If you are in the car business and control your dealer advertising budget, most likely you believe in marketing. So where do you spend the first dollar and why? For years, we’ve had this debate when building marketing plans.

The concept goes back to my days as a child in a candy store. If candy bars are a nickel, bubble gum is a penny and a Squirrel can be had two for a penny, how do you decide what to buy with the quarter you got for your allowance? If you remember those days (or for you younger folks, the same debate at much higher rates) then you probably got your first dose of Zero-Based Budgeting.

If a car dealership were going to build the budget from the ground up with zero preconceived ideas and no untouchables, the debate could get heated fast. We could start with the sign out front, or the building and land we sit on. After all, isn’t “Drive-by” the favorite entry on our Up Log? The fact is that today, after these bare necessities we should probably look online for the next dollar of expenditure.

Since everyone would agree that you are not in business without a dealer website, we can look at that like the sign out front and leave that out of the debate. So, we have a sign out front and a website online. Where do you go next? My philosophy is that I want to spend money first to catch people that are already looking for me. In the old days this meant the Yellow Pages, but today this means the search engines.

And if we are going to spend money on the search engines, the first dollar goes to SEO, search engine optimization or organic search. It has much more sustaining value than paid search and it forces us to really dial in who we are and how we make money. If you are thinking that this is free, then you must be running a dealership in your spare time while you study search engine optimization during the rest of your day. We should consider this paid advertising and make sure it is done well and done with integrity.

And since I did not grow up during The Depression, we are going to spend some more money real quick to make sure we get this right. If we stick with the concept of being where people are looking for us, then we need to get all the directories and review sites dialed in and optimized. Another one of those things that many think are free, but requires time effort and expertise. Make sure when they find you, you and your store measure up.

Where would you spend your money first?

By Joe Tarell, Cobalt Director of Sales.

As a reputation management specialist at Cobalt, I talk to dealers about their reviews all day, and I’m always amazed by the amount of misinformation in the industry. Working at Cobalt, I’m lucky to be privy to insights from the largest in-market car-shopper data warehouse in the industry. Many of these insights have caused me, and consequently my dealers, to think twice about some long-held beliefs about automotive reputation management. Here are a few of the latest findings-I guarantee they will surprise you.

Myth # 1 – You have to have all five star reviews. If you don’t, no one will buy a car from you.

The bad news is, the automotive industry has it tough right out of the gate. A new Cobalt reputation management eBook surveying over 2,500 dealerships found that, for all other industries, the average reputation ratio is 80 percent positive reviews and 20 percent negative reviews. In the auto industry, however, an unmanaged dealership reputation has an average of 80 percent negative reviews and only 20 percent positive. The good news? Turning your reputation around may be easier than you think. Cobalt Business Intelligence found that when it comes to star ratings, breaking the 3.5 threshold gets you into the consideration set. In other words, don’t worry if your reviews aren’t 100% five stars. The fact is that people want to read real experiences, and will likely expect to see a few “bad eggs” mixed in. A mix of reviews builds credibility and trust in the mind of the potential customer.

Myth # 2 – If you ignore a bad review, everyone will.

It’s not just reviews that count; it’s how you respond. If car-shoppers see complaints, they are looking to see how you handled your previous customers. The fact is, reputation management is a human process, and ignoring a negative review will make it look like you don’t care.

And yes, in my book, posting an automated response counts as ignoring a negative review.  While it may even seem like a simple solution to copy and paste an auto response, it’s not effective. People see canned responses as untrustworthy and not transparent. This is why I work with my clients to relay personalized and dedicated review response messages.

Myth # 3 – I can just do a “review drive” and get all the reviews I need for the year.

There is no quick fix for online review generation. Slow and steady wins the race. A well-respected Google expert and technology consultant Mike Blumenthal emphasizes what our reputation management solution coins as the “healthy trickle” approach. In his recent blog post he writes that, “The reality is that you don’t need 10 reviews a week at Google. In fact you don’t need 10 reviews a month or a quarter there to succeed. Most businesses need to accrue one review every month or two so that at the end of 3 years you will have 30. You need to ultimately get more than 10 so you get Zagat rated and you need to stop fretting about how many you have there and how many you have lost. You need to keep putting one foot in front of another, keep gaining endorsements across the internet.  In the end if you run a good business and have loyal customers you will get your share of reviews at Google and elsewhere.”

While providing a great car-buying experience is the foundation of a solid reputation management strategy, it’s not enough. It is essential to have an in–store review process that simply becomes second nature to the staff.  I advise my clients to remind their customers that reviews are important to the business at every touch point where it makes sense – during delivery, at the cash wrap, and once the customer has driven home in their new car.

For more reputation management myths and insights, download our new Cobalt e-Book “The Street Smart Guide to Automotive Reputation Management.”

Natasha Seidl is a Reputation Management Specialist with Cobalt.

Original article posted here.

Are you unknowingly asking Google to delete your hard earned reviews? Are you possibly telling Yelp it’s OK to filter your 5 star reviews? Believe it or not, what was once considered forward-thinking when it came to automotive review generation could now be construed as downright fraudulent thanks to new and harsher review restrictions. Read on to find out how major review sites are cracking down on consumer reviews.

According to a Google forum, here are a few of the reasons why a dealership may have their reviews removed: too many review posts in a single day or even in a single month; reviews that are generated from the same IP address (think ‘review stations’); or even reviews that appear on multiple 3rd party listings.

A Google administrator attempted to elaborate in the forum, saying: “Soliciting reviews is suspect behavior for our systems. What I mean by this is — it’s fine if you reach out to customers to ask them to review, but I do not recommend that you do this in waves. If you want to reach out to legit customers and ask them to review, I recommend you contact them immediately after you have done business with them.”

When questioned about the difference between “asking” and “soliciting,” they went on to say: “Well, think about it this way — in our ideas, the “ideal” review is by a customer who writes a review of a place completely by his or her own accord, on mobile during the experience or at home after. This would mimic the regular flow of the business. It’s a system that we are constantly trying to improve, but for now, this is what I can say to try and help. I really don’t want legit businesses with legit reviews to get caught, so this is our effort.”

If this policy sounds confusing, it’s because it is. Additionally, not only are 3rd party algorithms and filters much more of a gray area, but the steps a consumer must take in order to even write a review have become much more complicated. You may remember that it was less than a year ago that Google publicly announced and supported the use of “review stations” in dealerships and other small businesses. And no doubt, prior to the introduction of Google + Local, you were simply asking customers to leave a review on what used to be known as Google Places with only their Gmail address or by simply creating a user name and password. Today, one MUST plan to manage and monitor an entirely new social media tool if they wish to leave a review as Google only allows reviews to be written by active Google Plus users.

Yelp too is cracking down. Just this month Yelp announced that it took part in a sting operation to out business, on their own Yelp listing, who were caught purchasing reviews. While progress is being made to stop both consumers and business that perhaps profited from ‘gaming the system,’ these developments are also sure to make it more difficult for you and your real/happy customers to leave legitimate reviews.

While this is certainly frustrating, don’t throw the baby out with the bath water. Reviews are still incredibly important, and you shouldn’t let these restrictions discourage you from making a positive impact on your business. For example, a recent Cobalt study found that an increase from a 2 to a 4 star rating can increase website traffic by as much as 64%. It is worth it to find a way to continue generating reviews, even as the automotive reputation management landscape continues to shift under our feet.

So what’s the key to generating consumer sentiment online when it comes to these ever-changing 3rd party review sites? The first step is to capture your own customer reviews in a “testimonial spotlight” page on your website. While third-party reviews are still important, relying solely on 3rd party review sites is like buying a house on rented land. If Yelp decides to filter all of your reviews tomorrow or Google + Local aims to tighten their algorithm any further – you’ll want to be sure you have an alternative option that is not only search engine friendly, but user friendly, to showcase all of your hard earned reviews in a reliable location.

A managed review site is no longer a nicety; it’s a necessity. Algorithms will continue to change and some of your hard-won reviews will continue to be deleted; capture and consolidate customer reviews on your dealership website in order to benefit from these well-deserved reviews today, tomorrow and always.

Mary Kelly Gaebel is a Reputation Management Specialist at ADP Digital Marketing Cobalt. She works with dealers to increase dealership awareness and branding via social media outlets. She has a B.A. in Communications from the University of Washington.

Starbucks or Tully’s? Starbucks! PC or Mac? Mac! Jiffy Lube or Classic Chevrolet? Hmm?

Dealership loyalty is elusive but exists; and winning the hearts and minds of your customers often begins and ends in your service drive. Exceptional service is difficult to find, so when a consumer finds it, they will likely become a customer for life. I once had a service department stay open late to replace a tail light which busted the night before a vacation. I never forgot that, and I have never gone anywhere else for my service…or sales. I’m not alone in this, and thanks to the rise in reviews, your customers for life can inspire even more customers for life! According to an August 2012 Fast Company article “…89 percent of advocates said their friends buy or consider purchasing the products and services they recommend. And each time a consumer posts something on the social web it reaches a minimum of 150 people.”

Positive service reviews and social posts can create a line in your service drive and keep your bays full. Fix a blown tire the morning of a vacation, or provide a last minute oil change at closing time, and you’ve gained a fan for life. The need to deliver exceptional service isn’t just aspirational, it’s essential to your bottom line. People are keeping their cars longer than ever, so solidifying your customer relationships will keep them driving into your service drive. And when they do need a new car, they are likely to turn to that trusted dealership that was always there to help them when the fan belt went out, again.

A consumer’s automotive service journey ends in your service drive, but begins online. And where one consumer’s journey ends another one begins through reviews, tweets and posts.  The Parts and Service Department’s online reputation is becoming the deciding factor in determining whether consumers want to do business with you.  The same Fast Company article stated…“Advocates are your best marketers and salespeople, and your most loyal, engaged, enthusiastic, and valuable customers. In today’s world, its advocates–not advertising’s “Mad Men”–who have the power.”

So what’s the best way to ensure that you build a loyal customer base filled with advocates that review, tweet and post about their positive experience in you service drives? Start with step one in your social media and reputation management strategy; that’s to simply deliver an exceptional consumer experience!  The best social media and reputation management strategy in the world will fail without this basic foundation and make it impossible for you to build a loyal customer base filled with advocates. Try implementing a few of these processes in your service drive to develop service stars that will translate into review stars.

How to Go the Extra Mile with your Parts and Service

Modernize Your Fixed Ops Messaging. We know social media is powerful, so why not embrace fixed-ops social media callouts as part of your digital strategy? Your consumers are online, so meet them where they are at by enticing them with Facebook and Twitter offers like this one:

In addition to social media, anyone who has a teenage daughter knows that texting has pretty much replaced talking completely. Modernize your fixed-ops experience by incorporating SMS texting for service reminders, service status updates, and general inquiries. For extra credit, incorporate an SMS-specific discount like this one:

–Pricing Transparency. In the age of social media and reputation management, pricing transparency cannot only affect the individual customer experience, it can have a ripple effect on potential future customers. Imagine what this Facebook users friends will think when they see this post:

Clearly communicate pricing and services, the amount of time the service will take and be sure to keep the customer updated on the status of their service with the most convenient contact method for the customer, whether that’s by email, phone, text or an update to their Facebook page. An app that provides service status updates, service schedules, service reminders, appointment scheduling and coupons that you can socially share will help you connect with your customers in a way that they want to connect. Many third-party service providers are already offering these types of apps to their customers. The bottom-line is to under promise, over deliver and over communicate with your customers!

Be Easily Found. Make sure your dealership information is up-to-date on Google+ Local, Yahoo Local, Yelp and other business listing pages and that your website is optimized for parts and service keywords. In a distress situation, drivers will be searching their mobile device to find key information around hours, directions and contact information; so make it easy with a site that is also optimized for mobile. And more and more consumers are using apps to find oil changes and service centers, so be sure that your dealership is registered correctly and listed in these apps. When black smoke billows out from under the hood or the air conditioner quits on the hottest day of the summer, consumers want assistance ASAP; so be sure that you make it easy for customers to find you.

Work those Reviews! Reviews are a critical component of bringing in new business and retaining customers. It’s not only important to get the positive reviews, but to respond to the negative reviews as well. If you have any “review bombs”, reach out to that reviewer and do whatever it takes to resolve the situation so that they update the review with a positive resolution. One bad review can spoil future services appointments you don’t even know you’re losing!

With consumers empowered by social media, it’s more critical than ever to deliver a positive experience in your service drive with every single customer. Make sure that your Fixed Ops department is focused on delivering this experience to build advocates and a loyal customer base.

Steve Hanson is Cobalt’s Sr. Manager of Performance Improvement Consulting, bringing over 22 years of dealership operations and consulting experience to ADP Digital Marketing clients.  Steve’s dealership experience spans from Sales Consultant to Vice-President and Partner. As a digital pioneer, Steve established his first Internet Department in 1995.  Steve’s retail background provides an insight to “how it really works” and helps him deliver real-world digital marketing strategies and processes to many of the top-performing dealers across the country. Steve has presented his digital marketing and retail process insights to Chevrolet, Cadillac, Buick, GMC, Lexus, Nissan, Hyundai, Kia, VW, and BMW dealers and wholesale organizations.  You may reach Steve at steve.hanson@adp.com or at 404.668.5115

The quality of customer service you provide can make or break your dealership, and now everyone will hear about it. Before  consumers even visit your dealership they are doing their research online. In his recent article “11 Things You Didn’t Know About Yelp”, Todd Wasserman noted: “Yelp’s research has found that a customer whose review praises “customer service” is  more than five times as likely to give a 5-star review than a 1-star review. Similarly, nearly 70% of those who trash a business’ customer service wind up giving a 1-star review.” Sounds like common sense, but the point is, great reviews start with great customer service. What will customers find about your dealership? Let’s look at this a little closer and investigate three ways to earn a positive online reputation.

First and foremost, you must build a strong culture of customer service at your dealership. This made me think of the three qualities that business magnate Warren Buffet has often said he looks for when making hiring decisions: intelligence, energy, and integrity. In fact, he believes that without integrity, the other two have little value. Each and every member of your dealership should understand and commit to the elevated quality of service you seek to provide to your customers. Great customer service should be at the top of their priority list. A dealership I work with recently asked a service customer to complete a brief 2 question survey about their service experience. Consider for a moment the feedback this customer provided:

“Dropping my car off was a cold, mechanical process; not the type of reception I expected having been a somewhat regular return customer.”

The reception the service staff did not meet the customer’s expectations. From the moment a customer steps on the lot, they should feel welcomed. Upon interacting with anyone at your dealership, they should also feel that you sincerely care about their needs and respect their time. If your employees are dedicated to providing excellent customer service, you will see that come across in the feedback customers provide.

Second, be sure your dealership has an automotive reviews process in place to seek customer feedback about their experience. Immediate contact with your customers after they purchase their vehicle or get their vehicle serviced helps you keep your finger on the pulse of how well you are doing in serving your customers’ needs. The dealer from the above example sent their customer a brief 2 question survey to ask for feedback. Perhaps you are reaching out to your customers via email or a short survey as well. You may find that some customers are still hesitant about providing their email address. We are all constantly battling spam in our Inboxes and it’s not surprising that many individuals guard their emails closely. It will be up to you to inform your customers about the reasons you are asking for their email address. For example, at the close of a customer’s visit to purchase a vehicle, you may say:

Thank you for your business. We will follow up with you to make sure you are happy with your new vehicle. We would also like to keep you up-to-date on recommended services that will keep your vehicle running smoothly. What email address should we use to send you that important information?

Lastly, once you receive their thoughts, be sure you have a good process in place, from management on down, on how you will take action on the feedback being provided. Be sure you have a designated person or team responsible for reading customer feedback. Have a clear process for routing the feedback to the appropriate managers so that the proper follow-up occurs. The above-mentioned dealer had the opportunity to address the concern right away. The feedback went directly to the Service Manager who personally contacted the customer. He also worked with his team to ensure they are more welcoming during the drop-off process. Customers will be pleased to know that your dealership is actually reading all comments they share and addressing any questions, concerns or comments and therefore will continue to find value in sharing their thoughts.

Remember, your dealership’s online reputation should be a reflection of your offline reputation. If you are truly doing a great job at engaging with your customers, you will start to see that loyal, happy customers will tell friends and family about their experience and they may even go online to write a public review of your dealership. By applying the Warren Buffett approach of emphasizing a high degree of integrity, a dealership that develops a strong culture of customer service, seeks customer feedback and takes action on the feedback being provided will earn a solid reputation.

For more great reputation management tips and tricks, be sure to check out Cobalt’s new eBook “The Street Smart Guide to Reputation Management.”

Monica Mendoza joined Cobalt in January of 2012 with 15 years of professional experience in a career that has been focused on technology . She started first in IT where she managed and deployed global networks and then moved into Sales and Marketing for Microsoft advising companies on how to significantly increase their business productivity through the use of technology. Monica is now immersed in the auto industry and advises auto dealers across the US on how to improve their customer relationships and engage with their customers in online communities through the use of social media technology.