4 Benefits of Implementing a Direct to Consumer Marketing Strategy

Direct to consumer marketing is completely revolutionizing the way we buy products and services. Instead of relying on crowded retailer environments and expensive advertisements to sell a product, brands are leveraging the vast digital landscape to reach customers. 

This marketing tactic isn’t just for selling subscription boxes and packaged mattressesauto dealers can utilize direct to consumer (DTC) marketing to connect with customers about special promotions, unique services, and exciting offers. 

Let’s go over the benefits of using DTC marketing and how you can utilize this marketing method to maximize your dealership strategy. 

Benefits of Direct to Consumer Marketing

Traditional dealership marketing tactics usually rely on producing advertisements for local television, radio, and newspapers, and depending on organic search marketing to bring in customers. 

While this type of marketing has worked for selling new cars, dealers must refocus their advertising strategy as the vehicle inventory shortage continues to strain dealership supply. Instead, dealers are concentrating on advertising vehicle trade-ins, used vehicles, and other ancillary offerings like insurance packages and service department deals. DTC marketing can help dealers more effectively advertise these products and services and boost dealership ROI. 

Benefits of using DTC marketing in your dealership: 

  • Efficiency: DTC marketing allows you to meet customers exactly where they’re atonline. Instead of hoping consumers catch your ad on TV or find you while skimming the Sunday newspaper, DTC marketing employs automated messaging, social media, and influencer marketing to reach broad digital audiences. 
  • Precision: Data gathered online can be used to segment target audiences for a more defined ad campaign. For example, instead of advertising a special trade-in deal to all existing customers, you can target your offer to reach only customers with desirable used vehicles.
  • Loyalty: Use consumer data to provide relevant outreach about your brand on a customer’s preferred channels. DTC makes it easy to build loyalty with strategic ad placements. After all, loyal customers spend an average of 67 percent more than new customers. 
  • Savings: Instead of pouring all your resources into expensive ad campaigns, using automated marketing methods can drive revenue while reducing ad spend. Email campaigns, SMS marketing, and in-app advertising are all powerful and cost-effective ways to promote your brand. 

Maximize Your Direct To Consumer Marketing Strategy 

Now that you know what DTC can bring to your dealership, maximize the benefits by utilizing data and increasing ancillary service outreach. 

Leverage Customer Data 

DTC marketing allows you to accumulate massive amounts of customer-generated data. This data is a valuable resourcemake the most of this first-party data by using it to create monthly reports, track consumer demographics, and map consumer trends. 

In addition to DTC data, with connected vehicle technology (CVT), you have access to a surplus of granular car data that can be leveraged to enhance operations and improve the customer experience overall.

Drive Ancillary Revenue 

Using a DTC strategy to communicate with customers who you know are in need of car maintenance based on connected vehicle data or who would be most likely to trade in their used vehicle can significantly increase revenue, especially in the midst of the inventory shortage. 

Having an automotive app that sends messages directly to customers’ mobile devices enables you to address customer needs and push return sales. 

Discover the Leading Automotive DTC Solution 

Elo GPS with CarRx is a direct to consumer messaging platform, vehicle maintenance software, and theft protection device all in one. The CarRx app for drivers automatically runs automotive diagnostic scans, sends recommendations for vehicle maintenance, and allows you to customize automated messaging to advertise special promotions like trade-in deals. CarRx also helps you bring customers back for service at YOUR dealership by enabling them to quickly schedule service at your service center in only a few taps on the mobile app.

DTC marketing with CarRx is a great way to help customers stay on top of maintenance needs and increase profit margins. Schedule a demo with one of our experts to learn more about the CarRx solution.