Since Facebook has exploded, businesses have all rushed to capture their audience’s attention and leverage the platform’s marketing potential. In the beginning, gaining business exposure on Facebook’s platform was relatively inexpensive. As Facebook continued to modify its algorithm to appease its users and better monetize the platform when it went public, Facebook page organic reach plummeted to where it seems to currently offer organic reach to about 1-2 percent of any given page’s fans. Pay to play has been in effect for some time with the only ways for pages to extend reach being via Facebook ads or engaging content. That, however, hasn’t stopped some dealers from continuing to post vehicles for sale on their Facebook walls even at the risk of alienating their audience.

The question of the day is: Do people actually shop for cars on Facebook’s platform?

In the past, it’s fair to say that consumers who were using Facebook in their car shopping journey were probably researching dealerships. Some dealers had their inventories tied into their Facebook pages through a tab, but it was infinitely more convenient for a consumer to browse inventory through a dealership’s website or a third-party listing service than it was to visit prospective dealership’s Facebook pages one at a time.

That all changed with the roll-out of Facebook Marketplace.

In the beginning, Facebook Marketplace was designed to be more of a virtual garage sale / classified feature available for users to buy and sell items locally. As it has evolved, however, it has become a much more robust marketplace. This, of course, has attracted Facebook users who are increasingly using the feature in their shopping. In the automotive world, industry vendors have begun automatically sending dealer’s inventory to Facebook Marketplace, and Facebook itself has struck deals with major third-party listing sites like Cars.com to have a dealer’s inventory published making it very convenient for car dealers to have updated inventories available for exposure to Facebook’s massive user base.

But are consumers actually using Facebook Marketplace to shop for cars?

As a technology provider that facilitates conversations between consumers and dealerships in managed chat and also offers that feature within the Facebook platform, we can tell you that consumers are, in fact, engaging with dealerships about individual vehicles.

In Q2 of 2018 alone, 250 dealerships that use ActivEngage managed chat for Facebook via Messenger received 11,030 engagements from consumers originating from a VDP on Facebook Marketplace.

The table above illustrates that consumers are engaging with not only a wide spectrum of vehicle makes but also with a large span in vehicle age. These 11,030 consumer-initiated engagements encompassed a whopping 506 different model vehicles as well. This tells us that consumers of all types, budgets, needs, and interests are perusing Facebook Marketplace within their car buying journey.

Just as with any other consumer touch point, dealers need to be ready to engage with consumers, answer questions and start to build that relationship. Consumers only have so much time and patience, so failing to respond or engage the customer will only see that customer move on to the next vehicle or dealership — costing sales. On the opposite end of the engagement spectrum, dealers who are quick to respond, and are transparent and helpful have a higher chance of earning that customer’s business.

Consider that these figures only represent the data from consumers who chose to initiate contact with the dealership via chat. It’s safe to say that there are many more consumers browsing vehicles on Facebook Marketplace that did not engage but rather went into the dealership to see a vehicle of interest.

Facebook Marketplace is a valuable asset that dealers should be utilizing to gain exposure for their inventory. With inventory listings being automated through data providers that almost every dealership already uses in combination with Facebook’s third-party listing partnerships, Facebook’s Marketplace has morphed into a legitimate shopping destination for consumers in the market for a vehicle.

At one point in time or another, we’ve all heard someone in our lives tell inform us that money doesn’t grow on trees. And they would be right. Technically.

The facts are, however, that the phrase started because sometimes there is money (revenue) that is simply waiting to be taken by businesses. There are a lot of revenue sources in dealerships and while those sources haven’t changed much in a century, the way in which dealerships can harvest or maximize the profits in each of those has.

Technology is being introduced daily that can assist dealers in creating more positive and easier buying experiences in sales. Technologies are showing up making dealerships not only more efficient for customers but allow for a higher volume with existing infrastructures.

That’s not what I’m talking about.

What I’m talking about is taking advantage of a technology that we’ve had access to for decades. The Internet.

e-Commerce, if nothing else, has taken our world by storm. It recently made Jeff Bezos therichest man in the world, nearly doubling the net worth of the second richest man, Bill Gates. Amazon now has more consumers in the United States that pay money to be a member of their Prime program than don’t… and that train probably isn’t stopping soon.

e-Commerce isn’t anything new to us as a society. We’re all getting quite used to – and fond of – being able to order anything we want and having it delivered to us within a couple days, the same day or, in some areas, even within an hour. Anything from books to refrigerators can be had by a consumer without them leaving their living rooms. But don’t think that the automotive industry isn’t vulnerable.

Amazon recently announced to consumers that they could be tires for their vehicles through Amazon which would be delivered to the consumer and installed for free by Sears. We know that Amazon has been selling auto parts online for quite a long time. This, however, is next-level. And shows that dealer fixed operations revenues are being attacked not only on the parts end – but also the service end. (Someone has to install those tires, right?)

As a dealer, parts sales represent an incredible opportunity to increase revenue in an already-existing profit center. One that, in many cases, goes incredibly neglected. There are plenty of dealerships that have taken advantage of this and made a killing. Many others, however, either have not realized the potential or think that the mechanics to accomplish this would be taxing.

There’s a reason why Amazon chose to get in the automotive parts industry… and it’s not because there isn’t money to be made. According to a 2017 report from Hedges & Company, not only is the online retail parts industry up to $9 billion per year but it’s also growing at a double-digit year-over-year increase, while retail sales are only growing at less than 3% year-over-year.

With new car profits shrinking, future sales volume in doubt due to ride-sharing and autonomous vehicles, analysts predicting newer generations to have less interest in car ownership and electric cars threatening to put a bite in service revenue due to less maintenance required, dealers should be exploring all revenue opportunities that they have the infrastructure and ability to leverage in order to ensure that future financial profitability has a secure foundation.

Money may not literally grow on trees, but perhaps we’ve all been looking for the wrong type of tree.

Communication is vital to business, that’s a given. In retail, businesses must be responsive, provide a great customer experience and stand by their products or services. But what happens when businesses fail at that? They get complaints.

A customer ordered some copper from a business that promised it to be of the highest quality. When the customer’s representatives received the merchandise, they discovered that the copper was not the quality that was ordered. What did the business say? “Take it or leave it!” Of course, the customer that ordered it was furious and sent a message to the businessman promising to not do business with them on their word of the quality of the merchandise and, further, asked for a refund.

Sound familiar? Every retail business in existence has encountered this situation at one point in time. An unhappy customer complains via a message. And, for certain, tells their network.

Why is this story different?

Because it happened 3,800 years ago. On a stone tablet that was almost 5 inches wide and 3cm thick. Then delivered, in person, after a voyage from Mesopotamia across the Persian Gulf. It is thought to be the world’s first complaint (albeit in writing). Some customer was so upset that he not only sent his messengers to collect the merchandise, which they returned empty-handed, but then carved into stone a complaint and sent the messengers back to deliver that message. A voyage that was about 1,220 miles. Sounds like a pretty unhappy customer. And while Yelp didn’t exist at that time, the complaint has endured quite a while. Don’t forget, however, that the customer had to deliver a message that distance to buy the copper in the first place.

Fast forward to today.

Customers can now communicate with businesses immediately. Regardless of whether that communication is to complain, buy something or get questions answered. Technology has rapidly given consumers faster ways in which to communicate and consumers have gotten more used to this speed and convenience. First, telegrams, then phones, then email and now chat and text messages.

The tech community, however, is trying to take it to the “next level.” One that is automated and doesn’t have human involvement. Efficiency and speed are that technology’s selling points. But are consumers biting? No.

But why?

While efficiency in communication is a key factor in customer experience, transactional success and increased revenue, humans still want to deal with humans. No consumer wants to converse with a phone tree or an AI system. Have you ever gotten frustrated trying to get an answer from Amazon’s Alexa, Google’s Home or Apple’s Siri which either don’t understand, misunderstand or give you irrelevant answers?

Now, we have chatbots. AI-driven customer service. But how do customers feel about them?

According to this article in Forbes, people aren’t thrilled, and chatbots are killing customer service. At the end of August 2018, the Global Consumer Customer Service Report specifically asked consumers how they felt about chatbots. What did they discover? Humans still prefer to deal with humans. In fact, while chatbots may be sufficient for a quick automated answer, complex and detailed customer inquiries were preferred (and recommended) to be handled by humans.

Human beings orchestrating customer service needs can react and respond to complex situations better than any chatbot. And believe me when I say that consumers know when they are talking to a “bot” just as quickly as they know that the email your dealership just sent was automated and not actually sent by a person.

For consumers, a live support agent is preferable to chatbots every time. Chatbots aren’t capable of adapting outside of their programming. Just think about the conversations that car shoppers have with your salespeople. I bet you beat your head against the wall just listening to the recorded conversations between salespeople and phone calls with customers on your call tracking service.

It’s much more difficult to communicate via the written word (e-mails, chat, text, etc.) than it is when speaking in person. Structure and vocal tone dominate those conversations and can change the meaning when communicating whereas that option isn’t available in written form.

When a human chat agent is involved, however, “…half of the respondents ranked chat as their top channel for quick customer service. Yet, they still prefer a human because bots are less helpful, and their answers are less detailed.” The article goes on to say that the survey does believe that chatbots are killing customer service and that while companies are adopting chatbots in order to save money and human resources “in the short term… [they] will eventually send customers running for the hills.” And lose revenue rather than saving money.

Whether you are considering using chatbots in your dealership through a technology company, managing chat in-house, using a fully managed service or some hybrid of all of the above, just keep in mind that consumers prefer interacting with humans. It’s not the speed at which the customer can get answers that matter… but the quality of those answers that will provide them with the customer experience that will keep have them (or keep) them coming to your dealership.

Henry Ford was once asked why he visited his executives rather than having them come to his office when problems arose or he needed questions answered. “I go to save them time,” said Ford. “I’ve found that I can leave the other fellow’s office a lot quicker than I can get him to leave mine.” Ford knew the necessity of gaining information.[1] He also knew that being more efficient in gathering that information would save both his time and also make the executive more efficient in their work.

Internet leads have been around for almost 2 decades now. As their volume progressed, dealers started paying closer attention. To this day, however, most leads – whether third-party- or organic – contain very little information and are often inaccurate. Customers may be willing to provide their email address to gather information, but they may give a false phone number. This causes dealers who are on top of their game to waste a lot of time chasing a squirrel.

Great dealerships will convert Internet leads into customers showing at their dealerships and a sale somewhere in the 10-15% range. The reason for that is that most dealerships respond to leads based on the simple information they have, which is typically only the vehicle they’re interested in, what the dealership’s “best price” is, perhaps what their trade-in is worth and, finally, what a payment would look like.

Different dealerships have vastly different strategies when responding to leads. Some dealers will send the “When can you come in?” message. Some will respond with a “best price” that includes every rebate and incentive known to man. And some will start an in-depth inquisition of the customer which can easily cease the engagement.

Just like that customer that walks onto a dealership’s lot, the more you know about the customer, the easier it is not only to sell them but also build trust. By providing a more informed answer to the consumer’s questions, the dealership is able to begin a relationship that doesn’t start on an adversarial basis. Consumers are already leery of car dealerships. As a survey by Gallup indicates, consumer trust in car salespeople ranks at the bottom of the list - right below members of Congress.

Dealerships also know that the more information they have about a customer, the more accurate they can be in providing information to the customer. , this isn’t always possible which causes friction from the beginning of the relationship when a dealership quotes one price yet is unable to honor it simply because of credit (or other) factors involving that specific consumer that they weren’t aware of.

Today’s technology has the ability to offer more robust information to a dealer so that they are able to respond to customers based on factual information and personalized to that specific customer.

Imagine engaging a customer after a chat conversation and being able to – in real-time, right after the chat conversation – being able to provide them with the information that they seek already having an idea of not only who they are but also what their credit score is. Wouldn’t that allow you to give the consumer better information? Wouldn’t it allow you to provide a better experience rather than having a customer come in with unrealistic expectations only to be disappointed and irritated when you can’t deliver? What typically happens then? Chances are high that they leave your dealership angry, go to the next dealership and restart the process. Only this time, the second dealership reinforces what you already told them, so they end up buying at the second dealership – and not yours.

Car dealerships are slaves to information. The more they have, the easier the sale is. The less they have, the more inefficient and the higher the probability that the customer gets upset, the transaction takes longer, and the customer inevitably leaves without buying a car.

Stop chasing squirrels and start gathering information in a more efficient manner by going to the customer’s office (to collect information) in order to provide accurate answers to the customer’s questions that engage you and without making them come to the dealership (your office) to do so. By making it a priority to find the right technology partner that can provide you with this information, you will not only engage more consumers but also sell more cars and be able to do so faster thus freeing up your sales staff to engage with even more customers.

And in the end, that’s what matters.

[1] Fadiman, C. & Bernard, A. Bartlett’s Book of Anecdotes, Page 210, Revised Edition 1985

Let me start by saying that I love to surf. Back in my younger days, I was able to qualify and had the opportunity to compete on the pro tour. At one point, I surfed Mavericks in Northern California which has waves in the 30 to 40-foot range. To illustrate, the waves are so big and heavy that you can’t just paddle out. I take this boat out and paddle to ride my first wave. After a few waves… I got hit by a monster wave. This wave dragged me 30-40 feet down. If you’ve never been hit by a wave and dragged down that far, you’re disoriented and scrambling for air, your lungs start burning and you’re very likely (like I was) tumbling in the water for 4 minutes or so. When I surfaced, everything was black and white from oxygen deprivation, my eardrums were blown, and my eye vessels popped. Then the next wave hit, and I found myself flying 30-40 feet in the air with my spine feeling as if it was cracked. I went back to the boat and, to be honest, I was scared and shaking. After about 20 minutes, and my friend’s encouragement, I went back out… and that was a defining moment in my life.

Why am I telling you this story?

In life, it seems as if everyone is trying to be something for somebody else. Whether that be your spouse, friends, or family. What you see in the mirror… how you view yourself… is what matters most. If you don’t understand who you are, then nothing else matters. Take the time to look in the mirror and get rid of that “if/only” thinking.

When you truly understand yourself and are open, you have much more control over your life and it fundamentally changes who you are. The best story of your life will always be your own. Of course, that will include your family and friends but learning to live your own story is the most powerful thing you can do.

I love to journal so that I can see on paper how I’m feeling that day and record my activities, feelings, and experiences. I also encourage my son to do the same. Do you know what you’re doing on a daily basis… what actions you’re taking?

If you work at a dealership, chances are that you work long hours. How does that affect who you are or who you want to be? Not only to yourself but also to how you control the relationships that you have with your friends, families and the other significant people in your lives?

I, personally, like the grind. Putting in the work, however, is part of that grind… what I call “the suck.” But you have to do the grind to get where you want to go. The grind is really your journey to success no matter how you define success. If you stop putting in the work, however, you will end your journey and, chances are, miss the grind.

In our business, the highs and lows are extreme. Especially in sales. Every month, every salesperson goes from hero to zero. It doesn’t matter how many cars they sold the month before.

Goals are important. They are waypoints in a longer journey. No matter what industry you’re in, what career path you took or where you are on that journey, every individual should appreciate that journey and their experiences more than any one thing.

If you want it, no matter what it is, you will have to sacrifice. Those sacrifices could be small or they could be monstrous. It only depends on you and how much you want to reach the end of that journey.

Pay the price for whatever goals you have set in your mind and you’ll see in the end that every moment… every experience… every sacrifice… is not only what made you WHO you are but got you to where you wanted to be.

And that, my friends, is how you succeed… even if it involves monstrous waves.

Somewhere in the North Pacific Ocean, there lives a whale that cannot communicate with other whales. You see, whales communicate via sub-sonic vocal sounds. Most whales communicate in the 15-25 hertz (Hz) range. Whales, for the most part, can communicate inter-species… except for one. This whale communicates in the vocal range of 52 hertz, making it impossible for other whales to hear them which isolates them in the oceans. Are there more than one of these whales? There must be for them to still exist, but they have never been seen, only heard via advanced audio equipment developed by NASA. Of course, they need to reproduce, but imagine living in an area that encompasses 80% of the Earth and not being able to talk to any other of the many whales in existence. People have been fascinated by this. They’ve written songs and books about them, made references to them on TV shows and even used their likeness to sell cell phones in Ireland. Why are people so fascinated by this creature that’s never been seen but only heard – and even then, only with advanced technology?

As a species, humans cannot exist without communication. There have been many experiments and real-life examples of people going crazy in isolation. But is it simply the lack of being able to communicate that so disrupts our brains?

I would say no. Unlike this whale species, even prisoners in isolation have brief communication with people—even if it’s only a guard delivering their food, letting them out to shower or for that hour of recreation time the prisoners are allowed. Even that tiny bit of communication isn’t enough to avoid insanity for some of them. If it’s not the lack of communication, which humans need, then what is it?

It’s the quality of the communication.

How does this story tie into automotive? Most consumers are online today researching vehicles before even attempting to reach out to a dealership. When they do reach out, despite dealers’ attempts (or lack thereof)  to respond and engage the customer, they’re often met with very little information other than “When can you come in?” In fact, the industry average – for a good dealership – on connecting with a customer hovers around 20% or less. Dealers pay, on average, upwards of $25 or more just to get the information from a conversion or third-party lead. If a dealer pays for 100 leads per month, that equates to $2,500 (on the low-end). Yet, they’re only engaging with 20% which means that for $2,500, they’re paying $2,500 to engage with $500 (20) worth of leads.

Good quality communication, which involves an actual engagement with the customer and the opportunity for the dealership to provide the customer with the information they are seeking and begin to build a relationship with them,  establishes trust and migrates the customer further down the funnel towards selecting the dealership as the one that they wish to buy from more than simply extracting information and joining the gang of dealerships responding via auto-responders and calling a customer three times per day ever will. Quality, however, costs more than quantity. Yet, while dealers will spend more money to get more extracted information (leads), they won’t pay more for quality. Quality costs more money. That’s the difference between going to Payless to buy sneakers or spending more to buy Nikes.

Remember, however, that, to your customers, every conversation revolves around them. They don’t care whether your dealership is getting 100 or 1,000 leads. They just want information and quality interaction in the manner that they choose. Having quality conversations with customers engages them more which then translates into a higher conversion rate, a better customer experience and, ultimately, increased return-on-investment for the dealership.

In this age of non-verbal communication, the difference between communication and quality communication is exactly like the difference between a chat or text reply of “K” and one that is in-depth and engaging in which there is an actual conversation occurring and not simply a vague response.

Examine how you’re communicating with customers and whether the channels and techniques you’re using to do so are designed for quality communications or you are simply trying to achieve a larger quantity of information and shooting for higher conversions by playing the numbers. E-mail templates sent via a CRM auto-responder are no longer effective. For dealerships to increase engagement and sales, they need to be having quality conversations with customers on the channels they pay attention and respond to.

Find a solution that can provide you the engagement your customers deserve while also being the one that provides the most ROI. If customers can’t hear you, you’ll soon discover that nobody is listening, and you may become exactly what you don’t want to…

The loneliest whale in the world.

Jenny.

Tommy Tutone said it in 1981 and many of you reading this know that number. It’s Jenny’s number. And we remember it. Why? Sure, it was a catchy song and has become a staple in early pop music, but it does hold a hidden gem that every car dealer would be thrilled to possess.

For dealerships, customer information is only the beginning of the tools they need to turn a shopper into a buyer. Dealerships have been paying tens of thousands of dollars to get information about customers who are in-market for a vehicle via many different advertising sources including e-mail leads, conversion forms, and widgets as well as via chat. Historically, the problem has been that the information received is either incomplete or inaccurate, which means the dealer paid $20+ for useless information. Even if a salesperson can use that lead to contact the customer, the conversations usually begin not about the potential vehicle, but about the price, down payment, and other financial issues involved in this major transaction.

Even that customer who just pulls up on the lot is hit by the same questions from the salespeople because that’s what they’re trained to do. Bad credit? Bring them in immediately, and have them fill out a credit application. Great credit? Show them whatever they want. But what if customers aren’t forthcoming with their information? Or the information they give isn’t accurate?

The sales process, by necessity, has to start all over again. And auto shoppers don’t like it. (P.S. Neither do sales managers.)

In today’s modern society, consumers are used to efficient and frictionless communication that leads to them getting what they want. And, while consumers do tons of research, visit upwards of 24 touch points on their buying journey and come to the dealership armed with information, statistics say that 80% of them don’t purchase the vehicle they came in to buy. Also, even though they did all of this pre-visit research on the vehicle they came in for, they did none on the one they actually become interested in. They are, however, hesitant to call into a dealership for the simple reason that they are afraid of being harassed. They will, however, chat with a dealer. Why? It’s more convenient and they can remain anonymous if they choose. Yet, if the customer has a good experience in chat and their questions are answered, they are much more likely to choose to do business with that dealership.

What if the conversation could start differently? What if there was a touch point that would allow the dealership to have more information at the beginning of the conversation with which to better serve shoppers, give them more accurate information and provide a smoother customer experience that leads to a sale that much easier?

I know of no dealers who would say that they would prefer less information about a customer in the beginning. It makes the process not only more arduous for managers at the dealership, but also for the customer. And while in 1981, it may have been as simple to contact Jenny as having a dime and her phone number, it’s not that simple anymore. On top of that, when we’re talking about what, for most individuals, is the second most expensive investment that they’ve made in their life, definitely, more information is needed up front from the customer to provide accurate answers.

Luckily for dealers, the technology exists today that allows conversations to happen between customers and dealerships in which the dealership can access information which allows them to have a more knowledgeable and 2-sided conversation with customers. And that creates less friction, builds more trust and leads to increased closing percentages.

There are certain steps in the “stereotypical” buying process that indicate purchasing behavior. One of those is the customer allowing the dealership to pull their credit. No customer wants to visit 27 dealerships and have them all pull his or her credit. Not only is that time-consuming but it’s actually detrimental to their goal – to buy a car.

Imagine being able to start a conversation with a customer who allows you to do a soft pull of their credit in order to give them accurate answers. Would that help you sell more? Would it impact the customer experience? Would it help the dealership navigate around the negative stereotypes in the industry? Yes, to all of the above.

Consumers want instant information. That’s the exact reason why technologies have evolved to allow consumers to interact with businesses without having to pick up the phone. The problem is that, oftentimes, those digital interactions are one-sided, and the business is left with nothing but air from their interaction.

Digital communications like chat and text are the preferred method of communication nowadays. Chat allows dealers to give shoppers accurate answers quickly and leave the conversation with vital customer information, which is imperative to business growth both in the immediate and long-term future.

Information can only be accurate, relevant and trustworthy if it is two-sided. It enhances the conversation, builds trust and opens the door to pre-purchase commitment behavior.

And that’s much more likely to make a sale than a dime and a phone number.