Why Texting is Gaining Popularity in Auto Dealerships

Texting is quickly becoming one of the most popular communication channels for businesses, including auto dealerships. As customer preferences evolve and dealerships look for more effective ways to engage with them, texting has emerged as a standout tool. In this article, we begin a new series on dealership texting by exploring why this method of communication is growing in popularity and how it's helping dealerships deliver better service. If you're curious about using texting in your dealership, this series is for you.

Consumer Preferences Are Changing

One of the main reasons texting is becoming popular in auto dealerships is simple: consumer preferences are changing. Over the past few years, there has been a noticeable shift in how consumers want to communicate with businesses, and texting is leading the charge.

According to the 2023 Dealership Service Retention Report, 68% of customers now prefer texting during a service visit, up from 60% in 2020. However, the preference for texting doesn't stop when the service is complete; 40% of customers now prefer texting between visits, compared to 32% in 2020. 

Interestingly, these preferences also differ by age group. 

• Among people aged 18-34, 56% prefer texting
• Among people aged 35-54, 46% prefer texting
• Among people 55 and older, 35% prefer texting

These statistics show that texting is more popular among younger consumers. However, it's gaining traction with older demographics too. While only 35% of those 55 and older prefer texting, that number represents an 11% increase from 2020. 

In contrast, the preference for email, which used to be a major channel for dealership communication, has dropped significantly. In 2020, 50% of customers preferred email communication, but by 2023, that number dropped to 43%. Meanwhile, preference for phone calls has remained stable over the past few years, but it's still only 13%.

The bottom line is that texting is gaining popularity among dealerships because consumers prefer it. As people move away from email and phone calls in favor of faster, more convenient communication, dealerships must adapt to these changing preferences. By embracing texting, dealerships can meet consumer expectations and enhance the overall customer experience.

Texting Benefits for Consumers

Texting has become an increasingly popular choice for consumers when interacting with businesses. Its simplicity and effectiveness are just a few reasons it's preferred. Here's a closer look at why consumers are gravitating toward texting as their go-to communication method.

• Convenience: Texting fits into a busy lifestyle, allowing consumers to check messages when it suits them.
• Non-Intrusiveness: Texts don't demand immediate attention and interrupt like phone calls.
• Flexibility: Consumers can manage communication on their terms and decide when and how to reply.
• Real-Time Updates: Texts provide timely information without disrupting the customer's day.
• Clear and Digestible: Text messages are short and easy to read, unlike emails, which tend to be longer and require more time. 
• More Control: Customers feel in control of the conversation since they aren't put on the spot for immediate responses like in phone calls.

Understanding why consumers prefer texting can help auto dealerships incorporate text messaging in ways that play to these strengths and benefits. 

Texting Benefits for Dealerships

The other main reason texting is gaining popularity in auto dealerships is simple: texting is an effective means of customer communication. Here are some key benefits that make texting ideal for dealerships. 

Effectiveness

Texts have a staggering 98% open rate compared to email's 28%. Most people are inundated with unread emails in their inboxes. In contrast, text messages are rarely left unread. The higher open rate means dealerships are far more likely to reach their customers with critical messages using text.

Engagement

Texting also has a better engagement rate: 42% read rate and 10% click-through rate (CTR), compared to email's 32% read rate and 3.8% CTR. This means customers are more likely to engage with dealership texts by reading and clicking on links, which helps dealers keep communication lines open and active. 

Faster Response Rate

Texting encourages faster responses from customers. In fact, 90% of people respond to a text within three minutes of receiving it. This is especially useful for dealerships when time-sensitive updates are needed. 

Cost-Effective

Texting is a cost-effective communication tool for dealerships. Sending text messages costs significantly less than traditional forms of communication like direct mail or printed marketing materials. Additionally, the high open and engagement rates mean dealerships get more bang for their buck. 

Better Customer Service

Texting can help improve overall customer service by providing quick responses to customers. Whether sending a service reminder, letting customers know their vehicle is ready for pickup, or answering a simple question, texts help streamline communication. 

Many Uses

Texting offers many applications that make communication between dealerships and customers more efficient and effective. Dealerships can use texting in numerous ways, such as confirming service appointments, following up after a test drive, sharing special promotions, sending satisfaction surveys, and asking for referrals. Check out our article 9 Ways to Use Business Text Messaging in Your Auto Business for more ideas.

Getting Started with Dealership Texting

According to the 2023 Dealership Service Retention Report, 75% of dealerships are using text messaging, up from 58% in 2020. If your dealership hasn't fully embraced texting as a communication channel—or if you're not maximizing its potential—Clarity Voice has the tools to help you get started and up your game. Here's how our technology can help streamline your texting efforts:

• Clarity Portal: Our user-friendly Clarity Portal allows you to send and receive texts from your business line, including group messages for up to 10 numbers. 
• Office Anywhere App: Available for Android and iOS, our app allows your team to send and receive texts from the dealership number, whether they are in the office or on the go. 
• Text Responder: With our Text Responder feature, you can add an option in your Auto Attendant for customers to press a button and receive an automated text message. This is perfect for making appointments, handling frequently asked questions, and it frees up your staff to handle other important calls.
• Clarity Cellular: With Clarity Cellular, your dealership team can use their personal phones to send texts from the dealership's business number. This feature is ideal for one-on-one communication, such as nurturing prospects or following up on inquiries.

Want to learn more about how Clarity's DealerPhones® and Clarity Cellular solutions can revolutionize your dealership's communication? Contact our team today to discover how we can help you unlock the full potential of text messaging in your business.

More About Dealership Texting Next Time!

To answer the question in this article title—why is texting gaining popularity in auto dealerships—it's simple: customers prefer it, and dealerships find it to be an effective communication tool. But there's more to the story! Stay tuned for future articles in this series, where we'll dive into topics like texting challenges, compliance, and more. See you next time!