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When Charity Isn’t Charity: A Contrast in Two Auto Manufacturers

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Every time our country experiences a natural disaster, many businesses rally to assist those affected. These shows of empathy and the willingness to help their fellow human being are great and can show true character from the company.

Recently, due to the devastation caused by Hurricane Sandy, automotive manufacturers joined these relief efforts.

An interesting contrast exists, however, in two major automotive manufacturers philanthropic strategies.

Toyota pledged to donate $1 million to assist in Hurricane Sandy relief efforts and to also match employee contributions to relief efforts and organizations.

Nissan took a different route by offering “deep discounts” on vehicles to consumers affected by Hurricane Sandy.

As I read these, one struck me as a genuine act of kindness and an effort to ‘give back’ to the community while the other struck me as a thinly-veiled grab at some publicity and an effort to stimulate some sales. Can you guess which is which?

I don’t know about you but if I were affected by Hurricane Sandy with results ranging from flooded houses to no electricity and fuel rationing, the last thing I’m probably thinking about is buying a new car. Sure, maybe my car is underwater and totaled and I will need one eventually but is it truly philanthropic to offer what amounts to ’employee pricing’ to affected consumers? Nissan is already blaming slow sales on Sandy. Now, it appears as if they are attempting to stimulate sales by capitalizing on it.

“Employee-pricing” just doesn’t seems like philanthropy to me, personally. I know that, in many cases, a consumer can negotiate a price below what an employee would have to pay. Most auto manufacturers and/or car dealers have offered employee pricing to their consumers at some point in time as simply a normal sales promotion. What turns this oft-used sales promotion into an act of charity all of a sudden? Nothing.

Both companies have offered to assist customers of their respective lending arms with payment extensions and flexibility, which is great, but only one of these “efforts” seem like a true charitable gesture…

..and it’s not the one offering a discount on a new car.

 

Social Media and OEMs: the Flaw in the Machine

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I remember a few years back when OEMs started pressuring their dealers to develop a social media presence. “You have to have a Facebook page.”, and “You need a Twitter account.” They sent their contracted digital marketing consultants to their dealers and beat them senseless until they complied. They started grading their dealers’ online presence and critiquing it’s absence.

On the flip side, manufacturers were developing and building healthy and thriving online presences. I get that. Their job is branding and promoting. That’s awesome. Some manufacturers were better at it than others. Some took their time joining the game. Some were ahead.

As most of you reading this know, one of the goals of social media is exposure outside your networks. That’s difficult to achieve for most dealers, especially dealers not paying attention and putting forth just enough effort to say they are “doing it”. Some are effective and others aren’t.

The thing that puzzles me is that, for the most part, many manufacturers have large audiences – some in the millions. Their public face is all about reassuring customers and branding. You hear phrases and messages that say things akin to we value you as a customer. Wait a minute now. Who, exactly, is a manufacturer’s customer? I don’t know any manufacturer’s that sell cars direct to consumers. The only people that buy cars from manufacturers are car dealers. In my opinion, that makes car dealers the manufacturer’s customer but that’s beside the point.

Many manufacturers spend a lot of time watching, learning and responding to consumers on various social media channels – which is awesome. That being said, if you are social media savvy at all, you understand the value of a retweet or mention from a “person” with a large following – whether that be on Facebook, Twitter or wherever. While I’m sure it’s probably happened at some point in time, I have yet to see any car manufacturer put any concerted organized effort into identifying tweets from their TRUE customers – the car dealers – and using their considerable online presence to retweet and mention those dealers. You’d think they’d want to support a dealer’s social media effort.

If a dealer is putting out great content and saying positive things, why wouldn’t a manufacturer want to spend meganbarto@gmail.com or skeetle@me.com and effort into assisting the dealer gain exposure and increase their networks to the relevant people within their audience? I mean, THEY are the ones that pushed dealers into the social media world.

If your customer – the dealer – is doing a great job, reward them by interacting with THEM as well as with the end buyer. It would be a great way to support your franchises, reward them for their efforts, which, for the most part, are also going to be promoting the brand itself, which is completely in line with your goals anyways. YOU want engagement. YOU want to be retweeted. Why is it unreasonable for to assume that your dealers do as well?

I challenge a manufacturer to devote as much effort into integrating social media support for their franchises into their operations as they do supporting themselves. There are less franchises than consumers so it wouldn’t take a lot to accomplish. A retweet here and there would be easy, appreciated, rewarding, and relevant.

Oh, and don’t try the whole “we don’t want to play favorites” excuse – even if you truly believe it might be interpreted that way by your franchises. If your dealers have an online social media presence, support it. Maybe that would encourage your dealers who do not to jump on the bandwagon.

Practice what you preach and support the hand that feeds you.

 

The Game-Changing Google Program Auto Dealers Can’t Afford to Ignore

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Google’s online ventures are usually anything but under the radar. Yet recently, in what may be a game-changing play, the search engine giant quietly entered the third-party lead provider business for car dealerships.

The beta version of Google Comparison Ads for Autos (which is unofficially being referred to as “Google Cars” within the industry) was launched to very little fanfare a few weeks ago in the San Francisco Bay area. The service invites participating dealers to send their inventory to Google, allowing consumers direct access to inventory, price comparison, and the ability to request quotes from within Google search results. As shown below, the program—and associated inventory—is prominently displayed on page one of a relevant search.

While the program is currently limited to dealers within the San Francisco Bay area, program-specific search results are available throughout the state of California, not just for people located within the Bay area—contrary to what others are reporting. As evidenced by the above screen-grab, I did not have to change my location to get Comparison Ad results, and I live almost 500 miles away, in Southern California.

Google is currently testing a number of similar Comparison Ads programs for other products, including credit cards, CDs, and checking and savings accounts. Results have been controversial, with many advertisers in these industries reporting dissatisfaction, especially since Google is not obligated to play by its own rules and is, in effect, competing with its own advertisers. In November 2011, Google temporarily suspended its Comparison Ads service to the mortgage industry with plans to reboot the program after revamping it.

While specifics of the program for auto dealers have yet to be announced, Google is promoting the new service with the following program highlights:

“Higher-quality leads: Our leads come directly from motivated, purchase-ready consumers who have specifically chosen to contact your dealership. Leads are unique, never resold, and delivered immediately to you.

Free inventory listings: You can have your inventory shown to consumers on Google for free, even if you decide not to receive leads.

More than just inventory: Consumers can choose to connect with you even when you don’t have a specific car in inventory. We know that you can order the car, dealer trade, or find other solutions to help consumers get the cars they want.

Greater control over leads: You choose how much you’re willing to pay for a lead and target consumers based on distance and specific type of car, so you get the leads that are most valuable to you.”

This is all the information that Google currently has publicly available about the program. However, the operational processes used in the suspended Comparison Ads program for mortgages may offer additional insights. Here’s a run-down of how the program functioned:

1. Google looked at maximum bids placed by each competing bidder and then set a reserve price based on those bids. Once set, the reserve price was the minimum fee bidders would have to pay to appear on a desired search results page.

2. Anyone bidding below the reserve price was dropped from the auction. Google also dropped the bottom 10% of bidders who bid at or above the reserve price.

3. Results were then displayed (in this industry’s case) from lowest to highest APR. This leads me to believe automotive results would be displayed with the lowest prices first.

Furthermore, this is how, in an unlisted video, Google described the highlights of the program to the mortgage industry:

• The ads were included in the “Sponsored Listing” section but are not counted in the AdWords auction.

• Pricing was pulled directly from the companies’ “pricing engine product feed,” which would presumably be the equivalent of a dealer’s DMS or pricing tool, and updated multiple times per day.

• Bids could be highly targeted to reach the consumers most likely to convert, and an advertiser could place different bids for each targeted criteria.

Google mentions that they are working on a different ranking system for the mortgage program (one of the reasons provided for its suspension) in which Google will reward high-quality advertisers using factors such as:

• Accuracy of offers as determined by mystery shopping

• Turnaround time on lead follow-up

• Customer satisfaction as measured by surveys

It is probably safe to assume that Google will eventually apply these ranking criteria across all industries serviced by their Google Comparison Ad program.

Google is promoting the Comparison Ads for Autos program as a way for dealers to source fresh leads from consumers’ Google searches, but given the above information I have several concerns regarding how beneficial the program will really prove to be.

First and foremost, Google claims that the leads generated by the program are “unique,” yet in the final step of a lead submission, the program offers the consumer the choice to contact other dealers who may have similar cars available. A single person inputting a lead and requesting contact by multiple dealers would hypothetically generate multiple leads, a complication Google does not currently address.

On a related note, Google is telling consumers that even if they are interested in a particular vehicle that has already been identified by VIN, they may be able to get the same vehicle from another dealer. As Google puts it, “if you see a particular car (specified by a unique VIN) showing in a dealer’s inventory, you may be able to get that car from other dealers as well. Dealers often times trade inventory with each other, so you can buy from the dealer that you prefer.” Thus, Google is negating the edge a dealer may have in winning the consumer’s business simply by having the exact vehicle they are looking for in stock.

In addition, while Google says that dealers can list their inventory on the program free of charge, it is unclear what would happen to any leads generated if the dealer chose not to “pay to play.”

For those who are willing to pay, Google allows dealers to “[choose] what [they’re] willing to pay for a lead.” According to Automotive News, the price-per-lead is determined via a bidding model, with dealers competing for prominent positioning within search results for their inventory.

The final component of the program is that Google emphasizes the protection of consumer privacy. There are three ways in which a consumer can contact you as a participating advertiser:

1. Inbound Phone Lead: This comes via a Google-generated phone number; the consumer’s phone is blocked from the advertiser’s phone system.

2. E-mail Inquiry: The advertiser is given the consumer’s name and the details of the product they are interested in, but the consumer’s e-mail address is masked.

3. Request a Call-Back: The advertiser is given a masked phone number with which to call the consumer.

Google states that lead delivery is compatible with CRMs, but how those leads would actually populate is unclear.

The fact that Google commands such a large percentage of internet searches means that this program is a potential game-changer. Google’s ability to position this program wherever it likes, regardless of its other ad programs, may mean that dealers are forced to participate to remain competitive. Because Comparison Ads currently appear just above the first organic search results, these results will likely divert a portion of traffic that would otherwise have gone directly to dealers’ websites.

Not only will Google’s Comparison Ads for Autos impact many components of your online marketing efforts, including search engine optimization strategy and pay-per-click campaigns, but it may also even affect the lead quantity that your current third-party lead providers are able to offer you. Obviously, dealers would be well-advised to pay close attention to the program as it develops.

via the July 2012 edition of the 3 Birds Marketing newsletter

Facebook Promoted Posts: Are They Right For You?

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Facebook’s Edgerank algorithm—the formula used to determine the order content appears in a given newsfeed based on which content is deemed most relevant to that user—may make the Facebook experience more seamless for casual browsers, but it’s a challenge for businesses that harness the social media platform as part of a marketing strategy. After all, thanks to Edgerank, each post on Facebook only makes it onto the newsfeed of about 12-17% of its fans. The fans that do see it are more likely to be those that have already chosen to visit your page, or that regularly interact with your posts. Edgerank’s feedback-loop effect makes it harder than ever to reach and engage consumers that don’t self-select your business’s content.

To counter those daunting odds, Facebook recently introduced a new service allowing business pages with greater than 400 “likes” to pay a fee to promote individual posts. This new feature allows a page owner to select a single post, which could be a status update, photo, video, question, or offer, and pay a premium to increase the reach for that post beyond the circle of fans that are already engaged with your content. Not only that, but promoted posts are supposedly more likely to be seen in the newsfeeds of friends of fans, too.

Promoted posts have a one-time, pre-set budget that remains in place for the life of the post.  While setting up a promoted post, you will be asked to choose a budget from a suite of options that includes the post’s estimated reach at each payment level. The promotion can be suspended or stopped at any time regardless of whether your maximum budget has been used. Promoted posts do have some targeting capabilities, including geographical location and language, but these can only be applied to posts that are less than three days old.

Sounds Great—but Do They Work?

I set out to test the promoted posts feature on my blog’s fan page (which has 613 fans) to see how it performed versus a normal, “organic” post. I’d recently created a page on my blog that consists of a dedicated list of available educational events and conferences for automotive dealers. I shared this blog page via a status update on May 23rd, prior to the launch of Promoted Posts. The post performed as expected, reaching roughly 13% of my page’s fans with a marginal viral reach (a measure of how many impressions came from non-fans who encountered the post because a fan of the page shared or interacted with the post).

  

Keep in mind that my Facebook page isn’t particularly active, nor do I put too much effort into engaging my fans, which limits the reach of posts. I mainly use the page to post blog articles, so I don’t expect high engagement, but these statistics are in line with the average reach reported by others.

On June 2, I decided to test out the new Promoted Posts feature. Upon creating the new post, the only option presented to me was to pay $5 to reach an estimated 300 people.

The post I promoted was essentially the same as the previous one – a status update which included an external link to the same page on my blog. I did no other social media promotion at all for this post and let it run for the full three days.

Here were the results:

  

As you can see, the post exceeded the estimated paid reach (with 324 rather than 300 paid impressions), and it also reached 1200% more non-fans (13 vs. 164) via viral sharing, substantially increasing exposure to my fans’ social networks. Organic displays also increased by almost double (70 vs. 132). The promoted post didn’t increase engagement but, the post itself wasn’t really designed to encourage engagement. I also didn’t see a noticeable difference in traffic to the external page on my blog, with the average number of daily visitors to that specific page remaining roughly the same.

Two interesting side notes: First, Facebook defines paid results as “the number of people who saw your page post in an Ad or Sponsored Story.” But when signing up for the service, Facebook never mentioned that my promoted post could potentially be displayed via an Ad (on the right of the newsfeed) versus as a Sponsored Story (within the newsfeed itself). In my estimation, Ads constitute weaker exposure than Sponsored Stories, but I have to assume that at least some of the paid exposure for my promoted post came via Ads.

Second, as mentioned previously, I was initially only given the option to reach 300 people for $5. However, when I looked into promoting another post following my initial trial, I was given a second option to reach 700 people for $10, as well. This tells me that Facebook underestimated the results they could deliver.

Are Promoted Posts for You?

As in any form of advertisement, you must have clearly defined goals before spending any money. Here are some questions you should ask yourself before making a decision one way or another regarding promoted posts.

1.    How large is your page’s fan base? Keep in mind that the larger your fan base, the more potential reach each promoted post will have, which will result in a higher upfront cost.

2.    Are these actual customers, or are they a random assortment of individuals who were collected in an effort to grow the number of fans at all costs? I consider fans to be relevant if they are potential or existing customers who could realistically do business with you—whether that’s via sales, service, or parts—and whose social networks will, in all likelihood, include more relevant people. In the case of dealerships, for example, it does you no good to increase exposure to people outside your PMA, vendors, or anyone else who doesn’t have the ability to spend money with you. Note, however, that the geo-targeting option does allow you to more efficiently reach relevant fans.

3.    What is your goal for promoting a particular post? Is it to increase engagement? Increase exposure for an offer or event? Share important information with your fans? Lead people to an external website or conversion page?

In my opinion, promoting a post just for the sake of promoting it is ill-advised. If you have clear goals in mind, you should be able to accurately track whether your money was spent wisely. Did you actually increase engagement, and was that engagement by new people rather than those who already regularly engage with you? Did more people take advantage of your offer? Did you receive more traffic (via Facebook) to the external link you included in your post?

If you’ve built your fan page organically via your website, in-store signage, or via inclusion in other marketing channels, I could see a promoted post helping to jumpstart your page by potentially increasing your fans via increased exposure to THEIR networks. Keep in mind that the majority of the people you will be reaching already like your page so, in my opinion, the greatest potential of Facebook Promoted Posts is in its ability to extend your exposure beyond your fans and into their social networks.

That being said, a well-thought-out promoted post with clearly defined goals has the potential to increase reach and revenues—all at a relatively low cost.

via the June 2012 edition of the 3 Birds Marketing newsletter

Foursquare Launches Local Updates for Businesses

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If you haven’t heard, foursquare announced yesterday the launch of what they’re calling “Local Updates”.

What are these and how can you use them?

Essentially, Local Updates will allow businesses to push messages to consumers who have either “liked” their business or frequent it. Updates can include things like specials, pictures of a new car (or a used car you just got in stock), it can include coupons, service specials, or whatever else you’d like your customers to see.

Your customers will be able to see these updates while in the same city as you. While certainly not as geo-targeted as it could be (like in the auto mall or within 10 miles of your dealership), being in the same city is a start.

In the past, the only way (or type) of message you could put out there for consumers on foursquare were “special offers” which required a check-in. While you can still make an offer to a customer, the ability to simply provide updates to consumers is another way of engaging them and staying top of mind.

Here’s an example of what an update would look like:

With nearly 1,000,000 business pages claimed and 10,000,000 users, foursquare is simply something you cannot afford to ignore. It’s fairly low-maintenance when set up and, since its free, the benefits vastly outweigh the possibility of lost business. Engaging your customers (or potential customers) is something that’s not only necessary but integral to increasing customer loyalty and retention.

The Local Updates feature will be rolled out to businesses that have claimed their page this week sometime so stay tuned.

Here is a brief video intro created by foursquare:

 

Road Trip Recap – Day 1 and 2

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Well, here I sit at 4:30am Central time. Since it’s dark outside and I’m drinking hotel bathroom coffee, (yuck) I thought I’d write an update on my trip to North Carolina so far.

First, and very important, I did have concerns about my new Chrysler 200’s ability to tow the 4×8 U-Haul trailer across the country. Now that I’ve driven roughly 1100 miles with it, I must say that I’m quite impressed. It’s pulling that fully loaded trailer with ease. The ride is very smooth and comfortable and the engine has plenty of power for those hills. The iPod connection and satellite radio have certainly come in handy as well. Jamming out to Air Supply and the Bee Gees has certainly enhanced the experience and entertained me (just kidding.. well, at least about the Air Supply and Bee Gees part.. it was actually MC Hammer and Paula Abdul).

Day 1 was one of our shorter days. Started in Moreno Valley, CA and the goal was to reach Flagstaff, AZ. There was no need for directions since it’s only one freeway all the way from CA to NC. The drive was monotonous but relatively short compared to the days to follow. Started at about 9am and arrived in Flagstaff at about 5pm. Along the way, the heat steadily rose until it was 115 degrees outside. I ended up actually experiencing this when I had to stop in Needles, CA for a fill up. If you are ever traveling that way, do NOT stop in Needles. I felt like I was being robbed with gas prices almost $5/gallon. Even in CA, gas has been steadily dropping to under the $4 range. Anyways, que sera sera. As we passed the exit to the Grand Canyon, there was an incredible urge to visit but having been there before, I knew that the little bit of time that could’ve been spent there just isn’t enough to truly appreciate it.

Watching and interacting with the people who have been following #atrt on Twitter was fun and entertaining. Day 1 was on Sunday so there wasn’t a whole bunch of interaction. It was still fun and was a nice way to journal my experience and keep my wife in the loop. It was also the first time I’ve truly tested out FaceTime. Since I won’t be seeing my family for quite some time, I’m encouraged to know that I can still see and interact with them visually. It will probably lessen the home-sickness I’m sure I’ll experience.

Day 2 started as a beautiful day in Flagstaff. There was about 600 miles to drive yesterday – the goal being to arrive in Amarillo, TX at a decent hour. Of course, there were two time changes in store so, while the actual driving time ended up being about 9 hours, Amarillo didn’t appear until roughly 8:30pm Central time. The scenery along the way was awesome, especially some of the vistas in New Mexico. An interesting sight was a car pulled over on the side of the road with two police cars in New Mexico. The car literally had the hood, trunk and every door wide open as well as the entire back seat on the shoulder of the road and the cops were systematically dumping every item in the car on the roadside shoulder… emptying the suitcases piece by piece. I dont know what that person did but that would’ve truly sucked.

I can attest that the Escort 9500ix radar detector I bought for the trip has certainly come in quite handy. It has easily and consistently been ID’ing police miles before I spot them. It’s been very consistent with not a lot of false alarms. I would definitely recommend this to anyone who may like to drive a little faster than they should be.. even those who happen to be pulling a U-Haul trailer (not that I know anyone who would do that).

Near the end of the trip, I was getting pretty cranky but once I arrived at the hotel that went away. My legs have been killing me the whole trip. It absolutely didn’t have anything to do with my attempt to show-off in front of my friends Saturday by doing a squat with my 260-lb friend on my back. Nothing whatsoever.

The videos and pictures I’ve been making and posting on various social networks has been a lot of fun. Engagement picked up on Day 2 since it was a work day (not that anyone uses Twitter or Facebook during work hours). I found several interesting places to take pictures with my 3 birds hitchhikers, including pulling over on the shoulder in front of the “Welcome to Texas” sign where they got to perch on the cowboy hat I seldom got a chance to wear in California. Other than that, there wasn’t a plethora of fun places to take pictures along the way (unless you consider cactus “fun”).

I got to give away a highly-coveted special edition “Viva Los 3 Birds” t-shirt to the person who tweeted the origin of “3 Birds” in the 3 Birds Marketing name. (In case you didn’t know what it is, it plays off the phrase “a bird in the hand is worth two in the bush”. The philosophy at 3 Birds is that, while a bird in the hand may be valuable, why not have all 3 birds instead of only one. The most common misconception about the name is that the 3 Birds represents the 3 founders – Layton and Kristen Judd and Len Wohadlo.)

There’s another 600 miles in store for the drive today with the goal being to reach Little Rock, AR at a decent hour (and safely). I hope you have been following along, have enjoyed the pictures and videos and will continue to participate on Twitter following and tweeting to hashtag #atrt I have more shirts ad prizes to give away today so pay attention and participate.

Thanks for the read! I’m excited about reaching my new home in North Carolina and beginning my new position as Social Media Strategist & Policy Manager with the awesome staff at the 3 Birds corporate office. As they say, its the people that make the company.

Why You Shouldn’t Brag About That Pounder

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As an avid social media user and an automotive industry professional, there is something that’s been bugging me.

I see people on social media bragging about that “12-pounder” they just closed (for those not in the industry, a ‘”pound” is equal to $1,000). To me, this really screams “unprofessional” and I also see it as detrimental to the reputation of the person posting it, the dealership represented by that person as well as further contributing to the stereotype car dealers have been struggling to change.

Look, as a salesperson, commissions are how your living is made, I get that. As a dealership, profit is how you pay your non-commissioned employees and overhead, I get that as well. It’s always nice to make money. I also believe that a salesperson and a dealership SHOULD make money. The salesperson is not there to work for free and all dealerships need to make money to keep the doors open. I also believe that most customers understand that a dealership needs to make money to stay open and don’t have a problem allowing the dealership to make some.

What I have an issue with is people who brag about the insane and, some would say, inappropriate amount of profit they managed to negotiate out of a customer. You made a big sale, good for you. Don’t go and brag about it on Facebook. Don’t tweet about it.

Social networks are designed to interact with people. You never know who is listening. Do you really believe that the person in your social network that sees you bragging about these huge deals wants to buy a car from you?

I’m not talking about some high-priced or hard-to-get car. I’m talking about the Honda salesperson (as an example) who is bragging about making $12,000 profit from a single sale. Really? Great, you made money but to many consumers (including your friends and family) what you did was reinforce for them that they shouldn’t buy a car from you or your dealership.

I know many dealerships who have internal policies on how much profit a finance department is allowed to make by limiting rate markup and pricing on back-end products and I believe that is a wise (and honorable) practice. Front-end profit is restricted, for the most part, by the banks. In most cases, they’re not going to let the customer finance $20,000 over sticker regardless of whether they agree to or not.

I personally think that, while the “big fish” you catch may offer immediate gratification, they will hurt you in the long run. Do you really believe that the customer you just buried isn’t going to figure that out eventually? Do you think that person is going to tell their friends and family that they should buy a car from you?

Then to actually go on social networks and brag about it? That’s just insane. You might as well brag about how much money you scored when you mugged the old people in the alley because, excluding other like-minded auto people, that’s what you just did.

How would you feel if you signed a contract with a vendor for services and discovered a month or two later that you were paying three times the rate that other people were? What if that vendor then went on Facebook and bragged about it? My guess is that you wouldn’t be happy with them or their company.

Look, this is only my personal opinion. You don’t have to agree with me and you’re entitled to sell your vehicles for as much (or as little) as you choose to. That being said, I do think that it is important to give ALL your customers a fair deal and, should you choose to make a huge profit from a single customer, you shouldn’t brag about it on social networks.

If you feel different, please comment and let me know why.

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.)

Are Industry Awards Meaningful?

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There’s been an interesting discussion going on over on DealerRefresh titled “Is Paying for an Award False Advertising?”

I’ve heard many opinions over the years from all perspectives – from vendors who have won them to vendors who have not, from consultants and from dealers.

My take is that an award is only meaningful if it is a significant factor in a potential customer’s decision to do business with you.

There aren’t a ton of awards for vendors in existence. The ones that do exist are, in most cases, given BY a vendor TO a vendor.

I don’t believe that most dealers have knowledge of, or give weight to, industry awards for a simple reason: they’ve never heard of either the award, the awarding “authority”, or both.

Until an award exists that dealers are aware of and give weight to, in my opinion, receiving an award only gives a vendor the ability to do one thing that their competitors cannot:

cartoon_gorilla

What do you think?

Are industry awards meaningful?

If so, which ones do you believe have authority and could influence a prospect’s decision-making and why?

[P.S. I’m starting the “Arnold Automotive Awards”. If you want to be considered for one of these prestigious awards, please contact me to make billing arrangements.]

Ford Says Consumer Privacy Is Impractical

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In a Yahoo! exclusive article published today, it was reported that Ford has initiated a lawsuit against 13 individual eBay sellers who they accuse of selling fake or counterfeit Ford parts. I’m not arguing the merits of Ford’s lawsuit as it is certainly within their rights to protect their trademarks and copyrights as well as take steps to protect dealer’s profits in the part business but rather to question the bigger issue encompassed by this: an individual’s right to privacy.

The subpoenas for the  lawsuits were granted by the court for Ford to obtain the seller’s identities and information. What is unusual about this is not that they requested it, but what they asked for after that request was granted.

As reported in the article, most ISPs and websites have policies in place that notify users when the company gives out their information for any reason except for that involving criminal activity and which is requested by law enforcement agencies.

In this case, Ford not only requested the user’s information but also asked for their bank account information (which was denied) then went a step further and asked for the court to prohibit eBay and Paypal (an eBay company) from notifying the targeted users that their information was requested and given out.

This move flies in the face of all privacy issues. With the public outcry against the recent legislation effectively designed to skirt privacy issues accompanied by Ford’s strong pro-consumer brand and social media presence, you’d think they would want to steer clear of any controversy in regards to consumer privacy.

“Much of the debate in recent months over online privacy has been spurred by bills in Congress, such as the Stop Online Piracy Act and a new bill, the Cyber Intelligence Sharing and Protection Act, which passed the U.S. House in April. CISPA would let companies and law enforcement agencies broadly share users’ personal information to fight potential threats — including accusations of copyright violations and counterfeit goods — without penalty, trumping any company policy.” writes Justin Hyde in the Yahoo! article.

The reason reported by Ford for this request was:

“Ford respectfully suggests this procedure is impractical and would serve to undermine the rationale for the subpoenas. The procedure would impose a substantial burden on [eBay and PayPal] to prepare, serve and enforce subpoenas and would serve to “tip-off” or warn the Doe defendants of Ford’s investigation. Under the procedure as written, the Does would have notice that Ford was seeking their identities and thus ample time to destroy evidence, the counterfeit and infringing goods, and flee to avoid service all before Ford would be entitled to receive their true identities.”

I understand why they asked the court to do this but just because it’s a good reason doesn’t mean it should outweigh the right to privacy that all citizens enjoy. This is a civil matter, not a criminal one.

Now that one court has issued what I feel is an invasion of privacy, what’s to stop other judges from following suit. I can think of plenty of GOOD reasons for a judge to do this but that doesn’t mean they SHOULD. Where does an ISP or website draw a “line in the sand”? Despite Facebook’s own internal privacy issues, they have, and are still, fighting other companies from requiring or being allowed to access their user’s information and accounts including employer’s requesting pre-employment access, schools requiring students to reveal their Facebook walls to administrators and more.

Being an eBay user for over 14 years and a Paypal user for about 12, I would hope that they would challenge and fight for their user’s right to privacy. It’ll be interesting to see how this plays out and whether any of the companies involved will take a stand for their users.

While Ford may feel that their lawsuit against 13 people succeeding is more important than our rights to privacy, I just find that.. well.. impractical.

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