Archive for category Automotive Sales

Use “Hummer Tax Loophole” To Sell More Vehicles In December

Are You Using \”Hummer Tax Loophole\” To Sell More Vehicles In December?

Car Dealer uses “Hummer Tax Loophole” to Educate Commercial Vehicle Buyers and Close More Deals In December

I received the following commercial vehicle buyer targeted explanation of the tax advantages businesses can gain by purchasing one or more new vehicles before December 31st. I received in my overcrowded Gmail inbox, where it caught my attention and I found it to be so compelling that it merited being shared with the ADM Community… The dealer group that sent it to me is the Resnick Automotive Group of Schaumburg, Illinois. I also added several sections with further detail directly from the IRS towards the bottom of this post:

One of the more popular uses of the Section 179 Deduction has been for vehicles. In fact, several years ago the Section 179 deduction was sometimes referred to as the “Hummer Tax Loophole,” because a the time it allowed businesses to buy large SUV’s and write them off. While this particular use (or abuse) of the tax code has been modified with the limits explained below, it is still true that Section 179 can be advantageous in buying vehicles for your business.


You still have an excellent opportunity through 12/31/2013 to minimize your tax liability by purchasing a qualifying Car, Truck  Van or SUV. Plus, under the Tax Relief / Job Creation Act of 2010, qualified small business owners who purchase a qualifying vehicle GVWR (Gross Vehicle Weight) of 6000 pounds or more, may even have greater benefits if the vehicle is entirely used for business purposes.

  • Under the IRS ruling, the following  new “trucks” qualify.
  • Consult your accountant/tax advisor for complete details and eligibility.
  • Qualifying Vehicles of 6000 lbs. GVWR

Mercedes-Benz

Lexus

Toyota

Sprinter Van
ML350
GL450/550
GL350 BTC
G550

GX460
LX570

Tundra
4Runner
Sequoia

Additional Savings:
 Special Finance Rates, Factory Incentives and Dealer Year-End Discounts

Additional Section 179 Details Published by the IRS:
Update / IRS Guidelines for Vehicles in 2013

The IRS has not yet released guidance concerning Section 179 and Bonus Depreciation as it relates to vehicles for the year 2013. The guidance will be published in the Internal Revenue Bulletin sometime after April 15th. So be patient, and check back here often for the release date.

There are a number of qualifications for vehicles, all with varying tax treatment. Please refer to page 6 of these Instructions for Form 2106 to read the exact IRS language.

What are the limits on Typical Passenger Vehicles?

For passenger vehicles, trucks, and vans (not meeting the guidelines below), that are used more than 50% in a qualified business use, the total deduction for depreciation including both the Section 179 expense deduction as well as Bonus Depreciation is limited to $11,060 for cars and $11,160 for trucks and vans.

Exceptions include the following vehicles:

  • Ambulance or hearse used specifically in your business;
  • Taxis, transport vans, and other vehicles used to specifically transport people or property for hire;
  • Qualified non-personal use vehicles specifically modified for business (i.e. van without seating behind driver, permanent shelving installed, and exterior painted with company’s name).

Limits for SUVs or Crossover Vehicles with GVWR above 6,000lbs
Certain vehicles (with a gross vehicle weight rating above 6,000 lbs but no more than 14,000 lbs) qualify for expensing up to $25,000 if the vehicle is financed and placed in service prior to December 31 and meet other conditions.

What Vehicles Qualify for the full Section 179 Deduction?

Many vehicles that by their nature are not likely to be used for personal purposes qualify for full Section 179 deduction including the following vehicles:

  1. Heavy “non-SUV” vehicles with a cargo area at least six feet in interior length (this area must not be easily accessible from the passenger area.) To give an example, many pickups with full-sized cargo beds will qualify (although some “extended cab” pickups may have beds that are too small to qualify).
  2. Vehicles that can seat nine-plus passengers behind the driver’s seat (i.e.: Hotel / Airport shuttle vans, etc.).
  3. Vehicles with: (1) a fully-enclosed driver’s compartment / cargo area, (2) no seating at all behind the driver’s seat, and (3) no body section protruding more than 30 inches ahead of the leading edge of the windshield. In other words, a classic cargo van.
Other Considerations
  • Vehicles can be new or used (“new to you” is the key).
  • The vehicle can be financed with certain leases and loans, or bought outright.
  • The vehicle in question must also be used for business at least 50% of the time – and these depreciation limits are reduced by the corresponding % of personal use if the vehicle is used for business less than 100% of the time.
  • Remember, you can only claim Section 179 in the tax year that the vehicle is “placed in service” – meaning when the vehicle is ready and available – even if you’re not using the vehicle. Further, a vehicle first used for personal purposes doesn’t qualify in a later year if its purpose changes to business.

via Automotive Digital Marketing Professional Community.

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Car Dealer Website Live Chat vs. Contact Form: What Is The Difference?

Live Chat vs. Contact Form: is there really a difference?

The difference between a contact form and live chat is that chat is, well, LIVE. Much more than a virtual answering service for your phones, a good chat operator can guide visitors through the website (including inventory), set appointments, provide Edmunds.com data about vehicles or CarFax reports up to twenty-four hours a day (with participating dealers and select live chat providers), and much more. The live chat operator becomes a car shopper’s ‘concierge in the cloud’.

Read the rest of the article at the source via Automotive Digital Marketing Professional Community.

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From the Trenches – When to Break the 3-Minute Rule with Videos

From the Trenches – When to Break the 3-Minute Rule with Videos

 

I’ve been using videos for our dealership since 2009 when I saw a seminar by Jim Ziegler at NADA. I was very impressed and went back to Chicago and bought a video camera. Since then, we’ve put up over 2,700 videos on YouTube.

The best practice of 3 to 5 minutes for a video is well known and has a firm foundation. But it’s not gospel. Let me explain.

In my mind, for dealers, there are basically four kinds of videos that you can make for your dealership and varying lengths that are acceptable for them.

  • Branding videos – very short, maybe 1 minute max.
  • Conversion videos – 2-5 minutes
  • True Walkaround Videos – 3-8 minutes
  • Instructional Videos – whatever is necessary

Branding Videos are basically advertising your store or product and services. Customers have a very low tolerance and acceptance for them because they are “push” marketing similar to TV commercials. Need I say more? These should be very polished and you probably want a professional involved.

Conversion videos are videos created and sent to customers by a salesperson on a specific vehicle because “a video is worth a thousand photos”. It allows the salesperson to introduce him or herself, plug the store, and ask for the appointment. The customer wants to see that car and is willing to watch a little longer.

True Walkaround Videos are not directed at a particular customer. They are intended to be useful to those researching a particular model. Consumers who are researching want to see as much as possible about a particular vehicle so they can compare it to competing models. They will watch the entire video if it provides what they are looking for.

Instructional Videos teach something and the complexity of doing so can cause varying lengths of time. Consumers understand that. Something simple can be taught very quickly but some things take longer just to get through the steps. The consumer will follow along based on their interest.

There are exceptions to every rule. The real key is whether you are providing the entertainment factor or are providing the information that is being sought by the consumer. A customer that is looking for detail will not appreciate it if you skip over those details to keep your video short.

 

Best practices are there to be a guideline, not a rule. Always practice being a consumer and that will tell you when to go beyond best pratices.

Visit with me at AutoCon2012 in September!

 

 

Written by
 Tom Gorham

Editor, From The Trenches

Automotive Digital Marketing

Professional Community

via Automotive Digital Marketing Professional Community.

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Peacheetameleon: New Cobalt Study Shows Car Dealers Must Evolve to Survive

Peacheetameleon: New Cobalt Study Shows Dealers Must Evolve to Survive

When it comes to automotive digital marketing, it’s a jungle out there, and a new Cobalt eBook proves that dealers need to change their spots to survive.

According to new data from Cobalt’s car-buyer intelligence database, car-shoppers visit a minimum of eight dealer websites, with some visiting as many as twenty in a single day. With so much competition, consumer loyalty is clearly an endangered species. What’s a dealer to do to win the sale?

Evolution, baby. To survive, a dealer must take a cue from some common jungle fauna. Enter the Peacheetameleon, a mysteriously powerful new trybrid creature that is one third peacock/one third cheetah/and one third chameleon.

The Anatomy of a Peacheetameleon Dealer Website

  1. The Peacock: Like the most vibrant bird in the jungle, dealers need an eye-catching website to engage and dazzle those who have been desensitized by hours of dizzy web-surfing. Stop them in their tracks with a captivating design that-much like the peacock-shows off your best assets: competitive messaging like largest inventory, awesome specials, or great customer service. Websites with drag and drop capability make it easy and fun to mix up your dealer website with vibrant designs.
  2. The Cheetah: Looks are one thing, but it doesn’t matter how compelling your dealer site is if it takes eons to load. Look for websites that are HTML5 compatible so they can load with lightening speed on any device (tablets, mobiles, desktops, oh my!)
  3. The Chameleon: On a related note, you don’t want to blend into the digital landscape like the chameleon, but you DO want a website that easily adapts to any surroundings. A dealer website that is optimized for tablets, mobiles, and desktops ensures you can provide ideal car-shopping experiences anywhere, a must for today’s on-the-go shopper.

Becoming a Peacheetameleon takes work, but it’s worth it. Additional data demonstrates that today’s car-shoppers are easy pickings for the differentiated dealer. Our new eBook found that 60% of consumers haven’t selected a make and model, and 64% of shoppers visiting your dealer website will purchase within 60 days.

Translation: these shoppers are in-market, undecided, and looking for something that’s going to catch their eye and put their mindless web surfing to rest. All you have to do is be the dealer that stands out from the pack.

To find out more about real car-shopper behavior and how to differentiate your dealer website, download the full eBook ““The Guide to the Modern Car-Shopper: Connecting the Dots from Thei…

Jade Makana is Corporate Storyteller at Cobalt. She is passionate
about bringing brands to life through competitive positioning. Her
first car was a maroon Toyota Corolla named Ruby.

Illustration by Yan Chow, Cobalt Designer

via Automotive Digital Marketing Professional Community

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Edmunds Releases 2013 Car Shopping Trends Study – Automotive Marketing Professionals

Edmunds 2013 Car Shopping Trends Report

There are many dealers who have strong criticisms regarding Edmunds.com, but regardless of whether you consider Edmunds an asset or a liability to the retail auto industry there is little debate about their unique position within the vehicle buying process for many millions of automotive consumers…

The stark reality for car dealers seeking greater understanding of how car buyers shop online in 2013 is that Edmunds.com has the ability to paint a vivid portrait of today’s online car shopper… Which includes 9 out of 10 new and used vehicle buyers!

About 18 million visitors use the Edmunds.com site every month to shop for their next new or used car, and this gives the Edmunds team an unparalleled insight into the car buyer’s research and shopping process.  For as many years as I can remember, Edmunds has used the online automotive consumer activity to generate extensive research data and analysis to drive the sort of car buying insights that would establish itself as one of the more valuable resources for car companies and dealers to better understand car shopping and the way buyers use automotive information.  Historically, Edmunds has made the analysis and insights available to their business partners and to the public through academic inquiries and media requests.  However, Edmunds has not previously assembled together the complete volume of current time period data and the analysis and insights gleaned in one coherent piece.

By publishing and making available the 2013 Edmunds.com Car Shopping Trends Report, they have provided the auto industry and especially dealers and automotive marketers with a true gem of a document.  The report which ADM Professional Community members can download using the link at the bottom of this blog post, shows the results of extensive data mining within the Edmunds.com’s extensive database to reveal the most relevant car shopping and purchasing trends in America today.  These trends offer direct clues toward ways that the automotive industry can move forward by empowering a more engaging car shopping experience.

Throughout the 2013 Edmunds.com Car Shopping Trends Report, you’ll also find references to a 2011 survey conducted by “Added Value” on behalf of Edmunds.com that asked 2,476 online car shoppers representing the U.S. car shopper population to describe their expectations for their next car purchase.  Edmunds correlated these responses to real-world buying data to see if shopper expectations match reality. In preparing their analysis and conclusions, the Edmunds market research team found many striking consistencies between the two sets of market research data. These surprisingly strong correlations between the two reports suggest that car shoppers have a strong sense of the automotive marketplace and that they know how to set reasonable expectations around price, availability and product performance.


By evaluating this wealth of data provided by the Edmunds team, you will find a story about car shoppers that is often surprising and counter-intuitive to many dealers and automotive professionals.  While at other times, the Edmunds data reinforces critical theories held by car dealers, automotive sales professionals and throughout the auto industry. Some of the key findings in the 2013 Edmunds.com Car Shopping Trends Report include:

  • Two out of every three car shoppers consider themselves highly engaged in the car shopping process, and they turn to a variety of information to help them decide on a new or used car. Time spent on Edmunds.com is up 2 percent from 2011 to 2012. And the most-viewed elements by new car shoppers on Edmunds.com are reviews, pricing information and photos.
  • Mobile access is becoming a powerful tool for car buyers. Traffic to Edmunds.com’s mobile site spikes on the weekends – and especially on Saturdays – when the bulk of car buying takes place.
  • Shoppers are very good at anticipating how much they’ll pay for a new car. New car shoppers told us in 2011 that they plan to spend $30,500, on average, for their next vehicle. In fact the average transaction price for a new car the following year was $30,803.
  • The average age of a new car buyer is about four years older than the average age of a used car buyer.

  • Shoppers are turning to leases now more than ever. And the difference between the average monthly lease payment ($433) and the average monthly finance payment ($468) is greater than at any time since Edmunds.com started keeping records.

  • About 44 percent of all trade-in vehicles last year went toward a new car by the same brand, which is consistent with our 2011 survey that found that 49 percent of shoppers say they “plan to stick with a brand that has worked in the past.”
  • Luxury car owners and shoppers are buying and considering more nonluxury cars. The trend speaks to the improved quality of non-luxury vehicles.

  • Many shoppers say they want just the basics in a new car, but emotions can drive buyers to add options. New car buyers are willing to spend an average of $2,200 – or about seven percent – above base model and trim prices to add more options on their cars. 

The Edmunds.com’s 2013 Car Shopping Trends Report is intended to be a free resource for ADM Professional Community members who are interested in creating a better car buying experience. This is just the first in a series of reports that the Edmunds Research team hopes will shed more light on car shopping behavior.  The team intends these findings to open up a dialogue which will contribute to the ongoing improvements within the automotive retail industry. They also want to encourage ADM Professional Community members to contact Edmunds at any time to discuss more ways that Edmunds.com can help you better understand today’s car shopper.

Here is a link to download a PDF version of the Edmunds.com’s 2013 Car Shopping Trends Report: http://static.ed.edmunds-media.com/unversioned/img/industry-center/… 

Edmunds Points of Contact

For Dealer Inquiries: 855-EDMUNDS
For Press Inquiries: 310-309-4900

Source: http://www.edmunds.com/industry-center/car-shopping-trends/

Edmunds Annual New Vehicle Sales Forecast for 2013 and Historical Actual Sales:

via Edmunds 2013 Car Shopping Trends Report – Automotive Digital Marketing Professional Community.

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Should Managed Chat Be Part of a Lead Acquisition Budget?

Should Managed Chat Be Part of a Lead Acquisition Budget?

 

Lead Acquisition Budget: Are Managed Chat Service Providers A Lead Source?

I was speaking with an Internet Sales Manager a few days ago and we were discussing the budget she managed for purchasing leads from the traditional 3rd party lead providers such as Dealix, Autobytel, Automotive.com, CarsDirect, etc. The question arose as to which lead providers should be considered reasonably eligible for allocation from a budget category earmarked for acquiring sales leads. It was interesting to me that she seemed to consider AutoTrader.com to be a lead provider, when in fact, AutoTrader has never sold leads, nor will they acknowledge being in the lead selling business… AutoTrader has staked their business model around being an advertising channel whose media is focused on showcasing a dealer’s inventory. So, why do some people incorrectly list AutoTrader as a lead source?

 

The simple answer is that most of us will evaluate our results from AutoTrader based on the number of sales opportunities generated (Leads). Just because that is not what AutoTrader is selling, does not mean that leads are not what we endeavor to buy when we cut a big check each month to ATC.  This raises a few questions about Lead Acquisition budgets for car dealerships… When is a supplier considered eligible to being allocated budget from an Internet Manager, or Marketing Director managed lead acquisition budget? Which types of suppliers should be considered?

  

If there is one category of supplier that has created a whole new source of leads that did not exist ten years ago, it is the services offered by managed chat application providers.  These “Chat” apps can be placed on a dealer’s website, as an email link, on a dealer’s various blog sites and microsites, even in some cases on a dealer’s Facebook Page as well as other social media channels.  In almost every case, suppliers such as Contact At Once, ActiveEngage and CarChat24 will be evaluated based on the number of leads they generate for the dealership as a percentage of total chat sessions and unique visitors to the dealer’s websites, microsites, social media channels and emails opened.  The big difference between advertising channels such as AutoTrader.com and Cars.com, and the major Managed Chat Service providers is that AutoTrader/Cars.com et al has never embraced the leads generated model as their value proposition, yet the Managed Chat Service providers have… So, why would we consider AutoTrader/Cars.com a lead source, and not put the Chat providers in that category of expense?

  

While preparing this article I contacted Shereef Moawad [shereef@carchat24.com] at CarChat24 and asked him for some aggregated performance metrics around Managed Chat Service as a lead generation model. There are two reasons I reached out to CarChat24; the first is that they are the only Managed Chat Service provider that I know of which has worked for dealers on a performance based fee structure that used quantity of leads generated to determine the dealer’s cost for their software and services. The second reason is that CarChat24 has been a sponsor of the ADM Professional Community for longer than any other company, and I am very comfortable with their professional competence, business integrity and the objective validity of their data. Besides that, the company is run by a couple of US Marines (retired) with a remarkably clear focus on exactly what their mission is and the execution of tasks required to deliver measurable results.  

  

Shereef provided me with the following aggregated performance metrics and ratio analysis based on a randomly generated sample of 100 dealers and data collected over a six month time period:

100 CarChat24 Performance Plan Dealers – 6 months of aggregated data

Monthly Dealer Cost Range:

  • Highest Average Monthly Payment for Leads = $2,840.00
  • Lowest Average Monthly Payment for Leads = $85.00

Monthly Average Total Cost for Chat Generated Sales Leads = $489.92

Monthly Average Quantity of Chat Generated Sales Leads per Dealer = 32    
(Note: doesn’t include free service, parts, and query leads)

Monthly Average Cost per Lead = $15.31

 

Taking a look at the above numbers, it is easy to extrapolate comparisons with traditional third party lead providers from a cost/benefit perspective… Since the leads a Managed Chat Service Provider generates are not only exclusive, they are also coming from visitors to the dealer’s various websites and online assets. This means it is reasonable to say they should provide the dealership’s sales team with a higher closing rate than 3rd party leads which are usually being sold to multiple dealerships, and being churned to generate additional leads from the same customers. If the dealer is able to close these exclusive first party Managed Chat generated leads at a 10% average rate, then the resulting cost per sale, based on a $15.31 average cost per lead  is $153.10 Per Vehicle Retailed (PVR).  This is considerably less than the NADA average advertising cost per vehicle retailed (PVR of more that $600.00

 

Of course, we also had to invest advertising in getting traffic to the sites where the managed chat services are provided, but from a pure cost per lead perspective, the use of Managed Chat Services as a lead source looks very viable and fiscally prudent.  

  

It is worth noting how the average cost per lead came in at $15.31 for a performance based model that uses leads generated to invoice the dealership. Here is how that works… CarChat24 uses a variable cost per lead depending on the characteristics of the lead. This is based on the concept that certain lead types have more value to a car dealer.  In the case of CarChat24, the lead types and costs are:

  • Email Leads @ $10.00 each
  • Phone Leads @ $20.00 each (they usually get an email address as well)
  • VIP Appointment Leads @ $25.00 each (they usually get email and phone number, requires a set date and time to be at the dealership)

 

The average cost of $15.31 for the 100 dealers in our aggregate is the result of the following lead type averages:

  • 62% of Leads generated were phone leads
  • 31% of Leads generated were email leads
  • 7% of Leads generated were VIP Appointments.

 

When analyzing lead generation, there are always questions about whether or not these leads are “incremental” and do they come at the expense of other forms these very same customers would have used to contact a dealership if the chat service was not provided.  In almost every case, research and marketing studies have found that leads generated via Managed Chat Applications on websites are indeed incrementally additional leads.  In other words, the leads provided by Managed Chat Services do not come at the expense of the original website’s form fill conversion… They are a net gain in overall volume of leads the site is generating… It is safe to say that Managed Chat increases every web site’s overall visitor-to-lead conversion rate.

 

When the facts are considered and a performance based model is available, it is difficult NOT to justify allocating lead acquisition budget for Managed Chat Service Providers as a valid lead source. If you examine the logic in a little deeper detail, there is a strong case to be made that Managed Chat Services are NOT advertising and are in fact a lead generation source. You could even say that one of the outcomes from a dealership’s advertising should be increased chat sessions handled by your chat service provider, along with an uptick in leads generated.  So, consider allocating a portion of your lead generation budget to a Managed Chat Service provider… It makes sense and will help you generate more dollars of profit for your dealership by providing additional lead volume from the most valuable type of leads you can get… Exclusive First Party Leads!  

 

 

via Automotive Digital Marketing Professional Community.

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CRM Triggered Personalized Customer Emails Outperform Bulk Email Campaigns for Car Dealers

CRM Triggered Personalized Customer Emails Outperform Bulk Email Campaigns for Car Dealers

 

Personalized Promotional Offers and Event/Time CRM Triggered Emails Seen Delivering Stronger Results than Mass Email Campaigns for Car Dealers and Automotive Marketers

The results stand in apparent contrast to study findings from MailerMailer last year. That study found that emails with the subject line personalized had lower open and click rates than those without personalization. The difference could be attributable to the sample set analyzed. The MailerMailer study took a broad view, looking at opt-in emails as a whole, while the Experian study analyzed promotional and triggered emails only.

I have seen where time spent detailing out the email templates that are triggered by lead status changes in a dealership CRM system creates a highly effective sales and marketing automation strategy. In my own personal experience, the many hours invested in creating custom email templates that are specific for such CRM activities as leaving a voice mail, trade-in estimate, payment quotes, changes in program interest rates for the specific vehicle the customer is interested in, or sending a price quote will pay off with a robust ROI. Customers receive a steady stream of personalized messages that are triggered by an event or timing that is predetermined and logically expected by the customer… When done properly, these automated highly personalized CRM triggered emails will elicit a thank you from customers for the diligence a salesperson has exercised in staying in contact with them. Quite simply, there are few other sales automation systems appropriate for car dealerships with as positive a result as robustly customized CRM implementations.

   

For CRM system triggered emails, those with the subject line personalized had an average open rate of 29.2%, about 25% higher than the rate for those broadcast email campaigns without personalization (23.3%).

  

As for unique click rates, personalized emails outperformed their counterparts for both promotional emails (3.2% vs. 2.3%) and triggered emails (6.7% vs. 4.4%).

   

The Experian study also finds personalization providing a significant lift in transaction rates and revenue per email:

  • For broadcast type promotional mailings, transaction rates were 7 times higher (0.35% vs. 0.05%), while for CRM triggered mailings, they were more than twice as large (0.62% vs. 0.25%)
  • For promotional mailings, revenue per email was more than 6 times higher ($0.26 vs. $0.04), and for triggered messages, they were 63% higher ($0.31 vs. $0.19).

Source 1: MarketingCharts.com/personalized-promotional-and-triggered-emails-s…

Dealer-to-Customer Emails:
Data Shows Longer Subject Lines Get More Clicks

These emails have a CTOR 94.7% above the average (and click and open rates 276.4% and 93.2% above-average, respectively). B2B emails show a similar trend, though not quite as clear cut. Emails with subject line length of 20 characters performed above-average for all 3 metrics, though the rates generally dipped after that until recovering from 90 characters in length and up. The peak for open rate was 20 characters (24.6% above-average), while the peak for click rate was for 140 characters (82.7% above-average) and for CTOR was also 140 characters (72% above-average).

E-commerce Emails Show Mixed Trends

Data from Adestra’s subject line study indicates that when it comes to the e-commerce sector, the results are fairly mixed. Subject lines 110 characters in length performed best for open rates (122.4% above-average), but those 70-characters-long did best for click rates (91.1% above-average), while those with 30 characters achieved the best CTOR (17.4% above-average), despite the latter having below-average open and click rates. Overall, subject lines with 70 characters appeared to do the best, with above-average performance in each metric.
  

For the events sector, short subject lines (20-30 characters) got the highest open rates, while longer subject lines (120-150 characters) got the best click rates and CTOR. Publishing emails displayed the same pattern as events emails, though for charity emails, short subject lines had the highest open, click, and click-to-open rates.
  

Overall, across the 6 sectors studied, despite an open rate peak for emails with 20 characters, longer subject lines (100+ characters) appeared to deliver better open, click, and click-to-open rates. This compares with recent studies from MailerMailer and Informz, which found shorter subject lines to clearly have the best open rates, though with mixed results for click rates.
  

Word Count Results Similar

Further results from the Adestra show that word count length has a similar effect to that of character count, but is amplified. Email subject lines that are a single word have a spike in open, click, and click-to-open rates relative to the average, though all metrics dip in response rates alongside increasing word length, until 15 words and longer, when they begin to rise and hit new peaks.
  

Looking at the results by sector, some interesting patterns emerge. For e-commerce emails, 1-word subject lines had the highest open rate, but 4-word lines had the best highest CTOR relative to the average. For events emails, shorter word counts (2-5) delivered the best open rates relative to the average, but longer word counts (19 and up) delivered both the best click and click-to-open rates relative to the average.
   

For the publishing sector, the results were clearer: longer subject lines delivered generally higher-than-average open, click, and click-to-open rates, aside from a spike at 2 words. For the charity sector, short subject lines did well for open and click rates, and longer counts (14 words and up) performed worst for click-to-open rates.
  

In the B2B and B2C sectors, open, click, and click-to-open rates were generally better for longer word counts, though 2-word subject lines performed best overall in the B2B sector.

“Coupon” Fares Worst Among Offer Terms

Notably, the study finds that for the e-commerce sector, the word “coupon” has open rates that are 55.6% below the average for offers emails, with click rates also 85.8% below-average and CTOR 68.1% below-average. This appears to be in direct contradiction to results from an Epsilon study also released in July, which found that the keyword “coupon” was tops for email opens. However, that study only measured the 2011 holiday season, which may explain the discrepancy in results.

  

According to Adestra, the words “sale” and “% off” performed best in click rates and CTOR relative to the average for offer emails, and also perform among the best for open rates.

   

Other Findings:

  • For the events sector, using currency (particularly $ signs), first names, “thousands,” or “millions” can have an uplift for all 3 metrics.
       
  • For the publishing sector, “video” and “exclusive” perform very well relative to the average, while the terms “newsletter,” “research”, “report,” “forecast,” and “intelligence,” all perform significantly below-average.
       
  • For the charity sector, the words “appeal” and “donate” fare poorly compared to the average, while “give” has above-average results.
       
  • For the B2B sector, currency symbols, as well as words such as “profit,” “revenue,” “turnover,” and “referral” perform markedly above-average, while the term “B2B” shows very poor response rates.
       
  • For the B2C sector, “sale,” “% off,” “video,” “exclusive,” and “new” perform best, while “coupon,” “half price,” “free,” and currency symbols are below-average.
       
  • According to a July 2012 report [pdf] from Experian, including the word “exclusive” in the subject line can provide a lift of 14% in promotion mailings (15.9% with vs. 14% without). Similarly, subject lines including “top 10″ or “top 5″ deliver open rates 13% higher than promotional emails without them (16.1% vs. 14.3%).
        
  • Also per the Experian findings, emails asking customers to rate and review purchased items generate 2 times higher open rates, 39% higher click rates, 22% higher transaction rates, and 32% higher revenue per email.

About the Data: The Adestra study campaigns had more than 5,000 recipients per campaign, but were not limited to large campaigns. The study was conducted across the client basis without regard to list size.

 

via  Automotive Digital Marketing Professional Community.

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