Leader / Followers

Leader / Followers

By

The Colonel

February 4, 2009

Copyrighted

Preface

If the Internet was going to revolutionize automotive retailing in North America, and I was one of the early proponents/missionary in saying that it would. The Internet has empowered the customer with extensive product knowledge, and information. Often it seems that manufacturers, and dealers have gone in the opposite direction.

There is all sorts of technology that is available, deployed, and used on a regular basis. In many instances it facilitates processes that are more relevant to the dealer than the customer.

The next generation empowered by the Internet wants to buy vehicles on their terms, manufacturers and dealers in many instances are scrambling for viability, and perhaps digging in their positions.

As usual the blanket is getting tugged in many directions by the various stakeholders. Accompanied by valid reasons for the direction of the tugging.

Which direction is the customer tugging? Perhaps it would be wise to follow the customer. Does it make sense to follow the customer?

Technology

The customer takes technology for granted, information is a given, product knowledge is a commodity, comparisons are only a click away, quotes are widespread, opinions on the industry are part of daily life.

What does stand out from all this technology. The much talked about built to order never happened, dealers are still product warehouses. The customer is frustrated that he/she cannot buy or lease a vehicle on his terms.

When the “industry technology” meets the “customer technology” usually in a “hub” called a dealer it becomes a “mano a mano” experience that is outdated, and frustrating to the customer.

The “technological handshake” between the industry and the customer is strained.

There is a vast amount of technology this is deployed, at times its perhaps a case of technology for technology’s sake. Accompanied by a multitude of vendors exploring every aspect of possible applications.

It should be simpler, more transparent for the customer.

Industry

The automotive industry is the first one that went global a few decades ago, the first one that espoused technology to design, test, assemble vehicles. The industry uses high tech to build high tech vehicles.

Sadly its also an industry that portrays an image of being under immense strain, with tired business models. Constantly debating between the historical push model to a customer driven pull model.

The dealer that interfaces with customers is often referred as the “stealership” not a flattering or endearing term.

Crossroads

In early 2009 the industry is at a crossroad, with manufacturers straining, dealers are under immense pressure, pundits expressing a variety of opinions, taxpayer money assisting some manufacturers.

Where is this industry going in the immediate future? Will the taxpayer money have a positive contribution. Will the customer continue to buy/lease vehicles as in the past.

There are hundreds of opinions expressed every day, from a variety of industry pundits. It’s a good thing to see all these opinions being expressed, and which one float to the top.

Will the industry persist in its traditional ways of doing business? Will the industry adopt a novel business model that is responsive to the present, and ensure the future?

Instinctively we know that the automotive industry will endure in one form or another for many years to come. The huge question is how will it endure, what form will it take, which business model will it adopt? Can you imagine all the answers, opinions that are out in the blogosphere!

Crossroads present an imminent danger, and an opportunity. The danger we know, its rough out there, the opportunities are obscure and well hidden, or are they too obvious to see? Often when issues are in your face, they are invisible.

One crossroad is that brands are evolving from the brand seller (manufacturer / dealer) to the brand buyer (customer).

Another crossroad is the vast proliferation of channels to interface with customers, and the evolution from mostly “push” channels to “pull” channels. For an industry that thrives to push its product, pull channels are a strange creation to say the least.

I can keep on going, I’m sure you understand the overall picture.

Social Media

Social media for the automotive industry is equivalent to the advent of the Internet over a decade ago. Its easy for the customer to have a base of resources that are tailored to his needs, and powered by other potential customers or enthusiasts. These resources very often have a higher credibility rating than the industry resources.

Just like the technologies in a showroom environment do not “shake hands” and connect in a productive fashion, the communication channels are perhaps not shaking hands either.

What do I mean? The media sphere of the customer is disconnected from the media sphere of the dealer, although both spheres are intermingled at various stages of a purchase process.

The impact, and ramifications of social media especially on Gen Y is gaining momentum, we are seeing the tip of the iceberg as it relates to the automotive industry. Is the automotive industry grasping the implications? Most everyone in the industry will say yes, and perhaps they will wait for a vendor to develop a social media package.

At first blush it makes sense, there is the DMS package, the CRM package, the SEO package, the Inventory package, the Lead Management package, I’m certain I omitted a few. At some point there will be a social media package.

Its encouraging to see some manufacturers take an active position and role in using social media to explore new communication channels with customers and prospects. At the same time social media is inexorably displacing not only conventional media, but also older online media.

There is an ongoing progression towards a different media to communicate with a  different generation. Does it make sense to you?

Influence

Could it be that social media becomes an influencer for people to make purchase decisions?

Good question, thousands, millions of individuals influencing each other on a variety of issues, products, thought processes. Perhaps individuals are doing among themselves what advertising used to do to the masses.

Another question, who controls the influencers and the influencee (is there such a word)? How does one control the influence that is disseminated?

Who are the influencers? Or is everyone an influencer? Good questions aren’t they?

Perhaps the ideal influencer is the Social Media Leader. Is there such an individual? This is not the individual on a missionary trip to sell social media. This is the individual that uses social media to sell a brand.

Leader / Followers

If there is such a thing as a social media leader, there must be social media followers. An individual is the social media leader for dealer X with a following. Does it make sense to you?

How does one become a social media leader? How long does it take?

Share your thoughts!