Last week I drove the 90 miles from Cincinnati to Lexington, Kentucky, to present Marketing with Meaning to the local Ad Club. The lunch-and-learn session drew about 60 people in all.
During the Q&A session after my speech, one of the people in the audience asked me how her company, a local BMW dealer, might better use social media. I answered her on the fly but wanted to explore the question here as a way to show how to start strategically, rather than jumping on the bandwagon of what’s hot today.
For the exercise I’ll use a simplified version of the step-by-step model that comprises Part Two of my upcoming book. Let’s assume that the BMW dealer has a gut instinct and interest in social media but is looking to test the rationale and do it the right way. Also let me make it clear that I have never had a car dealership as a client and did not conduct extensive research solely for this blog post. So please take this as a guts-and-opinions strategy.
Step 1: Setting Business Objectives
A local BMW dealership could choose from many key business drivers across the purchase funnel, from Awareness to Consideration to Purchase to Repeat business. Let’s leave Awareness and Consideration out of the picture, as I believe most people who arrive at the dealership already have narrowed down their choices based on national marketing from BMW and word of mouth from friends. I also believe it’s difficult to focus on the point of purchase at the dealer level, as people increasingly come armed with facts and look at the dealer conversation as if they are entering a battle. I believe improving Repeat is probably the single biggest business opportunity for a BMW car dealership. People are increasingly drawn to lease deals, which means they are shopping for a new car in less than three years after purchase. For buyers, there is also a large opportunity to benefit from revenue through maintenance and aftermarket add-ons. Let’s classify all of this as Repeat revenue and focus our efforts here.
Step 2: Uncovering the Insight
Here we work to understand the question of why people do or do not return to their previous dealership when it is time to buy a new car. In theory, people should almost always go back to their last salesperson; after all, each car brand increasingly has a wide variety of models and prices, and many dealerships sell multiple car brands. I believe one of the reasons this is more rare than expected is that car buyers often suffer from buyer’s remorse. In such a large purchase, which is intense and stressful, they tend to feel like they didn’t get the best deal after the sale was done. High-pressure tactics by sales and finance people don’t help, of course.
Based on my personal experience, this could be solved if salespeople could develop personal relationships with their customers. Salespeople of big-ticket items such as luxury cars should treat each completed sale like the start of the next sale, and work to cultivate a personal connection that will last for years. There is nothing as powerful as relationships in life. They create trust, loyalty, and mutual benefit. In the agency business, we have a saying: “Clients don’t fire their friends.” What that means is that if you have a good relationship with your client, they will feel more comfortable giving you the feedback you need to improve when they are unhappy, rather than picking up the phone and ending the relationship. The same goes for cars, thus our key insight: Personal relationships with the salesperson are the key to Repeat.
Step 3: Developing Meaningful Ideas
It is certainly not a new approach for salespeople to try to build personal relationships with their customers. I remember a salesperson at Macy’s who used to call me when there was a sale on suits at her store, for example. But developing relationships can be difficult. They are long-term investments at a time when short-term sales pressure is always high. Writing letters and making phone calls to each individual contact also can be extremely time-consuming, and when done tend to be focused on making the next sale. Personal relationships need some space to talk weather, sports, and family.
But new technology is allowing people to build stronger relationships with more people. This is where Facebook can play a huge role. The tool helps people create, maintain, and strengthen personal relationships. We can log in at any time and see what our broad network of connections is doing, and with a few clicks and words we can “touch” them and strengthen the bonds. And in the business world, Facebook is helping people share a little bit about who they are and how they tick. By understanding who we are as people, versus just clients or sales guys, we become closer.
So my suggestion is for car dealerships to encourage their salespeople to become active on Facebook and use it to build personal relationships with their customers. At the close of each sale, the salesperson should ask the customer to connect on Facebook. The pitch should be that it is a great way to keep in contact and allow for follow-up service questions. Once connected, the salesperson should use the service to “touch” the customer every few weeks. This doesn’t mean continually pitching the weekly oil-change special, but rather even adding things such as a quick comment on an uploaded photo, or a line that reads, “Did you get to drive your 5 Series in the great weather this weekend?” Not every customer will be on the service yet, which is actually a good thing to allow for some time to become comfortable and efficient.
Step 4: Measuring Meaning and Business Results
I believe that marketing should be measured both for its impact on customers’ lives as well as the bottom line. In terms of measuring meaning, this idea would be successful if customers are accepting salespeople as Facebook friends and responding positively to the “touches” that are made. Any outreach from customer to salesperson is a big win, as are referrals from customers’ friends. These are all numbers that can be clearly observed, tracked, and compared across individuals.
Business impact is simple to measure because we focused on a single core score, Repeat revenue, and because individual customer names are known and tracked. The dealership owner can track the specific number of maintenance appointments, follow-up sale rates, number of cars per household, and the overall price of each car.
Conclusion
I believe social media is an incredible tool that marketers are just now barely understanding and applying. One of the biggest barriers is the pressure to “go do something on Facebook or Twitter.” My hope for this post and the upcoming book is that you see how a strong business objective and insight can help your brand understand the opportunities for social media, and the right way to execute ideas and measure results.



