A significant challenge for dealerships today is the acquisition of high-quality used vehicles for their inventory. The problem has been exacerbated by the rise of online retailers that offer cash for vehicles, sight unseen. Customers like these transactions because they’re convenient and because they feel like they can get the best deal if they shop their vehicle online.
To adapt to changing market expectations, dealers need to be aggressive about identifying and making offers to customers who own desirable vehicles. Although most dealerships send out email offers to lists curated from equity mining software, open rates on these campaigns could be better. Considering the average professional receives 120 emails every day, dealers need to make their emails stand out from the crowd.
One solution to grab your customers' attention is video. Specifically, videos that make personalized cash offers to a specific customer for a specific vehicle. Here’s how they work:
- Equity mine. Use your dealership’s equity mining tool to identify potential trade-in opportunities within your existing customer database. These tools can pinpoint customers who are currently, or will soon be, in a position to consider trading in their vehicles.
- Generate personalized video offers. Upload a list of customers to a video marketing platform built on an artificial intelligence (AI) engine. AI technology can instantly create dozens, if not hundreds, of personalized video offers within minutes.
These videos are tailored to each specific customer and vehicle in question. The video is fashioned as a short presentation on the benefits of selling to your dealership. Each video mentions the customer by name, as well as their vehicle make and model, and gives a specific monetary offer, right down to the penny.
- Engage with personalized videos. Video emails have consistently shown higher open and click-through rates than their text-based counterparts. When a customer receives a personalized video offer, they’re far more likely to click, open, and engage with the content. The inclusion of their name and details about their vehicle piques their interest.
- Call to action. Within the video, a clear call to action invites the customer to take the next step. They can click on a link if they’re interested in the offer or want to learn more. This seamless transition from video to action streamlines the process for the customer.
Why Personalized Video Offers Work
The effectiveness of personalized video offers lies in their ability to create a meaningful connection with the customer. Here’s why they work:
Personalization. Customers appreciate it when businesses take the time to personalize their interactions. By mentioning the customer’s name and providing a specific offer tailored to their vehicle, dealerships demonstrate a commitment to meeting individual needs.
Increased engagement. Video content is inherently more engaging than text-based communications. When customers watch a video that speaks directly to them, they’re more likely to watch the entire presentation, which typically lasts only one to two minutes.
Convenience. Personalized video offers align with the trend toward online convenience. Customers can explore the value of their trade-in or sale from the comfort of their own homes, on their own time.
Competitive edge. By offering customers a seamless way to explore their vehicle’s worth, dealerships can compete more effectively with online retailers such as Carvana. Personalized video offers give dealerships the edge they need to increase their used-vehicle acquisition.
Personalized video offers for trade-in vehicles are a potent tool for auto dealerships seeking to enhance their used-car inventory. In an industry where adaptation is key, this innovative approach helps dealerships compete and meet the evolving expectations of their customers.
Jason Ezell (pictured, above left) is vice president of Partner Communications at FlickFusion, where he forms strategic relationships with digital marketing, website and CRM companies in retail automotive.