Auto Dealer Monthly Magazine is the daily operations publication serving the retail automotive industry. This automotive publication serves dealer principals, officers and general managers with the latest best practices.
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appeal to the broadest possible selection of dealerships." The Social Web The last presidential campaign proved the success of incorporating mobility and so- cial networking in reaching out to individu- als—politics' own version of CRM, or constituent relationship management. If Facebook, YouTube, Twitter and mobile apps could influence Americans at the polls, it could surely do the same when it comes to their purchases, particularly with what's parked in the garage. The incorporation of social networking tools in automotive CRMs is one of the latest trends. And with two-thirds of Americans utilizing online social media— according to findings in "Pew Research Center's Internet and American Life Project," released in April 2012—that demographic can hardly be ignored. Yet there are mixed feelings in the automotive industry about how effective social net- working with those 130 million consumers can be on influencing sales. Studies also seem to offer varied signals on the effectiveness of social networking's impact on auto sales. In May, Dataium, an independent collector of online behavior for auto shoppers, reported that while 94 percent of Facebook referrals visited an auto dealer's website for the first time, only 36 percent of those visits resulted in the viewing of an automobile. The Dataium numbers, based on 100 million active auto shoppers, did not reflect how many of those visits translated to actual sales. In the meantime, a joint Dealer.com, Driver- Side and GfK Automotive Market Research study— "The Rise of Loyalty, Advocacy and Influence: Social Media and the New Automotive Purchase Cycle"— suggests that in 2010, 2.4 million car sales were influenced by social networking. That's 100,000 fewer cars than were purchased in America from the top seller of automobiles in 2011, General Motors. The January 2012 report, though, surveyed only 2,000 buyers or prospective auto buyers. Darvish does not rely on social networking to drive visitors to her company's website. But the user of ELEAD CRM said the social media aspect of the product is a great source for corporate branding. It also pro- vides a means to invite people to events the auto group may be sponsoring or part- nered with. "I don't really believe social media sells cars," said Darvish, who coun- tered that the e-tool remains useful in cul- tivating relationships. Regardless of such opinions on social networking, many auto dealers have apparently seen some value in online social media, swarming to establish themselves on such sites in the last four years. Accord- ing to CNW Research in its December 2011 newsletter, only 11.3 percent of new car dealers and 6.3 percent of used car lots had a Facebook presence in 2008. In just three years, however, those numbers had swollen to 41.6 and 26.8 percent, respec- tively. Use of Twitter echoed that trend. Alex Snyder, director of product research at Dealer.com, an automotive marketing company in Burlington, Vt., said his firm's initial foray into offering a CRM product incorporates some aspects of social media to monitor what's being said about a dealership. But while Facebook pages may help with branding, he, too, doesn't believe it is the most effective means to drive sales. "A customer incubator, that's what we call it," he said of the social networking aspects of the 13-year-old company's first CRM, which was released last month. Some dealerships, however, take social networking more seriously than others, employing workers simply to monitor and respond on Facebook, Twitter, YouTube, etc., to tap into the 130-million-plus adults socializing online. "Most dealers who use social media are not on it with a CRM," Born said. "They have a specific person to monitor and take care of social media. They are going to use a tool outside of CRM." He said ProMax has kicked around the idea of incorporating social networking into their CRM, but feels it is not necessary at this time. "There will come a time when that is needed," he said, "but we haven't seen that yet." AULtec's Thornton said their CRM, AEROS, does include social networking capabilities to help dealers find out what's being said by their customers and by others speaking about the store. For instance, it will allow a lot's social conversation scout to see the last 10 tweets a customer has posted on Twitter. Going Mobile Though the jury is still out on social media, vendors and dealers seem to agree on the power of mobility. Pew Research shows nearly as many American adults own smart phones as utilize social media: 53 and 66 percent, respectively. Most dealers are already tapping into that market of 100 million on-the-go consumers through mobile-ready websites. But mobile app technology is so new to the auto in- dustry that some vendors have yet to even offer dealers mobile functions linked to their CRM. For those dealers who are utilizing mobile apps offered through a CRM product, it might be the most significant enhancement to the systems, period. Darvish, regularly on the go in her role as an auto dealer advocate and NADA board member, finds her mobile CRM app from ELEAD One invaluable. She is not only able to keep up with what is going on at the auto group when she is on the road, with the CRM app, she can interact with any of the 20-plus DARCARS stores on her handheld device while at sites. "For a manager, that's where it really begins to shine," Dealer.com's Snyder said of CRMs. "(Mobility) gives the manager instant ac- cess to the data they need. It allows them to be untethered from their desk." Snyder sees mobile apps as the top enhancement for CRMs, outranking social media func- tions or any other improvements in recent years. "It's fantastic," he proclaimed. "Mobile is certainly a more important part of the game than social at this time." Thornton agreed. "We think, too, that mobile will change the future of CRM," said the AULtec spokesman, whose company offers dealer mobility as well as a dealership- branded app for consumers that allows them to interact with the store from anywhere. DDS also offers both a dealer app and store-branded mobile solution for cus- tomers, the Be Back app. But today's mobile apps and social networking are certainly not where CRM evolution will end. Expect a move to more mobility, personalization tailored to the needs of everyone from the general manager to the service department rep and perhaps even speech interfaces. With more technology packed in your handheld device than was found on the capsule that took man to the moon, if you want it, chances are you will eventually get it.