CIMA Systems Blog

A recent CapGemini study shows that of the tools auto shoppers use when researching a vehicle for purchase, a healthy 16 percent used interactive marketing in the form of blogs or discussion groups and more than 20 percent of respondents between 18-34 years of age used web groups and social forums when compiling information. The numbers in the study point to the evolution of interactive tools like blogs, RSS (really simple syndication) feeds and social networking sites becoming as much a part of the automotive landscape as Search Engine Optimization and e-newsletters did just a few years ago.

Consumers are hungry for information and interactive marketing enables them to engage in two-way communication that traditional marketing channels just can’t match. Take the internet sensation MySpace. One of the revolutionary things MySpace enables its users to do is create a social network or virtual coffee shop where friends can check in, post comments, see videos and photos and share information.

You find the same sense of flow of information on up and coming dealership blogs like that of one of our customers: Fiesta Ford. Teddy Stephens, general manager of Fiesta Ford in California has established a dealership blog for his customers to view important information regarding their Ford dealership promotions and the latest Ford commercial(s), et cetera. Through his posts, each customer can respond to his promotions or provide important feedback to his insightful articles, driving valuable two-way communication between buyer and seller.

What makes blogs and social networks successful and other forms of marketing fall flat can be attributed to three main items: back and forth flow of information, timeliness and brevity.

It has to inspire feedback
Perhaps the best example of immediate communication versus stalled communication can be found when looking at a dealership blog versus an e-newsletter. The dealers that are taking full advantage of technology are the ones who are blogging about their own thoughts, theories and opinions of the vehicles on their lot and the industry in general. The thoughts are short, relevant and sincere.

Nothing kills a blog faster than content that was obviously written in masse for a variety of different dealerships (similar to the e-newsletters I get from two different real estate brokers with the same generic content). When sincere, thought-provoking content is posted, readers then share their thoughts and opinions back through comments on the original blog post. These can be valuable pieces of information for the dealership. They give the dealer a feel for public opinion about their dealership, the vehicles they carry and may even alert them to an upcoming customer problem or obstacle the store can solve before it becomes an issue.

On the other hand, an e-newsletter is sent to the reader as a “one-way” message, and often has more to do with the dealership specials and promotions than commentary on what’s going on in the industry or the dealership. In addition, other than the “contact us” email link at the bottom, there’s little or no invitation for the reader to share their thoughts back with the dealership; creating a one-way communication channel with little to no input back from the addressee. What’s more, e-newsletters are often planned out a month or so in advance, leaving little to no time for updated news as it happens. Which brings me to my next point…

It has to be timely
When news hits, blogs enable a dealership executive to jump online and immediately post how they feel about it, what they’re going to do about it or even how they’re going to make it right. For example, Edmunds recently announced its top 10 list of mom-friendly features for Mother’s Day. Jumping on the newly released information, Fiesta Ford posted this information immediately, just in time for Mother’s Day.

In stark contrast, many e-newsletters are on a monthly schedule or longer. Often this leads to the news story either coming out too soon before deadline or so late that the news loses its relevance by the publish date. Either way, the dealership has lost out on an opportunity to make a comment about relevant, timely information in the space.

It has to be fast
Let’s face it: we’re in a world that’s hooked on better, faster, more. We want information that can be easily digested in bite-sized chunks. We do much better scanning an article than actually sitting down to read it. In our fast paced lives we need just the facts and don’t have time for much else.

A dealership blog taps into this trend by giving users bits of information that can be easily scanned. Rarely do we see a blog post that is more than a few paragraphs long. Compare that with an e-newsletter that often contains three to eight feature-length articles and it’s not hard to figure out why e-newsletter conversion rates are dropping.

While I don’t think dealership e-newsletters are gasping their last breath just yet, there are some clear benefits of a dealership blog over an e-newsletter when it comes to two-way communication. I would encourage dealer principals to look into new tools like blogs on the market and see if there is a way to strengthen their communication throughout all of their channels. As the CapGemini study noted above clearly proves, it’s time to expand our thinking when it comes to communicating with today’s consumer. Whether it’s texting, MySpace, wikis or blogs, your customers are using interactive technology more than ever before. You need to be where the customer is in order to pull them into your dealership. Good luck!