Text of 1 Ralph Paglia; 9 th Digital Dealer Conference – “In this session Ralph Paglia...
1 www.SocialAutoSales.com Ralph Paglia; 9 th Digital Dealer Conference www.SocialAutoSales.com In this session Ralph Paglia debunks many of the commonly cited fallacies surrounding social media by showing participants how to apply innovative new measurement and tracking tools that can eliminate mysteries surrounding exciting new revenue opportunities and cost efficiencies provided by leveraging social media marketing and Internet reputation management. A never-ending supply of new social media apps empower the consumer onslaught from user generated content (UGC) sites such as Facebook, YouTube, Twitter, DealerRater and hundreds of others. Yet there has been very little clarity in supplying dealers with apps or tools that accurately track and measure results from various spins on social media made during each new pitch for the dealer's dollars. Much like the 18th century question, "How many angels can dance on the head of a pin?" many social media pundits have "danced" around dealer inquiries concerning ROI measurement or analysis Measuring Performance and Tracking ROI from Social Media Marketing and Reputation Management Session #304 How to overcome social media gurus that respond to ROI questions by dancing around objective measurement criteria and ROI analysis of social media marketing and reputation management initiatives
Introduction and Background: Ralph Paglia Director - Digital Marketing Dealer Services Dealer Services Currently leading build-out and development of new ADP/ASU Joint Venture at www.SkySongCenter.com in Scottsdale, AZ for new home of expanded ADP/BZ Social Media Reputation Management Team providing Strategic Implementation of Fully Managed Solutions for Dealers...www.SkySongCenter.com Generated 144,000+ leads in 22 months while working for Courtesy Chevrolet Managed Courtesy Chevy Internet Sales team that sold 4,000+ Units in 2006 Worked w/Ford in 2007-2009 to develop first fully integrated multi-publisher Tier 3 Digital Marketing Consulting and Co-Op supported Advertising program Ran 1 st retail automotive Behavioral Targeting Digital Advertising program Internet Sales & Marketing Consultant to Ford, Mercedes-Benz, GM, Honda, Toyota, Mercedes-Benz, Hyundai and 250+ dealers & groups Pioneered development of Internet Leads in 1988 using CompuServe ISP access to post new and used vehicle listings on defense contractor BBSs in San Diego, CA RalphPaglia.com Cell: 505.301.6369 [email protected] www.RalphPaglia.com www.ADPsocial.com www.ADPsocial.com
3 www.SocialAutoSales.com Ralph Paglia; 9 th Digital Dealer Conference www.SocialAutoSales.com Join the social media revolution!
4 www.SocialAutoSales.com Ralph Paglia; 9 th Digital Dealer Conference www.SocialAutoSales.com 4 ADP has Verified Five Return On Investment (ROI) Areas of Opportunity for Dealers who Implement a Social Media Reputation Management Strategy First things First What About Return on Investment? Do not confuse the ability to track and measure results with whether or not it generates a Return On Investment Your ROI is realized whether or not you have the ability to correctly measure the results! - Red McCombs (FACTOID: McCombs is #1 financially successful car dealer in history)
Return On Investment (ROIReturn On Investment (ROI): A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio. Keep in mind that the calculation for return on investment and, therefore the definition, can be modified to suit the situation -it all depends on what you include as returns and costs. The definition of the term in the broadest sense just attempts to measure the profitability of an investment and, as such, there is no one right calculation. For example, a marketer may compare two different products by dividing the revenue that each product has generated by its respective marketing expenses. A financial analyst, however, may compare the same two products using an entirely different ROI calculation, perhaps by dividing the net income of an investment by the total value of all resources that have been employed to make and sell the product. This flexibility has a downside, as ROI calculations can be easily manipulated to suit the users purposes, and the result can be expressed in many different ways. When using this metric, make sure you understand what inputs are being used.
Social Media:Social Media Social Media is media designed to be disseminated through social interaction, created using highly accessible and scalable publishing techniques. Social media uses Internet and web-based technologies to transform broadcast media monologues (one to many) into social media dialogues (many to many). It supports the democratization of knowledge and information, transforming people from content consumers into content producers. Andreas Kaplan and Michael Haenlein define social media as a group of Internet-based applications that build on the ideological and technological foundations of Web 2.0, and that allow the creation and exchange of user-generated content. Businesses also refer to social media as user-generated content (UGC) or consumer-generated media (CGM). Social media utilization is believed to be a driving factor in the idea that the current period in time will be defined as the Attention Age.
7 www.SocialAutoSales.com Ralph Paglia; 9 th Digital Dealer Conference www.SocialAutoSales.com Forresters ROI methodology Costs (Impact on budget) Benefits (Impact on business) Flexibility Options Flexibility (Options) RISK Total Economic Impact Uncertainty Impact of assumptions Benefits Quantified value Defined metrics Options created Are there new opportunities in the future? Cost People Process Technology
8 www.SocialAutoSales.com Ralph Paglia; 9 th Digital Dealer Conference www.SocialAutoSales.com Benefits (Impact on business) Examples of Benefits Cost savings Reduce call volume Reduce email volume Increase BDC productivity Increase in FCR Reduce SEO costs Profit Improvements Increase customer lifetime value Increase Sales Ideation Increase Lead Conversion Rates Source: May, 2009 The ROI of Online Customer Communities Forrester report
9 www.SocialAutoSales.com Ralph Paglia; 9 th Digital Dealer Conference www.SocialAutoSales.com There are many benefits of Online Dealer Communities Source: The ROI of Online Customer Communities Forrester
12 www.SocialAutoSales.com Ralph Paglia; 9 th Digital Dealer Conference www.SocialAutoSales.com Social Media Results Known = Dealer ROI 1.Marketing Communications: Create and Publish content that attracts consumers within demographics targeted by social media marketing strategy. Use Social Apps to engage/interact/convert. 2.Reputation Management: A.Monitor social web for content posted containing dealership brand. B.911 Fast Response Strategy and Process for negative content posted. Notify dealer POCs of what was posted, when and by who. Send POC copy, including response published and actions/due dates required C.Social Rewards strategy for positive posts, comments and mentions D.Promptly create and post appropriate responses to all dealership mentions so people see your store cares, pays attention, responds, appreciates compliments and resolves customer concern issues 3.Traffic Generation: Use anchor text and linked content to drive targeted traffic from social media sites into dealers social assets and websites, incoming phone calls to social media assigned numbers, use stories to drive showroom traffic 4.Improve SEO Strategy: Quickly increase the dealership SEO footprint with multiple SERP listings from dealers Social Media accounts and profile subdomains. Back links from hundreds of Social Media sites to dealers eCommerce sites boost authority and rank with search engines.
13 www.SocialAutoSales.com Ralph Paglia; 9 th Digital Dealer Conference www.SocialAutoSales.com 13 www.SocialAutoSales.com Ralph Paglia; 9 th Digital Dealer Conference www.SocialAutoSales.com Social Media Marketing Objectives 1.Create and Publish high quality content that attracts and engages people in demographic categories your overall dealership marketing programs seek and target 2.Monitor what people are saying about your dealership and report to key dealership stakeholders on what is posted, when, where and by who 3.Promptly create and post appropriate responses to all dealership mentions so people see your store cares, pays attention, responds, appreciates compliments and resolves customer concern issues 4.Drive high quality traffic from social media to targeted destinations defined by dealerships marketing strategy 5.Improve SEO footprint by creating multiple SERP listings for dealership Social Media accounts
15 www.SocialAutoSales.com Ralph Paglia; 9 th Digital Dealer Conference www.SocialAutoSales.com Good ROI analysis almost always requires accurate historical information (which few dealers have). Capturing and analyzing historical data requires time and discipline. Its easy to cast aside analytical tasks when everyone is focused on generating profit. However, you cant forecast the future without understanding the past. Historical data sets a baseline for measuring the Delta. That change