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The Evolution of Technology In Consumer Engagement

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Since the opening of the first car dealership, dealers have been looking for ways to connect with car buyers. Manufacturers assisted in driving interest in their brands by consumers but it was up to the dealer to get the customer to choose them. The natural way to attract business was to follow the historical retail model – low prices. It wasn’t all that long ago when consumers who were planning on car shopping would await the weekend newspaper to see what sales were going on and then to plan their weekend of visiting car dealerships. Technology has increasingly offered consumers more information and less of a need to visit multiple dealerships. On the other hand, these same advancements in technology have been providing dealers with better ways in which to connect with consumers as well as to measure the success of the interactions.

I’m sure many of you remember the days in which prospects were rotated through flip files of 3 x 5 index cards for follow up. Leads were faxed to dealerships and sourcing rotated between billboard, television and radio if any sourcing was done at all. There weren’t many ways to get an incoming communication from a customer other than via phone or e-mail. Then Al Gore invented the Internet and things changed quickly. CRMs and ILMs allowed dealerships to keep better track of all customers and communications with them. Third-party listing services and lead providers popped up like Jack-in- the Boxes. Computers on salespeople’s desks became more commonplace. New ways of connecting with, and marketing to, consumers appeared, and dealers were presented with tools which allowed them to communicate with their customers more efficiently. Just because you have a tool, however, isn’t a guarantee of success. If the tools aren’t used properly, they become extraneous and irrelevant.

Let’s take a journey into a galaxy not so far away (as in right now) and see if we can’t find our way to the Force using a few of the tools that were developed and how dealers can use them to increase engagement.

Chat– Consumers like instant information. When chat capabilities appeared on the scene at dealerships, they opened up a whole new way for consumers to engage with dealerships. Chat appealed to consumers because it offered a safe way for them to get information from dealerships without necessarily giving up theirs. If handled properly, it gave dealers a way to engage consumers and build rapport. Chat brought dealers a way that went beyond simply receiving a typical Internet lead and allowed them to engage a customer live immediately. Of course, just like any other tool, dealers had to manage it properly for it to be effective. Today’s chat providers have evolved to offer dealers better analytics and data about the consumer than ever before yet the same perils of mismanaging chat continue today. Consumers who are choosing chat as the way in which they want to communicate with dealers aren’t willing to wait. If a chat isn’t answered within 5 seconds of the consumer initiating it, the consumer will typically close the chat window and move on to the next dealer. Dealers who choose to self-manage their chat capabilities should make sure that they have a dedicated person who is always available – perhaps a BDC agent. If they don’t have the resources, they can opt for the many managed chat services available to ensure that they don’t miss out on any opportunities or ruin the customer’s experience. How your dealership interacts with customers when they first to interact with you will dictate how they perceive you.

Text Messages– Smartphones have developed into an extension of most people and text messaging has become so popular that most cellular plans allow unlimited usage of this feature. Millenials are more likely to answer a text message than they are to answer their phones nowadays (through studies in less than 3 minutes). Text messages also allow people to communicate in a relatively unobtrusive manner. People can respond immediately, if they choose to, whether they are at work, in a meeting or wait until a more appropriate time. Dealers are finding innovative ways in which to use text messaging in their sales and service processes that allow consumers to engage with them in a more efficient manner. There are some perils, however, involved when dealers venture outside normal (opted-in text) communications and into the realm of marketing and dealers should ensure that they know the relevant laws and regulations for doing so not only for the dealership but also how their salespeople are using text messages from their own cell phones. Text messages can be a very effective way of communicating with consumers whether it is used as a method of first contact, information, appointment setting or follow-up.

Video– The ease and low cost of using video in dealerships has offered dealers a way in which to engage with consumers beyond a simple text-based e-mail manner. It has enabled dealers to transform themselves away from simply being another generic e-mail into becoming a real person. Videos are now being used for everything from responses in e-mails including video intro, “Why Buy from Us,” video walkarounds, VDP content (vehicle merchandising) and even real-time live streaming communication through Facetime and other services. Videos can be a very powerful way in which to communicate and are simple to create and use. Personalized videos, in particular provide that VIP feeling to consumers who are impressed that a salesperson took the time to film a video just for them whether it is one that introduces the salesperson, the vehicle inquired about or both. Video offers a level of engagement that transcends any in which have been previously available and virtually look their customers in the eyes.

Social Media– The mass adoption of social media has presented dealers with ways in which to engage consumers that no other medium in our history has ever been able. Not too long ago, dealers had the opportunity to engage with audiences and push relevant content to them for no cost other than a little time and energy. As social media platforms have evolved, became public and sought to monetize, that reach decreased unless dealers were willing to run effective ads and spend money. The true value in social media, however, still exists and it is still available. While businesses’ pages reach may have dropped, the power of word-of-mouth – even virtually – to connect with your consumers and penetrate their networks has not. Dealers who learn how to leverage their customers to gain exposure to the customer’s networks with their help will experience invaluable exposure. In the same manner that a referral or positive online review works, so can social media if used properly.

These are just some of the tools available to dealers. Consumers are increasingly demanding – and expecting – businesses to have presences and be accessible wherever the consumer chooses to engage with them. Some of these technologies have even been combined, by technology companies, to create services which merge the above – like social media ads and text messaging as one example.

Nobody knows what the future will bring. Perhaps we’ll soon be filming holograms of cars or doing virtual sales pitches similar to how Princess Leia pleaded for Obi-Wan Kenobi’s help in Star Wars. All I can tell you for sure is that, in the movie called reality, Obi-Wan isn’t a dealer’s only hope.

There are many opportunities and technologies available for dealers to use to engage with customers and for customers to engage with them. Consumers are moving forward and embracing these technologies. Dealers who keep up with trends, make themselves available and engage consumers in the way in which they want to be engaged, will find that they are able to capture more interest, retain more customers and make more sales.

Accountability and Enforcing the Logging of Customers in Your CRM

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We are an industry inundated with technology. Technology can help dealerships operate more efficiently, extend the life of a customer, interact with new ones and market to previous ones. Just like any technology, however, you must use it for it to do its job. One feature that many dealership managers take for granted is the CRM. In particular, holding salespeople accountable for not only accurately accounting for their customer interactions but also gaining accurate information about them. Some sales desks will even track showroom traffic on a paper desk-log not even checking to see if the salesperson logged the customer in the CRM at all. This practice can harm your dealership operations in more ways than many realize and cost the dealership opportunities and/or sway decisions on marketing with bad data.

Every salesperson will log a customer who they write up. Most of the time for the simple fact that the sales manager can then pull the customer up to save any numbers presented to them. What about that customer that the salesperson greeted on the lot, spoke to for awhile, perhaps even showed a couple cars to but didn’t get anywhere with and the customer left without giving the salesperson any information? Chances are 50/50 that the customer wouldn’t get logged for the simple fact that the salesperson didn’t get any information. Or let’s look at the more positive side, your dealership has a very busy showroom and salespeople are constantly with customers gaining a new one after they have finished with the previous. It’s not uncommon for salespeople to carry a notepad which they use to jot notes or even the back of their own business cards. Because they’re busy, those note and business cards pile up. At the end of the day, perhaps the salesperson goes through and inputs each customer into the CRM. Another possibility is that the salesperson cherry picks the customers that they either want to protect (as many dealers offer 72-hour protection to its salespeople) or those the salesperson feels is worth following up with. Anything less than 100% compliance with entering customers can easily sway decisions ranging from staffing, marketing spends, employee performance and many others.

Dealerships that aren’t logging all of their customers in the CRM end up with an inaccurate view of their entire sales operations. Busy dealerships appear not as busy as they really are and could prevent a dealer from realizing this. In this case, the dealership could be understaffed with customers either waiting a long time for assistance or not getting assisted at all. In busy dealerships, its hard for a sales manager to keep track of everything that is going on while desking deals and juggling all of the tasks that are assigned to them. Salespeople certainly don’t want MORE salespeople as that could bite into their personal incomes. But the bottom line is that if your dealership is understaffed, your customer’s experience at your dealership is probably not great and sales are walking out the door. And the sad part is that you’ll never know it. Why? Because all customers aren’t being logged in the CRM.

Another example of how the failure of logging customers in the CRM can hurt a dealership is through marketing decisions. Most CRMs include a source as one of the pieces of information that salespeople are supposed to collect. “How did you hear about us?” is something that most dealerships ask. But how accurate is that information? If salespeople are entering the typical choices of “walk-in”, “billboard”, “drive-by” or “Auto mall” you’re missing out on valuable information that could be costing you thousands of dollars. Don’t think that’s happening at your dealership? Here’s an easy test. Go into your CRM and add a couple sources for programs that are well known but your dealership does not currently use. Wait out the month and run a source report. Chances are that you’ll find that all of a sudden these non-existent sources are producing sales. If your salespeople are not putting accurate information into the CRM, how do you expect to be able to use that information to allocate your marketing spend? This test will not only show you how bad the problem is but can also identify the biggest offenders.

Just like the old saying, “Garbage in, Garbage out” your CRM is your dealership’s future. It can be the most wonderful tool to help you operate efficiently, follow up relevantly, catch previous customers coming back into the market, ensure an excellent customer experience by visiting prospects and assist you in spending your marketing dollars more effectively. It can’t do that, however, if the information isn’t accurate or non-existent. Make enforcing the logging of customer information a priority in your dealership and you’ll find that all of a sudden the blinds are drawn, the sun comes in and you can clearly see what’s going on.

Originally published Jan 23, 2018 as a guest blog for Nextup.

Compliance: Can You Be Harassed By A CRM?

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UnlikeFor the past 2 years, one of the items on my daily to-do list has been grading Internet leads for DealerKnows Consulting. This process involves assisting DealerKnows in monitoring the progress of their clients through monitoring the ISM’s lead handling within the CRM. This provides valuable insight into what exactly is happening with leads (i.e. is the store following the process installed through DealerKnows and, if not, what exactly is happening) and indicating where additional training is needed.

In one particular client ‘s CRM, I started noticing one of the employees tasked with responding to, and communicating with, Internet leads inputting questionable notes into the CRM. Keep in mind; he was not doing anything inappropriate in his communication with the customer but, at times, expressing his frustration and/or opinions of customers through notes in the CRM.

Notes like:

  1. F$@k this bitch!
  2. Screw this mooch!
  3. What a stroke!
  4. I hope this customer gets fired for being an a$$hole!

Now, I was in retail a long time. I understand his frustration. That being said, I mentioned to him and his manager that he shouldn’t be using derogatory terms in the CRM. First, this particular store works as a team (ie. the leads aren’t solely one person’s responsibility). Whoever is working when a call or email needs to be made handles it. In the past, this team was a bunch of guys. Recently, a female was added. I mentioned it again within the context of the fact that the notes bring negativity into the lead for the next person who looks at it. In addition, it could offend someone else looking at the lead within the CRM. Even a female member of DealerKnows chimed in that the notes offended her.

The real question, however, is not one of appropriateness but rather one of compliance and liability. I was curious as to whether there could be harassment or employment issues. In that spirit, I decided to contact an expert in automotive dealer compliance. I contacted the founder of Dealer Compliance Consultants, Jim Radogna, a longtime auto guy with over 15 years experience in just about every dealership management position, over 6 years experience in assisting dealerships with compliance as well as an avid writer and frequent speaker in the automotive industry.

His answer was simple:

“It doesn’t matter where offensive material resides. It can be comments in a CRM that others can view – on a computer screen, mobile device or hanging on a wall – if anyone sees it and is offended by it, it can create a hostile work environment and put the dealership at risk.

People often have such different perspectives on behaviors that it is easy to offend someone through ill-considered attempts at humor, teasing or sarcasm. Remember that only the impact, and not the intent, matters in determining if a reasonable person would consider the behavior to be harassment.”

I was in retail. I get it. Sometimes customers can be frustrating. Sometimes we (being salespeople, managers, etc.) express our frustrations verbally and, perhaps, everyone on the team (or within hearing distance) is okay with the language or sentiment.

The bottom line is that allowing or condoning this type of behavior only accomplishes two things:

1. It permanently etches that customer in a negative light for any future employees. Think about it… perhaps the employee who inserted the notes gets fired (not that anyone EVER gets fired or leaves dealerships) and a new employee is tasked with going through and/or following up with these leads. Do you think these notes will encourage them to follow up or discourage them? Would they be quicker to mark them “Lost” and move on? What happens if you want to do some data mining and try to resurrect some leads? Negativity is a virus. It spreads easily. Allowing anyone to cultivate negativity in your business is simply a recipe for failure – not only for them but also for all of your employees.

2. It creates liability for the dealership. Allowing anyone to continue with this behavior transfers liability to you and, as a manager, to the dealership. Those notes may seem harmless now but when a harassment or hostile workplace environment lawsuit is filed, it could get quite expensive. In addition, by allowing these types of notes, you could technically be cultivating a PERMANENT hostile workplace environment. If you fired the offending employee today and two years from now another employee comes across these notes (perhaps by getting a new lead from the same customer… not like that ever happens) and is offended, what then? What if that that customer eventually buys the car and your dealership uses your CRM for service and a service advisor, cashier or other employee is exposed to those notes?

Imagine this scenario: An employee writes something offensive in Sharpie on the wall in the bathroom. It doesn’t offend anyone and nobody cleans it off. Three years later, a new employee comes along, reads the note and is offended.

What then?

It makes no difference WHEN the notes were made or whether the person who wrote the note(s) works there any longer. It is still the dealership’s responsibility and it would still be held responsible (and liable) for the existence of the notes.

My advice is simple:

If you wouldn’t hang it on the wall in your office for anyone to see, don’t put it anywhere – and that includes inside your CRM.

Effective Communication: Stop Playing the Telephone Game

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Bush telephoneMost of us are familiar with the telephone game. For those that haven’t played, the game is very simple. A group of people stands in a line. A simple sentence, starting with the first person, is whispered into the next person’s ear one by one until the message reaches the end of the line. Typically, the sentence that is revealed by the person at the end of the line is significantly different than the one that was started with.

Just as in the game, this phenomenon of simple miscommunication exists in the workplace. Once you realize just how easily spoken communications can be changed inadvertently, the importance of effectively communicating is reinforced. Car dealerships are particularly prone to this given the complexity of many of the activities occurring. If a salesperson misunderstands the sales manager when working a deal with a customer, it can alter the rapport and general experience for that customer significantly. When a service advisor communicates with a customer ineffectively, the same thing can happen.

The obvious solution is accurate and detailed documentation in every customer and internal transaction. That being said, there are simply too many things happening and sound bites of information being exchanged that recording everything would be laborious and inefficient.

The solution lies in ensuring that you have processes and technology in place that record and track everything related to a customer’s transaction with your dealership in the most time-efficient manner possible. In addition, you should take the time to train your staff some basic effective communication skills. Simply understanding these basic concepts will help avoid misunderstandings.

  1. How You Relay Information Matters – People learn and retain information in different ways. Think about when you were in school. Did you retain information better by reading the textbook or listening to the lecture? The same applies in the workplace. Some people retain information better and more accurately when it’s delivered to them in a visual manner while some prefer to have it spoken to them. By learning how each of your co-workers best process information you’ll increase the effectiveness of communications and decrease the likelihood of mistakes and misunderstandings.
  2. The Content Relayed Must Be Tailored for Each Individual – This simply means that everyone must be cognizant of the knowledge level of the person that they are speaking to. A service advisor and technician can have much more complex and technical conversations about what’s going on with a customer’s car than they may be able to with the cashier or receptionist. A finance manager may be able to interact with a sales manager on a higher level than they can with a customer or salesperson. When you are interacting with someone and they will be relaying information to another person, make sure that you are speaking to their level of knowledge so that they understand what you are saying. Most miscommunication occurs simply because the recipient didn’t understand exactly what he or she was told and this can cause a lot of problems that could have been avoided. This is especially true when the information is being relayed to a customer.

By understanding these two fundamental concepts, you’ll be able to increase the effectiveness of communication between all employees and reduce the probability that miscommunications occur. By doing this, you’ll create a powerful environment that will allow you to operate more efficiently which will translate into a more efficient workplace, better customer experiences and increased revenue.

Don’t Schedule Social Media Posts for Business Pages!

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whatever-clockYes, scheduling tools like Hootsuite, Buffer etc. make it convenient for you to make sure your social media presence has regular content.

I know… you’re busy and sometimes forget or don’t have time to post.

I don’t care.

It’s way too easy for businesses – especially car dealers – who find little time to pay attention to their social media networks to pre-schedule a bunch of posts and forget about it until the next month approaches and they need to fill up that content bucket with another month’s worth of posts.

I manage quite a few social media accounts for both clients and myself and very rarely do I schedule posts. Typically the only time I will is if I know I’ll be travelling on a certain day or otherwise unable to post. This never exceeds more than a day, however.

Here are a few reasons why I don’t believe you should preschedule posts…

  1. Social media is a dynamic conversation between you and your consumers (who are hopefully not in India).  Scheduling content does something that harms your business and social media marketing worse than anything else possible…. It disconnects you. If you do not pay attention to your social media accounts on a daily basis, you WILL miss opportunities to connect. You don’t script out and preschedule text messages to your friends, do you? The most important idea here is that prescheduling posts allows you to feel as if you’ve done your “social media” for the month and actually provides you with justification that it’s OK not to check your accounts.
  2. Chances are that your content will be old by the time it’s posted. Duplicate content – no matter how good it is – is destined to become part of the “..and others” section of a Facebook news feed (as in “Arnold and 10 others shared a link”). Not scheduling posts allows you to find recent content which makes it more interesting to an audience. If your content is 2 weeks old by the time it is posted, the chances that other people will already have shared it makes it less likely to be engaged with. This follows the “first to market” mentality. Always strive to be the first page to share content when possible.
  3. Edgerank is no more. Now Facebook’s algorithm takes into account 100,000+ factors when deciding whether to show your content to your audience. It rewards high-quality content that is unique and engaging. If you feel the need to share content that has already been shared, share it as a picture with the link in the picture’s caption. This will avoid you getting clumped together with everyone else that shared that content. Better yet, find the same content but via a different source (ie. link to the same story hosted somewhere other than the source that everyone else is sharing).
  4. Make it your goal to interact with people even if that means you go fishing… Do a Twitter search for your brand and find a tweet from a recent buyer of your dealership’s franchise… welcome them as a new brand owner, congratulate them on their new vehicle, tell them to have fun car shopping, retweet their cool picture of a car, etc. You can limit your search to a radius of your dealership so you will be interacting with people that matter… potential customers. They’ll thank you, retweet you and favorite your tweet. Take the time to thank your new followers. This is only possible if you’re paying attention and you can’t pay attention if scheduling content lulls you into complacency.
  5. Not pre-scheduling content also allows you to make sure that the content is posted correctly and timely in a manner native to the platform on which it is being posted. What if Twitter is down when your scheduled post is supposed to be sent? If you aren’t paying attention, it may never get sent. It also forces you to read it again which assists in identifying spelling errors. You get to see it go live and have a chance to correct it before anyone sees it. Your online image is just as important as your off-line. Make sure your posts actually post, are tailored for the network they are being posted on and look professional.

Even though I’m hyperactive on social media, I’ve found that not scheduling posts allows me to stay more connected and responsive with my audience whether I’m posting to my profile or posting to a client’s accounts. I can be reactive when needed and interact when people make comments – even if it’s simply “liking” their comment. That shows the person commenting that you’re listening and present which makes them more likely to comment in the future.

Don’t fall into the trap of convenience. You will sacrifice quality, lessen engagement and reduce the chances you have of showing up in your audiences’ news feeds. There’s nothing “social” about simply pushing content.

If you can’t be engaged in your own social media presence, how can you expect other people to be engaged with you?

Note: I have a few less reservations about scheduling content for your personal profile. It does allow you to share more relevant content without spamming your friends. My advice in this article mainly applies to business social media accounts. I rarely schedule personal updates and shares for the same reasons contained in the article but that’s just my personal preference.

Can You Hear the Words That Are Coming Out Of My Mouth?

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Blogging, in general, is about sharing information. There are many ways to do that in writing and it certainly depends on the type of information you share but no matter what the purpose of your writing, it should, in my opinion, accomplish a few goals.

First, it should be timely. People don’t want to read about things that happened 2 years ago unless you happened to find Jimmy Hoffa or discover evidence of a second gunman. I tend to get inspiration from social media. I don’t mean that social media alone as a subject inspires me, I mean that I use social media as a tool to find out what’s going on in the world, what people are talking about, and how those things may apply to my industry or profession.

Second, other than the fundamental goal of sharing information, I share how the current event, news article, etc. applies to social media, digital marketing or the automotive industry and what kind of takeaways or lessons can be learned from it.

Third, and sometimes most important, I try to be entertaining. Sometimes I aim for profound but that’s quite lofty unless you’re Seth Godin who could probably share his grocery list in a profound way. My ability to change lives through my writing is something that, while I would like to think I do, is probably minimal at best, delusional at worst (or vice versa). You can be the greatest thought-leader in the universe with the most intelligent and timely insight but if your message is only being heard by your goldfish, you might as well go play some video games.

I’ve read some super smart, well-crafted blog articles that are visionary and enlightening that, at the same time, make me feel like I was forced to read the ingredients of every box of cereal in the grocery store.  Dry reading (get it?) isn’t going to capture your audience and keep them paying attention. If you’re lucky, they’ll read the first paragraph, get bored, and click on the “Read Later” button that sends your wisdom into the desert of Instapaper that will, ultimately, never get read.

So, listen to your audience, no… really.. listen. Don’t write what YOU want to write, write what THEY want to hear but, at the same time, do it in a way that makes them want to keep reading.

If you don’t care what your audience thinks, why should they care what you have to say? Write for your audience, don’t write to them.

Facebook Likes: Don’t Get Scammed

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One of the easiest metrics dealers use to judge the success of their Facebook page is how many people like it. It’s also the most irrelevant.

I’ve said this many times and I’ll keep repeating it:

You’re better off having 1,000 fans to your page that can actually do business with you than 10,000 fans that will never spend a cent.

How do you expect to get ROI from your social media efforts if all your social media fans/followers are in Thailand? (Unless, of course, you have a booming export business to Thailand) The answer is, you won’t.

Also, many companies are delivering “fake” fans anyways through shady methods. This article by AllFacebook.com illustrates some of the methods these companies use.

Having a lot of Facebook fans that you bought is meaningless and a waste of money. Companies that prey on dealers with a service that increases “likes” to your Facebook page with random people are scam artists. It’s a waste of money and either these companies don’t realize that (which means they are incompetent and shouldn’t be in the social media business) or they do realize that (which means they are intentionally selling a service that has no value).

Dealers, please don’t fall into the trap of equating quantity with success. If you build your fan base organically with customers in your market, your social media marketing efforts will bear fruit.

If you “buy” fans, you’re actually sabotaging your own Facebook page and social media marketing efforts and you’ll only accomplish one thing:

Do you want to make money or be able to say “mine is bigger than yours”? You decide.

(P.S. There’s a great conversation over in the DealerRefresh forums talking about this.)

(P.S.S. Yes, I love the gorilla graphic.)

Coffee Is For Closers: A Social Media Success Story

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For many small businesses, social media is a daunting, unwieldy task with results that are typically discouraging. Many businesses either don’t see the point in doing it or they try it and quit after not seeing any interaction. How many Facebook pages have you seen abandoned after a short life-span? You go to their page and the last post was 6 months ago. In my career, I’ve seen many.

Recently, an independent coffee shop in New Hampshire came to my attention through social media. I live in Southern California and have never even stepped foot in the state of New Hampshire so a local independent coffee shop would have never been on my radar much less caused me to start paying attention to it.

A&E Roastery is a small, independent coffee shop located in Amherst, NH. I became aware of them through a social media contest they started on their Facebook page celebrating their 10th anniversary. A&E Roastery bought in to social media. You can see that they began using Facebook as a business in January 2010. They have a corporate Twitter account, a foursquare account and a blog that is regularly updated with fresh and relevant content.

The contest was brought to my attention by someone in my social media network (and industry) who is a regular customer of theirs.

The genesis of the contest was the shop’s involvement in a local baseball league consisting of 8-9 year olds. A&E Roastery and their local PR firm collaborated on ideas with which to gain exposure for the shop in conjunction with their sponsorship. The contest was simple. Customers participated in and gathered votes to be proclaimed the MVP of the shop and win free coffee for the rest of 2012.

My involvement started only as one of supporting a friend in his quest to win this contest at a business he obviously frequents and loves. Over the next 9 days, it slowly started dawning on me that A&E had accomplished what not many small businesses (or large businesses for that matter) have been able to do… engage with their fans. You see, it’s easy to GAIN fans. Many people judge social media success by quantity. The more fans or followers I have, the better job I’m doing when, in fact, a more accurate measurement of social media success is engagement. How do the fans you have, regardless of the quantity, engage with you?

A mutual friend suggested I write a blog post about this contest. My initial reaction was skeptical. To be blunt, I didn’t believe there was much there to write about.

As I began digging in and really looking, I found amazing statistics and results from a contest that is still ongoing.

These statistics begin on May 7, the date the contest started.

  • From January 2010 to January 2012, A&E had accumulated approximately 500 fans (approximately 20/month). Over the next 3 months (Feb-April), they added 107 for an average of about 35 per month. In the month of May alone, they’ve added 219 fans for an average of 14 per day.
  • On May 6th, A&E Roastery was averaging 5 new likes per week with 30 people talking about them according to Facebook Insights. Within 6 days of beginning the contest, they’ve increased their likes per week by 5,100% and the number of people talking about them has increased 660%.
  • Since the contest’s inception, the company itself has contributed 28 posts which accumulated 99 likes and 169 comments.*
  • Since the contest’s inception, the company’s fans have posted on their wall a whopping 100 posts with a total of 271 likes and 134 comments.*

In 9 days, A&E Roastery’s Facebook page has seen 128 posts that have generated 370 likes and 303 comments.*

To put this into perspective, I looked at the Facebook page of the Penske Automotive Group. For those who don’t know, the Penske Automotive Group is the second largest publicly traded automotive retailer in the United States as measured by total revenue. As of January 18, 2012, (they) owned and operated 166 franchises in the United States and 169 internationally encompassing 42 brands. They are a Fortune 500 company with 15,000 employees. [Wikipedia]

Over the same period of time, Penske posted to their Facebook wall 6 times which generated 98 likes and 76 comments. Penske’s Facebook page has almost 16,000 fans.

A&E Roastery had more than triple the engagement with 15,000 fewer fans.

A&E has hit the equivalent of a social media grand-slam home run with this contest. The passion their customers have for them is evident in not only the engagement their contest is seeing but in the exposure it is generating for them.

I spoke with Emeran, the shop’s owner, about her thoughts and goals for this contest. She felt the key to the contest’s success to this point is the social media saavy customers she has that have contributed to generating the buzz. The question she’s looking to answer is one that’s all too familiar to social media professionals and business owners – “How does that translate to growth in business?”. She went on to say that “the challenge is to assess what our new network looks like now and how to target those new people and translate that into revenue growth on both the retail and wholesale areas.” She felt it would be interesting to see not only if it did but by how much even though she shared that she knew this would be a difficult task to accomplish. Some of her new fans being from outside her local market is actually one that works in her favor as, in addition to the operation of this local shop, she has a thriving wholesale business selling the coffee beans they roast themselves. A&E currently has quite a few local businesses that serve her beans to their customers and she certainly isn’t opposed to expanding her wholesale business to other areas of the country.

The initial round of voting for the MVP nominees is scheduled to be reduced to 9 at the end of this week with a new round of voting on the remaining contestants beginning. The contest itself is scheduled to end a the end of this month.

To all my fellow automotive coffee enthusiasts, you might want to give A&E Roastery coffee a try. In the age of Starbucks, not many independent coffee shops can generate the loyalty and following from their customers that A&E has managed to do.

There’s probably a good reason for that.

*Statistics complied through May 16, 2012 at 8:30am PST.

All Salespeople Are Liars

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For almost 3 years, I have been posting a comic every day on my Facebook account. I do this because I like to think I bring a smile to at least one person a day. I look through comics every morning in my attempt to share a “good” one. Yes, believe it or not, I do put effort into choosing which comic I post. I’ve started noticing a disturbing trend. Many comedians use reality-based comedy and it seems this also translates into comics. Syndicated comics, by their very nature, are designed to be funny and appeal to the masses. I see comics like these below on a regular basis and, personally, I do not find them funny. In fact, quite the opposite.

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We all know that the history of sales (especially car sales) has earned us a bad and, some would argue permanent, reputation amongst consumers as being deceitful, manipulative and… well.. liars.

I think everyone can agree that, as an industry, there have been a lot of changes in how car dealers do business. Some of these perception-shifts have been due to the fact that consumers not only have more access to information but also because they have access to more dealers. In the past, consumers were limited to dealers in their local area. The number of dealers they could realistically get prices from and shop was limited by how many they could physically visit and how much time they had on their hands.

The increase in the amount of information available to consumers brought the ability to access more dealers in less time. It has also brought consumers a quick and easy way in which to analyze not only different prices via internet quotes but also to identify who they want to do business with. There have been many debates and opinions over time in various automotive industry forums on how dealers should interact with customers and how much information they should share as well as hostility towards consumers, vendors, OEMs and websites for sharing information which effects a dealer’s ability to profit from a sale. In my opinion, this only fuels the stereotype. Consumer’s have access to this information and it isn’t going away. Attempts to take it away and/or make it less available only serve to promote the negative image. Consumers already don’t trust dealers. Hiding (or reducing) the amount of information available to consumers will only make them trust dealers less.

No matter what you do, you will not be able to change this stereotype for our industry as a whole. You can, however, change how you do things at your store… which is a step in the right direction.

Here is my opinion on best practices:

  1. Be transparent. If a customer asks for information, give it to them. It doesn’t matter if they ask you in person, over the phone, via an e-mail or via a 3rd party lead submission. Chances are they already know the answer. Any attempt to dodge, evade or avoid answering the question will make the customer think you have something to hide.
  2. Establish and maintain a solid online reputation. Yes, consumers are increasingly looking at the various review sites and using that information to help decide whether to do business with you.
  3. Give consumers “real” numbers up-front. Many consumers already know most of them anyways. Don’t try to undervalue trade-ins or manipulate numbers on a pencil. The days of “scraping them off the ceiling” are over. This is an “old-school” mentality and its only outcome is detracting from your dealership’s integrity. They may still buy the car but they won’t leave with a great impression of your salespeople or dealership. Of course consumers are looking for a “good deal” but, I believe, they appreciate honesty.
  4. Get rid of bad apples. If you have salespeople or management staff who lie to customers, play games, or fudge numbers or information. Fire them. They will only hurt you in the long run. Customer don’t have loyalty because you didn’t earn it from them.
  5. Take care of your customers. Your customers are your life-blood. Dealerships have more income potential in fixed-ops than in sales. Treat them like royalty and they will come back.
  6. Pay attention to your customers. Many dealerships never contact customers post-sale until the dealer believes they may be in-market again. Follow-up processes should not simply be about selling them another car. It should be about appreciation. Call them on their birthdays and anniversaries. You have a better shot at selling them another car by not trying to sell them another car.
  7. Stop treating salespeople as expendable. Most customers don’t expect their salesperson to work at your dealership long. Be a company people want to work for. Reward and encourage employees to stay around. Get rid of managers that are quick to replace salespeople. Customers will notice.
  8. Engage your customers. Don’t just pop in and out of their lives to tell them about your upcoming sale. Once you’re in their lives, stay there. Use social media, blogs, newsletters, customer appreciation events, and any other tools you can to remain not only in their lives but in their minds.

While doing these things won’t change the perception of our industry as a whole, it CAN change the perception of the most important person in existence….

Your customer.

Talking to Yourself

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Social media is, by nature, a digital conversation. When you share something – whether it’s a status update, a quote, an article or a video – it’s meant for others to see and engage with.

If your friends or fans on Facebook have hidden you, its because you’re doing something wrong. Maybe you’re posting too much. Maybe the content you are posting is irrelevant or uninteresting to your audience. Maybe you’re content is offensive.

There are many reasons why people choose to “hide” a person rather than simply unfriend them. I would say the main one is that they don’t want to hurt your feelings (in the case of a person) or, perhaps, offend someone at a business by not showing support by “liking” their business.

Facebook doesn’t tell you who has hidden you so you really don’t know if what you’re posting is being seen by others or not unless they engage with your content in some way. Having low engagement on Facebook doesn’t necessarily mean nobody is seeing your posts. It may just mean that nobody cares or is interested in your content. (Caveat: If you have a PAGE, you can see how many times your content appeared in your fans newsfeeds. A very good reason for businesses to have pages versus profiles.)

On the opposite end of the spectrum, a Facebook user who never engages with their network is sending them the same message – I don’t care.

If you go to a party, and everyone ignores you but you continue to talk, you are just talking to yourself.

Not everyone is at the same party. Most Facebook users are at a party that has, on average, 150 people in attendance. Others are at a party of thousands. The “host” (Facebook) tries to determine which people have the best chance at interaction  and attempts to encourage conversation (newsfeed filtering) but its not perfect. You can’t talk to everyone at the party regardless of whether the party you are at has 150 or 5,000 people in attendance.

Follow real life etiquette in a social network. Talk about common interests. Be yourself. Share your life. Share who you are.

Engage your audience.

Don’t automate your Facebook content. Don’t become a quote factory. Don’t be a broken record of sales pitches.

You don’t go to a party, run around the room and only share quotes nor do you go up to each person and tell them you’re having a sale this weekend or that they should buy whatever you’re selling.

If you do, you’ll end up talking to yourself.

To Be Continued

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