Automotive News Canada - June 2023 - 8

8
* JUNE 2023
The strategy to turn social into sales
A Steele Auto Group
dealership in Nova Scotia
joins with a marketing firm
to produce online content
for high conversion
rates at a low cost
By DOUG FIRBY
CALGARY CORRESPONDENT
FACEBOOK, SNAPCHAT, INSTAGRAM,
TikTok, Pinterest ... it seems as if the list
of must-do social media keeps growing
for dealerships, which must scramble to
keep up with diverse, and at times fickle,
buyer interests.
A General Motors dealership in
Dartmouth, N.S., has found a way to tame
the social media
beast, however,
with tactics
that drive sales
and service. But
it didn't do it
alone.
BEST PRACTICES
SPOTLIGHT
Steele Chevrolet-Buick-GMC-Cadillac
contracted with Dealers United, a U.S.based
social media automotive marketing
firm, to develop and execute a strategy
employing the most popular platforms.
With
Dealers United's help, Steele
brings buyers into a journey that leads
to not only a successful sale but also a
service relationship that reaches well
beyond the day of delivery, say both the
social media company and the dealership's
general manager.
" Facebook is a tool. It's not going to
do it [make the sale] for you, " said Colin
Jamieson, general manager of the dealership.
" It's how you utilize the tool. "
The experiment with the Steele store
was so successful that Dealers United,
which formally entered Canada last fall,
is using the results to promote its product.
SO
GOOD, IS IT BROKEN?
The case study ran from Jan. 1 to
March 1. In that period, there were 602
leads from meta ads (paid messages writThe
success of the Steele Chevrolet-Buick-GMC-Cadillac experiment led marketing company Dealers United to use the results
to promote its services.
The success of the Steele Chevrolet-Buick-GMC-Cadillac experiment led marketing company Dealers United to use the results
to promote its services. SUPPLIED PHOTO
Many dealerships are
not doing social
media well. ... It's not
easy. It's a lot of work
to do it correctly. "
Brooke Jensen
Vice-president of marketing,
Dealers United, Dealers United
ten in the voice of a business) and 90 unit
sales matched to the leads. That's a conversion
rate of 14.95 per cent and a cost
per unit sold of $77.78. A typical advertising
cost per unit sold is about $300, said
Brooke Jensen, vice-president of marketing
for Dealers United.
" It's crazy, " Jensen said. " When we ran
this metric, we thought something was
broken. "
Dealers United takes an omnichannel
approach to advertising based on social
media, said Molly Dennehy, the company's
brand manager. Instead of focusing
on just one social medium, such as
Facebook, the company custom tailors
posts to each platform.
" Facebook is still King Kong [in terms
of reach], but we are seeing great results "
on other social media, Dennehy said.
Every social platform appeals to users
in different ways, Jensen said. Facebook
and Instagram are typically used to catch
up with acquaintances, TikTok is for
entertainment, and Snapchat facilitates
more intimate interactions with close
friends.
While Dealers United's research found
that seven in 10 buyers are influenced by
social media, users are " nomadic " in that
they jump from one platform to another
depending on their interests at the
moment, she said.
" Many dealerships are not doing social
media well " and failing to reach the
potential audience, she said.
" It's not easy. It's a lot of work to do it
correctly. "
LET'S EXPERIMENT
Steele Chevrolet-Buick-GMC-Cadillac's
social media content is tailored to the
platform. On Facebook, posts feature
new products, price discounts and
dealership news. SUPPLIED PHOTO
The Steele store's relationship with
Dealers United began about five years
ago. Chris Beaton, then the dealership's
sales manager, heard of the company
and pitched the idea of working with it.
Beaton has since been promoted to general
manager of Halifax Chrysler-Dodge,
also owned by Dartmouth-based Steele
Auto Group, which has 51 dealerships in
Atlantic Canada and eight in Texas.
Senior group management was willing
to let the dealership experiment,
Jamieson said. The team at Steele
Chevrolet-Buick-GMC-Cadillac confers
regularly with Dealers United, brainstorming
ideas for social media campaigns.
" They
do a good job with content creation, "
Jamieson said.
Facebook posts feature new products,
price discounts and dealership news,
such as one recent video in which a
sales associate talks
about delivering the
first 2023 Chevrolet
Colorado pickup to a
customer.
Jensen: Every
social platform
appeals to users
in different
ways.
SUPPLIED PHOTO
The posts' topics
run the gamut. Brand
awareness ads show
shoppers what sets
the dealership apart
from the competition.
Ready-to-buy ads
promote available
inventory, create
excitement for the latest
model lines and
explain incentives.
Conversion/lead
ads pair the dealership's inventory ads
with calls to action, such as submitting a
form on Facebook to schedule a test drive.
The Steele Chevrolet team does " matchback "
reports to determine how many
buyers were sourced from one of the
social media contacts. It is hard to be
certain where each lead is generated,
Jamieson said, but it appears Dealers
United's social media posts have a " shockingly
high conversion rate. "
SALES SUCCESS
Sales, also boosted by easing supply
chains, are increasing. The dealership is
on track to sell 2,500 new and used vehicles
this year, said Jamieson, compared
with 2,000 in 2022,
before the Dealers
United test case.
Steele executives
have taken notice
and plan to introduce
Dealers United's tools
at its other stores,
Jamieson said.
The insights from
the campaigns " allow
you to be a lot more
granular, " Jamieson
said.
To ensure successful
use of the tool, he
said, the dealership
constantly refreshes
the information
and customer data
it sends to Dealers
Dennehy:
Facebook is the
" King Kong "
of social media
impact, but
other platforms
can deliver for
dealers.
SUPPLIED PHOTO
United. Sales staff meet with the company's
representatives weekly to review
ads and discuss what is working and
what isn't.
As traditional media advertising
declines, " dealers are receptive to
the next thing, " said Dealers United's
Dennehy.
" We need to make sure the platform is
built for the dealership. " - ANC
Jamieson: Facebook is just a tool, and dealerships are responsible for using that
tool to sell vehicles. SUPPLIED PHOTO

Automotive News Canada - June 2023

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