Jared Hamilton

Company: DrivingSales inc

Jared Hamilton Blog
Total Posts: 156    

Jared Hamilton

DrivingSales inc

Jul 7, 2010

Dealerships are putting too much emphasis on social media and its not healthy for the stores, the consumers, or the industry.

Marketing is not the problem.

Despite the fact that most dealerships are still operating on an old marketing paradigm, most dealers are fairly decent marketers. They tend to manage large budgets and get predictable results with acceptable ROI. (The ROI part is semi-debatable, but that’s for another time.)

The biggest problem hindering most stores is not the marketing, it’s that they don’t deliver on their marketing promises.  It’s sad, but our industry standard for customer service is doing just enough to get the job done with today’s fresh customers but stops way short of creating an experience that customers can rave about. In other words, the root problem holding dealerships back is not what you are doing in 140 characters on twitter, it’s what you are doing on your showroom and service drive.

Think about these points:

·      Is the foursquare you use in your write up process designed for optimal customer experience or just to maximize gross?

·      If a customer asks for the price, or even payments, on a vehicle, how hard is it for them to get a straight answer?  Are your sales people trained in evasive tactics?

·      Are your sales people paid in a way that motivates them to maximize gross at the expense of the customer experience?

·      How long does it take to get through the finance office?

·      Is your trade evaluation process transparent or do your customers have to wrangle through a negotiation process after being hit with a super low offer to get to an “acceptable” deal?

These items are just examples of common pain points within dealerships that hinder customers from truly loving you.  I know this sounds a bit crazy, but if you were to bring your mom down to the dealership to buy a car, but you wouldn’t allow her to be subjected to your normal sales process… you have a broken process!  Lets face it; we could all do a better job in certain areas.

Social Media is the COOL thing to do:

Social media is about really efficient communications.  People now share information to the tenth power, and this power of “word of mouth” has WONDERFUL marketing implications for all business.  However, most dealerships don’t give the customers something good to talk about.  Even the most effective social media strategy is doomed if your dealership doesn’t operate in a super customer centered way.

Think about it like this, an effective social media strategy, or any marketing strategy, to attract customers to a dealership that is not customer focused is like taking aspirin to cure cancer.  It may make you feel better, but it’s far from a cure.  Are you looking to really cure your dealership of its current setbacks, or are you into chasing a shiny object ‘cause it’s the cool thing to do?

My Recommendation:

There is a massive opportunity out there for those dealerships who are willing to be innovative with their marketing, including being heavily involved in the social media sphere, while innovating at the operations level to provide amazing customer service… then get out of the way and let your customers do the talking.

This is proven to generate wild success.  Ask Eric Miltsch, Tom White jr, Andrew Difeo or Tracy Myers about how their stores have performed through the downturn, then ask them about the how they handle the pain points listed above.  These guys are more than marketing geniuses, they pair excellent marketing with brilliant operations, and each puts their own flavor to it.

Killer success does not come from killer marketing alone.  Huge success comes from the alignment of your dealerships marketing with your stores true value proposition, excellent customer service.

Everyone wants to be a business rock star but few are willing to put in what it takes to get there.   Most in business operate at the status quo and try and dress things up in fancy marketing. Innovate at the operation level and pair that with killer marketing and you will become the rock star.

What’s holding your store back from rock star status?  My guess it’s not just what you are saying on twitter or sharing on Facebook, it has more to do with giving your customers something to talk about.

Jared Hamilton

DrivingSales inc

Founder - CEO

6741

No Comments

Jared Hamilton

DrivingSales inc

Jun 6, 2010

To combat what I feel is a growing problem on Facebook, I’m experimenting in a big way with my strategy.

I believe Facebook at its core is a personal tool, not a business one. Like many of you, I joined to connect with personal friends back before it was really the hot marketing play in our industry. I have been watching the company since it was a startup and early on I liked to play with it when it was open just to university students (admittedly I would get in under my brothers account just to understand it.) Today there is so much business talk on facebook I feel its squashing my personal space. I cant help but wonder if potential customers are getting turned off feeling the same way. 
 
As one who likes to share auto industry information this has created somewhat of a personal dilemma. Half of my facebook friends are personal friends from home, people I went to school with or soccer mates who I played ball with for years. These people care about me, but not necessarily about the car business.   The other half are people I know from our industry, or people I am just meeting through facebook that are in our industry. Im happy to share details of my personal life, such as kids birthdays, vacations and the like with everyone. Im a fairly open person and I think this allows people to have a glimpse into the full picture who I am, not just what they see or hear from me at conventions and such.
 
The problem is that as I am increasingly active in auto industry conversations and as I share more and more auto industry specific information on facebook, my personal friends are bombarded with info they don’t need or want. That could, in some peoples mind qualify me as a “spammer” in the social sense, and frankly I don’t want to be “one of those.”
 
Thus the dilemma… 
 
There are two different sides of my life that collide on my facebook page and my friends caught in the middle. In other words, I don’t want to be a major contributor to the non-relevant business talk that is squashes my friends’ personal space. In fact, I usually find myself not participating from an industry perspective like I would want to just to protect my non-industry friends from a disproportionate amount of automotive banter.
 
My solution isn’t exactly pretty; I created a second facebook profile event though it’s against what facebook wants. There is “Jared Hamilton” the family man/entrepreneur that is in the car business and now there is “Jared at DrivingSales” the car business 3rd gen. dealer advocate/entrepreneur who is also a devout family man. Its not that I won’t share car business stuff out of my first account, or that I wont share family stuff out of my Jared at DrivingSales account, its just that now there are two profiles to match the two main roles I play in life.
I know what you are thinking, “This is exactly what facebook lists are for.”   That’s true, but Ive opted not to go that route mostly because I think I want more separation between these two roles that I play than just grouping things according to lists. It may be out of fear of not understanding facebooks privacy settings. (ive got a good grip on it but it changes so often its hard to trust or keep up with.)  Or It may be I think it’s a pain in the butt to use the complex settings correctly. Either way, I just feel more comfortable with two profiles.
 
So, through the foreseeable future I’m going to maintain two facebook profiles as somewhat of an experiment. I want to see if it helps me be a better friend to both my automotive friends, by being more active in sharing and participating in automotive content, and to my personal friends, by not bombarding them with automotive content. Perhaps this separation will be better for everyone, perhaps it wont. There is also a third option: facebook could boot me off for not following their guidelines… I guess we will have to wait and see.

Jared Hamilton

DrivingSales inc

Founder - CEO

6044

No Comments

Jared Hamilton

DrivingSales inc

Jun 6, 2010

To combat what I feel is a growing problem on Facebook, I’m experimenting in a big way with my strategy.

I believe Facebook at its core is a personal tool, not a business one. Like many of you, I joined to connect with personal friends back before it was really the hot marketing play in our industry. I have been watching the company since it was a startup and early on I liked to play with it when it was open just to university students (admittedly I would get in under my brothers account just to understand it.) Today there is so much business talk on facebook I feel its squashing my personal space. I cant help but wonder if potential customers are getting turned off feeling the same way. 
 
As one who likes to share auto industry information this has created somewhat of a personal dilemma. Half of my facebook friends are personal friends from home, people I went to school with or soccer mates who I played ball with for years. These people care about me, but not necessarily about the car business.   The other half are people I know from our industry, or people I am just meeting through facebook that are in our industry. Im happy to share details of my personal life, such as kids birthdays, vacations and the like with everyone. Im a fairly open person and I think this allows people to have a glimpse into the full picture who I am, not just what they see or hear from me at conventions and such.
 
The problem is that as I am increasingly active in auto industry conversations and as I share more and more auto industry specific information on facebook, my personal friends are bombarded with info they don’t need or want. That could, in some peoples mind qualify me as a “spammer” in the social sense, and frankly I don’t want to be “one of those.”
 
Thus the dilemma… 
 
There are two different sides of my life that collide on my facebook page and my friends caught in the middle. In other words, I don’t want to be a major contributor to the non-relevant business talk that is squashes my friends’ personal space. In fact, I usually find myself not participating from an industry perspective like I would want to just to protect my non-industry friends from a disproportionate amount of automotive banter.
 
My solution isn’t exactly pretty; I created a second facebook profile event though it’s against what facebook wants. There is “Jared Hamilton” the family man/entrepreneur that is in the car business and now there is “Jared at DrivingSales” the car business 3rd gen. dealer advocate/entrepreneur who is also a devout family man. Its not that I won’t share car business stuff out of my first account, or that I wont share family stuff out of my Jared at DrivingSales account, its just that now there are two profiles to match the two main roles I play in life.
I know what you are thinking, “This is exactly what facebook lists are for.”   That’s true, but Ive opted not to go that route mostly because I think I want more separation between these two roles that I play than just grouping things according to lists. It may be out of fear of not understanding facebooks privacy settings. (ive got a good grip on it but it changes so often its hard to trust or keep up with.)  Or It may be I think it’s a pain in the butt to use the complex settings correctly. Either way, I just feel more comfortable with two profiles.
 
So, through the foreseeable future I’m going to maintain two facebook profiles as somewhat of an experiment. I want to see if it helps me be a better friend to both my automotive friends, by being more active in sharing and participating in automotive content, and to my personal friends, by not bombarding them with automotive content. Perhaps this separation will be better for everyone, perhaps it wont. There is also a third option: facebook could boot me off for not following their guidelines… I guess we will have to wait and see.

Jared Hamilton

DrivingSales inc

Founder - CEO

6044

No Comments

Jared Hamilton

DrivingSales inc

Apr 4, 2010

Top Reasons You're not Seeing ROI from Your Social Pages

Dealerships across the country are jumping into social media, and that’s a good thing. However, as I talk to dealers around the country, many -- perhaps even most -- are not seeing any ROI from their Facebook pages, Twitter participation, or any other social media assets. Chances are, if you're not seeing ROI from social media, it's due to one of two reasons:
1. Dealerships are not leveraging their social assets properly.
 
The genesis of social media is user-generated content, so ,naturally, to be involved means that you need to join the communities where your customers are or create your own destinations and share quality content. This is a problem for dealerships because, historically, the only content dealerships have created are their marketing collaterals, such as TV and radio spots. 
 
Most dealerships are not geared up to be content producers, so they do what comes easily, sharing only or mostly inventory and sale information. This is bad; in fact, it's akin to SPAM. Unless a customer is specifically looking for a used Dodge Durango, they don’t care that you just took one in on trade. Furthermore, when you broadcast every “super clean, low miles vehicle” that you take in on trade and nothing else, it becomes annoying, and you will loose fans. Your dealership MUST learn to create content that customers want and need. Your success in social media is directly proportionate to your ability to create good content. Chances are, if people are not engaging you in social media, it's because your content is not worth engaging with.
 
Hint: Your dealership's fixed operations department is your greatest opportunity to engage customers on the social web.
2. Dealerships are looking for ROI in the wrong places.
 
There's an old saying that “unless you define what success is, you won't know when you've achieved it.” This is very true of social media: most dealers do not see social media ROI because they don’t know where to look. Often, dealers simply look for leads generated directly from Facebook or Twitter; after all, that's how we judge our websites and other marketing efforts. Lead generation is not the primary benefit of social media, though, and we thus have to look in other places if we want to make our efforts pay off on paper.
 
Rather than looking at social media ONLY as a direct lead generator, look at its traffic value to your other properties. Use tracking URLs and analytics to see which and how much traffic your social activities are generating. This will also help you learn which content resonates well with your audience.  Let your other properties be the lead generation machines, and use the social web to stay in touch with customers and move them down the funnel as they become ready and click to visit your other properties.
 
Use social media sites to help you dominate search engines by getting your profiles, blogs, and ratings to rank well. In addition, use advanced SEO tools to track the value of the links you drop in social media back to your sites. Links on the web are like votes, and when done properly can help “vote” your other websites to the top of the search rankings. 
 
Use social media to connect with and create loyal customers.  Educate customers on how to get the most of their vehicles, connect with enthusiasts, and make your dealerships the hub of their experience with their vehicle. To judge your effectiveness here, watch your friend/follower numbers, and then use your CRM system to match them with how many return for service. Watch who shares your content with their followers, and you can learn who your most influential customers are; then, cater to these people and make it easy for them to share, as well.
 
The social web is amazing. It mirrors the real world on the computer screen. Think of how you would represent your dealership at a social event, and then act that way online. Remember this VERY good advice from Seth Godin: “Revolutions are frightening because the new benefits often lag behind the old pain.” Social media is a revolution, and it takes an investment of time to get through to the really good ROI. Start with the end in mind, execute your strategy to build quality content, and be consistent. It will pay off. 
 
 
I welcome your thoughts and additions. Please share them in the comments.
 

Jared Hamilton

DrivingSales inc

Founder - CEO

4727

10 Comments

Brian Pasch

PCG Consulting Inc

Apr 4, 2010  

@Jared You bring up a good point that car dealers do not have experience with content writing strategies that add value in social media. That would be a great webinar to run for members of DrivingSales.com to coach them how to write more effectively on blogs and social media sites. Let's get one setup! Secondly, posting car specials and individual inventory on your wall will turn off consumers who are looking to engage with the dealership. I find a nice balance is to add a Facebook Tab to your Fan Page that has a car inventory research tool available IF the consumer chooses to engage and shop inside of Facebook. An example of this concept can be found at http://www.facebook.com/Marlboro.Nissan?v=app_360836281011 . This is a clean way to have the dealership's inventory one-click away but not in their face or in the stream of content on the Wall. As these types of apps develop, Facebook Fan Pages will be multi-purpose and a significant sources to promote your brand and sell more cars. As you have stated, the key is to create the content, articles and commentary that makes people want to follow your posts and grow attached to your brand. Then it comes down to the basics of human interaction and communication.

VJ VJ

Own

Apr 4, 2010  

As I said just last week in my last WebEx seminar, Social Media (and it doesn't matter if we are talking about Twitter or Facebook here) will help these dealers, who see their Social marketing followers in the MIDLLE of the purchase funnel, and not at the end - the consumer all ready to make a deal. As we all (should) know the MIDDLE of the Funnel is when our possible prospect is in the mood to find out more about a product or service and uses the time to make her research and observation "whom to pick as TRUSTED vendor". In my opinion, and as Jared has stated absolutely right, the huge chance to convert an "opportunity" begins with a car dealers fixed operations. Show your potential, future what made you the No.1 go to service department in the city, who is frequently holding "free car clinics" every first Wednesday in a month and the customers are receiving free Technician advice how do change oil filters, tires, air filters and so on - and the best thing is, the parts you possible need to perform the just taught are ON SALE the same day, and beats the price of the in-town AutoZone store. These clinics also should be YouTube(d), tagged with the right keywords and also posted on your dealer's URL under the tab "do it yourself" or similar. This is valuable content is what Social Media Marketing si all about and you need to share on all your Social channels - it is active, informative, vibrant content which directly points the interested Social Media consumer into your direction or even better into your store. There are far more ideas and Tips I would love to share, and I promise I will with one of my next posts. Jared, Brian let's work together on the strategy for the next Bootcamp ;)

Erin Zaborac

ADP/Cobalt

Apr 4, 2010  

I am currently an Internet Manager at a small rural GM dealership and we have really worked to make our Facebook page an itegral part of our marketing mix. We currently have over 750 fans, and while many are friends and family members of staffers, we actively invite our customers. I take the email address of each person who buys a car (and most who service with us) and I seacrh for them on Facebook. If they have a page, I use the "Share" button at the bottom of our dealership fan page to sent them a nice message inviting them to become a fan. I have sent hundreds of these and received only 1 message back from an unhappy customer. We try to post fun local events and specials, and have gotten a pretty good response. By no means do we expect to sell cars off Facebook, but I have found that the fans who have posted comments or pictures on our page are now loyal for life. That's just my two cents. You can't expect people to just stumble onto your fan page - you have to be active about inviting them,.

Brian Pasch

PCG Consulting Inc

Apr 4, 2010  

@Erin I agree...to grow your Facebook Fans requires innovation and hard work. That work will be rewarded over time...dealers just have to be patient and NOT measure results in terms on days or months.

David Johnson

Persuasive Concepts, LLC

Apr 4, 2010  

Brian, you bring up a very valid point and is the reason, I believe, why most social media attempts by auto dealers end up going awry. Auto dealers are always thinking about the return they can make today, not what they can cultivate for future returns. Having said that, that's the reason why we are seeing so many abandoned social media attempts, with fan pages that get updated once a month if we're lucky, or twitter profiles that haven't been updated in months. Even if they are updated they fall into one of the two categories that Jared talks about in his post. Dealerships need to realize that social media isn't the big splash that they are looking for, rather the ripple that takes time to grow.

Stacy Mueller

DMEautomotive

Apr 4, 2010  

@Jared, wonderful blog and quite thought provoking. Frankly, it appears from my interactions with the automotive industry professionals that many just aren’t used to NOT selling. But the suggestion provided by @Brian to have an inventory tab on FB is probably the best option, as it’s not intruding on their daily Facebook experience but available to those interested. Ideally, social media can be used to position a dealership as an industry expert, act as a real-time customer service forum, and educate customers and general public. Instead of the hard sell, dealers MUST think of ways to help customers and general public better understand the car buying process and how financing works, the reasons behind various service requirements, ways to enhance the driving experience, how to improve or better maintain their car and other types of insightful and useful tips. Tidbits about car care, maintenance, and driving tips are usually well received. Those topics are ENDLESS. The important thing is to remember - as @Brian mentioned - is patience and perhaps dealers need to alter the way they are measuring the ROI. I wrote a white paper a few months ago that may be helpful, please check it out and let me know your thoughts: http://www.fullcirclesolutions.com/downloads/hiddenlink.php

Eric Miltsch

DealerTeamwork LLC

Apr 4, 2010  

Many dealers run the risk of simply creating the same run-of-the-mill page & which becomes the digital equivalent of the boring, ineffective weekend display ad in the newspaper. The average FB user goes into a new "user-mode" that is unlike their behavior on a typical website; think about your own usage - you're seeking fun, new, interactive things to click on, like, try-out, add to your page - you're not there to be sold the old way. (Why do you think Farmville's founders are wealthier than a small nation?) whatever you do, it needs to be different. Here's one small example of how I'm trying to mix it up - and it's got people asking questions: http://www.facebook.com/AuctionDirectUSA?v=app_331973405870&ref=ts

Gary May

Interactive Marketing and Consulting Services

Apr 4, 2010  

Jared, Great post and one more in a very deliberate path that our valuable dealer base in the US can read. And then hopefully put into action. And the points made above by everyone adding are very valid. To understand social media's place in any retail you must look at how that business operates. Social media, while very natural to us as people that generally network, is very unnatural to the essence of automotive retail. This has been very evident since the mid-90's with everything from online pricing, invoices, listing of dealer "trunk" cash and other intentional transparencies that the dealerships (mostly) have despised. Everything is fought. Any item that shines a light into how dealers sell cars is frowned upon. This may sound off topic but it's not and I've known this from being in the industry for a mere 10 years. Not decades. And I'm not from a line of automotive superstars (my parents, in fact, hate dealerships because of how they've been treated over the years). Social media, as well as other associated activities, is an extension of your brand. Pure and simple. If you don't have a brand and experience that you'd tell EVERYONE about, social is probably not your cup of tea. Success is nearly always top down and if a store's management is not on board, you'll either have to be a renegade or deliberately ignore their frustration with being involved. There are a few missing points in section 2 about ROI. Social is about engagement. Yes, content is hard enough for dealers, especially when a lot of people in the "Internet" departments have a hard enough time with writing emails to customers (both timeliness and content). You have to be on your game in social media and not just for customer service opportunities. First is that engagement via the content shared and commented on DOES drive traffic no matter what part of the 'funnel' they're in (let alone the funnel concept has been blown apart in the past three years due to the social web). This means you have to look at your FB analytics, for example, to see how people are using your content before they even hit your website, if they do at all. Second is process including making sure you go out of your way to engage influencers. Erin made a great point about this. One, she has a process. Second, she looks at the person's profile (and likely how many friends they have) when inviting. And this is no different than what you need to do with the recommendation sites like Yelp, DealerRater, MyDealerReport and more. As a matter of a fact, social reviews are proving...proving...to deliver more leads than any other social media. Also, while I'm not suggesting that anyone and everyone becomes SEO experts, social media done right is part of the equation in dominating Google rank. Again, important to point out done right. And just because you get 2,000 fans doesn't necessarily mean you'll have your FB page show up on page 1 of Google. But with the right traffic, links, interaction, events and more, there is a good chance that you'll have one more portal or dealer fall off of GP1 when your social media does well. IMPORTANT SIDE NOTE Dealers, providers, vendors, consultants: PLEASE stop setting up friend pages. You MUST set up Fan pages. Number one, by having a business as a friend page, you're in violation of Facebook's Terms of Service/Use. Second, you don't get to have analytics/dashboard when you have a friend page. Third, you don't have as much control over the engagement with your page. The list is too long of other things to do and not do but please start with those. DON'T SET UP FRIEND PAGES FOR BUSINESSES!!!!!! (yes I'm yelling after being ignored for the most part of two years). SECOND IMPORTANT SIDE NOTE Because, as pointed out by everyone here, content is king it is important to remind everyone that there is nothing social about inventory, price or automation. If you have an API set up to feed inventory to your Twitter page, you might as well stop. If you have an API set up to post well-followed content into your Twitter page, you're part of the way there. If you don't answer mentions and important follows or take note of what people are commenting about, you might as well not use Twitter because, well, you're not being social. People that use social media, want to be social or are in consideration of using/interacting with your brand and will become social. Don't continue to make the mistakes that most dealerships are making today with not realizing the power, and potential for huge mistakes and misses, that social media not done right allows for. Too many dealers use automation for content, auto follow backs and retweets, get 10,000 followers and think that helps them. To use an oft used Twitter hashtag: #FAIL (if you don't know what a hashtag is and you're in social media, you definitely need to get help). And to Eric's point about people asking questions, that is what social media is all about folks. Stop trying to sell in social media. Stop ignoring opportunities in social media. Stop thinking by having some networks up that you're in social media. Use social media as a tool to drive consideration, retention and information. That is all.

Stacy Mueller

DMEautomotive

Apr 4, 2010  

Love your comments Gary...so true. Especially about "Friend" vs. "Fan" Pages. Fan pages are the way to go. And they drive SEO! Missy

Brooke Jensen

Dealers United

Oct 10, 2017  

Loving this discussion! A few things: has anyone read "The Conversion Code" by Chris Smith? AWESOME tips on using social (particularly Facebook) to do social selling the right way. And yes content is key...but dealers I know don't have time to create hundreds of whitepapers and videos for different consumers. That's why the best strategies tend to advertise specific pieces of content, even "salesy" content, to specific users on Facebook - like pet adoption events to pet lovers, military discounts to active military and veterans, and even particular types of vehicles to shoppers who are In-Market for those specific makes & models. But heads up: since Facebook's organic (unpaid) reach has gone down immensely since 2014, Page fans and Likes hardly impact your reach when it comes to getting your message seen - another likely reason for not being able to measure ROI! According to a study by Social&Ogilvy, Business Pages that had more than 500,000 Likes were only achieving an organic reach of 2%. Even if you had 10,000 FB fans, only 200 would see your posts! When it comes to your dealership FB Pages, your Business Page and your "salesly" content need to be very different entities. That's what Facebook advertising is for - so anything sales oriented sits behind-the-scenes, not on your Page (which should be culture and content driven) - and no, “Boosting posts” doesn’t count! Lastly, another quick comment regarding ROI...if you do decide to run paid ads, you can use Offline Conversion Events (what we call Sales Matchbacks over at Dealers United) to track actual vehicle sale attribution to every ad you run. This is extremely useful when running vehicle ads, so you can see which styles are getting the most VDP views & sales every month, and help you plan your floor accordingly. (More tips can be found on our blog: http://www.dealersunited.com/blog/category/social-media/)

Jared Hamilton

DrivingSales inc

Apr 4, 2010

Top Reasons You're not Seeing ROI from Your Social Pages

Dealerships across the country are jumping into social media, and that’s a good thing. However, as I talk to dealers around the country, many -- perhaps even most -- are not seeing any ROI from their Facebook pages, Twitter participation, or any other social media assets. Chances are, if you're not seeing ROI from social media, it's due to one of two reasons:
1. Dealerships are not leveraging their social assets properly.
 
The genesis of social media is user-generated content, so ,naturally, to be involved means that you need to join the communities where your customers are or create your own destinations and share quality content. This is a problem for dealerships because, historically, the only content dealerships have created are their marketing collaterals, such as TV and radio spots. 
 
Most dealerships are not geared up to be content producers, so they do what comes easily, sharing only or mostly inventory and sale information. This is bad; in fact, it's akin to SPAM. Unless a customer is specifically looking for a used Dodge Durango, they don’t care that you just took one in on trade. Furthermore, when you broadcast every “super clean, low miles vehicle” that you take in on trade and nothing else, it becomes annoying, and you will loose fans. Your dealership MUST learn to create content that customers want and need. Your success in social media is directly proportionate to your ability to create good content. Chances are, if people are not engaging you in social media, it's because your content is not worth engaging with.
 
Hint: Your dealership's fixed operations department is your greatest opportunity to engage customers on the social web.
2. Dealerships are looking for ROI in the wrong places.
 
There's an old saying that “unless you define what success is, you won't know when you've achieved it.” This is very true of social media: most dealers do not see social media ROI because they don’t know where to look. Often, dealers simply look for leads generated directly from Facebook or Twitter; after all, that's how we judge our websites and other marketing efforts. Lead generation is not the primary benefit of social media, though, and we thus have to look in other places if we want to make our efforts pay off on paper.
 
Rather than looking at social media ONLY as a direct lead generator, look at its traffic value to your other properties. Use tracking URLs and analytics to see which and how much traffic your social activities are generating. This will also help you learn which content resonates well with your audience.  Let your other properties be the lead generation machines, and use the social web to stay in touch with customers and move them down the funnel as they become ready and click to visit your other properties.
 
Use social media sites to help you dominate search engines by getting your profiles, blogs, and ratings to rank well. In addition, use advanced SEO tools to track the value of the links you drop in social media back to your sites. Links on the web are like votes, and when done properly can help “vote” your other websites to the top of the search rankings. 
 
Use social media to connect with and create loyal customers.  Educate customers on how to get the most of their vehicles, connect with enthusiasts, and make your dealerships the hub of their experience with their vehicle. To judge your effectiveness here, watch your friend/follower numbers, and then use your CRM system to match them with how many return for service. Watch who shares your content with their followers, and you can learn who your most influential customers are; then, cater to these people and make it easy for them to share, as well.
 
The social web is amazing. It mirrors the real world on the computer screen. Think of how you would represent your dealership at a social event, and then act that way online. Remember this VERY good advice from Seth Godin: “Revolutions are frightening because the new benefits often lag behind the old pain.” Social media is a revolution, and it takes an investment of time to get through to the really good ROI. Start with the end in mind, execute your strategy to build quality content, and be consistent. It will pay off. 
 
 
I welcome your thoughts and additions. Please share them in the comments.
 

Jared Hamilton

DrivingSales inc

Founder - CEO

4727

10 Comments

Brian Pasch

PCG Consulting Inc

Apr 4, 2010  

@Jared You bring up a good point that car dealers do not have experience with content writing strategies that add value in social media. That would be a great webinar to run for members of DrivingSales.com to coach them how to write more effectively on blogs and social media sites. Let's get one setup! Secondly, posting car specials and individual inventory on your wall will turn off consumers who are looking to engage with the dealership. I find a nice balance is to add a Facebook Tab to your Fan Page that has a car inventory research tool available IF the consumer chooses to engage and shop inside of Facebook. An example of this concept can be found at http://www.facebook.com/Marlboro.Nissan?v=app_360836281011 . This is a clean way to have the dealership's inventory one-click away but not in their face or in the stream of content on the Wall. As these types of apps develop, Facebook Fan Pages will be multi-purpose and a significant sources to promote your brand and sell more cars. As you have stated, the key is to create the content, articles and commentary that makes people want to follow your posts and grow attached to your brand. Then it comes down to the basics of human interaction and communication.

VJ VJ

Own

Apr 4, 2010  

As I said just last week in my last WebEx seminar, Social Media (and it doesn't matter if we are talking about Twitter or Facebook here) will help these dealers, who see their Social marketing followers in the MIDLLE of the purchase funnel, and not at the end - the consumer all ready to make a deal. As we all (should) know the MIDDLE of the Funnel is when our possible prospect is in the mood to find out more about a product or service and uses the time to make her research and observation "whom to pick as TRUSTED vendor". In my opinion, and as Jared has stated absolutely right, the huge chance to convert an "opportunity" begins with a car dealers fixed operations. Show your potential, future what made you the No.1 go to service department in the city, who is frequently holding "free car clinics" every first Wednesday in a month and the customers are receiving free Technician advice how do change oil filters, tires, air filters and so on - and the best thing is, the parts you possible need to perform the just taught are ON SALE the same day, and beats the price of the in-town AutoZone store. These clinics also should be YouTube(d), tagged with the right keywords and also posted on your dealer's URL under the tab "do it yourself" or similar. This is valuable content is what Social Media Marketing si all about and you need to share on all your Social channels - it is active, informative, vibrant content which directly points the interested Social Media consumer into your direction or even better into your store. There are far more ideas and Tips I would love to share, and I promise I will with one of my next posts. Jared, Brian let's work together on the strategy for the next Bootcamp ;)

Erin Zaborac

ADP/Cobalt

Apr 4, 2010  

I am currently an Internet Manager at a small rural GM dealership and we have really worked to make our Facebook page an itegral part of our marketing mix. We currently have over 750 fans, and while many are friends and family members of staffers, we actively invite our customers. I take the email address of each person who buys a car (and most who service with us) and I seacrh for them on Facebook. If they have a page, I use the "Share" button at the bottom of our dealership fan page to sent them a nice message inviting them to become a fan. I have sent hundreds of these and received only 1 message back from an unhappy customer. We try to post fun local events and specials, and have gotten a pretty good response. By no means do we expect to sell cars off Facebook, but I have found that the fans who have posted comments or pictures on our page are now loyal for life. That's just my two cents. You can't expect people to just stumble onto your fan page - you have to be active about inviting them,.

Brian Pasch

PCG Consulting Inc

Apr 4, 2010  

@Erin I agree...to grow your Facebook Fans requires innovation and hard work. That work will be rewarded over time...dealers just have to be patient and NOT measure results in terms on days or months.

David Johnson

Persuasive Concepts, LLC

Apr 4, 2010  

Brian, you bring up a very valid point and is the reason, I believe, why most social media attempts by auto dealers end up going awry. Auto dealers are always thinking about the return they can make today, not what they can cultivate for future returns. Having said that, that's the reason why we are seeing so many abandoned social media attempts, with fan pages that get updated once a month if we're lucky, or twitter profiles that haven't been updated in months. Even if they are updated they fall into one of the two categories that Jared talks about in his post. Dealerships need to realize that social media isn't the big splash that they are looking for, rather the ripple that takes time to grow.

Stacy Mueller

DMEautomotive

Apr 4, 2010  

@Jared, wonderful blog and quite thought provoking. Frankly, it appears from my interactions with the automotive industry professionals that many just aren’t used to NOT selling. But the suggestion provided by @Brian to have an inventory tab on FB is probably the best option, as it’s not intruding on their daily Facebook experience but available to those interested. Ideally, social media can be used to position a dealership as an industry expert, act as a real-time customer service forum, and educate customers and general public. Instead of the hard sell, dealers MUST think of ways to help customers and general public better understand the car buying process and how financing works, the reasons behind various service requirements, ways to enhance the driving experience, how to improve or better maintain their car and other types of insightful and useful tips. Tidbits about car care, maintenance, and driving tips are usually well received. Those topics are ENDLESS. The important thing is to remember - as @Brian mentioned - is patience and perhaps dealers need to alter the way they are measuring the ROI. I wrote a white paper a few months ago that may be helpful, please check it out and let me know your thoughts: http://www.fullcirclesolutions.com/downloads/hiddenlink.php

Eric Miltsch

DealerTeamwork LLC

Apr 4, 2010  

Many dealers run the risk of simply creating the same run-of-the-mill page & which becomes the digital equivalent of the boring, ineffective weekend display ad in the newspaper. The average FB user goes into a new "user-mode" that is unlike their behavior on a typical website; think about your own usage - you're seeking fun, new, interactive things to click on, like, try-out, add to your page - you're not there to be sold the old way. (Why do you think Farmville's founders are wealthier than a small nation?) whatever you do, it needs to be different. Here's one small example of how I'm trying to mix it up - and it's got people asking questions: http://www.facebook.com/AuctionDirectUSA?v=app_331973405870&ref=ts

Gary May

Interactive Marketing and Consulting Services

Apr 4, 2010  

Jared, Great post and one more in a very deliberate path that our valuable dealer base in the US can read. And then hopefully put into action. And the points made above by everyone adding are very valid. To understand social media's place in any retail you must look at how that business operates. Social media, while very natural to us as people that generally network, is very unnatural to the essence of automotive retail. This has been very evident since the mid-90's with everything from online pricing, invoices, listing of dealer "trunk" cash and other intentional transparencies that the dealerships (mostly) have despised. Everything is fought. Any item that shines a light into how dealers sell cars is frowned upon. This may sound off topic but it's not and I've known this from being in the industry for a mere 10 years. Not decades. And I'm not from a line of automotive superstars (my parents, in fact, hate dealerships because of how they've been treated over the years). Social media, as well as other associated activities, is an extension of your brand. Pure and simple. If you don't have a brand and experience that you'd tell EVERYONE about, social is probably not your cup of tea. Success is nearly always top down and if a store's management is not on board, you'll either have to be a renegade or deliberately ignore their frustration with being involved. There are a few missing points in section 2 about ROI. Social is about engagement. Yes, content is hard enough for dealers, especially when a lot of people in the "Internet" departments have a hard enough time with writing emails to customers (both timeliness and content). You have to be on your game in social media and not just for customer service opportunities. First is that engagement via the content shared and commented on DOES drive traffic no matter what part of the 'funnel' they're in (let alone the funnel concept has been blown apart in the past three years due to the social web). This means you have to look at your FB analytics, for example, to see how people are using your content before they even hit your website, if they do at all. Second is process including making sure you go out of your way to engage influencers. Erin made a great point about this. One, she has a process. Second, she looks at the person's profile (and likely how many friends they have) when inviting. And this is no different than what you need to do with the recommendation sites like Yelp, DealerRater, MyDealerReport and more. As a matter of a fact, social reviews are proving...proving...to deliver more leads than any other social media. Also, while I'm not suggesting that anyone and everyone becomes SEO experts, social media done right is part of the equation in dominating Google rank. Again, important to point out done right. And just because you get 2,000 fans doesn't necessarily mean you'll have your FB page show up on page 1 of Google. But with the right traffic, links, interaction, events and more, there is a good chance that you'll have one more portal or dealer fall off of GP1 when your social media does well. IMPORTANT SIDE NOTE Dealers, providers, vendors, consultants: PLEASE stop setting up friend pages. You MUST set up Fan pages. Number one, by having a business as a friend page, you're in violation of Facebook's Terms of Service/Use. Second, you don't get to have analytics/dashboard when you have a friend page. Third, you don't have as much control over the engagement with your page. The list is too long of other things to do and not do but please start with those. DON'T SET UP FRIEND PAGES FOR BUSINESSES!!!!!! (yes I'm yelling after being ignored for the most part of two years). SECOND IMPORTANT SIDE NOTE Because, as pointed out by everyone here, content is king it is important to remind everyone that there is nothing social about inventory, price or automation. If you have an API set up to feed inventory to your Twitter page, you might as well stop. If you have an API set up to post well-followed content into your Twitter page, you're part of the way there. If you don't answer mentions and important follows or take note of what people are commenting about, you might as well not use Twitter because, well, you're not being social. People that use social media, want to be social or are in consideration of using/interacting with your brand and will become social. Don't continue to make the mistakes that most dealerships are making today with not realizing the power, and potential for huge mistakes and misses, that social media not done right allows for. Too many dealers use automation for content, auto follow backs and retweets, get 10,000 followers and think that helps them. To use an oft used Twitter hashtag: #FAIL (if you don't know what a hashtag is and you're in social media, you definitely need to get help). And to Eric's point about people asking questions, that is what social media is all about folks. Stop trying to sell in social media. Stop ignoring opportunities in social media. Stop thinking by having some networks up that you're in social media. Use social media as a tool to drive consideration, retention and information. That is all.

Stacy Mueller

DMEautomotive

Apr 4, 2010  

Love your comments Gary...so true. Especially about "Friend" vs. "Fan" Pages. Fan pages are the way to go. And they drive SEO! Missy

Brooke Jensen

Dealers United

Oct 10, 2017  

Loving this discussion! A few things: has anyone read "The Conversion Code" by Chris Smith? AWESOME tips on using social (particularly Facebook) to do social selling the right way. And yes content is key...but dealers I know don't have time to create hundreds of whitepapers and videos for different consumers. That's why the best strategies tend to advertise specific pieces of content, even "salesy" content, to specific users on Facebook - like pet adoption events to pet lovers, military discounts to active military and veterans, and even particular types of vehicles to shoppers who are In-Market for those specific makes & models. But heads up: since Facebook's organic (unpaid) reach has gone down immensely since 2014, Page fans and Likes hardly impact your reach when it comes to getting your message seen - another likely reason for not being able to measure ROI! According to a study by Social&Ogilvy, Business Pages that had more than 500,000 Likes were only achieving an organic reach of 2%. Even if you had 10,000 FB fans, only 200 would see your posts! When it comes to your dealership FB Pages, your Business Page and your "salesly" content need to be very different entities. That's what Facebook advertising is for - so anything sales oriented sits behind-the-scenes, not on your Page (which should be culture and content driven) - and no, “Boosting posts” doesn’t count! Lastly, another quick comment regarding ROI...if you do decide to run paid ads, you can use Offline Conversion Events (what we call Sales Matchbacks over at Dealers United) to track actual vehicle sale attribution to every ad you run. This is extremely useful when running vehicle ads, so you can see which styles are getting the most VDP views & sales every month, and help you plan your floor accordingly. (More tips can be found on our blog: http://www.dealersunited.com/blog/category/social-media/)

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