Though social media sites like Facebook have sparked quite a buzz in the industry, with dealership business pages popping up all over the Web, this particular digital tool may not be helping rooftop’s as much as they think, according to a recent study by AutoTrader.com.

The site explained that it conducted the survey that studied how consumers use social media to increase understanding among new and used-car dealers.

“Social media sites like Facebook have a lot of buzz in the industry. We wanted to better understand the role of Facebook in the shopping process so we could better advise our dealers on the use of Facebook and other social media tools in their overall marketing programs,” Jeff Perkins, director of customer marketing at AutoTrader.com told Auto Remarketing.

And according to the study results, only 7 percent of used-car buyers use Facebook to shop for a car, and 14 percent of new-car buyers use the site while in the market for a vehicle.

“While Facebook benefits from a broad reach into the marketplace, the critical question is whether or not car shoppers are actually using Facebook to make decisions about what car to buy and who to buy it from," Perkins asserted

"The answer to that question is ‘few’ – with only 7 percent of used and 14 percent of new buyers online claiming to have used Facebook in any way related to their car shopping process. So, while there are probably a lot of car shoppers on Facebook, our research shows that they are not using Facebook to shop,” he continued.

Perkins also discussed with Auto Remarketing why these numbers are so low.

“So, why aren’t people using Facebook to shop?  Well, that’s not what Facebook is designed for.  The site is designed to help people connect with friends and relatives. It’s really not conducive to commerce.  That’s why there are so few examples of companies in any industry that have had success selling products on Facebook,” Perkins further stressed.
 
“Our survey showed that buyers don’t think of Facebook as a place to help them shop for their next vehicle purchase.  One survey respondent actually said, ‘Not sure how or why Facebook would help with a vehicle purchase,’ and there are many more verbatim responses from the survey to that effect,” he continued.

A Strategy for Dealers

And while Facebook may not be where consumers think to go to shop or research vehicles, Perkins insists that dealers still need to have a strategy when it comes to the social media site.

“There are benefits for dealers in having a Facebook page, such as for reputation management, search engine optimization and staying connected with buyers post-purchase,” Perkins said, stressing what the site can do to help a rooftop.

“In this way, Facebook can definitely serve as an extension of their online dealership identity,” he added.

He also offered dealers what he calls three “key” points they should consider before launching a Facebook page.

—“Define the strategy. Facebook itself isn’t a strategy, so dealers need to have an idea of what they want to accomplish with the page. Is it a place for service offers? A place to share news and information? Whatever the purpose, dealers should be cognizant of delivering an experience through their Facebook page that is consistent with their overall brand identity.  For example, a luxury dealership that has a reputation for providing an upscale shopping experience should maintain that tonality on their Facebook page.” 

—“Appoint someone to be responsible for the page. It doesn’t take a person with a background in marketing to effectively use the tool, but there does need to be someone on point who is actively managing the page, creating posts and engaging with users.”

—“Create rules around what content to post and who is going to do the posting. Dealerships should try different types of posts and use the reporting tools inside Facebook to see what types of content get more people engaged.”

Which Online Tool Comes First?

AutoTrader.com also stressed that while social media can be a helpful tool, dealerships should focus the majority of their digital marketing efforts on the online tools that “generate” the most sales.

“Because the majority of car shoppers are online, dealers should take every aspect of their online presence seriously – from their presence on their own dealership websites and third-party sites like AutoTrader.com to their presence on Google and in social media," Perkins said.

“The main question, however, is the degree of effort behind each. The greatest effort should go behind the sources that can generate sales for the dealership. We know from our research that many buyers visit third-party sites like AutoTrader.com, OEM sites and the dealer’s own website prior to purchase, so dealers should focus the majority of their efforts optimizing their website and third-party presence with photos, video, comments and other merchandising tools that create a comprehensive virtual shopping experience,” he continued.

But social media should not be ignored, even if few consumers visit a dealership Facebook page, those potential customers should have a “good social experience”, AutoTrader.com surmised.

“Then (after focusing on third-party sites and dealership websites), dealers should focus on improving their presence in social media sites. For the small amount of people who do visit a dealer’s Facebook page, it’s important that they have a good social experience. But that’s just not a medium that will generate many sales for a dealership and should be treated accordingly,” Perkins concluded.

What Are Customers Looking For on Facebook

AutoTrader.com also discussed what really makes a dealership Facebook post truly relevant  to customers, noting that there is no post that will speak to everyone.

“That really depends on the consumer; there’s not one kind of post that is going to be relevant to everyone,” Perkins further stressed.

“We believe that posts that are more focused on selling a product or service will likely be less successful (and could turn people off) than posts that try to engage fans in a conversation or that connect the dealer to the community,” he continued.

AutoTrader also stressed that Facebook posts that focus on sales can, in fact, turn a customer off to a dealership, but things like photos and conversational posts can increase dealer/customer connection.

“We have seen many dealers post pictures of their satisfied customers after they purchase a car.  This is a nice way to engage current customers and keep them connected to the dealership after the purchase.  We’re big supporters of trying out new things in the social space, testing them and learning from them,” Perkins added.

And though the site explained that Facebook posts should be conversational, what exactly customers are looking for in a Facebook page remains unclear.

“That’s hard to say because a very small percentage — 8 percent of new online buyers and 3 percent of used online buyers — actually visit a dealer’s Facebook page prior to purchase,” Perkins explained.

“Through this survey in particular, we observed a greater number of buyers using Facebook after purchase than those using it before purchase, so content that encourages repeat business, such as service coupons/specials, could be relevant,” he added.

Will this Trend Change?

Though not many shoppers are utilizing Facebook for vehicle purchase research, will this trend change in the future?

According to AutoTrader.com, Facebook will remain a reputation management tool, at least for the time being.

“The primary activities in the car shopping process, such as deciding what car to buy and which dealership to buy it from, will probably not transfer over to Facebook anytime soon. Commerce on Facebook is unproven, and the tools aren’t conducive to the automotive shopping process in the way that third-party sites like AutoTrader.com are,” said Perkins.

“We do believe social sites will continue to be a big part of the overall online experience, particularly in regards to reputation management. But as far as being a valuable resource in answering the big questions for shoppers, we don’t feel that that’s going to be a strength of social media,” he continued.

But Perkins also stressed it is by no means a waste of time or energy for dealers to utilize Facebook.

“No – it’s not a waste of time. We believe that it’s wise to experiment with social media as long as the investment is minimal and the results allow for learning/optimization,” Perkins asserted.

“At AutoTrader.com, we have a Facebook page that we continue to expand and grow and learn from; dealers should do the same to find out what’s right for them,” he also noted, touching on strategies his own company utilizes.

And the benefits of using Facebook as a reputation management tool should be not be ignored, as well.

“There’s also the reputation management side of social media that dealers shouldn’t ignore, as that’s an important part of a dealer’s overall online presence. Dealers should be engaging where people are being social online, but they should keep everything in perspective and understand how shoppers are — or are not — using the available tools,” Perkins concluded.

What Dealerships Can Take Away

And lastly, AutoTrader.com touched on what it wanted dealers to be able to take away from these survey results and how their businesses  could potentially benefit from this study.

The site started by explaining that the study should help rooftops define where they should put most of their digital marketing time and efforts.

“Places where consumers are actively seeking and engaging with inventory and listings — such as on third-party sites and their own dealership websites — are where dealers should put more focus,” Perkins said.

“Shoppers are more likely to engage with these sources ahead of Facebook during the shopping process. Facebook is a good complement, but if it becomes a distraction from doing the other work, dealers should refocus resources where they’re reaching the most shoppers,” he continued.

And the site also provided statistics to back this assertion up.

According to  AutoTrader.com, 55 percent of new buyers and 54 percent of used buyers visit three or more dealership websites prior to purchase, making this space a crucial element of a dealers’ marketing strategy.

Moreover, among used buyers surveyed in the site’s study, 31 percent indicate 3rd party websites are most useful resource, and 21 percent indicate dealer websites as most useful. And 18 percent indicate search as most useful, according to the study.