Today you can’t help but notice the many articles, reports and discussions around the shifting of traditional marketing spends to digital marketing spends that are taking place in various markets and that shift in spending appears (at least in the blogosphere) to be most pronounced in the automotive retail space (see Ford Fiesta and VW campaigns). Those discussions are often followed by discussions around ROI (return on investment) social media spends. Like most markets – the automotive market is in fact aggressively looking for ways to minimize their operating expenses and simultaneously maximize their advertising reach and overall profitability. Unlike most markets the automotive retails space needs to do it faster and more efficiently then they’ve ever done anything before. No simple task. It’s been pointed out that the automotive retail marketplace, by comparative marketing dollar spend is seeing the largest part of the spend shift in advertising, and with very good reason… resurrect the automotive retail market.
Having a current digital marketing plan, knowing and using your tools and resources should be the first topic in every dealerships’ Monday morning management meeting. Any dealership management team that doesn’t take this seriously will find themselves at the end of 2010 (if they’re business survives that long) wishing that they had.
But what – specifically – to do? Direct your marketing company to transition a percentage of your spend to Social Media? Tweet? Blog? Hire internal staff? Hire external consultants? Train in social media competencies. All of that makes great sense and without a doubt will obtain some lift in your marketing strategy. Really, simply putting a facebook page up for your business will draw a few fans, even if they’re just happy customers. “Just Happy Customers” – whoa! “Wait a minute… those ‘happy customers’ telling their friends via facebook, or myspace, or twitter that they’re in fact happy with the car or service that they got from my dealership is powerful isn’t it?” Yes Mr. NewlyFlashingLightBulbGuy you’re right! That is powerful. Those “happy customers” telling their friends, family, co-workers – essentially their digital Sphere-of-Influence (SOI) is the most powerful form of advertising there is. You’ve always known that, marketing 101. Of course it’s Word-of-Mouth and in some fancy-shmancy circles it’s being referred to as digital-word-of-mouth. But getting word-of-mouth (WOM) to take hold has always been difficult… until today! Today it’s possible to leverage the brave new world of social media and it’s power to drive WOM in to hyperdrive.
There’s that word again “leverage.” It’s the word that everyone uses when talking about the internet and social media. “Leverage your website”, “ensure your staff leverages social media tools”, it goes on and on. As I’ve pointed out in a previous article… “where’s the consumer?”, If you want powerful advertising, if you want powerful word-of-mouth, if you want an unbreakable and powerful social media strategy then I’d recommend that you consider leveraging your customers WOM and SOI! Remember Seth Godin’s comment in his wonderful book Permission Marketing: “Acquiring solid, deep permission from targeted customers is an investment?” He pointed out how many great companies like American Express for example, leverage the permission of their customers to increase revenue. Well with regard to your happy customers you’ve already made the appropriate investments, now you simply want to leverage their natural word-of-mouth. You want to leverage their “tell a friend” behaviors. Yes you can leverage their permission, and you can also leverage their satisfaction along with leveraging their communication with their sphere of influence.
In order to “leverage” your customers SOI first they’ll need to want to talk about you. So why would someone want to talk to their friends and family about their experience with your dealership or its personnel? Why would they take the time and their keystrokes to express their digital-word-of-mouth? Well that should be obvious – either they had an extremely positive experience or they had a poor one. When it comes to poor experiences take careful note that I didn’t say extremely poor experience. If your customer has a poor experience you can bet that they’ll be telling their SOI faster than you can say tweet. It’s a reality albeit an unfortunate one for business that customers will more likely share their experiences with their SOI when they have had a negative or poor experience. If they have a positive experience – above what their expectations were – they’ll also share that experience with their SOI. Typically in the case of a positive experience it will have to be an above average positive experience before a consumer shares the experience with their SOI.
Depending upon the medium that consumers elect to use to talk about your dealership – they’re message can be quickly and dramatically amplified, especially in the web 2.0 social sphere. To give you a clear idea of how powerful your consumers’ comments with their SOI are let’s for example take a look at some real tweets from the twitter search “Car Dealership” that I’m running while I write this article:
- “Watching my kids NJB baketball game being played in a local car dealership. Thanks Family Honda. Go Kings! “
- “Waiting at car dealership for Myrna’s car to get fixed. Been waiting a REALLY long time. #bored”
- “Just saw people protesting a car dealership on Scottsdale road. “They sell lemons!””
- “Damn you car dealership! You tell me my car will be ready in 3 hrs, and now you need to keep it all weekend!”
- “I have my changed at the Ford dealership. They do not try to sell me some high mileage oil. Just sayin.”
- “Back at the Ford dealership; Mr. Hath got himself an F-150. Damn what an awesome truck!”
You get the idea, and that’s just in twitter, just live tweets from the past 1 hour! Really there should be no doubt at all that your consumers love to talk about their experiences at your dealership. What’s new is how easily, quickly, and effectively they can share those experiences with their SOI in social media.
Furthermore, customers today more often “ask friends” about decisions that they intend to take especially in large ticket items. This is called “crowd sourcing” their decisions or they leverage their “community intelligence”. They especially do this with ease and confidence online. In a recent survey conducted by Prompt Communications:
“Facebook is now the next most popular communication tool (next to telephone), with 96% of respondents regularly using it to connect with friends, followed by text messaging at 93% and email at 91%.
When asked which method they use most frequently, most participants chose text messaging, at 37%, followed by Facebook and then the phone (28%). Although respondents clearly feel that email is now less important than social media, only 20% said they could live without it entirely.”
For example with a simple tweet “what do you – think Tundra or Titan?” on Twitter or any of the social media platforms, getting input from friends and family is only too easy to do and more consumers are leveraging “community intelligence” when making major purchase decisions.
But before we can leverage your customers’ SOI we need to consider how you get them to talk and where those opportunities in your dealership are. Here are 9 simple rules for driving positive experiences for your business to follow that will go a long way in getting your customers to increase their WOM about your dealership with their sphere of influence.
- Be Honest – always and in every way
- If the repair is going to take 2 hours tell them “2 hours” or if you don’t have it in red tell them… “I don’t have it in red”
- Seek First to Understand, then to be understood
- You knowing what they want and need is much more important then they knowing what you can or can’t do for them
- Strive for transparency
- Showing, explaining, or trying to justify your pricing and negotiating practices after the fact is far too late. Show them early – give them a chance to experience what you’ve said you will do
- Be consistent
- No excuses here. Always be consistent in everything that you say and do for your customers
- Tell them and show them that you’re working to make them happy
- Waiting rooms are nice – but sometimes offer to show them what’s happening out at their vehicle, or in sales situations have management discussions about their deal with them or in-front of them, involve them to the extent possible in all that you do for them
- Respond to them quickly and honestly
- No excuses here. Look at every process that you have for communicating with your customers and see if there is any late, unclear, or less then honest responses. Ask them – “did we respond quickly and honestly?”
- Ask them for their opinion and advice
- How can me make this process better? Ask honestly and ask often. Remember that your customers are business professionals or more often work for business professionals. They too have an idea about providing exceptional customer service.
- Be there to help first and to sell second
- Customers need and want your honest help, helping builds trust and trust creates relationships
- Customer Service is an attitude, NOT a department in your dealership
These simple steps are from consumers who have expressed that these behaviors demonstrate a businesses desire to go above and beyond their expectations. While they may seem basic, they may seem commonsensical, let’s keep in mind that Word-of-Mouth is also basic, Word-of-Mouth is also commonsensical but most importantly Word-of-Mouth is the most powerful form of marketing you’ll ever get.
It takes only a few basic principles to drive WOM for your dealership, and the facts are indisputable more and more of your customers and opportunities today are using social media channels to express their opinions of their experiences with your dealership and your staff to their sphere of influence. I’d leverage that if I were you.