Friday 24 April 2015

The Gap Between Auto Dealers and Social Media

By: VINDU GOEL

Matt Howell, the general manager of a Hyundai dealership in Huntsville, Tex., has been in the auto business for 18 years. In all that time, he said, “I can think of one deal that originated on Facebook.”

In January, marketing managers at Hyundai’s American headquarters in Southern California persuaded Mr. Howell to give social media a more serious try. They asked him to use new software to post videos, photos and text updates suggested by the company on Facebook, Twitter and other social networks.

Two months into his social media experiment, the efforts had drawn such little reaction that Mr. Howell, 42, decided to drop out of the program.

Although he plans to keep posting photos of happy buyers on Facebook and encouraging them to write reviews, he does not have much use for the rest of it — especially since Hyundai began charging $275 a month for the service.

To Mr. Howell, selling a car boils down to one basic principle: Treat your customers well, and they will sing your praises to friends and family. “Those personal relationships are more important,” he said.

Hyundai of Huntsville’s experience illustrates how far social media still has to go to serve small, locally focused businesses. While large companies have learned how to stand out on social networks and get lots of hand-holding from sites like Facebook and Twitter, most local business owners are left on their own and remain stumped by social marketing.

Nowhere is that gulf more apparent than in the auto industry. Car manufacturers including Hyundai and Ford Motor have embraced social media and spend tens of millions of dollars on sophisticated marketing campaigns. Yet many of their local dealers barely maintain a Facebook page.

Some experts question whether local businesses even need to be active on social media.

“It’s like the old days: You need to be in the Yellow Pages. But is it going to meaningfully drive your business? Probably not,” said Chris Luo, who headed Facebook’s efforts to woo small and medium-size advertisers until 2012 and now works for FiveStars, a start-up that helps small businesses keep up with loyal customers.

Still, if a business does plunge into social media, Facebook and outside experts said, the most reliable route to success is to pay to promote posts as ads — something that Hyundai is not yet teaching its dealers.

“If you want predictable results for your business, ads are a cost-effective way to get them,” said Dan Levy, Facebook’s global director of small business.

Hyundai said it knows social media advertising is important, but it noted that dealers need to learn the basics of creating good content first. “If you hit anyone with it all at once, it would be very overwhelming,” said Jon Budd, who oversees new media at Hyundai Motor America.

He said that the three-year program had just begun and that it was too soon to judge the results.

Many local dealers worry that they need to be on Facebook, Twitter and whatever comes next, even as they struggle to understand how the services can help sell cars.


Resource: 
The Gap Between Auto Dealers and Social Media

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