How will Facebook help me with sales? Does social networking really make a difference when it comes to customer/dealer relationships? How can I best engage customers through posts?

As many dealers continue to ask similar questions amid Facebook gaining more and more popularity among vehicle shoppers, digital solutions company Jumpstart Automotive Group aims to address some of these concerns.

Offering a few tips, including how to utilize Facebook for branding purposes, the company recently outlined some advice to help “auto advertisers best maximize their marketing investments, to increase awareness on Facebook and ultimately sell more cars through social media and beyond,” officials explained.

“Engaged, in-market shoppers are looking for detailed vehicle specs, accurate pricing and the ability to compare vehicles,” they added.

Commenting on one of the more newsworthy Facebook developments this year, Jumpstart chief executive officer Nick Matarazzo touched on General Motors’ approach to paid Facebook advertising.

“First, its announcement in May to end roughly $10 million in yearly paid Facebook ads, and its recent discussions to buy ads on Facebook once again — has left marketers confused,” Matarazzo added.

“When a company like GM pulls paid Facebook ads, people wonder if it’s smart marketing or a marketing mishap,” he continued. “Facebook and other social media channels can be excellent advertising opportunities but behemoth traffic shouldn’t be the only consideration for an ad buy.”

Aaron Nichols, vice president of local sales & strategy at Jumpstart also offered his take, noting, “Like a lot of people in the industry, I think it made dealers wonder what type of presence they should have on Facebook and whether or not there’s measurable ROI there. 

“But you can be successful on Facebook without making an advertising investment. A dealer’s free Facebook page is an excellent channel for connecting and communicating with customers if it’s done right,” he continued.

That said, Matarazzo added, to be successful in Facebook advertising, “there are simple guidelines advertisers should follow to ensure they’re getting the biggest bang for their marketing buck.”

Focus on ‘Free’

Beginning his commentary, Matarazzo first stressed that dealers and advertisers should be “active in free presence and passive in paid,” at least until “improvements” are made.

Though paid Facebook advertising has the potential to push sales growth, Matarazzo cautions that since there are limited ways to measure ad performance, dealers may be better off enhancing their “free page presence with content that bolsters user engagement while maintaining a more passive presence in paid ad investments.”

He noted: “Studies show the benefits of paid social media advertising, like that on Facebook, are still not completely understood. Users are there primarily for socializing, which has made paid ads generally ineffective for directly influencing vehicle purchases or driving leads.”

Nichols agreed, stressing that dealers should be careful to not focus solely on social media, but take an integrative approach to advertising: “I wouldn’t necessarily say they should be wary, but I think they’d be more successful focusing on optimizing their free page content to engage with users on Facebook.

“Beyond that, many dealers pass up proven and effective methods of reaching car buyers, like in-market display ads, in favor of ‘shiny new toys’ like social media sites. It’s not about reaching many people, it’s about reaching as many of the right people as possible. An expert marketing partner can help dealers understand how to reach the right people with an integrated campaign that covers all the bases — advertising, social media, etc. — one that hits the target with measurable results,” he continued.

And when putting the emphasis on free business pages on the social media site, what should dealers focus on?

Matarazzo says that sharing “content provocative and interesting enough to solicit user input, to generate a sizeable fan base, to be ‘liked’, voted on and/or shared among users, or through apps that prompt user participation in creative and sophisticated ways,” are strategies that may help big auto brands.

However, he noted that dealers may want to take a slightly different approach.

Matarazzo explained that dealers, independent and franchised alike, should work to update followers on important events at the dealership, solicit customer feedback and engage in conversations with users about their dealership experience.

Furthermore, he noted it is also beneficial to brand owners to offer promotions or giveaways on a regular basis, and participate in daily conversations about both positive and negative opinions — regarding an automaker’s products or dealership experience.

In other words, Matarazzo stressed the importance of keeping an open line of regular communication to potential customers on Facebook.

“The brands and businesses that show a consistent willingness to address concerns head on will come out winners,” said Matarazzo.

“Successfully turning a negative experience into a positive one can sometimes be more beneficial than all the positive feedback combined,” he added.

Nichols went on to caution that dealers should not just jump on the “bandwagon” and start a Facebook page, if they don’t intend on keeping up with it.

“Don’t just put up a Facebook page and walk away. Engage, communicate and be proactive on a frequent basis. Take the opportunity to convey messages beyond ‘buy here, buy now,’” Nichols shared.

 “Post attractive photos of your store, employees, events, featured vehicles. Share daily updates about your store, community involvement and special offers. Don’t be afraid to ask your customers questions,” he continued.

“Solicit input, whether it’s about your business or a timely news event. Create interesting, original and timely content that people will want to share with their friends. Facebook is a place for connecting and interacting, so get in there and be a part of the action,” Nichols further explained.

And though Facebook lends itself more towards reputation management rather than sales, Nichols explained there are ways to advertise your vehicles through the site for free: “I’d say the most effective way to advertise units is to create interest around them with appealing content people will ‘like’ and/or share. For example, highlight a ‘car of the week’ with photos and captions that tout interesting facts or special features about the vehicle.

“Offer sneak peeks of new models to generate interest before they hit showrooms. Post videos of test drives or photos of happy customers in their new cars. It’s fine to post inventory, but the most successful dealers are the ones who find additional ways to feature their inventory creatively,” he continued.

How to Start the ‘Buzz’

Jumpstart officials also offered some tips on how dealers can create “buzz” around their stores through social media campaigns and posts.

“Buzz is excitement, and the best way to generate excitement is to offer people something special or unique — either in exchange for an action they’ve taken or exclusively for the Facebook community,” Nichols said.

Editor's Note: For more on how to create "brand buzz" by utilizing social media and related news, see the Sept. 1-14 print issue of Auto Remarketing, which is our look at "Digital Trends, Tools & Strategies for Smart Dealers."