America's National Association for Stock Car Auto Racing (NASCAR) used Start Corporation's interactive SMS technology to pre-sell tickets to its showcase event, the Daytona 500.
Using Start's system, NASCAR built a database of 150 000 motor racing fans by running interactive competitions and promotions at various motor racing and go-karting events in Florida.
A few weeks before the Daytona 500, NASCAR used Start's intelligent messaging system to offer a pre-race discount on ticket prices.
More than 49 000 race fans took up the offer, resulting in ticket sales of more than $3.5 million. Of course, once at the track, the fans spent hundreds of thousands of dollars more at the various concession stores.
Chris Marrington of Start Corporation South Africa says that the NASCAR experience is the result of carefully building a database of interested prospects, then making them an offer they find irresistible.
"In markets where SMS marketing has evolved, response rates of 25% and more are not exceptional," he said.
"The trick is you have to make the offer really worthwhile. Simply to make an announcement isn't good enough. Offer an incentive and you're more likely to make a sale."
NASCAR's decision to shift from mainstream media to direct marketing using text messages was initially driven by rising costs.
"The Daytona 500 campaign cost the client the princely sum of $38 000. Not a bad investment for $3.5 million in ticket sales," concluded Marrington.
