Dealers Marketing Network
Don’t Waste Your Advertising Dollars on Social Media
If you have been paying attention the last few months to all the noise about social justice you have heard that many big advertisers pulled their ad programs from Facebook, Instagram, and other online social media channels.
These companies included Coca-Cola, Starbucks, Hershey Companies, Levi Strauss & Co., Honda, Verizon, Unilever (which includes brands Dove, Hellman’s, Lipton, Surf, Ben & Jerry’s, Q-tips, and others), Eddie Bauer, and North Face to name a few.
They say they pulled their ads to support the “Stop Hate for Profit” campaign because Facebook allowed posts that the liberal left found objectionable. What doesn’t the left find objectionable? This article is not to debate the philosophies of our political parties, but to highlight the challenges of participating in and advertising on social media channels.
I can assure you that pulling their advertising because of “hate speech” was NOT a big consideration in their decisions. The truth was they recognized the dollars spent, the conversion and branding of their products and services did not meet any of their minimum ROI requirements. They leveraged the “social justice” mantra as a cover to pull ads from underperforming channels. They saw the waters getting murky and got the hell out.
Many marketers and vendors will tell you that you HAVE TO BE ON FACEBOOK. Well, my answer to that is “maybe you do” but don’t blow your budget on these channels.
Lady Gaga appeared on the Jimmy Kimmel show and he questioned her about some activities in her personal life, which she said were false. When asked where he heard these rumors, he responded on social media sites. She responded with one of my new favorite quotes, “Social Media is the toilet of the Internet.”
If you have any gray matter left and a smidgen of common sense you know there is a lot of truth in her statement. As it’s been said before, social media has democratized the bullhorn. Everyone is “shouting out their thoughts, exposing their vitriol, and touting their manifestos as if we cared about what they have to say.” It’s just too much egotistical pablum. Ask yourself, how visible do you want to be in the “toilet?”
Now for good news. I’ll admit many of your customers and prospects are out on Facebook, Instagram, or Twitter keeping in touch with their friends or family and sharing birthday wishes. Yes, you can engage followers but don’t forget the critical elements on social media. Focus on quality content and look for connections to your audience. Ask yourself: Are you sharing anything worthwhile or compelling? If not, please reconsider your postings. Remember the words of Ben Franklin, "Speak of what benefits others."
It takes more than a snapshot of a customer standing in front of their new vehicle to get attention and engage visitors. If you’re going to build a social media strategy focus it around people and personalize it for your customers too.
Shooting a selfie-video while screaming like a carnival barker about the options on the car behind you can get old quickly. Sure it’s free to post it, and only took a few minutes to shoot, but is it showing you or your dealership in the best light? Or is it confirming the old perception of a slick-talking car salesman?
Exercise Caution – Look for Alternatives
Please continue to allocate marketing dollars to digital marketing but target those channels that offer some conversion or solid branding opportunities for your dealership.
Alternatively, you can initiate some local marketing tactics and have your customers, neighbors, and media highlight your “out of the box” advertising promotions. Folks right outside your doors are looking to buy vehicles; you just have to let them know you’re a dealer who will treat them right and provide a great buying experience.
Recommended Reading: This is Marketing - By Seth Godin (Barnes & Noble or Amazon)
Mark Dubis has over 26 years in the automotive and transportation fields and is known to his associates and clients as the Marketing Consigliere. He provides candid advice, guidance, and creative marketing solutions in a cost-effective manner. http://dealersmarketingnetwork.com
Dealers Marketing Network
Leasing, a Great Opportunity for More Transparency
As the cost of vehicles goes up, leasing is making a strong rebound in the market. OEM and dealer advertising are putting a strong focus on their lease programs. And with extra money in their pockets (tax breaks, increased salaries, etc.) consumers are looking to upgrade their vehicles. All this is good news for auto retailers.
The issue from a transparency viewpoint is the “low monthly payment and big down payment” advertising to lure consumers into the dealership. At this point let me acknowledge the reasonable payment and “0” down programs, but we can come back to them later.
Let’s look at a popular sedan that promotes a $199/mo for 36 months lease. Cash due at signing is $ 2439. So effectively the “real” monthly payment is $266.75 once you divide the $2439 by 36 mos. and add it to the advertised price. This particular manufacturers Internet ad did not even show the consumer how many miles per year was included in the lease.
Their disclaimer: Security deposit waived, taxes, title, and license fee extra. . . Not all buyers will qualify for the [OEM lease program]. Payment may vary, dealer determines price. Cash due at signing is after $3,750 Customer Cash. …Take new retail delivery from dealer stock by [date]. See dealer for qualifications and complete details. Vehicle shown may have optional equipment not included in payment.
I think the $266 price is still an awesome price for this vehicle but clearly, the OEM wants to “play the low payment game.”
Let’s look at another offering for this OEMs Sports Utility Vehicle that promotes a $289/mo for 36 months lease. Cash due at signing is $ 3458. So effectively the “real” monthly payment is $385.00 once you divide the $3458 by 36 mos. and add it to the advertised price. Again this manufacturers’ advertisement did not show the consumer how many miles per year was included in the lease.
Remember leasing is just renting a vehicle, keeping it in good condition and then giving it back to the “rental company” after the term is complete. It’s a great concept and a wonderful way for consumers to drive a new vehicle for a few years.
Now let's look at the transaction from a different perspective.
Let’s say you’re out looking to rent a nice luxury apartment and have enough funds for the first month's rent and a deposit. You see a beautiful apartment and the advertisement says $700 a month. WOW, you can afford that. Then the fine print says $6000 down payment required up front. Ouch. Have you ever seen an apartment rental ad worded like this? Of course NOT. People are RENTING an apartment, not making a down payment on a house.
Dealers should consider changing up their positioning and offer lease tiers to their customers. Start with the OEM advertised price but promote letting the customer pick their payment and/or down payment (cap cost reduction).
An example might look like this:
Our (enter a model name here) is available for lease and payments start at $199 a month but you have the option to choose another payment and eliminate any down payment for our 36-month lease program.
Our dealership lets you: Choose the payment that fits your budget, Choose the down payment or trade-in equity that works best for you, and Choose the annual mileage allowed. Call our lease specialist today.
Then provide the fine print/disclosures for the original offer to meet advertising and federal guidelines. The headline can be: Great Lease Programs, & You Can Pick the Payment!
While the OEM lease programs meet Federal disclosure guidelines they are “deceptive” to the consumer because of tight credit guidelines, unreasonable low annual mileage, and ridiculous down payments.
There are still some OEMs that offer zero down or sign and drive lease programs, so consumers with no real cash available will migrate to those vehicles if dealers aren’t able to offer something comparable. C’mon dealers get creative and make that happen while putting folks in new vehicles at “budget-friendly” monthly rates.
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Mark Dubis is the President of Dealers Marketing Network and provides services to the smaller community and rural auto dealerships with cost-effective engagement and digital marketing solutions. He previously worked as a marketing executive for two major banks in the mid-west and owned a leasing company in South Florida for eight years. He can be reached at
(216-)712-6712 or at http://dealersmarketingnetwork.com
Mark Dubis has over 26 years in the automotive and transportation fields and is known to his associates and clients as the Marketing Consigliere. He provides candid advice, guidance and creative marketing solutions in a very cost effective manner. http://marketingconsigliere.biz
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Dealers Marketing Network
24 Ways to Build Sales & Improve Performance
Here is a list of 24 items offering advice, guidance and tips on how sales people and dealerships can succeed, grow revenues, and create a great work environment.
Our industry benefits from some great trainers, consultants, and access to blogs, conferences, workshops and boot camps. And while good information is shared at these events and websites, many of our peers can’t pay the high price to attend these sessions, so I am sharing the main points that are talked about at all of these venues here for free.
After you read this list I suggest you print it out and post it on your wall or in your cubicle to review regularly when enjoying your morning or afternoon beverage.
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Treat customers with respect.
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Guide customers through the sales process and solve their transportation and financial issues.
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Provide social proof you can deliver a great customer experience.
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Never ask a customer to post a review for you while in the dealership. If they liked you to that point, standing over their shoulder while they type the review will blow it for you.
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Stop being sexist and treat women fairly in the sales and service departments.
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Sales people need to be online and build their personal brand in respectful fashion. This doesn’t mean posting your inventory on Facebook.
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People like watching videos. Use them to inform and educate prospects and customers.
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Everyone is on mobile devices to be sure to be present in this new mobile environment.
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Use SMS-Text messaging but be sure to have a software solution that keeps you compliant as the penalties for non-compliance are huge.
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Keep your website updated. Empty staff pages, boilerplate About Us pages show visitors you do not care about them. It’s your site; make it the best you can.
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Do not require a complete dossier before someone can submit a contact form on your website.
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All they need is name, email and/or phone number.
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Managers need to publicly recognize employees that do a good job. It keeps them engaged and boosts morale.
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Avoid the candy machine in the dealership as much as you can. Not good for your waistline or your teeth.
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Managers: Never ask an employee to do something you would not do yourself.
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Never use slang, derogatory terms, or curse in the dealership as it shows you are either ignorant, rude, stupid or all of these. Act like the professional you hope people believe you are.
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Drink lots of water. Hydration is good and you can use a few bathroom breaks too.
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Use technology to enhance relationships not to take the place of them.
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Use and depend on your CRM system. It is the foundation for professional success.
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Use, do not abuse social media channels like Facebook and Twitter. Be a good neighbor online.
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Try not to spill ketchup on your shirt when you eat at the local burger joint, and if you do have a spill, keep a spare shirt in your car or truck.
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Tell people your dealership guarantees NOT to meet or beat any price. They will look at you in awe and then you can explain that at your dealership there is more to making a customer happy than the price. Then tell YOUR story!
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Don’t look for gimmicks to bring in those extra ten deals a month.
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Don’t promise anything you can’t deliver!
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Work Hard, Be Nice to People.
The rest is all common sense stuff that you already know. As Zig Ziegler says, “Help your customers get what they want, and you’ll get what you want.” We all want happy customers and more sales.
dubis has over 26 years in the automotive and transportation fields and is known to his associates and clients as the Marketing Consigliere, because he provides candid advice, guidance and creative marketing programs in a very cost effective manner. http://marketingconsigliere.biz
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Dealers Marketing Network
Why Dogs are Not Good at Math
Dogs are Man’s best friend. They get excited when we come home, they want to hang out with us, run along a path, and play fetch. When we are watching football games on Sunday, who is on the sofa right next to us? Yep, your dog is right there sharing your chips and burgers (unless your significant other calls first dibs).
Dogs can be trained to do difficult or fun tasks and tricks like rollover or play dead, but they are horrible at math. They can’t even add 2 + 2. Sure we could force them to watch videos about math on YouTube, but somehow I don’t think it will do any good. You could spend lots of time, money and effort to teach a dog simple arithmetic but at the end of the day, it ain’t happening.
If you read this far, you fell for the “clickbait”. You know it’s those curious, annoying, or engaging website stories with an enticing, lurid, or questionable headline. They fall under the category of sponsored stories or content.
One featured a photo of Korie Robertson, the wife of Duck Dynasty star Willie Robertson. The headline was, “Duck Dynasty wife makes no apology for online photo”. Of course, curious voyeurs wanted to see how or if she was misbehaving; but turns out she just posted a photo of herself on Instagram with no makeup. Shocking, I know! Why do we fall for these? We know they are a big time waster and designed to push lots of ads to us before we get to see how Brooke Shields has aged over the years.
Regardless of the reason a good portion of them draw traffic. If that’s the case why aren’t more dealers using this strategy to bring more folks to their websites. Instead of standard vehicle price ads, lets get creative in drawng more traffic to dealer websites and highlight the majority of good dealers out there that offer a wonderful buying and service experience. Also be careful when using these tactics as Facebook is implementing a process to block many of them.
We love helping dealers so I asked our marketing team to come up with just a few ideas to prime the creative pump for dealers and their digital marketing companies. Remember if you want to stand out in the market, do something different.
These ads are samples and are not representative of actual ads by these dealers and are not meant to infer any business relationship with these dealers.
Mark Dubis is the owner of The Dubis Group a marketing services company, and President of Carfolks.com a reputation marketing platform for customer focused auto retailers.
1 Comment
Walla Walla Valley Honda
Mark,
I really got a kick from your "outside the box" thinking. I actually laughed out loud. Why not have some fun with your marketing efforts?
Bob
Dealers Marketing Network
It’s Okay to be a Mediocre Dealership
In today's society there are only two things people talk about: the bad and the outstanding experiences. Companies who are mediocre don’t garner media attention or stand out in the industry. They have a consistent team, keep plugging away, and most of them run at a profit. They just choose to operate in their comfort zone and not push the marketing or customer experience envelope.
In 1982 there was a best seller called, In Search of Excellence. It sold 3 million copies in its first four years. It explored the art and sciences of management techniques used by companies who the authors believed were on a path to excellence in how they conducted business. Back then, excellence was something you strived for, people were proud of their achievements, and being successful was something that didn’t embarrass people.
I highly doubt the book would have the same cache today. Instead, I believe the new bestseller would be, Mediocrity, Our New Achievable Business Goal. Just stop in any mall chain store, department store, restaurant, or other service business, and the odds are you will encounter mediocre service during your visit. You’ll encounter sales clerks that ignore you, treat you like an inconvenience, or sometimes just display plain rude behavior.
Here might be a typical conversation about a dining experience: Hey Fred, Linda and I went out to eat last night at that new gourmet burger place. The menu was okay and had a few nice selections; the wait for a table wasn’t too long, and rather than giving us one of those buzzers, they just yelled our name 4 times over the public address system. I think everyone in the county knew we were having dinner there. The waitress seemed a bit distracted but after about 15 minutes she did get around to taking our order and the busboy did come back to get rid of the sticky spots on the table underneath our silverware. To their credit I must say the food was mostly warm when we got it but I had to pick off the onions that I told them not to put on my burger. Linda asked for a small Coke. They brought her drink in one of those quart size plastic glasses. She couldn’t comfortably hold it, but I guess it makes it easier for the staff so they don’t have to come back and give refills. You really should check this place out!
Is this a restaurant you would be rushing to visit? I don’t think so. Not a horrible experience, but not a great one either. Unfortunately this is the new normal.
It seems in our schools, our government, and in business we’ve become accustomed or satisfied with mediocre experiences. The desire to be really good or even excellent doesn’t seem to be worth the effort in many instances. Any readers care to talk about their stellar experience at the DMV?
What causes a business to be mediocre? Is it apathy, a lack of commitment, a management team that’s afraid to take some risks and work toward providing a superior customer experience, or a lack of training? In the case of a dealership, it could be they have fallen into a “nanny state” where the dealer is happy to let the OEM do their thinking and vendor selection for them? Or could it be a combination of all of the above?
Let me be clear, I am not saying being a mediocre dealer is a bad thing. You can be a mediocre dealership and still be profitable and do things right every day. It’s just that as stated in the first sentence, no one talks about a mediocre experience. If your operation is comfortable in that zone, then by all means continue what you are doing. There are worse places to be than mediocre and in the current environment you can still be very profitable.
For the 60% of new car dealers out there who are mediocre there are steps you can take to improve performance, skills, and the culture in the store. In the next two parts of this series I’ll share insights on how to tell if you are mediocre, look at how we have come to accept this situation, and what the future might hold for dealers who continue to do business they way they’ve always done business.
Mark Dubis is the driving force behind The Dubis Group, a marketing, promotions and design firm serving regional and national organizations. His main focus is on helping good, customer focused auto dealers stand out in the market by using hybrid marketing solutions. http://dubisgroup.com
1 Comment
Dealers Marketing Network
Things No Customer Said, Ever!
There is no doubt that auto dealers today have a dizzying array of challenges and marketing channel confusion. More media channels, the pressure to maximize digital marketing, and to buy-into the next shiny VDP traffic promise is all very alluring. The trend I see in most stores is an adaption of the “inertia marketing strategy.” That is dealers, rather than wade into some new uncharted waters will stick with what they’ve been doing for the last thirty years.
While there is no shortage of “experts” telling dealers how they need to run their business on this site and other auto networking sites, until you are actually in the shoes of an owner or general manager you really don’t understand the pressures they deal with every day. I just want to share what my previous boss called, "A blinding glimpse of the obvious."
Let’s just look at things from the perspective of the customer and glean some insights that might help us build better relationships and grow our revenues.
No Customer Ever Said: “I shopped around at a few dealerships but this one had the largest inflatable gorilla, so I bought the car here.”
No Customer Ever Said: “I was just stopped in to pick up a brochure, but when I smelled the popcorn, I just had to buy a vehicle.”
No Customer Ever Said: “No I didn’t mind pressing “1” if I was a new customer or “2” if I was an existing customer, I’m sure you have your reasons for treating people differently.”
No Customer Ever Said: “The service department is okay, but I really bring my truck in for service because the coffee at the dealership is so good!”
No Customer Ever Said: “I was so happy to see that their website looked just like every other website I visited; it just made me feel comfortable and I knew I would have an average car buying experience.”
No Customer Ever Said: “I was just driving by and saw this inflatable tube type wavy arm guy and just had to stop in and buy a vehicle.”
No Customer Ever Said: “I went to their website and saw all 5 star reviews, so since everybody loves them, and they’re perfect, I thought I would buy there too.”
No Customer Ever Said: “Honey, I never saw so many balloons on cars. We have to buy a car right now.”
No Customer Ever Said: “I love spending time in the customer lounge and the smell of tires doesn’t give me a headache anymore.”
No Customer Ever Said: “As soon as I walked in the showroom I knew it would be a great customer experience.” (Note: This is the “About Us” boilerplate text on a gazillion dealer websites.)
No Customer Ever Said: “Hey Ralph, lets buy a car here, the salesman said he wanted to earn our business.”
No Customer Ever Said: “I just had to buy a car here. Your TV commercial with that fat guy yelling about all your deals just got me so excited I rushed right down to buy a new car.”
No Customer Ever Said: “I enjoy reading all your helpful and informative posts on Facebook, and knew you were the place where I wanted to buy a car.”
No Customer Ever Said: “I was sure I had the lucky number to win that 60” Television, but since I didn’t, and I’m here, I may as well buy a car.”
No Customer Ever Said: “I used your contact form on the website and enjoyed spending 15 minutes to enter all my personal information just to ask you a simple question. And no I didn’t mind those 25 follow up calls from your salesman.”
No Customer Ever Said: “Sure, I don’t mind waiting 40 minutes while you try and find the keys and get gas for the car I want to test drive. I’ll just have some more of your wonderful coffee.”
No Customer Ever Said: “It’s nice to see all new sales people every three months. I guess it keeps things fresh.”
Putting ourselves in the customer’s seat gives us some amazing and obvious insights. Improvements to a business location or process are oftentimes very simple to implement and there are a great number of resources to help dealers on limited marketing budgets to expand their business and avoid the clichés of the past. Just because you might be a small town dealer doesn’t mean you have to be locked into small town thinking.
Just tap into some new or sometimes old fashioned strategies to build relationships and expand your business.
Mark Dubis
14 Comments
Impact Marketing & Consulting Group, LLC
And, "I am so comfortable driving up and seeing 5 sales folks in a circle smoking and watching me drive in". "So welcoming".
CDK Global
Love the article - it's important to look at the dealership experience from a customers point of view. A number of reports are showing the experience is becoming more and more important and by 2020 may be more influencial than pricing. I'd like to add a few more "No customer ever said" from a long list I have about websites:
Awesome, a QR code on their website - let me go get my phone, find the right app and see what it does! Wow - it goes right to the page I'm on, perfect!
I wish there where more chat pop-ups.
Dang, no specials. I guess I'll wait a few weeks and check back.
I wish there was more stuff on this homepage, it doesn't scroll enough.
CDK Global
I do have to admit though that a local Seattle dealer had a large inflatable Seahawk in front of their dealership and my kids wanted to take a photo with it. It did get me to look at a loaded Genesis AWD that looked awesome sitting behind the inflatable. To make the story short, my kids love the new Genesis and I couldn't be happier with it either. So maybe there is something to having the RIGHT inflatable outside the dealership.
Hawkins Chevrolet
You are right that no customer ever "said" any of those things. However, SOME of the things you listed can and do influence a purchaser and can tip the scales. I will guarantee you that having my reviews on the VDP pages of my website has made it easier for people to choose our vehicle...because we have been told so. Not saying that the intent of our article isn't right...but you seem to be discounting the effect of some of the tools you listed (except maybe the inflatable stuff).
CarGirl, Inc.
Seems that most dealers don't think beyond getting their attention. Now what? Are we selling the car, the dealership, the experience. Too many dealers using too many marketing avenues with no strategy or designed message.....just noise.
Coastal States Automotive Group
So you're saying that Tesla has the right business model then?
Balloons never sold a car but, as Tom says above some of those things do create comfort...donty knock it until you've tried it and it actually worked. : )
Dealers Marketing Network
Tom Hawkins- You are correct that some of the items I mentioned can be an influence on some customers. Also many dealerships now offer great amenities and offer comfortable lounge areas and great coffee and muffins. It's all about hospitality and making folks feel comfortable. The next big influencer of sales volume will be down-home basic engagement marketing and finding ways to highlight your good neighbor status in your marketing messages.
Dealers Marketing Network
Allyn Hane: My post did not say that Tesla or TrueCar were the future or a better business model only that they offered a disruption to the status-quo. I do not believe that manufacturers can effectively sell and service vehicles directly without an agent to assist the process. Some disruptors to the auto retail process will have varying degrees of success due to the fact that when it comes to the cusotmer experience; 60% of auto dealers are mediocre at best, 20% really suck, and the other 20% do an awesome job. The steps to move from mediocre to awesome are not hard to implement, it's just that owners and managers are comfortable with the status-quo.
CBG Buick GMC, Inc.
Great read Mark. This is something that our SM's son shared with me yesterday. "To have uncommon things you have to do uncommon things." How true is it that, like Mark said, are comfortable with the statu-quo, or even worse complain about the business being down but aren't willing to try something new. They are too stuck on the "way things have always been done" and don't push to be different. There are lots of things on that list, and some that others mentioned (my favorite being the QR code), that can really be a waste of time and though the concepts look great and wonderful don't really drive the experience for the customer. I often have to remind myself to K.I.S.S. (keep it simple stupid) the customers when they are in. Basic southern hospitality, giving them what they ask for as much as possible. Always remembering what I would want my car buying experience to be like if I were them.
Dealers Marketing Network
Trump Candidacy: Lessons for the Auto Industry
After a rocky start announcing his candidacy for the Presidency of the United States, Donald Trump has amazed the pundits and blew away a field of Republican candidates that brought an extensive track record to the race for the White House.
Every time Donald said something politically incorrect, the media anticipated he would implode and lose his followers. It never happened. While Trump is not without his flaws, the public knows he performs, has accomplished some incredible business goals on a global basis, and will speak his mind. Yes, the Donald has had some big failures too, but in the real world if you don’t take risks you’ll never fail. Even Steve Jobs had his failures; remember the Apple Newton and NeXT computers?
Let’s recap: Within less than one year a wealthy businessman, reality TV star, and someone who has never held elected office, is on track to become the Republican candidate for President of the United States.
How did it happen? The answer is simple! The political systems in our country and our elected officials have shown a blatant disregard for the principles that our country was founded on. Their ineptness, disregard for the taxpayers, and burdensome regulations and taxes on business caused a frustration level in the American public not seen since the days when we dumped King George’s tea in the Boston Harbor. Make no mistake; the revolution has begun to take back our country.
Auto Retailing in a Fishbowl
What does all this mean for our industry? Many consumers are tired of the traditional auto buying process, crass advertising, insincere auto sales people who say they want to “earn our business,” high pressure finance office practices, and a service department process that rewards people for selling customers products and/or services they may not need or want. Dealers like politicians in Washington D.C. need to listen to and observe the trends and shifts going on in the industry and respond to them in order to remain relevant. The internet has made everything transparent so dealers are operating in a fishbowl where very little remains hidden. Every consumer now has a voice!
Auto dealers are not in a comfortable spot. The OEMs have goals that are often vastly different from their dealers. The OEM customer is the dealer who purchases their vehicles, parts, and other services. While OEMs advertise their products on TV and other media channels they are not focusing on helping or maintaining profitability for any one dealership. The Volkswagen issue highlighted the fact that profits come before ethics. Now the damage is not only a financial loss, but a loss of trust from consumers toward the brand.
The Disruption Continues
Third party solutions like TrueCar and other start-ups are working to devalue the many services provided by local car dealers. Tesla is riding the level of consumer frustration to bypass the franchise system and sell directly to the public. Watch for more disruptors to emerge this year.
Danger of the Status-Quo
When a consumer goes to virtually any new car dealers’ website it says they put the customer first; however surveys still show that 90% of the public do not trust auto dealers. Why the disconnect? Clearly most dealers have not changed their sales strategy in the last 20 years. Except for adding a Facebook page and an OEM provided website with missing content and a “call for internet price” button things are still the same.
Most dealers ignore these warning signs and trends on social media, because for many, sales are up and profits continue to roll in month by month. Their attitude is “business is good” why change anything? Yes it is good, for now, but like folks in Washington found out, the winds of change are coming.
Make the Tough Choices
We need to recognize the changing landscape and adapt our business processes and marketing to bring in customers and retain employees for more than 6 months. While having a presence on social media channels is a fact of life, spending inordinate amounts of time and money on Facebook, Twitter or Instagram will not help you build your sales and brand on a local level. They will only drive you away from connecting with your core customers that are right in your own backyard.
Implement engagement marketing programs, leverage local and regional relationships, re-engineer your sales and service team hours and compensation, and treat everyone with respect. Initiating these steps along with utilizing technology will insure many more years of growth and profits.
I encourage dealers to take these steps, and remember that your happiest customers are not the mini-deals but folks where you made a good profit. And since that's the case why are you still focusing on price?
Become a good neighbor and you'll have more happy customers.
Mark Dubis
Carfolks.com
8 Comments
Internet Dealer Solutions, Ltd.
The needed changes are just under the surface. Good thinking here, thanks,
Push22
Good article, although Trump got off to a great start. When he talked about building a "yuuuge Wall" and sending the illegals back home right out of the chute, he shot to the top of the polls. He defied conventional wisdom and he's now the presumptive nominee. Good for him, and you're right, now it's time for the auto industry to stop being so predictable and stale w/their industry marketing and business model.
AutoStride
It's happening on the left as well, with Bernie. Both are disrupting the status quo and frankly, I think it's healthy.
VinAdvisor
Very insightful. I think you are spot on comparing disenfranchised voters and car buyers. The biggest difference between the two segments is the role of the media (4th Estate). Trump's greatest strength and tragic flaw is his ability to create valuable, albeit not very tasteful, content from the bottom up. While the thought Trump waging an all night twitter battle with Putin, Kanye and Joaquin Phoenix from the White House is beyond frightening, his strategy has captured more media coverage than any campaign in history. They post his tweets on every type of TV show!
Dealerships being local businesses, even the Autonation's and Sonic's, can replicate this tactic to engage consumers with bottom up social media strategy that will get TV & radio to cover it. Social media posts should be all about your customers - no one wants to see a post from a tech saying, "10th LOF of the morning...killing it!" - on Facebook.
Want to limit your pain from Yelp? Get all your customers to post on your dealership FB page so they can defend you when a "gator" (angry customer) wants to YELLL AT YOU ONLINE! Your good customers will intercede - priceless - to authentically support all that you do .
ROBBINS NISSAN
Thanks for sharing, Mark. Our industry MUST be on the cutting edge.
Dealers Marketing Network
Content is Not King if it’s Crap
Way back in 1996 Bill Gates said that “Content is King.” His message: If you want to reach people on the Internet you don’t need to use banner ads, rich media, or annoying animated gifs you just need to provide content on websites, blogs, publications and other digital media outlets that will get you noticed and give visitors something to read.
Fast forward 18 years. The Internet has matured or maybe it’s become immature. The popularity of smartphones, tablets, and our diminishing attention span has changed the way we consume and perceive content. Emails and blogs posts gave way to Facebook posts and 140 character text messages called tweets. Of course you can’t share much in 140 characters but you can embed links and photos to all sorts of drivel, commercial posts, and innocuous photos of celebrities, cats, cars, freaky items and other images you would have trouble imagining unless you are Stephen King. If you really have Attention Deficit Disorder (A.D.D.) and tweets are taking too long to read you have Instagram and Vine.
I believe that content is no longer king, and that “The New King is Engagement.” With all the noise online and short attention spans you need to provide not just content but content that works to engage visitors, customers, prospect and peers. As Ben Franklin said, “Speak not but what may benefit others . . .”
Take a look at your blog articles, posts and tweets. Are they providing good information or something of value to the reader? If not, why not? If you are going to push content to the web, work a bit harder to find something that will benefit others and indirectly benefit you. Let people see you as an entity that provides value to its audience.
Car dealers have access to an incredible amount of engaging content that almost everyone would find of interest. When highlighting new vehicles don’t focus on features; talk about the benefits to the consumer. Share how this new technology makes their lives easier or safer. Dealers are always involved with community activities so share that information. Highlight the local blood drive or charity 5K run. Highlight your people. Share how one of the dealer employees was working with Habitat for Humanity and used his vacation time to build a home for a flood victim in New Jersey. Manufacturers are always sponsoring events and local dealers can highlight those activities through their local posts and tweets. Highlight and provide proof of great customer experiences in the dealership. Don’t just post a photo or video of Mom and Dad in front of their new truck, tell a story that engages the reader and makes them appreciate how you helped these folks.
Mass media eblasts, shotgun tweets, silly photos, and content that’s more at home on Bravo TV will not make you stand out in a good way.
Everyone wants to feel special. Speak to them, address their concerns, solve their problems, and help them improve their lives in some way. That will engage them, and build respect for your organization.
10 Comments
M10 Marketing Firm
Very good article. I totally agree that engaging customers is so important. It's just like when you are selling the car in person, you must ask questions to figure out what is important to the customer so that you can show them benefits that they actually care about. The same goes for online content. Very well said that engagement is king.
Visible Customer
Nice post, Mark. One request: never post that doll Tweet anywhere in public again. It cannot be unseen.
Remarkable Marketing
Totally agree Mark. It's often that businesses post or tweet...STUFF. Then you see the businesses that GET IT, they post VALUE. Thats where my eyeballs go!!
Edifice Group
Perfect...Could not agree with you more. With the amount of "noise" out there, customers appreciate and will reward the business that takes their time to provide valuable information regarding a product or service.
Automotive Group
What you are saying basically is "Say something, when you actually have something to say." The on going and ever changing story of your business should easily bubble to the top when the lid gets removed. What I mean by that is, open the content creation door to everyone. Everyone should have an opportunity to share in the responsibility of marketing the organization. But what you need is a process in place to limit their liability. I wouldn't just hand out the password to the main twitter acct or give admin rights to everyone on facebook. I will however, create a contributor account for them, I will give them limited access to see the things that they wanted to take a part in and nothing more. If you create the environment that allows for stories to be told then everyone becomes a story teller. Which is an exceptional problem to have.
Dealers Marketing Network
Chris K. my comments do not address the dealer process only the quality of the content. Every organization needs to have people and process to insure that quality content is shared and that someone is responsible for vetting the content. Dealers have wonderful stories to tell they just need to share them at the right time on the right venue.
Wikimotive
Well said, Mark. I'm not a fan of the term "engagement" because it is so overused, and no one wants to talk about what successful engagement looks like. We see this consistently with social media. There are no shortage of Guru's shouting this from their soap boxes, then when you look at their client's results, there is no engagement to be found. Content is still King. But if we're going to recognize this is the foundation of an online marketing strategy then how do you want your "king" to represent your business? After all crappy content will work to distinguish a business just as well as quality, the question is what message does one want to send about their brand? Engagement is simply the "reputation" of your content. Its the feedback of content marketing well done or a lack thereof on the lack thereof! Mark I think we're on the same page, I just think words are important. My fear is that people without a deep understanding of what content marketing is all about will see "engagement" and tune out because its quickly becoming a meaningless overused buzzword.
Dealers Marketing Network
Tim, you and I have been in this business a long time and we know it really is simple to succeed. When you do what's right, take care of your people and your customers, and are a good neighbor offline and online you will succeed. The marketing, content, and messaging is just an extension of that core culture. Your company and the services you offer help those good dealers "who get it" be more approachable on the web. Keep up the good work with your clients and making them good neighbors. All the best.
Wikimotive
Exactly! Right on Mark! There is a secondary piece to your puzzle though. It is the responsibility of vendor's who wish to claim expertise in these areas to provide not only sound rhetoric, but sound products and services to deliver the quality we're both talking about here. Certainly, you can't manage what you can't measure and its on the dealer to hold vendors accountable. But there is far too much crap content being sold as a service by vendors to dealers who are actually looking to accomplish the kind of quality and bring the value you cite. Sadly what they end up getting is crap. We need to teach dealers how to actually identify what real engagement looks like so that dealers will know the difference.
Dealers Marketing Network
Content is Not King if it’s Crap
Way back in 1996 Bill Gates said that “Content is King.” His message: If you want to reach people on the Internet you don’t need to use banner ads, rich media, or annoying animated gifs you just need to provide content on websites, blogs, publications and other digital media outlets that will get you noticed and give visitors something to read.
Fast forward 18 years. The Internet has matured or maybe it’s become immature. The popularity of smartphones, tablets, and our diminishing attention span has changed the way we consume and perceive content. Emails and blogs posts gave way to Facebook posts and 140 character text messages called tweets. Of course you can’t share much in 140 characters but you can embed links and photos to all sorts of drivel, commercial posts, and innocuous photos of celebrities, cats, cars, freaky items and other images you would have trouble imagining unless you are Stephen King. If you really have Attention Deficit Disorder (A.D.D.) and tweets are taking too long to read you have Instagram and Vine.
I believe that content is no longer king, and that “The New King is Engagement.” With all the noise online and short attention spans you need to provide not just content but content that works to engage visitors, customers, prospect and peers. As Ben Franklin said, “Speak not but what may benefit others . . .”
Take a look at your blog articles, posts and tweets. Are they providing good information or something of value to the reader? If not, why not? If you are going to push content to the web, work a bit harder to find something that will benefit others and indirectly benefit you. Let people see you as an entity that provides value to its audience.
Car dealers have access to an incredible amount of engaging content that almost everyone would find of interest. When highlighting new vehicles don’t focus on features; talk about the benefits to the consumer. Share how this new technology makes their lives easier or safer. Dealers are always involved with community activities so share that information. Highlight the local blood drive or charity 5K run. Highlight your people. Share how one of the dealer employees was working with Habitat for Humanity and used his vacation time to build a home for a flood victim in New Jersey. Manufacturers are always sponsoring events and local dealers can highlight those activities through their local posts and tweets. Highlight and provide proof of great customer experiences in the dealership. Don’t just post a photo or video of Mom and Dad in front of their new truck, tell a story that engages the reader and makes them appreciate how you helped these folks.
Mass media eblasts, shotgun tweets, silly photos, and content that’s more at home on Bravo TV will not make you stand out in a good way.
Everyone wants to feel special. Speak to them, address their concerns, solve their problems, and help them improve their lives in some way. That will engage them, and build respect for your organization.
10 Comments
M10 Marketing Firm
Very good article. I totally agree that engaging customers is so important. It's just like when you are selling the car in person, you must ask questions to figure out what is important to the customer so that you can show them benefits that they actually care about. The same goes for online content. Very well said that engagement is king.
Visible Customer
Nice post, Mark. One request: never post that doll Tweet anywhere in public again. It cannot be unseen.
Remarkable Marketing
Totally agree Mark. It's often that businesses post or tweet...STUFF. Then you see the businesses that GET IT, they post VALUE. Thats where my eyeballs go!!
Edifice Group
Perfect...Could not agree with you more. With the amount of "noise" out there, customers appreciate and will reward the business that takes their time to provide valuable information regarding a product or service.
Automotive Group
What you are saying basically is "Say something, when you actually have something to say." The on going and ever changing story of your business should easily bubble to the top when the lid gets removed. What I mean by that is, open the content creation door to everyone. Everyone should have an opportunity to share in the responsibility of marketing the organization. But what you need is a process in place to limit their liability. I wouldn't just hand out the password to the main twitter acct or give admin rights to everyone on facebook. I will however, create a contributor account for them, I will give them limited access to see the things that they wanted to take a part in and nothing more. If you create the environment that allows for stories to be told then everyone becomes a story teller. Which is an exceptional problem to have.
Dealers Marketing Network
Chris K. my comments do not address the dealer process only the quality of the content. Every organization needs to have people and process to insure that quality content is shared and that someone is responsible for vetting the content. Dealers have wonderful stories to tell they just need to share them at the right time on the right venue.
Wikimotive
Well said, Mark. I'm not a fan of the term "engagement" because it is so overused, and no one wants to talk about what successful engagement looks like. We see this consistently with social media. There are no shortage of Guru's shouting this from their soap boxes, then when you look at their client's results, there is no engagement to be found. Content is still King. But if we're going to recognize this is the foundation of an online marketing strategy then how do you want your "king" to represent your business? After all crappy content will work to distinguish a business just as well as quality, the question is what message does one want to send about their brand? Engagement is simply the "reputation" of your content. Its the feedback of content marketing well done or a lack thereof on the lack thereof! Mark I think we're on the same page, I just think words are important. My fear is that people without a deep understanding of what content marketing is all about will see "engagement" and tune out because its quickly becoming a meaningless overused buzzword.
Dealers Marketing Network
Tim, you and I have been in this business a long time and we know it really is simple to succeed. When you do what's right, take care of your people and your customers, and are a good neighbor offline and online you will succeed. The marketing, content, and messaging is just an extension of that core culture. Your company and the services you offer help those good dealers "who get it" be more approachable on the web. Keep up the good work with your clients and making them good neighbors. All the best.
Wikimotive
Exactly! Right on Mark! There is a secondary piece to your puzzle though. It is the responsibility of vendor's who wish to claim expertise in these areas to provide not only sound rhetoric, but sound products and services to deliver the quality we're both talking about here. Certainly, you can't manage what you can't measure and its on the dealer to hold vendors accountable. But there is far too much crap content being sold as a service by vendors to dealers who are actually looking to accomplish the kind of quality and bring the value you cite. Sadly what they end up getting is crap. We need to teach dealers how to actually identify what real engagement looks like so that dealers will know the difference.
Dealers Marketing Network
The Declining Value of Social Marketing
Excerpts from article on iMedia Connection:
A recent study by NextStage sifted through input from 1,700 companies who used social marketing in 2013, The results have shown some interesting outcomes and perceptions that will impact what companies do going forward.
Just to be clear, social marketing means creating a social presence and using that social presence to drive conversions. Conversions cover everything from loyalty to acquisition to retention to customer service metrics to satisfaction to truly strange recency calculations linking site to social to mobile to...
10.5 percent are going to “do something else”
21% said they are “dissatisfied with social marketing “
54.75% are stepping back and waiting. They are not walking away but inconsistent results have them waiting for the right campaign
Summary
Better than half the businesses interviewed admitted the decision was still out on social marketing's value. They are prepared to sit it out in 2014 rather than continue to invest. Less than half the total businesses contacted are using social as part of a strategic plan (i.e., it's showing up in spreadsheets as expenses only).
2014 may or may not be a make-or-break year for social, but with more than 50 percent having a "let's wait" attitude, social marketing seems to be losing its pull.
Read more at http://www.imediaconnection.com/content/35711.asp?imcid=nl#singleview
My thoughts as it impacts auto dealers
As far as the auto retailing sector goes I have spoken to many dealers who have tried the social marketing channels. They chased likes on Facebook, created hundreds of tweets, posted lots of blogs and spent thousands on keyword purchases with very few of them getting any tangible results.
A number of the companies created to push the "social agenda" for dealers are struggling and dealers are discovering their $1,500 to $3,000 a month is better spent in other areas. I suggest dealers focus on building their brand in their own backyard and better connect with the local market opportunities that are out there waiting for them.
Have a great 2014.
1 Comment
Woody Butts Chevrolet
If it's anything like what I am seeing here locally, I don't think folks are looking at this clearly enough. Of course the thought is, "can I make a sale" doing this. But it seems to me that we aren't considering whether we want to be of service socially, and build a long term relationship. As long as we think in terms of instant gratification, we will never move past where we are. I think we cloud our own judgement by not sitting down and talking this out rationally with the whole team. To me it's no different than that salesperson who tells me, "I sent out those Christmas cards one time and nothing happened, so I don't do that anymore".
3 Comments
Morgan Hardy
Phone Ninjas
What alternative would you recommend?
Mark Dubis
Dealers Marketing Network
Too many dealers look for quick-fix solutions that don't require much effort. As we know anything worthwhile doesn't happen overnight. Doing a campaign on Facebook or some banner ads on other sites treats the symptoms but doesn't cure the disease. The solution is to develop an integrated marketing program that focuses on traditional media, unique messages, and some out of the box programs. It takes an investment of time and resources to make that happen, but the end result is sustained growth, organic referrals, and a stronger "brand" in the market.
Stan Sher
Dealer eTraining
Great article. You are right on the money. Too many agencies popping up on large and small scales. A lot of smoke in mirrors too. First thing to look for when considering social media services is how well the firm brands themselves. If you do not put out content to be out there then in my mind you will be terrible with doing work for my business.
I believe social media is a must in dealerships. But...and there is a huge but here...
It has to become culture. A requirement for hiring someone should be that they are social media friendly. The content that can be created in-house or by working with a local agency that has powerhouse tools to assist the business in being successful is what will go a long way.
Also, dealers that have cool inventory that consists of rare vehicles will always have more traction. Sure, some ad spend needs to happen but I would not go crazy overspending. Facebook leads are not always the greatest. Ever try to sell something on marketplace? Think of how ridiculous the offers come. I would gauge to see how well the ads work and increase or decrease based on success levels.
Organic content goes a very long way once the followers are built. The followers are built on the ads.