DRIVELINE
State Affiliate
M I C H I G A N I N D E P E N D E N T A U T O D E A L E R S A S S O C I AT I O N SPRING 2017
MANAGEMENT GAMEPLAN
IS YOUR SALES PROCESS A HIT? OR HIT AND MISS? Increase Your Batting Average PAGE 09
DALLAS, TEXAS Permit No. 2079
PAID
PRSRT Standard U.S. Postage
VISIT US AT W W W.MIADA.US
INSIDE
06.......................................................................Save the Date 08...............................................Tips for Subprime Slam Dunk 09.................................................Is Your Sales Process a Hit? 10................................................. NIADA Government Report 12............................................Combatting Negative Reviews 14...............................Reasons Your Facebook Page is Failing
WHAT’S NEW
Tire Safety Week Dates Announced
The dates for National Tire Safety Week 2017 are May 28-June 3. An initiative of the Rubber Manufacturers Association, the event promotes tire safety among consumers. Auto dealers join the tire and auto industry to encourage drivers to “be tire smart.” For more information, or to request print materials, visit www.betiresmart.org.
ADVERTISERS INDEX
ADESA......................................................................................5 AutoZone .................................................................................6 Black Book................................................................................3 Greater Kalamazoo AA............................................................7 Lakeside Insurance............................................................... IBC Manheim ................................................................................11 Manheim Pennsylvania..........................................................13 NextGear Capital ...................................................................12 PassTime...................................................................................8 Protective...............................................................................IFC VAuto....................................................................... Back Cover
OFFICE
For information on how to become a member of MIADA please contact us at (248) 828-7010 or www.miada.us.
NIADA HEADQUARTERS NATIONAL INDEPENDENT AUTOMOBILE
DEALERS ASSOCIATION WWW.NIADA.COM • WWW.NIADA.TV 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838 Driveline is published by the National Independent Automobile Dealers Association Services Corporation, 2521 Brown Blvd., Arlington, TX 76006. Periodical postage is paid at Arlington TX, and at additional offices. The statements and opinions expressed herein are those of the authors and do not necessarily represent the views of the Michigan Independent Automobile Dealers Association or NIADA. Likewise, the appearance of advertisers, or their identification as members NIADA does not constitute an endorsement of the products or services featured. Copyright 2017 by NIADA Services, Inc.
STATE MAGAZINE MGR./SALES
Troy Graff • troy@niada.com EDITORS
Jacinda Timmerman • jacinda@niada.com Andy Friedlander • andy@niada.com MAGAZINE LAYOUT
Christy Haynes • christy@niada.com PRINTING
Nieman Printing
ASSOCIATION NEWS BY OTTO HAHNE
PRESIDENT’S LETTER Auctions and Learning
Greetings, The spring market is coming at full speed, which brings us onto the market of specialty sales, including Flint’s Corvette sale, the anniversary sale at Manheim and more! 2017 will also have a record amount of lease returns so there are plenty of sources to find a fresh stock of inventory! Please check our calendar for dates of these auctions. We’re always available to offer any insight we can in growing your business. For all our members in the rural north, you’re on my mind and we plan on having a focus group in northern Michigan this spring. Please contact our office for more information. Watch our calendar for compliance lunch and learn dates!
By joining MIADA you are extended all of the benefits of the NIADA, so please encourage your fellow dealers to join. As always I’d like to take this opportunity to reach out to new members and volunteers, and also extend my appreciation to those past and present for the work they’ve put in. We wouldn’t be where we are today without your hard work. We are also discussing the possibility of a charity poker night. If this is something anybody would like to either help with or participate in, we would appreciate the feedback. If you have any questions or concerns, please feel free to call anyone at the MIADA office or myself and we’ll help you as best we can.
BOARD OF DIRECTORS CHAIRMAN OF THE BOARD Ray Campise Certified Motors 23509 Little Mack St Clair Shores, MI 48080 586-775-7000 sales.cmotors@gmail.com
DIRECTORS Dennis Craig Instant Car Credit PO BOX 146 Acme, MI 49610 231-938-2627 dcintc@gmail.com
PRESIDENT Otto Hahne City of Cars 1695 Stutz Dr Troy, MI 48084 248-458-1500 otto@cityofcars.com
Rick Rynberg Rynberg’s Car Co. 3880 Holton Rd Muskegon, MI 49445 231-744-1441 rickandwendy1@verizon.net
VICE PRESIDENT Ted Cooper Genesys Systems Inc 360 E Maple Rd Troy, MI 48083 248-597-1003 ted@gensystems.com TREASURER Joe Kuhta GWC Warranty 8865 Reese Rd Clarkston, MI 48348 248-670-1133 JKuhta@gwcwarranty.com SECRETARY Ed Ophoff Ophoff Motor Sales Inc. 2921 S Division Wyoming, MI 49548 616-452-7761 edwoph@aol.com
Tony LoBretto Alamo Valley A/S 6100 West D Ave Kalamazoo, MI 49009 269-344-8250 alamovalley@gmail.com Darvin Mileski NextGear Capital 11799 N College Ave Carmel, IN 46032 Maurice VanCoillie Van’s Used Cars 23509 Little Mack St Clair Shores, MI 48080 586-773-0560 586-773-0660 Bob Vincent Automotive Dealer Services LLC PO Box 102 Milford, MI 48381 586-477-8282 robertvincent@live.com
Nicole Renee Rite On, Inc 4680 W Jefferson Ave Ecorse, MI 48229 313-649-7308 nicole.riteon@gmail.com Jerry Drouillard Autohaus of Royal Oak 4411 Delemere Royal Oak, MI 48073 248-549-3636 gdro999@hotmail.com Jeff Baker Muskegon Car Credit Inc. 1515 28th St SW Wyoming, MI 49509 616-249-2000 EXECUTIVE DIRECTOR Lisa Michael 5119 Highland Rd PMB 393 Waterford, MI 48327 248-828-7010 lisamichaelmiada@gmail.com
Mission Statement
The Michigan Independent Automobile Dealers Association is committed to promoting growth and preserving the vitality and integrity of the independent motor vehicle industry through education and legislation as advocates for consumers and dealers.
4
Driveline / Spring 2017
www.miada.us
ASSOCIATION NEWS
SAVE THE DATE! October 7
Annual Awards Dinner with keynote speaker Secretary of State Ruth Johnson.
WHEN: October 7, 2017 WHERE: General Motors Heritage Center 6400 Center Dr. Sterling Heights, MI
AUTOZONE
6
Driveline / Spring 2017
www.miada.us
ASSOCIATION NEWS
ASSOCIATION NEWS
2017 SCHOLARSHIP Deadline June 15
WELCOME New Members
Welcome to the following new members: • European AutoHaus LLC of Holland, Mich. • Laker Motors LLC of Holland, Mich. • Freedom Warranty of America of Chattanooga, Tenn. • Mac’s Auto & Truck Sales of Center Line, Mich. • Lakeside Automotive Group LLC of Spring Lake, Mich. • Thomas Niewiek Auto Inc. of Grand Rapids, Mich.
www.miada.us
ASSOCIATION NEWS
QUALITY DEALER NOMINATION
The MIADA is now accepting applications for the 2017 scholarship award. If you have been a member of the MIADA for three years and have a daughter, son, granddaughter or grandson graduating this year, they are eligible to apply for the MIADA scholarship. Please go to www.miada.us and look under Quick Links for your application. Applications are due back to the office no later than June 15. Winner must be present or have representation at this year’s award dinner on October 7 at the GM Heritage Center in Sterling Heights.
Deadline August 15
Do you know a MIADA member deserving of the title Quality Dealer of the Year? Maybe you are deserving of that title. If so, please go to www.miada.us and look under Quick Links to find the application. The application is due back no later than August 15. You also have a chance of becoming the next NIADA Quality Dealer of the Year!
Deadline June 15
Spring 2017 / Driveline
7
ACCELERATE
BY GWC WARRANTY
TIPS FOR A SUBPRIME SLAM DUNK Ensure Your Subprime Business Doesn’t Fluctuate
As the pendulum swings with subprime lending, it becomes increasingly difficult for dealers to give their subprime customers the best deal possible. But regardless of which way the subprime breezes are blowing, there are certain steps used car dealers can take to ensure their own subprime business doesn’t fluctuate with the annual ebbs and flows of the subprime market. The Right Inventory It starts with selection of inventory and moves on to the inventory you present to each individual customer. Head to auction with the subprime customer in mind. Do some research with your lenders beforehand to see which vehicles they’ve had subprime success with and target a few of those each time you’re acquiring inventory. Once they’re on your lot, present them to customers who pre-screen with subprime credit. Once you engage with the customer, try something along these lines: “Thanks for reaching out, Mr. Smith. I have three great
8
Driveline / Spring 2017
vehicles here that match what you’re looking for and they’re vehicles I know we can get financed for you.” The Right Lenders Part of being able to select, present and finance the right vehicle for a subprime customer is having strong lender partnerships. Seek out lenders who know the subprime space well and operate in it frequently. Many can be local providers, so finding lenders who know your area well will help, too. Lenders that meet these criteria will be more consistent with their decisions and help you get more subprime deals approved on a regular basis. The Right Protection A common struggle on a subprime deal can be adding a vehicle service contract on the back end with a limited subprime advance. This is an obstacle you can certainly overcome – especially if you’ve worked on the first two points we’ve discussed. It’s a simpler solution than you might think, too. Just ask. And you might have to ask more than once, but good subprime lenders will understand the value of a service contract on a vehicle. Remind them of that if you need to. A service contract will keep a car on the road, protect a customer’s monthly budget and, in turn, lower the likelihood of a default. As you look at ways to breathe some life into your subprime business, remember three keys to successful subprime sales: the right inventory, the right lenders and the right protection.
www.miada.us
MANAGEMENT GAMEPLAN BY SCOTT BERGERON
IS YOUR SALES PROCESS A HIT? OR HIT AND MISS? Increase Your Batting Average Louis Pasteur said, “Chance favors the prepared mind.” When it comes to sales, this is the most important driver to long term success. Selling a vehicle comes down to two essentials. First, having someone to talk to who can buy. Second, being prepared so you don’t ruin your chances when you do have someone to talk to. All this means being organized in how you manage your sales process. The ultimate goal is to turn every opportunity into a sale. But since a 100 percent closing ratio never happens, the goal is to increase your batting average by consistent and correct execution of the basics. Shooting from the hip strategies never work as a game plan for success. These offthe-cuff processes typically rely on force of personality, which can be hit and miss depending on the salesperson’s mood. Charm may captivate one prospect and turn off the next, who feels as if it’s a put on. It can enthrall and entertain people in short bursts, but will only seal the deal with a select number of people. Salespeople accustomed to this type of selling may achieve a certain level of success, but it won’t ultimately rival what a well-organized, prepared salesperson can accomplish over the long term. Another analogy helps drive home the point even further. I call Denver home. Here, the Denver Broncos are as close to a religion as a sports team can be. In January, the Broncos’ coach, Gary Kubiak, resigned, citing health issues creating an inability to put in the amount of preparation time necessary for his standards. For him, that was a 5 a.m. to 10 p.m. regimen. The results of this approach are significant – in his first year as head coach, the Broncos won Super Bowl 50, proof the guy knows his stuff. There are likely very few salespeople who want to spend 17 hours a day preparing to sell cars. So it’s important to find other ways to help sales teams achieve. Here are a few important tips to develop an effective preparedness plan that doesn’t micromanage salespeople or make them feel like they’re stuck doing unnecessary hours of “homework”: Clarify objectives and goals by quantifying a sales funnel featuring prospects, sales, and activities needed for both. While this can get really detailed, the basics are straightforward. First, look at the forecast. To hit a certain forecast, the initial
www.miada.us
step is to reverse-engineer the process. Second, determine the historical average of how many prospects (UPs) it takes to make a sale. Let’s say it’s 4:1, or a 25 percent closing ratio. If that’s the case, you’ll likely need 100 prospects to make 25 sales. Third, determine historically what you have averaged per sale in commission (or gross if you’re the dealer) to determine how many prospects (UPs) you would need to hit your forecast. In the real world a salesperson who wants to earn $5,000 consistently each month needs to know exactly how to do that. If a salesperson historically earns $280 per sale, then he needs to sell 18 cars to make over $5,000. If his closing ratio is historically 29 percent, he needs to talk to 62 prospects (UPs) to sell 18 cars. The key here is getting accurate data to be able to do the math. Look at how to improve on historical numbers. For example, sales training can improve closing ratios, as can listening and learning body language. The key is to be able to give the salespeople all the tools they need to be consistently successful. Many email prospecting campaigns, as an example, fail miserably because of overcommunication or coming across as pushy and self-serving. Today’s prospects want to know what’s in it for them and how you can help them get there. Use a CRM tool to track and help assess your sales team’s opportunities. I always try to get consistently better, whether I’m managing or selling directly, and to do that I need real data on my capabilities. Creating a doable plan is only half the battle. Fulfilling it is the other half. How many New Year’s resolutions are kept? Therein lies the difficulty, and the challenge. Keep the plan on track. Identify ways to improve it. Spot and repair weak links (e.g., sales team members not following through, either with their objective or reporting of it). Streamline processes further to make it even easier for your team to follow. Avoid the traps of assuming “there’s an APP for that.” When processes, especially sales processes, are overly complicated, technical, or not easily inspected, it almost always leads to failure. Sometimes, the simplest solutions are the best – particularly when they gain easy acceptance from the team. Two major considerations outweigh all others: A) Does the system provide basic key performance indicators (KPI) that managers can easily pull up and track? B) Is it easy for salespeople to learn, adopt and use consistently? Installing any new or exciting sales process can be tricky. The first step is to make sure it fits your dealership’s current selling style. There’s no need to reinvent the wheel here. Just make sure it fits. For example, older salespeople may be more inclined to use paper-based sales management systems, while digital processes via smartphones or workstations
SALES PROCESSES AND SYSTEMS ARE ALL ABOUT IMPROVING THE CUSTOMER AND SALESPERSON EXPERIENCE SO NOTHING IS LEFT TO CHANCE. OVERALL, MAKE SURE YOUR PROCESSES ARE WORKABLE AND WELL THOUGHT OUT, SO THEY CAN BECOME A CORNERSTONE OF YOUR SUCCESS. may be the overwhelming millennial preference. Keep your options open as both have strengths and weaknesses. Balance all this out by maintaining consistency. Sales processes and systems are all about improving the customer and salesperson experience so nothing is left to chance. Overall, make sure your processes are workable and well thought out, so they can become a cornerstone of your success. By deploying a consistent, balanced, and inspected sales system, you can steadily increase your bottom line and build a solid sales team for the long haul. Former dealer executive Scott Bergeron is the founder of Daily Gameplan.com, a sales team performance company. Scott can be reached at 303.918.3169 or scott@dailygameplan.com.
Spring 2017 / Driveline
9
WASHINGTON UPDATE
NIADA GOVERNMENT REPORT Latest Government Issues and Activity Here’s a rundown of some of the latest governmental issues and activity affecting the used car industry from NIADA lobbyist Sante Esposito of Key Advocates and NIADA senior vice president of legal and government affairs Shaun Petersen. LEGISLATIVE REPORT By Sante Esposito D.C. MEETINGS NIADA’s leadership visited Washington on Feb. 27-28 for a series of legislative meetings. The NIADA contingent included CEO Steve Jordan, president Billy Threadgill, presidentelect David Andrews, legislative committee chairman Henry Mullinax, senior vice president of legal and government affairs Shaun Petersen and Key Advocates. That group had more than 20 meetings to provide legislators and others information about NIADA and to convey the association’s legislative priorities for 2017 – a list headed by the issue of recalled vehicles and the Consumer Financial Protection Bureau’s impact on the auto industry. In addition to 12 Senate offices and committees – including meetings with Sens. Lamar Alexander (R-Tenn.), Bob Corker (R-Tenn.) and Luther Strange (R-Ala.) – and seven House offices and committees, NIADA attended a meeting of the Republican Attorneys General Association and met with NADA to discuss the associations’ mutual interests. FINANCIAL CHOICE ACT Rep. Jeb Hensarling (R-Texas), chairman of the House Financial Services Committee, circulated an outline of potential changes to the Financial CHOICE Act he introduced during the previous Congress. Hensarling is expected to re-introduce the bill, which includes a series of reforms of the CFPB, but there could be a number of changes. One reportedly under consideration is whether to keep the bureau’s leadership in the hands of a single director but to allow that director to be removed by the President at will, as opposed to only for cause as is currently the case (pending an appeals court ruling), or to have a five-member commission, as proposed by the bill’s previous version. Other changes could include removing the CFPB’s authority to regulate unfair, deceptive or abusive acts and practices violations, and limiting its rulemaking to enumerated financial statutes such as the Truth in Lending Act. While the revised Financial CHOICE Act has not yet been put forward, several other
10
Driveline / Spring 2017
bills have already been introduced to change the structure or limit the authority of the CFPB. In fact, bills have been introduced in both houses to eliminate the bureau entirely. The House bill (H.R.1031), introduced Feb. 14 by Rep. Jon Ratcliffe (R-Texas), now has 17 cosponsors, while the Senate version (S.370), introduced the same day by Sen. Ted Cruz (R-Texas), has four cosponsors. REGULATORY REPORT By Shaun Petersen FEDERAL TRADE COMMISSION Bureau of Consumer Protection: Jessica Rich, a past speaker at the NIADA Convention and Expo and the National Leadership Conference and Legislative Summit, resigned as director of the FTC’s Bureau of Consumer Protection. Tom Pahl, an attorney who had previously served as assistant director of the Bureau of Consumer Protection, has been appointed acting director. On March 1, I met with Mr. Pahl and his senior staff in Washington to introduce him to NIADA and the association’s priorities. Fair lending report: The FTC transmitted its annual report of enforcement activity related to fair lending and the Equal Credit Opportunity Act. The report said the FTC has proposed a qualitative survey of consumers designed to provide useful insights into consumer understanding of the automobile purchasing and financing process at dealerships. The report said it would seek consumer interviews as well as their purchase and finance documents. CONSUMER FINANCIAL PROTECTION BUREAU The CFPB has launched an inquiry into ways to expand access to credit for consumers who are “credit invisible” or lack enough credit history to obtain a credit score. The bureau is seeking public feedback on the benefits and risks of tapping alternative data sources to make lending decisions about consumers whose lack of credit history might otherwise block opportunities. The CFPB estimated 26 million Americans are credit invisible, meaning they have no credit history with a nationwide consumer reporting agency. Another 19 million consumers have a credit history that has gone stale or is insufficient to produce a credit score under most scoring models. The initiative includes looking at alternative data as a way to build a credit history and gain access. Alternative data draws from sources such as bill payments for mobile phones and rent, and electronic transactions such as deposits, withdrawals or transfers. The bureau is also exploring risks posed by alternative data that is inconsistent, incomplete, incorrect, overgeneralized or biased.
THE BUREAU IS SEEKING PUBLIC FEEDBACK ON THE BENEFITS AND RISKS OF TAPPING ALTERNATIVE DATA SOURCES TO MAKE LENDING DECISIONS ABOUT CONSUMERS WHOSE LACK OF CREDIT HISTORY MIGHT OTHERWISE BLOCK OPPORTUNITIES. DEPARTMENT OF JUSTICE Paul Robinson of Lawrenceville, Ga., pleaded guilty to one count of conspiracy to commit securities fraud and odometer tampering in U.S. District Court in Norfolk, Va. As owner and operator of Affordable Auto Body Repair, a repair shop and licensed salvage vehicle dealer in Chesapeake, Va., Robinson purchased older vehicles – many of which had been involved in accidents – from an auto auction specializing in vehicles from insurance companies. On more than 100 of those vehicles, Robinson altered or replaced the odometer to reflect a false, lower mileage. He then obtained fraudulent Virginia motor vehicle titles with mileage readings matching the false odometer readings and passed the falsified title documents on to auto purchasers. Robinson obtained many of those fraudulent titles from a former DMV Select clerk. STATE ACTIVITY New Jersey: After a bill regulating the use of GPS and starter-interrupt technology passed the state legislature, Gov. Chris Christie conditionally vetoed many of the bill’s most problematic provisions, including a mandatory interest rate reduction for use of starter interrupt devices. The New Jersey Assembly has concurred with the governor’s changes and a vote to consider those changes is pending in the Senate.
www.miada.us
ONLINE MARKETING BY KENNY ATCHESON
FAKE NEWS ABOUT YOUR DEALERSHIP
Combatting Negative Reviews
There has been a lot of talk regarding fake news lately as the political season brought the problem to the forefront. However, fake news has been spreading for a long time – especially in the digital realm. Smaller businesses are able to compete with bigger businesses on the Internet. People can run video advertisements online at a fraction of the cost of television ads. Unfortunately, nefarious characters are also enabled to spread lies and propaganda on the Internet for the purpose of hurting others. Some fake news is meant to generate money. Fake news is often fronted by outlandish headlines meant to garner click-throughs so website owners can show advertisers their “news” gets millions of views per month. The fake news you should concern yourself with is what is being spread about your dealership. Just because you know the news is fake doesn't mean your potential customers do. A competitor or disgruntled employee can create a fictitious name, go to Google and write an online review telling people your dealership ripped him off. That scenario is rare. However, it’s not rare for actual customers to complain online about your dealership and leave out important details, such as how they missed payments for three months. The best lies – or fake news – to spread are those that contain some truth. Partial truths may be shared to start the communication, such as the online review that leads readers to trust what they consume before they get to the fake part. For example, a customer has had his car repossessed. He goes to your Google page and tells potential customers your dealership can't be trusted. He purchased a car and paid more than it was worth. When he was one day late on the payment he called the dealership to tell them the payment was on the way. The payment was late because he had to take his kid to the doctor – and then the
vehicle was repossessed from the hospital parking lot! What a big meanie you are. The truth: Someone at your dealership sold a vehicle to him at an agreed-on price – that, incidentally, he thought was fair at the time. He signed an agreement that the car would be repossessed if the payment was X days late. When the payment was one day late you spoke to him and told him to get his payment in by a certain date or you would be forced to repossess the vehicle. The customer did in fact purchase a vehicle from your dealership. Although it was at an agreed-on price, the stigma that used car dealers sell vehicles for more than they are worth is already out there. So the first two things the complaining customer said were true in the mind of the reader. That can – and does – lead whoever reads the negative online review to think the entire story is true. During a recent consulting call, a new client asked me how to stop getting negative reviews. It's a common question and worthy of a two-part answer. 1. L aunch a customer feedback and review system that encourages complaining customers to vent internally. There should be signage in the building and language in communications with customers alerting them where to go to share their feedback. Many customers who complain on Google or Facebook would use an internal system if there was one in place. If the dealership does not offer one, they complain publicly and leave out important details. We did a case study of one client who used our feedback and review system for their dealership. Out of 56 customer complaints, only two went public over a given time. 2. Saturate your dealership’s Google and Facebook pages with positive reviews. Having one or two negative reviews won't hurt as much if there are 150 positive reviews. Negative reviews will get buried by positive comments from happy customers. Fake news has been in the news so much lately because it can be highly detrimental to the country. It can also be highly detrimental to your business. You can choose to do something about it. Kenny Atcheson is the founder of Dealer Profit Pros and author of Marketing Battleground: How to Deploy Under-theRadar Strategies to Explode Your Profits. To learn more, visit www.DealerProfitPros.com.
ASSOCIATION NEWS
2017 NIADA & COX AUTOMOTIVE COMMUNITY SERVICE AWARD Nomination Deadline May 12
Nominations are now open for the 2017 NIADA & Cox Automotive Community Service Award, presented by Manheim. The deadline for submission is May 12.
12
Driveline / Spring 2017
NOMINATE YOUR DEALERSHIP TODAY AT
WWW.COXAUTOINC.COM/COMMUNITY-SERVICE-AWARD. Reward your favorite charity with $10,000. Nominate a deserving independent dealership that works to find innovative and meaningful ways to collaborate with community partners. The winning dealership will be recognized at the 2017 NIADA Convention and will receive $10,000 for their local charity of choice, courtesy of Manheim. Dealerships must be a current member of NIADA to qualify. Nominate your dealership today at www.coxautoinc.com/communityservice-award.
www.miada.us
SOCIAL MEDIA BY KATHI KRUSE
REASONS YOUR FACEBOOK PAGE IS FAILING Make It Work For You, Not Against You
Not all Facebook pages are created equal. It’s hard to ignore the opportunities available with Facebook to engage would-be customers, but building a highconverting Facebook page has been elusive for many dealers. It’s important to know the elements of a successful Facebook page and it’s even more crucial now to recognize the reasons your Facebook page is failing. Engaging customers on Facebook is challenging because it requires publishing the type of content they want to engage with. This means employing a content strategy that works for your store both culturally and operationally. In addition, Facebook ads promote your content, increase clicks to your website and, ultimately, turn fans into customers. Is achieving consistent engagement on Facebook a struggle for your store? Here’s a list of reasons why your Facebook page is failing with tips to make it work for you rather than against you. You Don’t Publish Regularly Consistency is a cornerstone of Facebook (or any other) marketing. Users need to see your posts in their newsfeeds for you to stay relevant. It’s a battle right now for attention, and inconsistency will kill you. Posting a few times per week or per month is not going to capture anyone’s attention. Post two to three times per day during the week and one to two times per day on the weekend. Your Page Lacks the Human Touch Facebook pages fail because posts focus on products instead of people. There’s a complete disconnect from the human side on most dealership Facebook pages. Content that demonstrates why people choose you seems to be nonexistent. If you approach Facebook with the sole mindset of “making money” you will end up wasting your time. Facebook is first and foremost a social network, not a business network. You’re Not Using the Three-Geared Content Approach Facebook is a powerful tool for engaging customers. The challenge lies in producing high quality, original content on a consistent basis. Use our three-geared approach to increase engagement: • Entertain. Most people who engage with your page are not immediately inmarket. The inability to engage this type of prospect is where many pages fail. • Educate. Fans who are thinking
14
Driveline / Spring 2017
about a purchase appreciate answers to their questions. • Excite. Offer something worthy of their time. Exciting offers compel people to click in anticipation. Your Posts Look and Feel Counterfeit Every dealership has a personality – characteristics, features, and traits – that makes it unique. Customers prefer dealers who communicate exactly who they are and the impact they want to have in their customers’ lives. Publishing benign content that can be found anywhere is the shortest distance to the bottom. This happens when dealers hire outside providers (and sometimes shady vendors) to “do social media” for them. The provider’s lack of personality comes through and it’s obvious someone other than you is doing the work. It’s not a good look for those who want to engage real people. Real people are behind your brand so let that shine through in your content. You’re Not Targeting In-Market Customers Facebook Ads’ deep data allows dealers to laser-target customers who are in-market. Building target audience profiles improves your Facebook marketing tenfold. • Determining the “buyer personas” of your core audience improves the way you solve problems for your customers. • Establishing customer pain points helps create content that’s useful to your prospects (and builds authority with search engines). • Useful, high quality content increases engagement and builds your social presence. • Website content (i.e. blog posts) published on Facebook and clicked through to your site increases search ranking. You Don’t Regularly Conduct a Facebook Page Audit Whether your social media marketing is in-house or outsourced, it’s difficult to know where the gaps are between your current successes and where you need to be. There are many ways to benefit from a social media audit. Given today’s accelerated rate of Facebook failures, a social media audit will help you engage more customers and achieve goals faster. You’re Ignoring Comments and Messages Facebook is a communication channel just like email and phone. Customer service via social media is a game changer, but if you don’t have a process to monitor, listen and respond to messages, you’re dead in the water. • 71 percent of consumers who experience positive social customer care are likely to recommend the brand to others, compared with just 19 percent of customers who do not get a response. • Today’s tech-savvy consumers want their online questions to be addressed
promptly – 42 percent expect a response within one hour. • 83 percent of respondents in a recent survey said they liked – or even loved – when a company responded to them on social. You Lack Clear Goals Highly-engaging Facebook pages start with clear, well-defined goals. At Kruse Control, we begin with an outline of four goals and then build out the specific strategies that help each client achieve them: 1. Attract. 2. Engage. 3. Convert. 4. Retain. You’re Not Leveraging the Power of Facebook Ads Facebook has become one of the most powerful platforms to engage customers and build business. Facebook pages fail because they either aren’t using Facebook Ads correctly or they’re not using Facebook Ads at all. No Facebook page will work without Facebook Ads. Why? Because you must pay Facebook to reach your target audience and deliver the right content to the right customer at the right time. No pay, no play. You’re Not Measuring and Analyzing Your Results Dealerships that don’t review their Facebook results are doomed to repeat their mistakes over and over again. Facebook Insights is your best friend. It provides all the metrics you need to judge how your page is doing. You can see which content got the most organic and paid interaction, what you did right, and what didn’t work so well. Analyzing results lets you deliver a better experience for fans, make better decisions on your content and determine if you’ve reached your goals. Next Steps... If you’re not getting the results you want, review your page using these tips. If your page doesn’t size up and you need help to improve, reach out to me (www. krusecontrolinc.com). We’ll work together to create social media strategies that work! Kathi Kruse is an automotive social media marketing expert, blogger, consultant, author, speaker and founder of Kruse Control Inc. Kruse Control coaches, trains & delivers webinars focused on integrating social media and online reputation management into dealership operations.
www.miada.us