Social Networking: Relationship Building vs. Selling Cars
Moderator: Mary S. Butler, Razorfish
Panelists: Christopher Barger, General Motors; Eric Miltsch, Auction Direct USA; Jared Hamilton, DrivingSales.com; Tom Chisholm, Facebook; Ralph Paglia, ADP

• Consumers buy a car because they like and trust you (this concept is not new); social networking is the technology that makes it scalable.
• Be congruent with:

1. who you are
2. who you connect with
3. how you are connecting

• Focus on Quality, then Quantity. If you reverse this the mechanism breaks down and can perhaps work against you.
• Leverage your employees, they are your community, let them be your voice in the broader community.
• Examples of success stories:

1. Papa John’s Camaro
2. Fiesta Movement
3. Meet the Volkswagens

• Words of caution

1. Don’t populate twitter with your inventory – it’s counter productive
2. Don’t have multiple people logging in under the dealer’s personal account – authenticity implodes

The dealers that have the ability to take online relationships and convert them to offline ones will be the most successful.

It’s Personal – Closing the Automotive Perception Gap
Speaker: Jim Farley, Ford Motor Company

• Opportunity to connect with customers
• Democratizing technology for everyone
• Ford’s products are ahead of the brand – challenge to build the customer relationship
• Leverage strengths globally, maintain passion and emotion
• Ford is ahead of the curve on their migration to digital. Marketing spend is 50% TV and 25% digital, followed by experiential and print
• Listening to customers – bring in global products journalists and enthusiasts have been asking for
• Activate your Advocates – this strategy, though it creates vulnerability, pushes to make a connection with the consumer at large
• We expect WAY TOO MUCH from traditional media.
• Changing the paradigm

1. Fiesta Movement campaign began 18 months prior to vehicle’s NA launch
2. 83% of buyers make their decisions based on input from friends and families
3. Low cost – 100 leases

• Sharable content such as the Mustang builder. More than 1 million are saved on Ford’s site – creating opportunities for analysis (packaging, aftermarket, etc.)
• Closed with how we (vendor) could help them (client)

1. Better measurements – upper funnel metrics in particular
2. Global Focus – help them leverage global efficiencies
3. Efficiency
4. Engagement

Each fall J.D. Power and Associates hosts an Automotive Internet Roundtable that brings together industry experts and thought leaders to discuss how the Internet can be better leveraged to market and sell more cars.

During the 2007 Roundtable event, lots of folks were asking why aren’t dealers social networking. Two years later, there are now thousands of dealers participating in some type of social network. During this year’s Roundtable, the conversation should focus on whether dealers are using social networks effectively.

The J.D. Power and Associates 2009 Automotive Internet Roundtable will take place on Oct. 14-16, 2009 at the Red Rock Resort and Spa in Las Vegas.

I will be moderating such a panel during this year’s Automotive Internet Roundtable in Las Vegas. The topic is “Social Networking: Should it be More About Relationship Building than Selling Cars?” and the premise:

A large number of the car dealers now on Facebook and Twitter use their status updates to list inventory. However, the real value in joining these social networks may be the opportunity to create relationships with both customers and colleagues alike.

This panel will cover:

• OEMs and dealerships who are using social networks effectively
• Opportunities to build relationships with current customers and potential rewards (increased visits for service, referrals, etc.)
• Advantages of connecting with fellow dealers (information sharing/collaboration, etc.)

Joining me on the panel will be a number of thought leaders and practitioners in the digital automotive space. They are:

• Christopher Barger, Director of Social Media, General Motors (@cbarger and @GMblogs)
• Jared Hamilton, CEO and Founder, Drivingsales.com (@drivingsales)
• Tom Chisholm, Midwest Sales Director, Facebook
• Eric Miltsch, IT-Web Director, Auction Direct USA (@AuctionDirect)
• Ralph Paglia, Director of Digital Marketing, ADP Dealers and (@ralphpaglia)
• Janet Eden-Harris, VP Marketing, Web Intelligence division of J.D. Power and Associates (@JDPowerWebIntel)

Prior to the panel, I will be working with the other panelists and AIR organizers to start some conversation around this topic. Look for additional updates on this topic on Headlightblog.com.

The rapid ascent of social networks has prompted some companies to set up their own private communities. These networks give manufacturers a controlled setting in which they can interact and conduct research with owners and enthusiasts who have chosen to participate. I tried joining three such automotive communities to see what was going on. The Chrysler Advisory Board was full, but I was accepted for both Hyundai Think Tank and Generation Benz. All three are powered by Passenger.

Hyundai Think Tank was launched in early 2009 with the goal of “[evolving] both its brand and its vehicles to resonate with a broader audience while fostering a more thorough understanding of consumers’ unmet needs.  (Source: Passenger) As of March, the group had 1,668 members, almost three-fourths of whom are Hyundai owners.

The site offers multiple types of content to engage its participants.

• Announcements.
• Questions. For example, what name should be given to a new shade of bronze?
• Discussion boards. Threads range from the Hyundai Assurance Program to separate threads for owners of each model.

Fuel economy issues seem to be a big focus throughout the Think Tank. One discussion solicited opinions regarding E85 vs. other fuel alternatives. A recent manufacturer-posed question asks participants what they would be willing to give up for better actual fuel economy.

Generation Benz was launched in late 2008 and is aimed at Gen Y. The company’s goal is to “get to know the younger generation of current and future vehicle owners to broaden the company’s loyal following and shape the brand for the future.  (Source: Passenger)

Generation Benz is powered by the same company as Hyundai Think Tank and utilizes the same templates. The content areas are also similar, albeit focused on different issues. For instance, Mercedes-Benz requested feedback on several unaired commercials. Another discussion thread solicited reaction to the decision to replace the CLK with the E-Class Coupe. In these cases, Mercedes-Benz seems to be using the community as an early warning system for a variety of potential issues, from avoiding unintended gaffes with advertising to gauging consumer reaction to a product change.

In Generation Benz, I also attended a live session about designo, a Mercedes-Benz program that produces special edition vehicles (e.g. exterior color, interior leather). The session ran 45 minutes and worked as a live focus group, providing immediate feedback on potential future special editions. The interplay between participants added to the richness of the session – these people were knowledgeable and excited to participate.

For both Hyundai Think Tank and Generation Benz, the communities generate a more civilized level of discourse than is typical on public boards along with a high level of knowledge. For instance, in a Hyundai thread regarding the dealership experience, the conversation centered on the dichotomy of paying $40k for a premium vehicle (the Hyundai Genesis) and being treated poorly at service visits. Not being treated with respect was a frequently cited problem. As of March 27, the discussion spanned 41 posts, with many participants citing the Lexus service experience as a counter example.

Private social networks may or may not be the next big thing. But already they seem to provide tangible benefits to both company and consumer.

The importance of the new Ford Fiesta – a global vehicle with high expectations in a struggling global economy – cannot be overstated. And when you read through the reams of product analysis that are already available on it there is no lack of evidence that it is a strong product. In fact, in a time where all automakers are unsure of the feasibility of meeting the extremely challenging new CAFE regulations, the Fiesta has potential to really bring down the average MPG of Ford’s fleet.

The challenge is then of course, to market this fantastic product to meet and hopefully beat expectations in an environment where nearly everyone seems to be stuffing their paychecks under their mattresses. What Ford and really every other manufacturer need is a ‘Tipping Point’ –a dramatic moment where the accumulation of small events becomes the drivers for radical change toward certain acceptance.

Ford has a new marketing program for the Fiesta and it’s called “Fiesta Movement. In this program 100 Millenials (those born from 1982-2001) will receive the keys to the new Fiesta prior to the actual vehicle launch – so long as they agree to rehash their experiences on social networking sites such as YouTube, Flickr and Facebook. Millenials are considered to be the next-gen consumer group, a group that by 2010 is estimated to be the largest class of consumers at nearly 70 million drivers. The intent of this “Movement” is to create a catalyst for that coveted radical change to acceptance, to cause a “Tipping Point” in the purchasing decisions of the American consumer. This is a refreshing approach, especially coming from one of the domestics; though I am not totally surprised. Jim Farley, Group VP of Marketing and Communications, is a well seasoned veteran when it comes to creating vibrant consumer excitement and acceptance. As Scion corporate manager and later VP of Scion, Mr. Farley took a new brand and drove radical change. He broke down demographic barriers, delivering on a promise of a younger buyer mix many thought Toyota had no chance at attracting.

I personally cannot wait to see what happens with this program, my guess is that Mr. Farley’s “movement” might become a template for leveraging social media. If successful in the least, you can bet on a windfall of copy cat programs to follow!

What’s New In collects some of the most interesting recent data and analysis related to the automotive Internet. The themes vary depending on what’s currently hot – for instance, social networking has produced tremendous chatter in the past few weeks.

Social Networking

Twitter Trends – The Search is On
Twitter may be relatively new in the social networking field, but with big leaps in traffic and visits and nearly 8,000,000 visitors to the website in February, it’s certainly making a splash. With a recent site redesign that gives users easy access to information about what users are talking about and the ability to search public posts (or “tweets”), Twitter could become a barometer for what’s hot in current events and on the web.
Read the whole story

Twitter’s Tweet Smell Of Success
Twitter.com continues to grow in popularity and importance in both the consumer and corporate worlds.
Read the whole story

Social Nets and Blogs More Popular Than E-Mail
Aside from searching for information, e-mail has long been the most popular activity online. But no more. According to Nielsen Online, more people in the US and other leading digital countries worldwide are using social networks and blogs than e-mail.
Read the whole story

Hyundai Seeks Buyer Input Via New Online Community
Hyundai Motor America recently announced it is launching a private online community for its vehicle owners in an effort to ramp up loyalty and keep customers involved.
Read the whole story

Deepening The Dialogue
Chrysler has teamed up with Passenger, a technology leader in on-demand customer collaboration to create an online community to solicit feedback from consumers.
Read the whole story

Befriending a Brand
Mercedes-Benz has created their own social networking site, Generation Benz. Mercedes-Benz is tapping into its own community to target prospective customers and learn what they value.
Read the whole story

Market Researchers in Your Facebook?
Facebook is currently testing a new type of Engagement Ad that would allow advertisers to pose questions to users. Social network profiles are a treasure trove of information about consumer preferences, and people talk about brands and products frequently. The key will be making sure consumers know how the information is used.
Read the whole story

Ad Targeting

Ad Buyers, Sellers Seek New Ways to Measure Social-Media Consumption
As social media is becoming the norm for online interactions, ad buyers and sellers are trying to move beyond the ad-impression metric to have ads judged by the duration and depth of interactions. “The moves are part of a larger debate going on in the digital ad world: How can the Internet be made to work for brand advertising?”
Read the whole story

Which Social Media Ads Are Right for You?
Learn how to make the most of your ad spending across social networks
Explore your advertising options
Get answers to your most common social media questions
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ValueClick Introduces Targeted ‘ActiveAds’
Online ad services company ValueClick has introduced a new banner unit that allows marketers to adjust ad creative on the fly to precisely target messages according to different audience criteria. The new ActiveAds promise to deliver tailored messages without requiring marketers to manage multiple creative units.
Read the whole story

Mobile

Mobile Internet Becoming A Daily Activity For Many
comScore recently reported that the number of people using their mobile device to access news and information on the Internet more than doubled from January 2008 to January 2009. Among the audience of 63.2 million people who accessed news and information on their mobile devices in January 2009, 22.4 million (35 percent) did so daily; more than double the size of the audience last year.
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We Know Where You Are – The Mobile Phone Could Be the Best Marketing Tool Ever Invented
Camera phones open the door to more proactive and creative mobile couponing tactics. The next wave in mobile couponing will encourage customers to scan product barcodes and receive offers directly at the point of purchase. Consumers won’t just opt in, they’ll be the ones actively initiating the request. Marketers can evaluate results and metrics almost immediately, and ideally evolve the transaction into a relationship.
Read the whole story

Additional Reading

Why Is Online Video Advertising Dying?
Consumers view over 14 billion videos a month, which has transformed the very nature of Web content and calls into question everything we knew about how Web sites attract, engage, convert and retain audiences. In order to deliver this massive river of content, sites have turned to specialized software and infrastructure providers.
Read the whole story

A Spotlight on UGC Participants
eMarketer estimates there were nearly 116 million US user-generated content consumers in 2008, along with 82.5 million content creators. Both numbers are set to climb significantly by 2013.
Read the whole story

With Fusion Campaign, Ford Targets ‘Upper Funnel’ Car Buyers
Ford Motor Co.’s campaign for its redone 2010 Ford Fusion new hybrid model is aimed at people who aren’t in the market to buy a car — at least not today.
Read the whole story

Online Automotive Review may not have a Facebook profile, but I can still make a “25 Random Things” list for it. Among the sources used were:

• 2008 J.D. Power and Associates New Autoshopper.com Study (NAS)
• 2008 J.D. Power and Associates Used Autoshopper.com Study (UAS)
• 2008 J.D. Power and Associates Dealer Satisfaction with Online Buying Services Study (DSOBS)
• 2009 Wave 1 J.D. Power and Associates Manufacturer Website Evaluation Study (MWES)

So, here’s our list.

1. 75% of new-vehicle buyers use the Internet in their shopping process
2. All types of sites – manufacturer, third-party, and dealer sites – continue to add more and better tools for consumers
3. Acura’s brand site went from all-Flash to almost all-HTML with its recent redesign
4. Consumer reviews and ratings have become a central component of online automotive research, utilized by two-thirds of both new- and used–vehicle Automotive Internet Users (AIUs)
5. Among online buying services, AutoTrader.com ranks highest in satisfying dealers with new-vehicle leads, while Cars.com ranks highest in satisfying dealers with used-vehicle leads
6. Chat functionality seems to have been quietly removed from the Saturn, Chrysler Group, and Mazda Web sites in the past six months
7. CarsDirect still offers online chat
8. In 2008, only 4% of used-vehicle buyers found their vehicle via newspaper classifieds and classified ad magazines
9. Typically, the first model shopped online is not the model ultimately purchased
10. Online ad spending by the automotive industry continues to increase, at $2.45B in 2007 and a projected $2.98B for 2008 (eMarketer)
11. Why aren’t more manufacturers posting their images to Flickr and other social media sites?
12. Only 40% of dealers provide pricing on the first email to the customer
13. Honda’s brand Web site was rated the most useful manufacturer site in the most recent wave of the Manufacturer Website Evaluation Study
14. Kbb.com is the most-visited independent Web site, with 44% of new-vehicle AIUs and 57% of used-vehicle AIUs visiting
15. The availability of vehicle inventory online continues to increase
16. In the purchase month, new-vehicle buyers shop three or more models online
17. Consumers are still wary of being contacted by dealers. Among new-vehicle buyers who didn’t submit an online lead, 50% stated that they just didn’t want to be contacted by a dealer
18. Last year was finally “The Year of Mobile” and nearly a dozen manufacturers and independent Web sites jumped in
19. Mobile automotive is heavily used by consumers while they’re out shopping and on dealer lots
20. As shopper budgets tighten, demonstrating monthly payments and vehicle comparisons becomes increasingly important
21. Automotive ad spending is down in almost all measured media categories except online
22. Many third-party automotive sites and fewer than half of manufacturer brand sites offer RSS feeds
23. Site visitors want interactive maps – they’ve been using them on Google and other sites for years. If you don’t provide this functionality, they are more likely to leave your site for a better experience
24. According to Foresee, while 91% of online shoppers own mobile phones, only 29% use them to help make shopping decisions
25. This year’s annual J.D. Power and Associates Automotive Internet Roundtable will be held October 14-16 at the Red Rock Resort in Las Vegas, NV

Although many (if not all) automotive manufacturers are engaged with social media, they have overwhelmingly been cautious about bringing that kind of content onto their own Web sites. Recently, I discovered that the Chrysler Group is using social media on its brand sites while still retaining control.

Start with the “News” section, which for most companies is a drab affair. Chrysler has expanded its news section to three columns “From Us”, “From Them”, and “From You.  This paradigm takes advantage of all that great material produced outside Chrysler and gives it equal importance to Chrysler-generated releases. Finally, an interesting news section! Jeep and Dodge also have similar news sections.

Chrysler’s experience section also integrates content from YouTube and Flickr while linking to Chrysler groups on Yahoo, CarDomain, and other sites. This makes it easy for visitors – especially enthusiasts – to get to all this great content from one place.

Jeep has a similar experience section, albeit with a completely different look and feel and with links to Jeep’s Facebook and MySpace pages.

Jeep also provides instructions on how visitors can publish their own content on Flickr, YouTube, and Yahoo Groups. It’s a great way to create engagement with enthusiasts while also broadening the pool of available Jeep content on the Web.

Ideally, the manufacturer brand site is a portal to great content all over the Web, not just the stuff created in-house. Chrysler and Jeep demonstrate how this can be done in a simple and yet powerful effective manner.