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Social Media Success Video 
I was speaking to an automotive executive today who oversees a large group of stores in California. He made a comment that stuck in my head and encouraged me to create this blog post.
His comment gave me some insight why there was so much interest at the 7th Digital Dealer Conference in Nashville for Automotive SEO, Social Media, Microsites and overall Internet Marketing strategies.
Have We Seen a Bottom?
We were discussing Internet Marketing strategies and he wrote on the whiteboard how sales in 2008 and 2009 were down across his dealership group; year over year. Frankly he stated that in the first quarter of 2009 things were ugly.
When people approached him at that time, with similar Internet Marketing strategies that I presented today, he was not able to “hear” the message because he was in a defensive posture. New spending or adding staff was just not on the radar screen at the beginning of 2009. He recounted how his automotive group looked at all expenses and reduced overhead wherever possible.
Fast forward six month later and his mood and optimism has changed. In his own words he said:
“It is time to go on the offensive!”
At that moment I knew that our relationship would be successful because he was willing to invest and compete online. He was willing to take a step of faith and leverage the Internet to take his business to the next level. He was no longer looking backwards.
Are You Still in Defensive Mode?
As he prepared for his offensive squad to take the field he asked:
“How many dealers across the US are leveraging advance Internet Marketing strategies and social media tools?
My guess was less than 10% of car dealers were fully engaged in social media, SEO, microsites and integrated online marketing. That made him smile because it confirmed that he was not late to the game.
But the recent surge on online discussions on this forum as well as the diversity of questions posed at the Driving Sales Executive Summit and Digital Dealer Conference is a clear sign that the automotive marketing game is moving back to an offensive posture.
How To Direct The Offensive Team?
The challenge of educating automotive decision makers is that only a small percentage of dealerships have executives that actively engage their peers on websites like:
- http://www.DrivingSales.com
- http://www.AutomotiveDigitalMarketing.com
- http://kainautomotiveideaexchange.ning.com
- http://www.dealerrefresh.com
These websites are filled with great “Do It Yourself’ strategies and peer review of new technology and services. This is good for those who are reading up on the latest tips and strategies shared on these forums. The real question is whether money is being increased at their dealership for digital marketing initiatives.
I am confident that dealerships who are first to act over the next year will be rewarded handsomely. It’s time to stop looking back and comparing sales stats and compensation plans from three years ago.
It’s time to listen to dealerships who are pioneering Internet marketing and social media strategies that are working. Rethink your monthly marketing budgets and TAKE RISKS and test new ideas. Make sure you setup systems to measure real change and track results.
As team Nike would say: Just Do It!
Brian Pasch
http://twitter.com/automotiveseo
Tags: automotive internet marketing, automotive seo, offensive marketing strategies, SEO
Brian,
I agree that the vast majority of dealerships have been in a defensive posture for the better part of the last 18 months. In many cases, this was not for a lack of wanting to attack but rather a necessity based on prudent business decisions. Sometimes you can’t spend your way out of difficult times. Add in the fact that many/most dealerships were over-expensed in key areas and you have the result we are now seeing.
One of the main challenges I think vendors face in the coming months is convincing dealers that they aren’t out to fleece them. The reality is that dealers feel that vendors don’t really have their best interests at heart. I know of many dealers willing to invest in sound products and services that provide sound ROI. The key to reaching them is to provide VALUE.
The days of long term contracts, difficult cancellation policies, and general disdain for a dealer’s needs are over. Those vendors that want to sell Social Media initiatives should be communicating and starting conversations with dealers that don’t involve a sales pitch at every point of contact.
It is an exciting time in the automotive industry with opportunities everywhere. Please don’t be so quick to judge skeptical dealers as being unwilling to invest in the future and to go on the offensive.
My two point five cents per usual…
Tom
Tom
As you point out, there is a clear reason why dealers have be skeptical; they have been burned in the past. I love your suggestion that vendors need to start communicating and interacting BEFORE delivering the sales pitch.
The good news is that there are more resources and review sites to validate the claims of vendors. I often see the David Kain Automotive Exchange start conversations like “Have you used XXXX tools at your dealership?”.
I made a comment a few months back about the need for more “brand ambassadors” in the automotive industry. A brand ambassadors is someone who works for the vendor company but also genuinely engages the automotive community online by blogging, making suggestions and offering helpful advice.
There are a few ambassadors that are engaged and come to mind: Ralph Paglia, JD Rucker, Matt Watson, Gary May, Mike DeCecco, and Paul Rushing but that represents a small percentage of the actual automotive vendors that are knocking on dealership doors.
The automotive industry needs to go on the offense regardless of the past.
Vendors need to put in place the same social media skills they preach to dealers. Become a “trust agent’ first and sales will follow.
Amen, nicely put…
We recently completed a study of the dealership marketplace and we found that over 40% of the dealership are looking to invest marketing dollars, and have stopped the cutting. This suggests that we have hit the bottom and are bouncing back.
However I believe the biggest thing dealers need to invest in is their own structure. I think 10% of dealerships engaged in soc media is a high number, perhaps that many are involved but not doing it right. Success cant always be bought, and social media is one of those places.
I would love to see dealers hire an additional person to coordinate the online marketing initiatives, manage the content, track the ROI of all the different activities they are investing in. The days of an ISM who is responsible to respond to customers, sell cars, de-dupe leads and manage the marketing is gone. The first investment i think a dealership should make is realigning his/her internal structure with the needs of this market.
Go on the offensive! I agree, just make sure you have the right positions filled inside your store before you start calling the plays.