Social Media and the Automotive Purchase Cycle Jan 2012Key takeouts

Social Media in the Car Buying Process

The Rise of Loyalty, Advocacy and Influence

(c) Dealer Dot Com, Inc

•27% use Facebook as a resource•38% use social media to research purchase

BRAND: •58% posted a comment about their new vehicle•24% ‘liked’ the brandDEALER:•34% posted a comment about the dealership•24% ‘liked’ the dealership

65% said that a favourable post from a friend would positively impact opinionBRAND:•41% saw a post that caused them to add a brand or model to their consideration list•6% saw a post that removed a brand/model from their listDEALER:•28% saw a post and added a dealership to consideration•3% saw a post that removed a dealership from consideration

Influence is increasingly coming from other consumers

IBM Global Business Services, “From Social Media to Social CRM: Reinventing the Customer Relationships” Feb 2011

“45% of consumers ask friends or family for recommendations”

Trust, transparency and accuracy are critical

Edelman Trust Barometer, 2011

“97% buy products from those they trust”

“90% don’t buy products from those they don’t trust”

Positive posts outweigh negative significantly

“Of those that commented about a vehicle or dealership, only 5% of posts were mostly negative”

The Rise of Loyalty, Advocacy and Influence

(c) Dealer Dot Com, Inc

“34% mentioned the dealership”

Consumer Reasons for Visiting a Retailer Facebook Page

Keep up to date on sales and promotions

Learn more about a retailer

Appears in news feed/friend likes

Communicate retailer preference

Connect with others liking retailer

56%

29%

26%

14%

14%

Complete Online Shopper Intelligence, Q1 2011 (survey of 3,269 online purchasers)

Facebook Resources used

Advice from friends/family on brands or models

Manufacturers Facebook Page

Dealership's Facebook Page

Consumer Reviews or blog postings

Advice from friends/family on dealerships

59%

56%

53%

53%

38%

The Rise of Loyalty, Advocacy and Influence

(c) Dealer Dot Com, Inc

Asking prospects or customers to follow/like you

75%

Were you asked to “like”?

Did you follow through and “like” as requested?

82% YES