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The State of Automotive Digital Advising: More Vanilla, Please!

Anyone who regularly reads our blog knows a few things. One, we tell it like it is. Two, we educate from fact and passion, not from the heart of from the pocketbook. Three, we do and cover what nobody else does across the entire scope of services. Four, we affect a sliver of the industry through the automotive social sphere. While none of these aspects alone are uniquely significant, it becomes more so when you consider what dealers are receiving from “advisors” today.

Recently we had a high-line dealer visit that also included a regional sales director from the OEM, which is a rare pleasure. They wanted to review the new digital assessment package from their third-party partner. While we were extremely happy that the digital marketing consulting company that had previously provided in-field services for the OEM and their dealers was no longer doing so, and there was clearly an improvement in the standard deliverables, frustration quickly set in.

In reviewing the report, it was clear that it took into account items that didn’t properly set up dealer expectations, or take into account how search algorithms have changed, especially mobile, contained improper SEO evaluation components (named search, for example) and wasn’t thorough (had both scoring and consistency issues).

So while the report was an improvement over the third-party and OEM agenda-only approach previously employed to advising the dealers, it showed that we are still significant;y off the mark when it comes to assisting a dealer in doing a better job online. While we’ll assume that the vendor’s intentions are completely altruistic, we once again see the misguided and completely subjective plight we’re in considering there are no “digital standards”, no “consulting certifications” and certainly no “results-based comparisons”.

What we do have is more vanilla. Yes, the OEMs to a large extent need the data; yes, there’s a much better way to go about it. And the challenge is how can you do that, counting on one or two companies, without true A-B testing, in a cost-effective manner? You can’t and all that happens is the dealers can operate off slightly better input rather than consultants taking ideas and bringing them back to the third party and OEM. Everyone loses in that scenario.

Yes, more money is being spent. And with that, more errors are being made. Stupid, unseen errors. How do you tell a dealer that 25-50% of their SEM spend is for terms they shouldn’t be buying, cities that are 500-1,500 miles away, with action-killing text and that 47% of their traffic is on mobile but 70% of their budget is going to desktop? Or that their website’s key pages have the same content as 100 other sites and incorrectly link to non-existent pages on their site? Or that their social media is a complete disaster that is not being seen, read or acted upon? OK, “tell them” you say. And then they bury their heads again or plead the “have to use what my OEM says to” line of garbage. No you don’t.

Stop getting vanilla. When the market drops again, and it WILL, there will be a larger dividing line digitally between dealerships. You can’t take an OEM digital assessment report, unfortunately still, and build better value, own more spots in SERP, turn your social media and social marketing around or answer your leads any better. You actually need to spend money doing that, using different vendors than everyone is using and learn how to understand this our evolving, digital world.

 

Best Practices: Professional Insight, Powerful Results

 

 

A Blue/Black Dress. A White/Gold Dress. A Car Sold? Whatever…

Expose your business. Better yet, expose yourself!!

 

It’s not about who bares it all. No, the game is about who gets the exposure at the right time. And most of the time, we perform poorly.

 

Marketers have been talking for decades about exposure, impressions, brand recall and market share. And while nobody (at least here) needs to be convinced that exposure should be primarily online, we’ve once again been shown that the conversation shouldn’t be about advertising.  Yes folks, exposure leads to conversation. All kinds of exposure… 😉

 

So what does the color of a dress have to do with car sales? Both a whole lot, and absolutely nothing. Within a short while of the “dress” explosion last week, automotive b-to-b social media was abuzz with puns,  memes and conversations.  Some of those actually made it to the retail channel. No OEM or retailer had an “Oreo” moment due to what color a dress was. And it was all an experiment anyway.

 

Marketers are being shown up, at an alarming rate, by the media of individuals. And we are still concerned with the “right” newspaper ad for the weekend? Millions of people joined an online conversation about screen resolution and perception, yet nobody sold a car from it.

 

And there could have been some massive fun, too. “Buy a new (fill in car brand) and receive a (fill in department store) gift certificate toward any color dress you want” could have shown up on websites, email blasts and social media within minutes. No, it was all about the weekend ad, which gorilla looks good on the roof, or what new incentives will be, or pouring over month-end reports, instead of selling more cars through created connections.

 

What’s more disarming than making someone laugh? What’s more unexpected than having someone think they just had the least “automotive” experience they’ve ever had?

 

Exactly how to make a popular culture phenomenon part of your marketing is not the point here, realizing that you have the opportunity to capitalize on more of these types of occurrences is.  Ad agencies and media companies aren’t the ones who do this on the fly. We are.

 

Salespeople (and managers) are so focused on the “script”, the “road to the sale”, the “processes” and the such, we take so much of the human element out of making car buying fun.. 2009 was the first time we had a client sell a car specifically (and nearly solely) through social media. Stop thinking about what to say and simply start the conversation. Even if you don’t have a dress on…

Endorsement? Nope, It Rolls More Like A Super Pac.

As our industry moves (very slowly) toward digital dominance, more companies are chosen each year to assist with certain initiatives driven by the OEMs. As the market fills with mostly fledgling, so-called expert vendors in the major categories (website, SEO, SEM, mobile, reputation management, social media), RFPs and projects are drawn out and the partners are selected. Then, almost like clockwork, the inevitable takes place. The proverbial crap hits the fan and the vendor can't deliver.

If you've paid attention and done a little digging over the past few years, you've watched as the industry has filled with providers that, for the most part, weren't doing what they are now providing for more than a year or two (and sometimes simply weren't even in the space the day before they launched). Many companies have re-branded as digital agencies, marketers, training, search and the like with little more than a presentation deck. And then they walk into the manufacturers headquarters (sometimes on the coattails of a relative or someone they have "pictures" of) for their pitch. Viola, preferred vendor!

Even though relationships dominate despite near incompetence or irrelevance, sometimes it's just that the company/companies that can actually do the work are viewed as too small (staff, revenue, etc.), or they are brought in to pitch simply to hit the right amount of stand up presentations for purchasing. But the litmus test doesn't change: call the vendor, ask a non life-and-death question and see if the first person that's not a receptionist or secretary can answer. If you're talking with a tech support person and they have to ask a manager or someone else, call your OEM rep and give them an earful. Maybe, just maybe, if this happens a few hundred (read: thousand) times, maybe they'll get the message that their preferred provider(s) simply can't do the work.

In working with nearly every brand dealership and nearly all OEMs, their ad agencies and digital vendors over the past twelve plus years, it's scary to witness the process, implementation and support that exists. And the cycle continues due to the incestuous ways in which the programs are executed. The manufacturers want you to believe that real assessments are carried out and that they've done their due diligence. Fact is, that's a pipe dream. Endorsements aren't really want they sound like. And for those people that paid any attention to elections over the past months as well as years, vendor selection is more like how Super Pacs operate or how Wall Street controls their puppets: Follow the money, lunches, perks and relationships and you'll find a substandard product or service get the rubber stamp.

And the pisser is that they keep buying from them, warts and all. Because, among other things, the mentality is still non-digital in marketing. And the people who head the eCommerce and digital divisions are no better at their genre than your local newspaper rep.

So follow the vendor recommendations that are mandatory and voluntary but always keep an ear to the ground and give real feedback to your factory rep (even though the majority of them have no idea what an AdWord extension, heat map or pixel tracking is) and at ad meetings and 20 Groups. Because the majority of what they or you are buying is well under what you deserve, and usually what works.

 

Best Practices: Professional Insight, Powerful Results

IM@CS Gary May Interviewed By Automotive Digest At #DSES

Chuck Parker and the Automotive Digest team were at DrivingSales Executive Summit and J.D. Power & Associates Automotive Marketing Roundtable October 21-25 interviewing top executives and industry leaders. This is part of my interview, focusing on how mobile is affecting change in the automotive indsutry.

Luke Wroblewski spoke to the DSES crowd about the impact of mobile, however the industry is still lagging behind consumer trends and usage plus analytics and mobile-ready content. This is a huge opportunity for dealerships…


 

 

DrivingSales Executive Summit 2012: A To Unmarketing

The 2012 DrivingSales Executive Summit has closed its doors with an amazing, energetic event to show. Congratulations to the entire (growing) DrivingSales team, you have left a higher bar to be measured against, once again. With nearly 1000 in attendance, primarily dealers, the vibe was strong around leading-edge strategies. And the expectations were high…

Opening in one of the Bellagio's main ballrooms, with the shortest intro of the four-year event by Jared Hamilton, emcee Charlie Vogelheim introduced Dennis Galbraith to talk about "big data" for dealerships, emphasizing the importance of executable data-based strategy, followed by Luke Wroblewski, renowned mobile expert. The information shared by the former Yahoo design guru wowed the crowd. While not industry-specific, the impact of traffic and studies was easily translatable to both OEM and dealership tactics. The big question was, why are we not better around mobile strategies? The opening reception definitely reflected the excitement for the event.

Florian Zettelmeyer opened up day two with a deeper drive into "Big Data" with a focus on national brands. Like Luke's presentation the evening before, the practical application into automotive was significant and it turned quite a few heads. Feedback from dealers was overwhelmingly positive, and interesting. So were some tweets: one suggested a drinking game each time "Big Data" was heard, the other coining "Big Data" as the…..well you'll have to find and read it.

Rand Fishkin was next and the SEO oracle delivered. Talking points included off-site, social signals, long-tail and other critical search components. The feedback from the session was that it was top-notch. The SEOmoz founder gave dealers (and many vendors) information points that area critical to success, especially given lots of "enterprise" information that is typically given to the industry.

One of the marquee events of the DSES was next…the Best Idea competition. It's best to watch the videos on DrivingSales TV since this post can't quite catch the passion that the dealers being to the table. Everything, at the end of the day, is about the dealer and the industry moves as the speed of retail. So go watch! After the first round of breakout sessions, it was back into the main ballroom for the Innovation Cup. This year cDemo came out on top. Next year those in the running are going to watch to polish up their presentation and explanation skills….

Cobalt was next with their presentation that was supposed to hit on research and, wait for it…. Data that the industry could use relevant to websites and traffic. Some of the points were relevant while many points were already part of existing marketing for most of the dealers in attendance. Then, the full-capacity crowd was rewarded with a gem of a presentation from Billy Beane. The Oakland A's General Manager, who doesn't make public speaking a regular practice, talked about how businesses must be smart, agile and customer-centric, plus saving some tongue-in-check monologue about Moneyball. The audience paid full attention to his ideas, quotes and stories.

Tuesday opened with Facebook and Google…and a heavy dose of anticipation. The two biggest subjects on the industry's mind, Google reviews and Facebook advertising, were not covered due to both companies request. Tom White did as good as possible a job without a full quiver of questions to ask, still leaving some important aspects to be covered by both the search and social giants.

Then one of the most highly anticipated sessions in the industry in 2012: Jared Hamilton hosted TrueCar's Scott Painter for a one-on-one Q&A. Whether Jared took it easy or was tough on who represented the industry's pariah about a year ago or not is of opinion, there were some great questions and responses with some in the crowd wondering what position TrueCar will play into 2013.

Jim Dance followed with a leadership focused presentation that should immediately impact dealership operation. Rich in examples and strategy, Jim did have a post-lunch audience (always tough) that revealed many taking notes. Packed afternoon breakouts brought the event to the evening's joint keynote with JD Power's Automotive Marketing Roundtable. Mini's marketing head Tom Salkowsky talked about their passionate customers and gave chimerical and video examples of just how dedicated Mini owners are.

Then, Scott Straten of "Unmarketing" fame stepped on stage and gave the packed ballroom plenty to laugh, cry and think about. Between chanting "stop it" in regard to mediocre marketing and technology use to bits of "Awesome", his words danced throughout the mix of dealers, OEMs, agencies, media and portals packed i for the following conference. Sick as a dog, Straten simply engaged the audience with the same style and techniques he begged attendees to use.

Amazing event. What will the DSES team due to make 2013 shine? We only have 12 months to find out…

Special announcements: Jared Hamilton introduced industry veteran Kevin Root as President/COO of DrivingSales and revealed that in April 2013, the DrivingSales Automotive Presidents Club featuring Seth Godin. For dealers who want to attend the New York event, go to www.drivingsalespresidentsclub.com

 

Best Practices: Professional Insight, Powerful Results

IM@CS on Social Media Club LA Panel: Social Media Affecting the Automotive Industry

It was a pleasure to participate with other industry colleagues on a panel at Social Media Club LA’s event last Tuesday evening: How Social Media Is Affecting the Automotive Industry. Chris Heuer kicked off the evening as only the head of the global Social Media Clubs could. Serena Ehrlich moderated the panel and fielded the live and web-based questions. Thanks to TechZulu and Efren Toscano for covering the event live and to Dave Barthmuss and the GM team for providing some great pizza!



Watch live video from TechZulu on Justin.tv

Why Hit The Panic Button When You Can Hit The Simple Button?

Can't you just hear it in the background when you try to explain the shift to digital/social marketing from traditional 'push' marketing to a business like, oh let's say, a car dealer? A chorus fills your head from 1978: "Aaahh Freak out!  Le Freak, C'est Chic, Freak out!". Scary enough, our sales volumes are near 1978 levels and we continue to advertise as if it were.

From forums on DrivingSales to articles on Advertising Age to the offices of medium- to large-sized dealer groups, there is still a debate. That's' mind boggling! Consumers are gobbling up media at alarming rates. Their chosen media, not advertising. Do you still believe it was the advertisers that killed the newspapers? It's much easier to accept than understand that people don't need to read yesterday's news that they already got online or on their cell phone the day before.

So, people do what people do when they just don't understand: freak out, panic, sweat, worry, bury their heads. Come on, take out the Simple button (thanks for the idea Staples!) and start working and communicating WITH everyone. If you don't understand SEO, social media, microsites, true CRM, integration and the whole list of items that aren't a print, radio or TV ad then simply ask our community. Stop being in love with your advertisements and start being in love with your customers!

Changing the way we generate traffic is not easy, but it is incredibly simple. What is usually missing from any effective digital strategy at dealers is (1) process, (2) stick-to-it-iveness, (3) oversight, (4) knowledge, (5) willingness and (6) a burning desire to succeed. Why wait when you can dominate? The wait mentality really gets my goat. You might as well sell you business if you're going to wait.

Last week while speaking at a NADA 20 Group, one dealer had less than 20% of their marketing budget in digital/online. His explanation? "Hasn't worked!". His process? Buying the same way he buys weekend spot or full-page ads. Folks, online is not a "stick-your-toe-in-the-water-and-see-if-it-feels-good" proposition. All of the transparency and accountability is there, no other media measures like online!!

Whether it's wanting to "own" page one of Google by partnering with a strong SEO company (especially if your website company thinks SEO is simply a typo of CEO), to sharing great content on Facebook or Twitter, effectively engaging service customers with a tool like Driverside, or doing effective CRM with a company like DealerSocket or VINSolutions, it's the same: if you don't know, ask.

If you don't have the best brand possible reflected online, over 60 percent open rates for your emails, positive onliine reputation, inventory that can be indexed by the search engines (you don't if it's framed-in on your website) and a community that communicates with you online, it's time to get your business in order before spending thousands and thousands of dollars every month because someone's convinced you that they can sell more cars for you (if they're that strong, hire them and get rid of your deadwood).

Polish up your Simple button and use it because you should be operating a profitable business and not a charity and blind contribution machine. In other words, make your business right before you continue to help make others right (and more profitable that yours)…

Best practices: Professional Insight, Powerful Results