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April 19, 2010
www.usedcarnews.com
Social Media Means Old Skills in New Settings
There’s An App For That By Emily Caswell
By Ted Craig
TROY, Mich. – Social media seems like a whole new way to do business, but it really takes dealers back to the basics. ADR Consulting is hosting a series of social media seminars for independent dealers that shows how traditional values of trust and relationships are going online. One of the latest stops was in Michigan. Trainer Mike Morgan spent the first part of his seminar describing how dealers need a good grasp on who they are before presenting themselves to a virtual community. “Once you’re confidant in your brand and everybody buys into it, then you’re ready for social media,” Morgan said. A whole new type of buyer has evolved in the past few years, Morgan said. These people use the Internet for research before stepping on a lot. This includes research into the dealers as well as the cars. Information comes from a variety of sources, from guide books and automotive reviews
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to the opinions of friends and neighbors. “You are now the last step in their car buying,” Morgan said. “You used to be the first.” Buying styles know no age limits, Morgan said. He’s 26 and buys in the traditional, impulsive fashion. Social media includes people ages eight to 80. But the composition of the seminar attendees showed a bias toward the young. Many of the last names were recognizable for people in the state’s used-car business, but they were the children of the dealers. Maria Grimaldi was there for her family store, Grimaldi Auto Sales. She’s active on social media personally, but is trying to convince her family of its use as a marketing tool. She appreciated Morgan’s focus on the big picture. “You’re not selling a product,” Grimaldi said. “You’re selling yourself.” There were several veteran dealers at the seminar as well, learning some new tricks. One was Phil Trupiano of Birmingham Motors. He scored some points by being the only owner of Apple Inc.’s new iPad. This new tool is the latest way to integrate people’s digital lives. “We’re surrounded by this all the time,” Morgan said. “It’s taking over our lives.” Social media allows people to communicate better. Dealers need to learn the best ways to reach their customers.
Photo by Kristin Craig GETTING SOCIAL: Trainer Mike Morgan, right, and Maria Grimaldi
of Grimaldi Auto Sales demonstrate what Facebook interactions would look like in real life, complete with status updates and pokes. The way people communicate today is changing, but basic principles, like word of mouth, stay the same.
You can use them to find restaurants, a movie time and now a used car. That’s right, thanks to Lake City Motors, one more commodity is now at the finger tips of iPhone app users – used cars. The Seattle-based used-car dealership was the first in the area to create an iPhone app for used car shoppers when they launched it two months ago. Sales manager Peter Liu, an avid iPhone user, saw no reason his dealership shouldn’t have its own app. “I search the apps everyday,” he said. By searching other dealership apps he found a company that could build Lake City Motors an app at a reasonable price. So, he hired the company, MobileAppLoader LLC., based in Cupertino, Calif. They built the app for “a few hundred dollars” according to Liu and maintain it for a monthly fee of $15. “(It’s another way to) get our name out there,” said Liu. Potential customers can use the application to search Lake City Motors’ inventory. They can view photos, check out prices, schedule a test drive or even use the built-in loan calculator. “For $15 a month I think it’s worth a try,” Liu said.
IN THIS ISSUE • Auctions set new records for prices and sales, both in the lanes and online. – Page 3
• Dealers adjust to a new way of doing business after the economic slowdown. – Page 8
• CarMax is ready to start adding stores again as sales improve. – Page 5
• A Georgia museum displays automobiles as art forms. – Page 20