salespeople is key.

Test A is going to get you more actual traffic and you will be relying more on your salespeople/management than the piece.

Test B allows you to lean heavier on the digital/direct mail technology rather than your salespeople/management. (Nothing wrong with that, think about your teams level of “event experience.” )

Unless your salespeople/management is so experienced with events, they could be a crew from one of these “staffed event companies,” you will sell more vehicles with Test B than Test A every time and twice on Sundays!

So let’s look at ROI:

Test A – 10,000 pieces for $5,000 one channel: 100 ups close 10% or 10 units. Let’s call it $3,000 a copy. (I know yours is higher but for arguments sake)   That’s $30,000 minus $5,000 investment for $25,000 profit.

Test B – 5,000 piece multichannel digital and direct mail event for $10,000. Traffic is traditionally a little lower. So call it 75 ups/replies. Closing ratio can double so close 20% or 15 units. Take 15 units x $3,000 a copy is $45,000. That’s $45,000 minus $10,000 investment for $35,000 profit.

Summary – Test B earns $10,000 more but let’s “put all the cars on the table.” The closing rations here are just estimates. Your actual event numbers could double these extremely conservative estimates.

Plus, we didn’t factor in the money you will earn from great trades or the fact that “Test B” uses only half the market of “Test A” so you can hit an additional 5,000 car buyers for another great multichannel digital/direct mail marketing event the next month without going back to the same people!

I will close with this. More times than not, “Test A” makes printers richer. “Test B” makes you richer…

My time is up, you been great! Good selling-

Todd Vowell

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