28 Mar

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Twitter Rolls Out Self-Serve Advertising Platform for Small Businesses

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This week, Twitter is rolling out a new self-serve advertising platform for up to 10,000 American Express Small Business Cardmembers. The program will allow business owners to fund sponsored Tweets, similar to how Pay-Per-Click advertising on Google works.

Some have suggested this might be a good opportunity for auto dealers, however I am not convinced that Twitter is a place worth spending time for auto dealers.

Twitter in an of itself offers limited advertising potential, limited primarily to big mainstream brands, primarily celebrities. The only players in the automotive space I can see benefiting from Twitter advertising would be the OEMs and the big third-party classified sites such as Cars.com, Edmunds, etc.

For auto dealers, the goal is almost always incremental sales and so the ads you would have to run would be the Twitter equivalent to your car commercials advertising how you are the best in customer service and that you offer the best prices that nobody can beat, all bunched into a 140 character Tweet. Studies show that when it comes to social media, solicitous advertising does not deliver.

So what will work for sponsored Tweets? Who knows? Does anybody even see what people Tweet? Unless somebody specifically mentions you in a Tweet, the bulk of Tweets published go unnoticed. Sponsoring a Tweet won’t change that.

If you are inclined to give it a whirl for your dealership, mosey on over to this post by PCG Marketing for a visual how-to guide for getting set up with the program. And if you do, let us know how its working for your dealership by posting your comments here.

 

 

Filed Under: Marketing Strategies, Tips

04 Mar

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NADA 2012 Wrap up Video with HookLogic and Friends

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The annual NADA exposition is a measurement of time for professionals in the auto industry. A stark contrast to the SEMA Show, NADA concentrates on the franchise dealer business and its ancillary vendor community.

Complete with geniuses, lackeys, one-hit wonders, and veteran players, the NADA circuit is certainly its own society. Somehow, back in 2002 by chance and with luck I stumbled in to my first NADA expo. It was in New Orleans and it was with 3 of the original “HomeNet Five” – Jesse Biter, Greg Hassler, and Joe McKenzie. It was a memorable experience and I made it back 7 years in a row as HomeNet continued to grow.

The last time I attended NADA however, was 2008 in San Francisco, so I missed 3 consecutive years.

When I attended NADA this year in Las Vegas representing HookLogic, I kept an eye out for vendor booths in the blogging and social media space because I was curious to see how much representation of it there would be.

What I found though was very little and I wrote about it on a post called “The Infant Space of Blogging and Social Media” where I talk about three companies that already have something good and authentic brewing, but not without their challenges ahead.

In addition to this I also produced a video of our time there for HookLogic and in the process of doing so I made this B-side version of the same video. Enjoy and good times to all those I got to chill with.

YouTube Preview Image

 

 

 

Filed Under: Buzz Worthy, Events, Videos

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16 Feb

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The Infant Space of Blogging and Social Media

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During my time this year at NADA with HookLogic I kept an eye out for vendor booths dedicated primarily to blogging and social media for auto dealers. What I found though was very little, if anything really.

I found several vendors on the fringes of blogging and social media, but it wasn’t what defined them, it was something they were comfortable promoting.

There were three companies however that do define their business with their online reputation management, social media, and like solutions. These companies are:

  • PCG Digital Marketing
  • Social Dealer
  • Digital Air Strike

The fact that these companies have booths says a lot. Most importantly it says they believe they will profit from their products and services. I believe they will too, if they aren’t already, but it won’t be easy.

Automotive Blogging and Social Media

These companies can profit because the role that blogging and social media play for dealers throughout the automotive purchase cycle is still in its infancy, meaning there is much room for growth in this space, and they are the early players. Companies that are able to be in this space now and profit from it are getting a jump on future competition.

The reason it won’t be easy though is twofold: 1.) It is difficult to profit in the service business (as opposed to software business), unless you overcharge; 2.) There is a lot of education required with this niche audience of auto dealers, and a sales process that requires education is a difficult formula.

PCG has already raised the bar on what can be accomplished in this space. Led by one of the industry’s leading experts in automotive SEO and online reputation management (Brian Pasch) PCG offers some of the best training events and conferences the industry has to offer (DMSC, Automotive Bootcamp, PCG Pit Stops). PCG has been highly effective at garnering a core audience, or base, from which it can grow over the years.

But this could be more a reflection of knowing the game and being diligent in practicing what it preaches, which does not always translate to the type of results that a dealership actually needs. Whether or not PCG’s methodology is right for your dealership is something you must decide and depending on who you talk to you may get a mixed bag of responses from people.

SocialDealer is in a unique position in that its business model revolves around an actual piece of software. SocialDealer does offer social media services, but that is not its core business. SocialDealer’s software is practical, I have seen it, but much like a CRM system does not alleviate the need to communicate, SocialDealer’s interface does not alleviate the labor-intensive requirements of social media. It merely provides an interface to organize these labor efforts much.

As they are finding, most dealerships prefer to have support carrying out these labor efforts, or handle them altogether, and so they become the primary users of their own software. As a social media power user, this interface has limited value to me personally but depending on where they take it that value could increase quickly for me.

Digital Air Strike interestingly is in a unique position as well. After learning about their approach, or methodology, I was weary of what they had to offer. From what I have gathered, Digital Air Strike offers to do a lot of stuff that on paper sounds like the right things to be doing, but in the end what do these activities ultimately accomplish?

I realize this might seem like a brazen thing to say and that I will need to explain myself with more detail, but knowing this space and what it takes to produce a meaningful result for auto dealers, I would be sure as a dealership to define your objectives and expectations of the service offerings at Digital Air Strike before making too big a commitment. As I stated earlier, it’s one thing to do the work of social media for dealers, but producing a tangible effect or result that can be mutually appreciated is tricky business.

All three of these companies are in unique positions in front of the pack – for now. Each has value to bring to the table and each offers a solution that is of growing importance to dealerships. I expect next year we should see at least twice as many players in this space.

 

 

Filed Under: Buzz Worthy, Marketing Strategies

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30 Jan

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Turn off the data and send them to the cashier

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A little more than a year ago, a colleague and I were at happy hour talking about a variety of things related to our professions in the auto industry. In our conversation he had brought up a potentially dangerous situation that was nowhere on my radar and that I did not put much thought into, until a couple of months ago when the controversy, as he had predicted, exploded onto the scene and sparked an all-out war in our little bubble of the world.

What he explained to me was how the company Zag, which I remember coming onto the scene in 2007 around the time I had chosen to leave my post at HomeNet to start AutoConversion, was using vehicle transaction data stored inside dealership DMSes, which it was authorized to obtain, to exploit dealership costs on vehicles to list on its shopper site TrueCar.com, thus driving down the so-called market price of vehicles.

At the time I did not fully comprehend Zag’s business model, nor was I that interested in it, but the nature of the situation now and how it pertains to the exploitation of data is of interest to me, as is how this situation with TrueCar.com is affecting auto dealerships and our industry.

Last month I did a post about how dealers can use blogging to protect themselves from the TrueCar dilemma and although this post was more of a playful piece to stand up for inbound marketing, I wanted to follow up on the subject with different ideas and angles on this important matter.

The Price-only Buyer: A 12% Market Share

Back in 2007, Polk released the Dealer eBusiness Performance Study with Yahoo that drew several conclusions, one of which determined there was about a 12% market share of price-only buyers. What the study concluded was that although all auto shoppers are conscientious about the price of vehicles, only about 12% make their purchase decision based on price alone.

Ultimately the study suggested that while dealerships could base their sales and marketing strategy around vehicle price, there is more market share around other criteria such as location, brand, and probably most important, the customer experience.

About 12% make their purchase decision based on price alone. -Polk-Yahoo Study (2007)

At the time my message to dealers was that they had two choices. Choice “a” was to be a price-only dealer and choice “b” was to be about value. For dealers that want to be a price-only dealer then blogging would not be useful to their marketing strategy but for dealers that represent value then blogging would be a necessary tool.

Dealership Value Proposition

The value that an auto dealership brings to the table for auto shoppers is important and as the Polk-Yahoo study suggested, nearly 90% of car buyers want that value. What is that value?

For starters, a franchise dealership represents trust and integrity. Because it is attached to the OEM brand, the dealership has a responsibility to the marketplace, the community, and it’s employees. This perceived value is essential to the buying process because people want assurances with their purchase that franchise dealers are more able to give than independent ones.

A Simulated TrueCar Buying Experience

Building on this, let’s take a gander down purchase lane for a minute. When people enter your dealership they are typically greeted warmly, offered snacks and beverages, and taken on a personal guided tour of the showroom to look at vehicles. They get questions answered, go on test drives, and consulted about their finance options. After the purchase when the vehicle is delivered they get a crash course on how to use the vehicle and are sent off (in most cases) with confidence and joy about their purchase.

Customers understand that these amenities are rolled into the cost of their purchase, and they are ok with that. Just because they try to negotiate the price down doesn’t make them a price-only buyer. As the dealer, I don’t think you need to be shy about the enhanced value your dealership provides.

TrueCar.com shoppers however are coming in at a disadvantage. Whether they know it or not, they are basing their decision on price alone and your dealership has every right to give them what they pay for. I am not suggesting you treat TrueCar.com buyers like garbage, but I am suggesting you have a transparent process specially designed for people coming in from the TrueCar path.

Imagine the customer comes in with his TrueCar.com guaranteed purchase certificate. He shows it to upon arrival and you courteously walk him over to the cashier where people check out for parts and services, and let them attendant know that this person just purchase a vehicle from them at TrueCar.com and that he is here to pick up his new ride.

The attendant can arrange to have the vehicle brought to the delivery area while the customer signs all the necessary paperwork and when complete can drive off with is new ride. No fluff, no warm fuzzies, no ill feelings. Just his new car.

At some point the customer might have some questions or be interested in receiving some sort of assistance, at which point you can politely explain that you are sorry but TrueCar.com purchases do not come with such amenities and that they will have to direct inquiries to the OEM or back to TrueCar.com itself.

Now I realize this is a hypothetical dramatization of how this will ultimately play down, but I am hoping to make a point that there are ways for the dealership to remain in the game with TrueCar.com but play by its own rules in a way that is justified based on the TrueCar.com business model and the customer’s interests.

Of course the challenge with this is that you risk creating disgruntled customers that want their cake and eat it too. To counter this you will need to set proper expectations during the sales process which I doubt is something you can accomplish through TrueCar.com so it might require a dedicated landing page on your website that speaks to TrueCar shoppers. But again, we are speaking in hypothetical terms here.

Turn off the data

Another option you have as a dealer if you are not interested in playing the game with TrueCar.com but are interested in Zag referrals is to turn off the data that Zag/TrueCar is extracting from your DMS to obtain your transaction costs. As the rightful owner of the data in your DMS you have the right and ability to limit what information is available to each different party inside your DMS.

By shutting of the data in your DMS such as invoice price, shop costs, etc. you limit TrueCar’s ability to exploit your margins. This of course takes you out of the game somewhat, but does that really matter? Are you really concerned about the small handful of cars you might sell from TrueCar.com that cut so deep into your margins you can’t stand it?

Play by your own rules

I realize this is a difficult situation for many dealers and that TrueCar has left a bad taste in the mouths of a lot of people, but I don’t see dealers being powerless about the situation either. Your business is not going to be hurt by pulling out of the game TrueCar.com invented and there are certainly ways to go along with the game without losing your foot. You just have to be willing to try something new and different.

By doing so, you might even find that it isn’t so bad flipping cars through the cashier based on price alone like a high-volume consumer retail store. Not everyone wants this but some do and if you play your cards right then you can protect your gross by reducing the conveniences and amenities that are increasing your costs. If you have the product to offer these buyers, go for it.

 

Filed Under: Buzz Worthy

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12 Dec

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How To Blog Your Way Out of the TrueCar Dilemma

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At the risk of joining the bandwagon against TrueCar, I wanted to write about the issue but I did not really have enough first-hand knowledge on the subject to present a good argument. I only knew that in principle I was not a fan of the idea based on conversations I have had about TrueCar and things that I have read or watched.

While researching, I came across Brian Pasch’s article on DrivingSales.com titled, “Is Your Advertising Strategy Based on Fear, Data, or Blind Faith?” In his article, Brian builds a good case around the thinking that TrueCar is more of a symptom or product of an addictive  tendency repeatedly displayed by auto dealerships. I agree with Pasch’s point.

What Brian is getting at is something I believe is true. I built my business around it blogging for car dealers. It’s how companies like HubSpot have achieved great success. It’s the reality that Internet marketing today gives essentially all businesses, including auto dealerships, the ability to establish their own marketing pipelines to drive sales and stop relying on outside sources for all of their business.

To be clear, the argument is not against using third-party lead generators and partners to drive sales, but to build your own sales machine so that you can keep your third-party partners selective and minimal, and ultimately avoid the dilemma of feeling forced to work with businesses such as TrueCar.

Build Your Own Inbound Marketing Machine

The idea here is to build your own inbound marketing system. Inbound marketing is a term coined by HubSpot that refers to the practice of using content and advertising to educate and inform your target audiences through free and easily accessible content persistently over time to establish and build trust and ultimately sales of your product.

This, as opposed to traditional marketing practices of splattering your name and logo everywhere with the hope and expectation of it magically turning into sales, is necessary today primarily due to the role of search engines and Internet marketing. You can still advertise your business using traditional media. The problem is the cost and the ROI of it if that is your primary or only approach. When you do the math it just doesn’t add up.

Google AdWords vs. Traditional Media

Refer to Brian’s example in his article where:

  • The cost per visitor for their Adwords was: $1.50
  • The cost per visitor from their Traditional Media was: $18.65

Technically, Google AdWords is not inbound marketing but it is search engine marketing.  If you look at Google’s ZMOT (Zero Moment of Truth), one thing you will see from the research is that the primary stimulus points for auto shoppers IS NOT traditional media. It’s the Internet and search engines are the gateway to the Internet.

It is easy for Internet marketers to challenge why you would invest the majority of your advertising dollars into traditional media. We are bias. But traditional advertising sales reps will argue that if you want to reach the masses then you need to spend on traditional media.

I understand that dealers continue to spend on traditional media because it is what they are familiar and comfortable with. But as Pasch suggests, that is fear-based thinking and eventually it will be to your detriment if it isn’t already.

How Blogging Benefits Your Dealership Digital Strategy

I am not here to convince you that traditional media is not the best use of your advertising dollars. I am not here to tell you that TrueCar is bad for the auto business either. What I am here to share with you is why and how blogging is an important part of your marketing strategy, and how it can help dealers that feel forced into a corner about using TrueCar.

Blogging is about producing content for two primary purposes:

  1. For SEO
  2. For Relationships

In my early days of blogging for car dealers I would say that you are blogging for people (relationships) and for robots (SEO). Blogging still is about these two things and it’s important not only to understand this but to have a strategy for it.

A blog marketing strategy is tricky. There are numerous aspects to it.

  • The strategic aspect
  • The technical aspect
  • The executive aspect
  • The analytical aspect

All this is a lot to juggle for most auto dealerships, but not all of it needs to be managed by the dealership. Some of this process can be outsourced, and quite frankly some of it should be.

Download Free White Paper

Details can, should, and do not need to be outsourced by dealers that want to blog are outlined in my White Paper Blogging 101 for Car Dealers. In this white paper we explain the role that content marketing plays for auto dealers and we introduce 5 different types of content that auto dealerships can produce to promote their blog and website. We also dive in to why auto dealerships want to have a blog marketing strategy and which parts make sense to outsource.

The challenge dealerships face today is how to form a process around blogging that produces all this type of information in a way that is profitable for the dealership by being efficient and effective at selling cars and driving new business from current and non-existent customers. Blogging does not close deals and sell cars, but it certainly contributes to the process of driving the best traffic to your website and building trust and loyalty with potential and existing customers.

Download your free copy of our white paper by signing up for our site. If you are already a free member and have not received your copy then contact us at 1-877-873-0583.

Filed Under: Buzz Worthy, Marketing Strategies

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09 Dec

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Look for mobile to break the plane in 2012

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One of the most significant trends occurring right now, not just in the auto industry but across many industries around the globe is the widespread shift towards mobile computing, and in particular shopping via mobile.

You can see it in the data when you do your research. You hear it at conferences you attend. You see when you watch peoples’ presentations. You see it with those around you, and most likely you see it in your own behavior as it too is shifting towards mobile.

This natural evolution of how we access the Internet and communicate has been prophesied in sci-fi stories for decades. The “future” that we have always anticipated really is here and it is drastically affecting each of us in how we live, shop, share, and conduct business.

Evidence of this trend was revealed this Fall during conference season when Dataium co-founder Jason Ezell shared slide #20 of his presentation deck called “Betting on Your Future Business Using Predictive Analysis”. In this presentation you see that the trend towards mobile began around April 2011 and that it shows no sign of leveling off or declining. Logically, why would it?

There is also evidence of this in the data that was accumulated by Shopper Sciences while performing the now infamous Google ZMOT study. In their research, mobile use, while not yet a leading stimulus or communication source for auto shopping is clearly a growing trend that experts do not disagree is on track to be so by the end of 2012.

The significance of this information was supported at this year’s JD Power Automotive Internet Roundtable (#JDPAIRT) where Tier I organizations participated in numerous sessions and breakouts on the subject, and industry vendors are scrambling to respond to this quickly growing need.

The question for me isn’t whether mobile will be embraced by auto dealers, but how will it be embraced and will it be implemented effectively.

Early on, that is the past couple of years, the most effective way for dealers to utilize mobile marketing was by sending coupon and specials alerts via SMS. But now, people are being inundated with specials and savings on their mobile phone, so it is likely that the game will have to change.

Some companies, like AutoMotion TV for instance, are banking on people embracing the dealership experience by installing a mobile app for the dealership. I personally am skeptical that this use of technology will be accepted by people, but the mobile app provider has proven success with auto dealerships that you can read about on their site.

The philosophy behind AutoMotion TV’s dealer apps is to make them part of the shopping experience and to communicate with them via push messaging. Most mobile apps I have seen offered by automotive website providers fall short on the vehicle and inventory front, with limited or minimal ability to experience virtual vehicle tours or browse inventory with rich media. This is one are where AutoMotion TV stands out.

More importantly is AutoMotion TV’s push messaging, which is their ability to send messages to users via SMS that have their dealer apps installed. The question is, what is the right information to push? Is it coupons and special offers? Is it service reminders? Or maybe it’s more engaging content such as questions, surveys, polls, or even contests?

These are all important things to consider. There is no doubt you want to have a mobile strategy. In my opinion I would be less concerned with what and how you do it and more concerned with just doing it. From this you will find what works best for you, your team, and most importantly for your customers.

 

 

 

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06 Nov

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Dataium’s Digital Footprint Could Be a Giant Leap for Automotive CRM

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Automotive CRM is continually evolving, and you want to make sure you stay at the lead of the pack. Those who are early adopters of new business intelligence technology will maintain a distinct market advantage.

Dataium, a “data utility company,” is poised to revolutionize automotive CRM. Dataium’s cloud intelligence data and reporting tools can significantly enhance your lead generation and conversion numbers, in ways you always dreamed were possible.

Dataium gathers data about people, anonymously and individually, to help auto dealers better understand people’s behavior and interest level before and after they visit a dealership’s website.

Unworkable leads now become workable again.

Think of all the consumers who show interest in a certain vehicle and then walk away, not yet ready to buy. Now imagine being able to learn when each consumer is online looking at cars again sometime later, and what cars they are looking at, giving you the perfect timing and information needed to place that follow-up call.

This is just one small example of how Dataium can work for auto dealerships. As Dataium says on its website:

“With each click, search, and submission, consumers leave behind valuable and insightful data and statistics about their habits, interests, and future behaviors.”

This data is like a digital footprint, containing valuable information on online purchasing behavior and activity, consumer trends, buyer intent, and the effectiveness of promotions and web design.

In other words, you now have a new way to keep up with consumer interests and demands. With the result being:

  • More of the right traffic to your website
  • Fewer unworkable leads
  • Better ability to predict a buyer’s intent
  • Higher close rates

As consumers submit lead forms, their IP address is associated with a data record, including phone numbers, email addresses, etc., and cookies that help track online activity. Dataium connects thousands of websites including OEMs, dealers, social media platforms and automotive websites that collect user information to provide authorized businesses access to a rich stream of data that will transform the way market to car buyers.

Now the question is, how will YOUR DEALERSHIP use this information? How can auto dealers benefit from Dataium?

Filed Under: Buzz Worthy, Marketing Strategies, Technology

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