Jared Hamilton

Company: DrivingSales inc

Jared Hamilton Blog
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Jared Hamilton

DrivingSales inc

Aug 8, 2010

Facebook Places and your car dealership

For those of you who missed it today, Facebook launched into the location based social media business. This, in my humble opinion, has huge implications for car dealers.
 
First… some background:
Just to catch everyone up, location based media is mostly tied to mobile device usage as it uses cell towers and satellites your triangulate the location of your phone to target your exact location. Then, when you go somewhere like a restaurant you are given the option to check in, which basically means you give your phone permission to locate you and share your position with the all your friends on that particular service.
 
Foursquare is the most popular location based app in the auto industry, although outside the industry foursquare is neck and neck with Gowalla. Each have raving fans very loyal to their platforms and they are fierce competitors.   In both foursquare and Gowalla, users earn points by check-in at places which unlock digital rewards called badges or stamps. If you are the most frequent visitor to a location you earn special designation that can earn you discounts or bragging rights. It’s like a game to compete with your friends to earn digital coupons, or statuses.
 
Location based services are somewhat new, about 2 years old, but are certainly the talk of the town. Business implications are potentially huge, but best practice details are still somewhat experimental since the market is so young. 
 
I know of a dealer who is putting tips in foursquare that offers to buy a customers trade, regardless if they purchase a car from this dealership or not. This way when a customers checks in at a competitive store, the customer gets a friendly invitation to check out my friends store for an appraisal and he gets a shot at the deal. There is also talk about using this as a digital rewards program, much like a hertz gold card, except requiring the customer to check in at your business, this drives foot traffic for people looking to earn badges and discounts.
 
As I stated early, it’s the wild-west as to how to monetize these location based platforms, but because they drive users from the virtual word to a physical location, the opportunities are HUGE for local businesses like dealerships.  
 
Until now the space has been pioneered by foursquare and Gowalla, about 40 smaller companies. Yelp is also getting into this business and as of today, so is faebook with a product called “facebook places.”
 
How will Facebook places effect dealerships?
 
Mass adoption – time to add to your mix.
The first thing that I see with location based services is that is has NOT been a ‘’must-have’ in a dealership’s marketing arsenal until now. Ive spoken to a few hundred dealers in the last few months and I often get asked when to engage location based media. My advice was that because foursquare has only about 2.5 million users, its not big enough to justify for everyone to be involved. I recommend dealers watch the space and see how it matures unless their store is known for being cutting edge as its core competency. These leading edge dealerships need to get involved immediately to pioneer the market because that is what defines them, however, for most pragmatic dealers, there was not enough critical mass to get involved… this has now changed.
 
While foursquare has 2.5 million users, facebook has 500 million users clearly in one day the location based media market has hit a whole new level of scale that will now take off fast. Unless location based media fails completely, its time for dealers to jump in.
 
Reputation Management – new speed and scope:
In addition to an element of critical mass, think of how much easier facebook is than foursquare at adding comments, likes and other interactions to content. On foursquare almost all of the interaction stops once the check-in happens. On facebook the conversation is just getting going once a status update/wall post is made. Because of this you can certainly expect people to like/comment and respond at a much higher rate to the facebook check-ins about your dealership than they would on foursquare. Your customers’ friends will have a much lower barrier to adding real time opinions to your customers visits at your dealership. 
 
Imagine this scenario: a customer comes to your showroom and checks in via facebook, instantly a few hundred of your customers’ friends will see that they are visiting your dealerships. How will your customers friends respond? What opinions will be shared with your customer on your showroom? Will it help the sale or will it be like adding a hundred third-basemen to your car deal?
 
These interactions will put a whole new spin and speed on reputation management. Your dealership will be talked about much more online, and it will be hard to track these conversations since facebook does not open up all of its content to the search engines, or even to other facebook users. (More on this later)
 
This level of transparency between friends, and the new speed at which information will be shared about your store, possibly without your knowledge, means you had better be on your “customer service” game. Simply responding to bad reviews will become an inadequate strategy; you had better stop the bad review before it happens. This level of proactive customer service is nothing new to those of you that read my post about how social media wont fix your dealership.
 
 
Privacy issues – be careful where you are tagged
There are some potential privacy issues with places, particularly with tagging, however but facebook is clearly playing conservative with the general privacy settings since their recent privacy fiasco. The default privacy setting is that your location, when you “allow,” will only show your check-ins to your friends, you will have to manually switch it to be open to the world.  (Again, this is why you will not necessarily see or have access to a large percentage of the discussions about your dealership.)
 
You can tag anyone you like in your posts with you, even if they are not there, as long as tagging is “on” for them. This, in my opinion is where there some privacy complaints will come in. Friends could play a cruel joke such as taging you at a stip club even though you are not there, sharing this false location with your spouse who thinks you are on a business trip. Ouch.   Far fetched? Sure. But the point is the same, think of all the places you don’t want to personally be tagged or have your business tagged. Are you going to give this control to others?
 
The good news is you are notified anytime someone tags you, and you can immediately remove the tag, but because this is done in real time, coupled with the viral nature of the web, it could mean trouble for some people, especially celebrities, those with estranged stalker exes, or businesses with reputations to protect.
 
Tagging could, however, be very useful for dealerships to tag themselves, and to be tagged, when they are out and about doing good things like attending local charity events and community activities. It will be much easier to share with the world how involved you are with the community and the positive benefits of that are huge. This is just another example of how social media is a very sharp tool, but it cuts both ways, good and bad.
 
Connect with business pages
Little has been said about how places will be integrated with business pages, except is sounded like users could tag themselves at your business, it then creates a “wall” of news stories of people who check in at that page, and that business could click a link at the bottom of a location’s page and claim it as their own.
 
The facebook place page for a particular location will show who has checked in at that location. It is unclear if, due to privacy settings, business will have access to all the comments and check-ins at their location. It is also unclear if business can advertise on these pages. This would be HOT advertising real estate, especially if you can place your ads on your competitors’ pages. If nothing else you could spark a hot bidding war over competitors pages, increasing the cost per click for ads on a for them.
 
Certainly this is valuable real estate and I guarantee facebook will drive lots of revenue from these pages despite being tight lipped about their plans at this point.   Again, this is another “wait and see” opportunity, so keep a keen eye out…
 
 
Virtual world vs Physical world
The real value in location-based media is that it makes a direct connection between people hanging out in the virtual world, and now driving them back to the physical world, which is where our cash registers ring.  Facebook places will be a sure way to guarantee ROI for local business… its just exactly clear how or when. One thing is certain though location based media will mature to being one of the most quantifiable ways to drive ROI from the web. Now that facebook is in the game with their HUGE audience location based media is not something any local business can ignore.

Jared Hamilton

DrivingSales inc

Founder - CEO

4273

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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

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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

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Jared Hamilton

DrivingSales inc

May 5, 2010

Why is President Obama focused on forcing expensive regulation onto dealerships as if they are banks? 

President Obama is on a mission to make sure a financial collapse like we recently experienced does not happen again. I think we can all applaud this greater vision. However, he is making a serious miscalculation in executing his reform that could affect us all in the auto industry.
 
We all know that dealerships help customers get financing for their car purchases, but that dealerships themselves are NOT the lenders who underwrite the loans.  Dealerships help consumers by connecting them to banks, credit unions and manufacturer lending sources. Most dealerships simply act is a customer liaison to the loans; the dealers themselves are not banks.
 
The President's financial reform bill regulates big banks; however the way it is written it also includes dealerships in the regulation. This would be expensive for dealerships to comply with and it could actually reduce consumers lending options, which would in-turn cost the customers more money.   It’s not a good thing for our industry, or consumers, the way it is written.
 
Senator Brownback has proposed an amendment that exempts non-lending dealers from this additional regulation. Basically he is saying, “Dealerships are not banks and should not be burdened with being regulated as such.”   Naturally, those dealerships that are also banks would be regulated under his amendment, but there is no need to make non-lending dealers comply with bank regulation.
 
There has been a major political fight brewing and mud being slung in both directions. Even the military & Pentagon have gotten involved slamming dealerships in the press saying they unfairly target and take advantage of consumers and thus should be under regulation. Last week even President Obama made a very misleading statement that targeted auto dealerships and painted the picture that dealerships are taking advantage of customers. This is not good PR for our industry regardless of how the vote is passed. Dealerships are filled with good people trying to correct the bad reputation our industry has, we don’t need politicians, especially the Commander in Chief, publically insulting us with misleading statements.
 
The facts are the Brownback amendment exempts non-lending dealerships from this regulation. Those stores are not banks and should not be regulated as big banks.
 
Regulating all dealerships in the way the financial bill states could limit dealerships ability to help consumers get loans. This would make it harder for customers to buy cars and could even cost more money.  We saw during the congressional hearings for the bailouts, few politicians understand the car business.  Many didn't even understand the relationship between dealerships and manufacturers, and now it appears they dont understand the relationships between dealerships and banks.
 
The NADA has been defending us on Capital Hill and the vote to pass or reject Senator Brownback’s amendment could happen as early as today. Has your dealership called your Representatives to tell them that you are not a bank and do not need to be regulated as such? Do you support the Brownback amendment? You should. Here is more info from the NADA on how.
 
The industry has had enough hurt over the last 18 months; we don’t need more self-inflicted wounds from our Commander in Chief.   Does it feel like our industry is becoming much less of a free market? First, forced dealership closures... now this. What’s next...?
 
Here is the official Statement from President Obama last week in its entirety:
 

Jared Hamilton

DrivingSales inc

Founder - CEO

2856

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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

As most of you know I’m a third generation dealer. My grandfather started his first Lincoln Mercury dealership in the Bay Area in 1964. My father took over the dealership later on and added an independent lot and a Jeep Franchise.   I’ve grown up in the business, mostly working for other dealer groups and have attended NADA’s Dealer Candidate Academy in preparation to buy my own store.  As a child when my friends would say they were going to be policemen or firemen when they grew up, I always answered, “I want to be a car dealer when I grow up.” I’ve been passionate about the business long before I understood it.
 
Jared Hamilton of DrivingSales.com with Allan MulallyIts been almost 2 years since I left the day to day dealership world and have focused on building DrivingSales. My objective is simple: give all dealers 24-7 access to proven best practices and industry innovations. Those on the front lines need better information than they currently get, faster than they can currently get it. I’m very passionate about solving this issue for the industry and we are making some great strides in that direction. (But still have a long way to go.) Things at DrivingSales are going GREAT and we have a team committed to keeping it growing and executing on our goals in some amazing ways; but at the same time felt I could accomplish two dreams at once. Given the current market, it’s a GREAT time to buy a store… so that’s what I did. 
 
I’ve now got a new blue oval!
 
I decided to purchase a new Ford dealership. Its in the western united states, but since we have not told the employees yet I cant say which city.  Some of my closer friends have known this is in the works and have really been encouraging me to do it.   It’s a currently a smaller store, sells about 75 cars, 45 new 30 used. Naturally we plan to grow the store through some aggressive online efforts.
 
The store has a standard negotiation process, I’m debating going to a One Price model. I’m a big fan of One Price stores and have quite a few years experience running them. It’s a natural transition for me and I think plays well with the online world, obviously where the market is headed.
 
So, big news at DrivingSales… Id love to hear you thoughts about the first thing you would do if you just bought and are taking over a new Ford store? Any and all advice is appreciated.  (No it wont be called DrivingSales, we are debating "Hamilton Ford or (City)Ford."... thoughts?)
 
I'm VERY stoked!

Jared Hamilton

DrivingSales inc

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Jared Hamilton

DrivingSales inc

Mar 3, 2010

We're almost ready to push out phase one of the new DrivingSales.com website improvements. Our goal is to provide easier and faster access to the content you have told us is most important to you: Vendor Ratings, Blog Posts and Discussions.  The changes will go live this weekend.  In merging the blog platform and all the databases we will have to take the current blog down for a short time.  (we will do this at night while most of you are sleeping). You should see some huge improvements on the updated version, they were all recommendations from the community.  Thank you! We're inviting you to do more than just look things over. Dive in, use the new navigation, browse sections you didn't know about! Your comments and feedback enable DrivingSales.com to continue being the number one car dealer social network in the industry. Check back often and be among the first to try the new features!

Jared Hamilton

DrivingSales inc

Founder - CEO

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DrivingSales

Mar 3, 2010

Leading Social Media Network and Vogelheim Ventures Bring Auto Industry’s Top Thought Leaders, Retail Executives, and Innovators Together for Collaborative Conference

07.09.2009 – Salt Lake City, Utah & Orange County, CA - July 9th, 2009 - DrivingSales.com (www.drivingsales.com), the auto industry’s leading social media platform and largest online community, today announced that the premiere DrivingSales Executive Summit, presented by Vogelheim Ventures will take place October 13th and 14th 2009 in Las Vegas. Designed as a uniquely collaborative and interactive forum, the DrivingSales Executive Summit (DSES) will bring together the nation’s most innovative dealer operators to collaborate on progressive marketing models, interactive technologies and operational solutions and feature speakers and experts from both inside and outside the automotive sector who have fresh ideas to help drive a better future for the industry.

“As our industry confronts perhaps its greatest changes and challenges, technology and media are rapidly evolving to provide some of the industry’s greatest marketing and operational opportunities,” says Charlie Vogelheim of Vogelheim Ventures. “We firmly believe that innovation and collaboration are the tools that will enable our industry to thrive beyond its current crisis, and we intend for the DrivingSales Executive Summit to serve as a critical starting point for ideas that will advance tomorrow’s technologies and innovative practices into today’s dealerships.”

According to Vogelheim, the summit is designed to break away from traditional automotive conference formats by emulating the productive collaboration, diverse knowledgebase and immediacy of a social networking site. The keywords guiding the DSES format are ‘participation’, ‘education’ and ‘collaboration,’ and, in addition to world-renowned speakers and experts, it is set to include a rotating series of interactive roundtable forums, best practices workshops, technology showcases, live blogging, video feeds and the presentation of data from a new automotive retailer marketing white paper, set to be released exclusively at the DSES.

Said DrivingSales Founder Jared Hamilton: “The DrivingSales Executive Summit will take both a global and a domestic view of our industry as we separate hype from reality to learn from those in the trenches which technologies and marketing strategies are currently working, which ones are destined to bring future results -- and which ones have no impact on the bottom line.”

Unlike other automotive industry events, DSES has a vendor-neutral policy, meaning adherence to a strict dealer-to-vendor ratio and no vendor influence on presentation selection. Topics currently on the summit agenda are Social Media: Does it Work?; Internet Reset: Where’s it Headed; Media Spend: Appropriate Allocation; Effective Monitor and Measurement; Blogs Get Real; Searching for Successful Search Marketing; Life After Bankruptcy: The Next Incarnation; The Global Future: Europe, China and India; Reputation Management and Throw Out Your Internet Department!

The DrivingSales Executive Summit is an Invitation-Only event and will be held at the Hard Rock Hotel in Las Vegas on October 13th and October 14th 2009. For more information about attending the conference, sponsorship opportunities and to apply for an invitation, visit www.drivingsales.com/events or contact dses@drivingsales.com. Follow conference news as it develops on www.twitter.com/drivingsales.

About DrivingSales
DrivingSales.com (www.drivingsales.com) is the largest and premiere online community for the auto industry, where its thousands of members, including dealers, dealership managers, manufacturers, industry experts and vendors, collaborate and share best practices in a 20-group style setting. At DrivingSales, members create profiles and communicate with each other; build their networks and knowledgebase; share and rate proven strategies, and have access to relevant content contributed by fellow industry experts, including blogs, videos, interviews, and more. Dealer members rate and review vendor products - sharing their experiences with the DrivingSales community - while vendors have the opportunity to provide feedback on reviews and showcase their products and services. Created and built from the ground up by third-generation dealer Jared Hamilton, DrivingSales is the auto industry’s leading social media custom platform.

About Vogelheim Ventures
Vogelheim Ventures is an automotive industry consulting firm that facilitates educational programs, collaborative development and innovative symposiums. Principal Charlie Vogelheim has been involved in the Automotive Industry for nearly twenty five years. His insight and counsel have been utilized by a variety of automotive related companies including, Kelley Blue Book, J.D. Power and Associates, The National Auto Auction Association, Car and Driver, Wards Automotive, Bobit Publishing, Meguiar’s and several emergent companies. During his 20 year tenure at Kelley Blue Book, Charlie was instrumental in developing the website kbb.com. Serving as chairman of the Automotive Internet Standards Committee he was an original contributor to the development and implementation of the automotive sites at Microsoft, Yahoo, AOL, Vehix, e-Bay and several others. Vogelheim created the J.D. Power and Associates Internet Roundtable, and built it into the premier forum for automotive industry leaders and executives to share and discuss the development of the internet and its influence on the automotive industry.

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DrivingSales

Mar 3, 2010

Auto Industry’s Largest and Premiere Online Community Recognized in Best Web Site or Blog Category

05.21.2009 – Salt Lake City, Utah– May 21, 2009 –DrivingSales.com (www.drivingsales.com), the auto industry’s leading social media platform and largest online community, was named a Finalist today in the best Web Site or Blog automotive/transport category in The 2009 American Business Awards, also known as The Stevie® Awards.

“I am proud that DrivingSales.com has been recognized with this honor, further validating the vital role to be played by social media in the current challenging automotive climate,” said DrivingSales CEO and Founder Jared Hamilton. “This is a tribute to the thousands of dealers and auto industry professionals who have joined DrivingSales.com to collaborate and to share the best practices and industry trends that are so critical to helping our community thrive and survive in these tough economic times.”

The American Business Awards are the nation’s premier business awards program. All organizations operating in the U.S.A. are eligible to submit entries to the ABAs – public and private, for-profit and non-profit, large and small.

More than 2,600 entries from companies of all sizes and in virtually every industry were submitted for consideration in more than 40 categories.

“Despite very tough economic conditions, many organizations and individuals continue to perform well,” said Michael Gallagher, founder and president of The Stevie Awards. “The results of the 2009 ABAs thus far are a testament to the resilience, creativity, and hard work of American organizations, executives, and workers.”


About DrivingSales
DrivingSales.com (www.drivingsales.com) is the largest and premiere online community for the auto industry, where its thousands of members, including dealers, dealership managers, manufacturers, industry experts and vendors, collaborate and share best practices in a 20-group style setting. At DrivingSales, members create profiles and communicate with each other; build their networks and knowledgebase; share and rate proven strategies, and have access to relevant content contributed by fellow industry experts, including blogs, videos, interviews, and more. Dealer members rate and review vendor products - sharing their experiences with the DrivingSales community - while vendors have the opportunity to provide feedback on reviews and showcase their products and services. Created and built from the ground up by third-generation dealer Jared Hamilton, DrivingSales is the auto industry’s leading social media custom platform.

About The Stevie Awards
Stevie Awards are conferred in four programs: The American Business Awards, The International Business Awards, The Stevie Awards for Women in Business, and the Stevie Awards for Sales & Customer Service. Honoring companies of all types and sizes and the people behind them, the Stevies recognize outstanding performances in the workplace worldwide. Learn more about The Stevie Awards at www.stevieawards.com.

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DrivingSales

Mar 3, 2010

Salt Lake City, UT May 14th, 2009 DrivingSales.com (www.drivingsales.com), the auto industry’s leading social media platform and largest online community, today announced that auto industry veteran and Internet pioneer, Charlie Vogelheim, has joined its Board of Advisors.  Charged with further amplifying DrivingSales as the authoritative data and best practices source for the industry, Vogelheim will also focus on industry relations and serve as a guardian for DrivingSales’ media- and vendor-neutral environment. 

Formed in early 2008, the DrivingSales Board of Advisors consists of the industry’s top innovators and executives who are charged with expanding DrivingSales’ mission to marry the power of technology with the power of community to provide dealers, dealership managers and other industry professionals with a vendor-neutral, online environment where they can collaborate and share best practices, industry trends and news.

“DrivingSales brings together the industry’s most critical and authoritative voices – from Internet, Service and General Managers to OEM executives – all in one place,” said DrivingSales Founder and CEO Jared Hamilton. “Charlie’s extensive background driving and evangelizing industry innovations, as well as his ability to view the industry from multiple perspectives, will help us further elevate DrivingSales - and its many authoritative “voices of the industry’ - to become the defacto industry knowledge base and best practices destination for the thousands of dealers and automotive professionals who are striving to survive and thrive in this challenging environment.”

With over two decades of experience in the automotive industry, Vogelheim is known throughout the industry for his insight and counsel on current challenges and emerging trends and is a frequent commentator for media outlets such as Fox News and Car and Driver. As Vice President of Automotive Development at J.D. Power and Associates, he was responsible for elevating the International Automotive Roundtable to the premier forum for industry leaders; and at Kelley Blue Book, where he served as executive editor, he was instrumental in helping to change the Kelley identity from a regional trade publishing company to the Industry’s leading internet information provider. An original contributor to the development and implementation of leading automotive portal sites such as AOL, Microsoft, Yahoo, Google and e-Bay, he has also served as chairman of the Automotive Internet Standards Committee.

“The auto industry’s most important advances have come from a combination of game-changing technology and the battle-won wisdom of those who are on the frontlines,” said Charlie Vogelheim.  “DrivingSales utilizes technology to create a true community of industry voices – of those who are facing challenges as well as those who are achieving success – all without bias. DrivingSales is dedicated to furthering the interests of our automotive community as a whole, and this is why I am excited to help bring more and more of our industry voices into the DrivingSales network.”

 

 

 

About DrivingSales

 

DrivingSales.com (www.drivingsales.com) is the largest and premiere online community for the auto industry, where its thousands of members, including dealers, dealership managers, manufacturers, industry experts and vendors, collaborate and share best practices in a 20-group style setting. At DrivingSales, members create profiles and communicate with each other; build their networks and knowledgebase; share and rate proven strategies, and have access to relevant content contributed by fellow industry experts, including blogs, videos, interviews, and more. Dealer members rate and review vendor products - sharing their experiences with the DrivingSales community - while vendors have the opportunity to provide feedback on reviews and showcase their products and services. Created and built from the ground up by third-generation dealer Jared Hamilton, DrivingSales is the auto industry’s leading social media custom platform.

 

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