OILCHG.com Exposes Threats to Car Dealers, Quick Lubes and Repair Shops Caused By New US Postal Service Cutbacks

    MEDINA, OH, May 27, 2010 /24-7PressRelease/ -- The US Postal Service is projected to lose $7.8 billion in fiscal year 2010 and mail about 11 billion less pieces than it did in 2009. To stop the flow of red ink, analysts expect the agency to announce a 2011 price hike in postage and cancel Saturday mail delivery. If these changes take place, car dealers, quick lubes and auto repair shops that rely primarily on direct mail reminders to communicate with customers will be hit with higher postage rates and lose more than fifty delivery days per year to reach customers. In order to protect their profit margins, many shop owners are moving away from direct mail in favor of text messaging to combat rising costs, simplify workflow and improve the customer experience.

Poor Economy is Forcing Changes
Automotive repair shops -- already hurting from low car counts -- cannot afford to absorb the next round of USPS price hikes and delivery service cutbacks. In addition to paying more, repair shop owners could see their oil change and repair service reminder cards taking longer to get delivered to customers. The USPS is considering proposals to slow the rate of first class mail delivery from one-to-three days to as many as five days and drop Saturday delivery altogether. Tragically, Saturday may be the most successful day of the week for direct mail response. According to a TNS Global report, the number of consumers who do something in response to the mail they receive is highest on Saturday (29 percent).

USPS Money Woes Are Not a Short-Term Problem
Top consulting firms like McKinsey, Boston Consulting and Accenture expect the USPS problems to continue well into the future. Mail volume has declined 20 percent over the last decade and is expected to continue to decline over the next decade. On its current path, USPS losses are expected to balloon to $238 billion in 2020. Many repair shop owners have little faith that the USPS will be able to fix its labor, healthcare, technology and revenue problems in a way that will sustain a cost-effective direct mail delivery service into the future. So many are turning to electronic reminders for the solution.

Texting Preferred 7-1 Over Email
Almost 90 percent of Americans own cell phones and send over 4 billion texts per day. It's widely known that younger people prefer to text rather than to talk. 94 percent of teens and 87 percent of 20-somethings text. It's less known that a clear majority of people in their 40s text (64 percent). People in their 50s who text has jumped dramatically from 38 percent in 2008 to 47 percent in 2009 [CTIA, Vlingo]. For the first time a majority of all 50-somethings are expected to text in 2010.

OILCHG.com customer data shows that text messaging is the clear Consumers' Choice for automotive service e-reminders and coupons. OILCHG text reminders are preferred by 88 percent of those who want an e-reminder. Email is preferred by only 12 percent.

Spam-free Marketing
96 percent of all email is spam [ENISA, Jan 2010]. However, U.S. cell phone carriers strictly regulate the text messaging (SMS) market to ensure that texting remains nearly spam-free. Approved marketers must pay thousands of dollars per year to maintain their SMS certifications and remain in good standing. Strict regulations and frequent audits are in place to catch violators. Very steep fines await those who send text messages to anyone who does not specifically opt-in to receive them.

Pay-Off Comes Quickly
Repair shop owners see little value in waiting or moving slowly toward text reminders. They recognize that e-reminders require customers to opt-in and with every new opt-in comes a significant savings in postage, printing and related administration costs. Installing a turnkey e-reminder solution that emphasizes text messaging in the drive lane is a simple way to contain costs today and insure against paying for future US Postal Service deficits tomorrow.

OILCHG is America's Source for Oil Change Coupons and Reminders. A division of Digital Rocket Inc., a leading provider of new customer acquisition, loyalty and retention products that drive steady business, higher profits and competitive advantage for clients in the automotive industry. For further information, please contact Bob Jump, President at (614) 264-5832.

Website: http://www.OILCHG.com

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