What is the Opportunity for “SoLoMo” (Social. Local ...€¦ · forever. For example, 2012...

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What is the Opportunity for “SoLoMo” (Social. Local. Mobile.) to Improve the Automotive Customer Experience?

3 Smart Ways to Connect with Today’s Automotive Consumer

An Empathica Whitepaper

2

An Empathica Whitepaper: What is the Opportunity for “SoLoMo” (Social. Local. Mobile.) to Improve the Automotive Customer Experience?

Social. Local. Mobile. These are the new battlegrounds for providing relevancy to today’s consumers. More than ever before, consumers are becoming empowered by the use of new technologies. These technology-savvy consumers are changing the rules of commerce and shifting the balance of power in their favor when it comes to the relationships they have with brands and manufacturers. This trend is especially important for big ticket purchases such as automobiles.

Adoption of these technologies is expected to accelerate in coming years. A 2012 study by Neilson revealed that smartphones now account for almost 50% of mobile phone subscriptions in the U.S., which represented a 38% increase over the prior year. In fact eMarketer estimates that there will be 115.8 million smartphone users in the U.S. by the end of 2012, with that number growing to 176.3 million by 2015.

Not only are consumers becoming more mobile, but we are becoming more social as well. As the undisputed leader in the space, Facebook, recently published its current user base as in excess of 1 billion users globally.

Increasingly, consumers are turning to social media as their primary source for information on brands and products. Their next great dining experience, the hot new gadget, the next vehicle to transport the family — discussions on Twitter and Facebook are playing an increasingly influential role in the fate of retailers, auto dealers and brands. Consumer insights research conducted in 2012 by Empathica supports this trend with 72% of survey respondents indicating that information on Facebook had influenced purchasing decisions (see Figure 1). Even more importantly, half indicated having tried a brand because of a social media recommendation.

Social MediaRecommendations &Consumer Behavior Smartphone owners use their devices in

stores to check prices and more

Nearly 3-in-4 consumers (72%)use Facebook to make retail/

restaurant decisions.

Half of consumers havetried a new brand due toa social media recommendation.

Source: Empathica Consumer Insights Panel, Wave 1 2012

72%

Figure 1

“Discussions on Twitter and Facebook are playing an

increasingly influential role in the fate of retailers,

auto dealers and brands. ”

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In addition to this, when consumers are out shopping or walking a showroom floor they now have the power of the Internet in the palms of their hands with the latest smartphones. At their fingertips and in real-time, they can search for product ratings, reviews and more. Some mobile apps even provide price and discount comparisons. Add that to apps that are designed to generate local incentives or group discounts, and the experience consumers expect from brands has changed forever. For example, 2012 research by ComScore found that 43% of smartphone owners have used their mobile device while in a store for a shopping related reason. Although these consumers have newfound expectations of the experience they receive, some things remain the same. Despite these new expectations, they are still loyal to their favorite brands. However, how these brands earn and keep that loyalty must change.

The key ingredient with social, local and mobile consumers is personalization. Technology has groomed consumers to expect a personalized experience from their interactions with the brands they frequent. Unfortunately, in the eyes of these same consumers many brands are falling short of this expectation with 2 in 5 Empathica Consumer Insights Panel respondents indicating they did not feel as though their shopping experiences are being personalized. Furthermore, according to a CMO Council 2012 report entitled “The Leaders in Loyalty: Feeling the Love from the Loyalty Clubs,” 54% of U.S. and Canadian consumers would consider ending their loyalty relationships if they were not given tailor-made, relevant content and offers (see Figure 2).

Where market researchers used to talk about demographics in general terms (e.g. “males 18–35”) today’s consumers see themselves as a demographic of one (i.e. “me”) and expect to receive customer experiences that reflect that. While this creates a shift in how brands must do business, the technologies available today makes this transition more realistic. Smartphones, social media, near field communications (NFC), the rise of “big data,” all these new technologies can act as the building blocks to highly personalized consumer experiences.

Consumers want their brand interactions to be through the channels they prefer and with the tools they use. This applies to everything from the mechanisms they use to pay for purchases (e.g. Near Field Communications (NFC) devices versus cash and credit or debit cards) to the activities that earn loyalty points (check-ins versus purchases) to the loyalty rewards they get (highly personalized versus generic discounts), and to how they give feedback to the brands they frequent (increasingly via mobile devices).

Figure 2

“The bottom line with social, local and mobile consumers

is personalization. ”

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The Challenge of Silos

While many automotive brands are trying to better connect the dots across all these points of interaction, very few are succeeding in doing so. One reason for this is the silos that often result from building multiple channels to serve the customer. A web team managing the corporate website, separate from the marketing department, separate from operations managing dealer experiences for example all focus on different types of interfaces (see Figure 3).

To effectively adapt to social, local and mobile consumers, automotive brands need to provide them with a seamless and consistent experience across all these channels. In particular, the experiences that they deliver within their dealerships must be consistent with the quality of the experiences of the other channels AND reflect consumers’ values and expectations.

Local dealers are where the most important experiences will always happen. Consumers will rarely purchase a vehicle sight unseen, and usually expect a lot of hands on research – from test drives to visual inspections – before making a final purchase decision. It is because of this that dealerships should also be the focal point of any effective customer experience management (CEM) program. These dealer level programs can serve as an ideal starting point for delivering increasingly personalized experiences to SoLoMo consumers.

Figure 3

“The experiences that they deliver within their

dealerships must be consistent with the quality

of the experiences of the other channels AND reflect

consumers’ values and expectations.”

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3 Ways to Connect with the Modern Consumer

Bringing these consumer and technology trends together starts with a three step plan:

1. Unlock the power of smartphones Self-service solutions that support dealer operations, including scheduling test drives and vehicle servicing; streamlined self-checkout, and post-experience communications to stay connected with potential buyers are just some of the ways that smartphones can improve the customer experience.

By putting mobile solutions in the hands of front line staff and managers, dealerships can cultivate more informed and personalized interactions with their customers. Mobilizing the workforce can allow automotive brands to create a more personal connection with consumers, thereby setting the tone to convert them into valuable brand advocates. Mobile solutions can also free managers from back rooms, so they can focus on what they do best — service customers and coach their staff on how to deliver an experience that “WOWs.”

For consumers, smartphones have become their preferred channel for interacting with each other. It makes sense then, that when given the option they will also choose to interact with their favorite brands in the same way. Consumers are showing a real desire to use this new found channel to connect with the brands they frequent — 37% of Empathica Consumer Insights Panel respondents indicated having visited a brand’s website through a mobile phone (see Figure 4).

Allowing them to provide feedback and share positive experiences through social media on their smartphone devices is a simple way to reinforce and increase the level of engagement that brands have with their most loyal customers. Ensuring that customer experience programs take these devices into account can be a simple update that can yield a tremendous return.

Figure 4

“For consumers, smartphones have become their preferred channel for interacting with

each other. ”

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2. Start engaging with customers to capture feedback in the momentThe key for automotive brands, dealerships and even automotive ad agencies of record today is to connect with customers more regularly in an easy and meaningful way. One new technology that has emerged to make this easier is the QR code. They offer brands the potential to connect with customers in a real-time and immediate fashion.

QR codes are an extension of the online world into the physical world. The early usage of QR codes was as a tool to enhance the information available through advertising. For example, “Scan a QR code to get more information on a product by visiting the product website on your phone.”

In some ways QR codes are still at the “banner ad” stage of evolution. Consumers typically expect the following workflow, see Figure 5 below:

The next stage of the evolution of the QR code will be their increasing usage as a tool to promote ongoing collaboration between consumers and brands (or what is known as “brand co-creation”). Some forward-thinking brands are already doing this by incorporating QR codes into their existing CEM programs. By implementing this subtle yet profound enhancement to the customer feedback process, it sets the tone for the brand as forward-thinking and in tune with consumer technology preferences.

In addition, by incorporating customer feedback or the opportunity to rate and review a product or service into the process, QR codes can evolve from being a one way marketing channel to a collaborative two way interaction. As illustrated by Figure 6, QR code usage is now about starting interactions and creating a dialogue with consumers.

Respondto Offer

Receive MoreInformation

See a QRIncentive

Figure 5

“The next stage of the evolution of the QR code will be their increasing usage as a tool to promote ongoing

collaboration between consumers and brands...”

Respondto Offer

Figure 6

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This allows brands to better connect with consumers through more detailed feedback, enhancing their current feedback efforts. QR codes also present an opportunity to connect with consumers before the point of sale — whereas most feedback occurs after that point. QR code posters can be placed in showroom floors, and service area waiting rooms to grab feedback during multiple steps of the customer journey (see Figure 7). It is also a great way to see what other vehicles they are considering. In doing so, brands can better engage with both their current customers and even potential future customers.

YOU COULD WIN!!!!Receive 10 CHANCES to

WIN $1,000 CASH DAILYPLUS you could INSTANTLY WIN

OTHER GREAT PRIZES VALUED at

$1,500 WEEKLYby providing your review atwww.dealerfeedback.com

OR

Text “Text Auto” to 00000for a link to the survey

Receive 1 chance to win $1,000daily by calling 1-877-555-9091

For complete rules, eligibility, Sweepstakes period andPREVIOUS WINNERS please visit www.dealerfeedback.com.

No purchase/survey required to enter. Sweepstakes sponsoredby Empathica Inc. across multiple clients.

***KEEP THIS RECEIPT TO ENTER***Must be legal age to enter. Void where pohibited. Please

visit www.mydealerfeedback.com fo PREVIOUS WINNERSand complete sweepstakes details. Please respond within 10

days of receiving this invitation.

YOU COULD WIN!!!!Receive 10 CHANCES to

WIN $1,000 CASH DAILYPLUS you could INSTANTLY WIN

OTHER GREAT PRIZES VALUED at

$1,500 WEEKLYby providing your review at

www.TangerineSportCares.comOR

Text “Tangerine” to 90211for a link to the survey

Receive 1 chance to win $1,000daily by calling 1-877-555-9091

For complete rules, eligibility, Sweepstakes period andPREVIOUS WINNERS please visit www.mydealerfeedback.com.No purchase/survey required to enter. Sweepstakes sponsored

by Empathica Inc. across multiple clients.

***KEEP THIS RECEIPT TO ENTER***Must be legal age to enter. Void where pohibited. Please

visit www.mydealerfeedback.com fo PREVIOUS WINNERSand complete sweepstakes details. Please respond within 10

days of receiving this invitation.

Please answer the following question:

Overall, I was satised with myexperience at the dealership today.

Strongly Disagree

Disagree

Neither Agree norDisagree

AgreeStrongly Agree

Question 2

Please enter your invitation referencenumber so that we can ensure thatyour feedback reaches ourrestaurant managers:

Please enter the date of your visit:

ENTER

Day (DD) Month (MM) Year (YYYY)

1656

One of our team members thatproudly worked on your vehicle

in a DAILY DRAW!

Visitwww.dealerfeedback.comfor 10 CHANCES to WIN

Enter the 4-digit codebelow when prompted

See reverse for instructions.

0000

Figure 7

How it Works

“QR codes also present an opportunity to connect with consumers before the point

of sale ...”

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3. Drive local action through social media advocacyAutomotive brands and dealerships today have an opportunity to change the way they approach how they market to and engage with customers — provided they are adequately prepared to do so!

According to a Neilson Global Trust in Advertising Survey Report issued in 2012, “92% of consumers around the world say they trust earned media, such as word of mouth and recommendations from friends and family, above all other forms of advertising.” See Figure 8.

The old model of marketing to new customers was a war of attrition. Target a very large group of people and whittle away through a qualification funnel until you get to the right ones. Whether that ended up being 1% or 10% of the original pool, was always a bit of a gamble. This practice was both very time consuming and also very expensive.

There is a hidden opportunity for brands that has always existed, but has yet to be fully taken advantage of. Most brands have a silent majority of happy customers.

“Most brands have a silent majority of happy

customers. In fact, having conducted hundreds of

millions of customer surveys at Empathica, we’ve found

that over 80% of respondents indicate that they had a high level of satisfaction with the

brands and stores they frequent. ”

Recommendations from people I know

Consumer opinions posted online

Editorial content such as newspaper articles

Branded Websites

Emails I signed up for

Ads on TV

Brand sponsorships

Ads in magazines

Billboards and other outdoor advertising

Ads in newspapers

Ads on radio

Ads before movies

TV program product placements

Ads served in search engine results

Online video ads

Ads on social networks

Online banner ads

Display ads on mobile devices

Text ads on mobile phones

Trust Completely/ Somewhat

Global Average

Source: Nielsen Global Trust in Advertising Survey, Q3 2011

Don’t Trust Much/ At All

92%

70%

58%

58%

50%

47%

47%

47%

47%

46%

42%

41%

40%

40%

36%

36%

33%

33%

29%

8%

30%

42%

42%

50%

53%

53%

53%

53%

54%

58%

59%

60%

60%

64%

64%

67%

67%

71%

Figure 8

To what extent do you trust the following forms of advertising?

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In fact, having conducted hundreds of millions of customer surveys at Empathica, we’ve found that over 80% of respondents indicate that they had a high level of satisfaction with the brands and stores they frequent. In addition, the majority of these customers is also open to sharing these stories, and indicates a high intent to recommend to their friends (see Figure 9).

1.Find Satisfied

Customers

2.Convert

Customers to Advocates

3.Amplify the

Voice of Your Advocates

Would you like to recommend our dealership to friends

via FACEBOOK®, Twitter or email?

You’ll also receive 10 additional CHANCES to

in our daily draw!

Would you like to recommend our dealership to friends

via FACEBOOK®, Twitter or email?

You’ll also receive 10 additional CHANCES to

in our daily draw!

Thinking about automotive service that you receive, please rate out dealership on the following statements:

Overall, I was satisfied with the assistance provided by the service team.

My service concerns were addressed on the first visit.

I was provided with a omplete explanation of the charges.

I was kept informed throughout the day on the status of my vehicle.

Concidering the repair, my wait time was acceptable.

The service advisor quickly understood my problem.

I was able to drop off my vehicle and get on my way quickly.

It was easy to get an appointment for my vehicle to be serviced.

I felt like I could trust the service team to take care of my vehicle.

StronglyDisagree

StronglyAgreeDisagree

NeitherAgree NorDisagree

Agree

The rep was very knowledgeable and friendly. He answered all my questions and made some great suggestions.

Click on the image or my recommendation to get a discount on your next oil change.

I recommend Chemere's Auto at Argentia and Hwy 401.

Julia Staffen

Figure 9

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Building great word of mouth to drive brand growth and local advocacy is simply a matter of connecting the dots between those happy customers, their social networks and their friends and followers. What better way to move beyond generic unbranded marketing messages than highly personalized word of mouth delivered through personal networks from trusted friends?

Everything Old is New Again

In a sense, for savvy brands to keep up with changing consumer demands they need to simply continue doing what they’ve always done — deliver great experiences that consumers will remember and tell their friends about. Today the opportunity is to do so while incorporating the new technologies that have become an integral part of allof our lives. Social, local and mobile consumers may have access to new ways to communicate and new expectations, but ultimately they still want to be loyal to their favorite brands, and share great experiences with their social circles.

Watch this two minute video to get a quick overview on active advocacy for your automotive business.

www.empathica.com/auto-video

About Empathica

Empathica is the leading provider of social Customer Experience Management (CEM) programs to the world’s most respected multi-unit brands in the retail, food services, banking, petro and hospitality sectors. Its rich analysis of survey data using state-of-the-art surveying and dashboard reporting software allows for performance-improvement solutions, evidence-based marketing insights, and customer experience management consulting.

Annually, Empathica’s 30 million customer surveys in 25 languages reach more than 70,000 locations in over 50 countries. A privately-held organization, Empathica is headquartered in Toronto, Canada with executive consultant offices throughout the United States and a European office in Birmingham, England.

www.empathica.com© 2012 All rights Reserved | EMP-NA-0022-092012

Any third party product names, logos, brands, and other trademarks featured or referred to in this document are the property of their respective trademark holders.

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