I know this is DEALERrefresh.  I get that.  But the guys are nice enough to allow me the floor from time to time and I’m very appreciative.  In my opinion this is the forum where people are open and honest.  Refreshing really.

There are some basic expectations I have after doing this for for a while:

1. No one will believe 100% of what I say
2. People assume I’m always selling

So what does that mean?  It means that the best way for me to be sure I”m taken seriously is to present 3rd party data.

Dealer.com partnered with GfK Automotive and DriverSide to study the impact of social on the purchase process.  If you don’t know GfK, Search “Automotive Purchase Funnel”.  Good chance they come up first because they created this term.  They call nearly every OEM a client, and provide research and training based on the funnel model.  They’re a global research firm specializing in automotive data.  Another way to say it: They go out and actually talk to auto consumers.  Pretty good idea.

So What??

I am a social networker.  Have been for years.  The result is a lot of “gut instincts”.  Relying on gut instincts is many times the same as assuming.  We all know what happens when you assume…

Here are some things that I learned from the study that I think you’ll find valuable too:

Don’t think Social Media is used to research cars?

38% of those interviewed in the study indicated that they would be using social resources to research their next purchase.  What kind of research?  Everything from price to features to finding a dealership.

Be that consumer for a second.  Can you find any of this info on your own facebook page?

The benefits far outweigh the risks

Why would I get a facebook page?  That’s just another place for people to talk trash about me.

Ever heard someone say that?

27% of those surveyed said that they used or will use facebook specifically as part of their purchase process.  Of that 27%, 44% said that they had personally posted a comment about a brand or model on facebook.  And guess what?  82% of the content they posted was positive.  That’s right, people can be nice too.  Lesson:  The benefits far outweigh the risks.

The little things make all the difference

In the group who said they used facebook in their buying process:

• 57% said that seeing an ad or promotion for a brand or vehicle “liked” by a friend or family member would impact their consideration of that brand or vehicle
• 52% said that just seeing someone check in on a location based service (foursquare, Gowalla, facebook places etc..) would impact their consideration.

What does this mean?  It means that we are quickly moving beyond the days when having a facebook page is enough.  Believe it or not, we are in an age where you do have to manage many channels in order to be an effective marketer.

People who are loyal use social media more

Create more loyal customers.  Why?

- Those who are dealer loyal are 14% more likely to use social media as part of their new vehicle ownership experience.

• 70% of folks who are brand loyal use facebook weekly compared to 60% of those who are not brand loyal.
• 49% of those who are dealer loyal indicate they will use social media to research their next vehicle vs. 38% of the overall base.

So.  Want more people out there saying great things about you?  Want to earn more referral business?  Ready to try a new conquest strategy?  Put more money into the post-purchase experience than you do today.  How?

Some dealers have owners’ clubs.  A BMW dealer might have an open invitation for a quarterly 3 series owner get together.  Drivers come to the store for a BBQ, swap stories, learn a bit about their cars, maybe drive the new 3 series… this is the type of stuff that drives social content.  There are a million ideas like these out there, just ask around.

Finally, this one is a heartbreaker

Only 17% of the folks interviewed said they had been asked to “Like” a dealers’ facebook page.  81% of those people followed through.  Tell me again why your fan acquisition strategy costs so much?  Couldn’t your salespeople just ask every buyer?

Ask yourself doessocialmatter.com?  Download the study and find the info that matters most to you.

Share the wealth!

During a recent management retreat, a colleague introduced the group to the Internet’s fastest growing Social Networking site, Pinterest.com. Pinterest (pronounced pin-terest, not pin-interest) has burst onto the Internet with growth rates we haven’t seen since Facebook. Traffic has jumped to almost 11 million visitors in mid-December, nearly 40 times where it was only six months ago. Pinterest is now in the top 7 social networks on the web, with 59% of its users being women ages 25-44.

During the brief demonstration I watched, I initially didn’t understand the mission of the site, or rather, why it would drive consumer eyeballs. I learned that you needed to “apply for admission” which could take weeks, or you could find another Pinterest user and have them invite you. Just like learning about every other social network, you’ll never truly understand it until you immerse yourself (which is what I did). While I was figuring out the value proposition Pinterest offered, I also showed the site to my wife and her sister. Their instant addiction caused me to embark on a journey to find out more about this site, and potentially how it might help my customers (you, the car dealer).

If you visit the site, you will notice that the majority of content relates to food, home decorating, crafts, and child-related ideas. I took a stab at creating a man’s version of the site, including my interests in cool cars, vintage guitars, and outdoor barbecuing. I was pleasantly surprised that when I searched for related “Pins” and “Boards”, I found there were many others with similar interests.

Pinterest is all about pictures, not so much about words. When you find an interesting picture on the web, you “Pin” the picture and it is attached to your profile. You can also have “Boards”, which are subject-related collections of Pins. I have Boards for “Cool Cars”, “Vintage Guitars”, etc. Every time I find a picture of a cool car, I “Pin” the picture and put in on the “Cool Cars” Board. You can also “Re-Pin” someone else’s Pin, which propagates that content across the web. You can also simply “like” someone else’s Pin, which just shows you liked it, but didn’t feel compelled to Re-Pin it.

Since a major component of a dealer’s social marketing strategy should be to build a social network, and join in on the conversations, I would think a progressive dealer would start a profile for their store, and simply “Pin” new or used car photos for special or unique items. You might also “Pin” pictures of cool aftermarket or OEM accessories, perhaps alone or as part of a customer’s vehicle. You should be careful not to be too self-promoting, or you will be unlikely to attract many followers. Instead, only show the very new, or very special, models or products, and simply try to create interest. Creativity attracts interest on the site, by adding unique titles and high-quality photographs; you can increase the traffic to your profile. Be forewarned, Pinterest has rules where they discourage overt self-promotion, and you wouldn’t want to start your experience getting blacklisted.

You could also search the site for related “Pins” for makes/models that you carry, and “Re- Pin” those items and maybe add a comment with your thoughts. Again, don’t add a comment that could be in any way considered self-promoting but instead add an interesting fact about the benefits of the car’s make/model. You should also begin “following” other Pinners with similar interests, or anyone who starts following you. Like all social media sights, networking is key. Another idea would be to use your knowledge and statistics about the users on the site, and gear some of your boards to them. For example, since the majority of Pinterest users are women, create Boards that appeal to women and direct them back to your profile to increase views of your Boards.

You could create a Board for your local community with pinned pictures of your community involvement, Little League teams you’ve sponsored, and your passion for your surroundings. You could create a Board with pictures of cool home garages, pictures of interesting driving destinations, or even pictures of vehicle interior customizations. Once again, creativity is key on this site.

The goal is to create Boards that reflect the personality and culture of the dealership, and the interests of the owner. As in all social marketing programs, you are trying to personally connect, in many cases one-on-one with other people with similar interests. If they feel a personal connection with you, they may eventually decide to become your customer, since people like doing business with friends.

I’ll admit, it took me a while to get my hands wrapped around this new site, but the growth stats are incredible. Effective Digital Marketing Strategy says to promote your business where people are spending their time online, so Pinterest definitely fits the bill. This site will force you to be a little more creative, and a little more subdued in your approach, but the exposure and payoff in the long run should be worth it. Chances are most dealers will read this article and move on, so your opportunity to be an early entrant could give you a nice head start.

Good luck, and please let me know how I can help!

Share the wealth!

Well I’m guessing all this publicity is getting us somewhere.

Or is it?

I have very little trust TrueCar and to think they’re going to turn around and now be the good guy? I have little trust after everything that has happened and has been said (caught on video) over the last several months. If TrueCar wants to survive, it’s obvious they need to make some changes but how much of this is fluff?

Side Note: For all the latest on TrueCar – visit our TrueCar Latest Updates in the forum.

A few highlights taken from this latest press release…

• TrueCar implemented a new flat fee-billing model for states like VA that have bird-dogging or brokering laws (they’re really making this into a big deal)
• TrueCar is going on a “listening tour” this includes visits with key dealer groups, dealer associations and manufacturers across the nation.
• TrueCar is responding immediately to any state concerns around advertising laws. (They’ve been getting away with this for a long time)
• They are still claiming they do not sell dealer DMS data and do not use dealer DMS data for any purpose other than matching vehicle sales to customer leads (This is still a hard one to believe)

TrueCar is also announcing several changes to take into account feedback and better serve its dealer partners:

• Effective immediately TrueCar will be enhancing its TrueCar Price Report to enable dealers to more effectively market themselves, by providing consumers and dealers a much more balanced view of the market.
• TrueCar will introduce its first-ever National Dealer Council in the next few weeks. The Council will serve as an important venue for TrueCar to hear dealer feedback – good and bad – on TrueCar’s products, processes and policies.
• TrueCar will enable statistical and other tools to identify dealers with extreme price outliers.  TrueCar recognizes that price outliers may interfere with a sustainable dealer/consumer ecosystem and will work to alleviate these issues and include important qualitative factors in the decision process.
• TrueCar will be making product, policy, and process changes throughout the entire business to enhance dealer confidence in TrueCar.

What do you think? Are these enough changes to for you to have a different opinion about TrueCar?

At this point can you even TRUST TrueCar?

Yes or No – Sound off in the comments!

read the full press release is after the jump.

Share the wealth!

California lays it out for dealers and TrueCar.

This is one of the more detailed Executive Summaries I have read…

CONCLUSION

In the State of California, TrueCar is viewed as an autobroker and vehicles displayed and offered for sale on TrueCar websites are advertisements to the public and must comply with California law.

According California to it appears that many facets of the TrueCar/Zag broker program fail to comply with California law and such non-compliance could expose both TrueCar and participating new motor vehicle dealers to legal liability and/or license action.

Enjoy…

In response to a large number of inquiries received from California dealer members, we requested outside legal counsel, Manning Leaver, Bruder & Berberich (who also authors the California Auto Dealer Advertising Law Manual), to research the occupational license status of TrueCar, Zag.com, Inc. and affiliates and opine on a variety of DMV licensing and advertising issues associated with the TrueCar program.  Attached (after the jump) please find a copy of an Executive Summary of a Memorandum prepared by outside counsel.

The Executive Summary identifies a number of problems with the TrueCar model that could expose participating dealers to legal and/or licensing liability. Dealers that participate in the TrueCar  program, or other similar programs, should individually review such programs with your own legal counsel for legal compliance.

Share the wealth!

I know I’m a little late with this post (as I am each year) but it’s still early enough to wish everyone a Happy New Year while also highlighting the best of DealerRefresh from 2011. Just as we did for 2010, and 2009 and…

2011 has been one eventful year for not only DealerRefresh but the industry as a whole. For me personally 2011 has been a year of change with accepting a position with HookLogic / AutoHook (a technology and service that I’ve help to mold and build out over the last 3 years) while also having the opportunity to continue to consult and work with the Younger Auto Group.

Here are the best DealerRefresh articles and threads from 2011, based on engagement, comments and what we thought were straight up worth including in this Best Of DealerRefresh 2011 Post.

Lets get started with here on the Blog…

Share the wealth!