Empathica White Paper

What is the Opportunity for “SoLoMo”
(Social. Local. Mobile.) to Improve
the Automotive Customer Experience?
3 Smart Ways to Connect with Today’s Automotive Consumer
An Empathica Whitepaper
www.empathica.com
An Empathica Whitepaper: What is the Opportunity for “SoLoMo” (Social. Local. Mobile.) to Improve the Automotive Customer Experience?
Social. Local. Mobile. These are the new battlegrounds for providing relevancy to
today’s consumers. More than ever before, consumers are becoming empowered
by the use of new technologies. These technology-savvy consumers are changing
the rules of commerce and shifting the balance of power in their favor when it
comes to the relationships they have with brands and manufacturers. This trend is
especially important for big ticket purchases such as automobiles.
“Discussions on Twitter and
Facebook are playing an
increasingly influential role
in the fate of retailers,
auto dealers and brands. ”
Adoption of these technologies is expected to accelerate in coming years. A 2012 study
by Neilson revealed that smartphones now account for almost 50% of mobile phone
subscriptions in the U.S., which represented a 38% increase over the prior year. In fact
eMarketer estimates that there will be 115.8 million smartphone users in the U.S. by the
end of 2012, with that number growing to 176.3 million by 2015.
Not only are consumers becoming more mobile, but we are becoming more social
as well. As the undisputed leader in the space, Facebook, recently published its
current user base as in excess of 1 billion users globally.
Increasingly, consumers are turning to social media as their primary source for
information on brands and products. Their next great dining experience, the hot
new gadget, the next vehicle to transport the family — discussions on Twitter and
Facebook are playing an increasingly influential role in the fate of retailers, auto
dealers and brands. Consumer insights research conducted in 2012 by Empathica
supports this trend with 72% of survey respondents indicating that information on
Facebook had influenced purchasing decisions (see Figure 1). Even more importantly,
half indicated having tried a brand because of a social media recommendation.
Figure 1
Social Media
Recommendations &
Consumer Behavior
Smartphone owners use their devices in
stores to check prices and more
Nearly 3-in-4 consumers (72%)
use Facebook to make retail/
restaurant decisions.
Half of consumers have
tried a new brand due to
a social media recommendation.
72%
Source: Empathica Consumer Insights Panel, Wave 1 2012
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An Empathica Whitepaper: What is the Opportunity for “SoLoMo” (Social. Local. Mobile.) to Improve the Automotive Customer Experience?
In addition to this, when consumers are out shopping or walking a showroom
floor they now have the power of the Internet in the palms of their hands with the
latest smartphones. At their fingertips and in real-time, they can search for product
ratings, reviews and more. Some mobile apps even provide price and discount
comparisons. Add that to apps that are designed to generate local incentives or
group discounts, and the experience consumers expect from brands has changed
forever. For example, 2012 research by ComScore found that 43% of smartphone
owners have used their mobile device while in a store for a shopping related reason.
Although these consumers have newfound expectations of the experience they
receive, some things remain the same. Despite these new expectations, they are still
loyal to their favorite brands. However, how these brands earn and keep that loyalty
must change.
“The bottom line with social,
local and mobile consumers
is personalization. ”
The key ingredient with social, local and mobile consumers is personalization.
Technology has groomed consumers to expect a personalized experience from their
interactions with the brands they frequent. Unfortunately, in the eyes of these same
consumers many brands are falling short of this expectation with 2 in 5 Empathica
Consumer Insights Panel respondents indicating they did not feel as though their
shopping experiences are being personalized. Furthermore, according to a CMO
Council 2012 report entitled “The Leaders in Loyalty: Feeling the Love from the
Loyalty Clubs,” 54% of U.S. and Canadian consumers would consider ending their
loyalty relationships if they were not given tailor-made, relevant content and offers
(see Figure 2).
Figure 2
Where market researchers used to talk about demographics in general terms (e.g.
“males 18–35”) today’s consumers see themselves as a demographic of one (i.e.
“me”) and expect to receive customer experiences that reflect that. While this creates
a shift in how brands must do business, the technologies available today makes
this transition more realistic. Smartphones, social media, near field communications
(NFC), the rise of “big data,” all these new technologies can act as the building
blocks to highly personalized consumer experiences.
Consumers want their brand interactions to be through the channels they prefer
and with the tools they use. This applies to everything from the mechanisms they
use to pay for purchases (e.g. Near Field Communications (NFC) devices versus
cash and credit or debit cards) to the activities that earn loyalty points (checkins versus purchases) to the loyalty rewards they get (highly personalized versus
generic discounts), and to how they give feedback to the brands they frequent
(increasingly via mobile devices).
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An Empathica Whitepaper: What is the Opportunity for “SoLoMo” (Social. Local. Mobile.) to Improve the Automotive Customer Experience?
The Challenge of Silos
While many automotive brands are trying to better connect the dots across all these
points of interaction, very few are succeeding in doing so. One reason for this is the
silos that often result from building multiple channels to serve the customer. A web
team managing the corporate website, separate from the marketing department,
separate from operations managing dealer experiences for example all focus on
different types of interfaces (see Figure 3).
Figure 3
“The experiences that
they deliver within their
dealerships must be
consistent with the quality
of the experiences of the
other channels AND reflect
consumers’ values and
expectations.”
To effectively adapt to social, local and mobile consumers, automotive brands need to
provide them with a seamless and consistent experience across all these channels. In
particular, the experiences that they deliver within their dealerships must be consistent
with the quality of the experiences of the other channels AND reflect consumers’ values
and expectations.
Local dealers are where the most important experiences will always happen. Consumers
will rarely purchase a vehicle sight unseen, and usually expect a lot of hands on research
– from test drives to visual inspections – before making a final purchase decision. It is
because of this that dealerships should also be the focal point of any effective customer
experience management (CEM) program. These dealer level programs can serve as
an ideal starting point for delivering increasingly personalized experiences to SoLoMo
consumers.
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An Empathica Whitepaper: What is the Opportunity for “SoLoMo” (Social. Local. Mobile.) to Improve the Automotive Customer Experience?
3 Ways to Connect with the Modern Consumer
Bringing these consumer and technology trends together starts with a three step plan:
1. Unlock the power of smartphones
Self-service solutions that support dealer operations, including scheduling test
drives and vehicle servicing; streamlined self-checkout, and post-experience
communications to stay connected with potential buyers are just some of the
ways that smartphones can improve the customer experience.
“For consumers, smartphones
have become their preferred
channel for interacting with
each other. ”
By putting mobile solutions in the hands of front line staff and managers,
dealerships can cultivate more informed and personalized interactions with their
customers. Mobilizing the workforce can allow automotive brands to create a
more personal connection with consumers, thereby setting the tone to convert
them into valuable brand advocates. Mobile solutions can also free managers
from back rooms, so they can focus on what they do best — service customers
and coach their staff on how to deliver an experience that “WOWs.”
For consumers, smartphones have become their preferred channel for interacting
with each other. It makes sense then, that when given the option they will also
choose to interact with their favorite brands in the same way. Consumers are
showing a real desire to use this new found channel to connect with the brands
they frequent — 37% of Empathica Consumer Insights Panel respondents
indicated having visited a brand’s website through a mobile phone (see Figure 4).
Figure 4
Allowing them to provide feedback and share positive experiences through social
media on their smartphone devices is a simple way to reinforce and increase the
level of engagement that brands have with their most loyal customers. Ensuring
that customer experience programs take these devices into account can be a
simple update that can yield a tremendous return.
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An Empathica Whitepaper: What is the Opportunity for “SoLoMo” (Social. Local. Mobile.) to Improve the Automotive Customer Experience?
2. Start engaging with customers to capture feedback in the moment
The key for automotive brands, dealerships and even automotive ad agencies of
record today is to connect with customers more regularly in an easy and meaningful
way. One new technology that has emerged to make this easier is the QR code.
They offer brands the potential to connect with customers in a real-time and
immediate fashion.
QR codes are an extension of the online world into the physical world. The early
usage of QR codes was as a tool to enhance the information available through
advertising. For example, “Scan a QR code to get more information on a product
by visiting the product website on your phone.”
“The next stage of the
evolution of the QR code will
be their increasing usage as
a tool to promote ongoing
collaboration between
consumers and brands...”
In some ways QR codes are still at the “banner ad” stage of evolution. Consumers
typically expect the following workflow, see Figure 5 below:
Figure 5
See a QR
Incentive
Receive More
Information
Respond
to Offer
The next stage of the evolution of the QR code will be their increasing usage as a
tool to promote ongoing collaboration between consumers and brands (or what
is known as “brand co-creation”). Some forward-thinking brands are already
doing this by incorporating QR codes into their existing CEM programs. By
implementing this subtle yet profound enhancement to the customer feedback
process, it sets the tone for the brand as forward-thinking and in tune with
consumer technology preferences.
In addition, by incorporating customer feedback or the opportunity to rate and
review a product or service into the process, QR codes can evolve from being a
one way marketing channel to a collaborative two way interaction. As illustrated
by Figure 6, QR code usage is now about starting interactions and creating a
dialogue with consumers.
Figure 6
Respond
to Offer
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An Empathica Whitepaper: What is the Opportunity for “SoLoMo” (Social. Local. Mobile.) to Improve the Automotive Customer Experience?
This allows brands to better connect with consumers through more detailed
Please enter your invitation reference
feedback, enhancing their current feedback efforts. QR
codes also present an
number so that we can ensure that
your feedback reaches our
opportunity to connect with consumers before the point
of
sale
— whereas most
restaurant
managers:
feedback occurs after that point. QR code posters can be placed in showroom
floors, and service area waiting rooms to grab feedback
during multiple steps
Please enter the date of your visit:
of the customer journey (see Figure 7). It is also a great way to see what other
vehicles they are considering. In doing so, brands can better engage with both
their current customers and even potential future customers.
Day (DD)
Month (MM)
Year (YYYY)
ENTER
Figure 7
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“QR codesWIN
also
present
an
$1,000
CASH DAILY
PLUS you could INSTANTLY WIN
OTHER
PRIZES VALUED
at
opportunity
toGREAT
connect
with
$1,500 WEEKLY
by providing your
review
at
consumers before
the
point
www.TangerineSportCares.com
of sale ...”
OR
Text “Tangerine” to 90211
for a link to the survey
Receive 1 chance to win $1,000
daily by calling 1-877-555-9091
For complete rules, eligibility, Sweepstakes period and
PREVIOUS WINNERS please visit www.mydealerfeedback.com.
No purchase/survey required to enter. Sweepstakes sponsored
by Empathica Inc. across multiple clients.
***KEEP THIS RECEIPT TO ENTER***
Must be legal age to enter. Void where pohibited. Please
visit www.mydealerfeedback.com fo PREVIOUS WINNERS
and complete sweepstakes details. Please respond within 10
days of receiving this invitation.
How it Works
YOU COULD WIN!!!!
Please answer the following question:
Overall, I was satisfied with my
experience at the dealership today.
One of ou
r team m
embers th
proudly w
at
orked on
your vehi
cle
www.de
in a
100
65
00
6
See revers
e for instruc
tions.
Neither Agree norDisagree
DRAW!
WIN
PLUS you could INSTANTLY WIN
OTHER GREAT PRIZES VALUED at
$1,500 WEEKLY
by providing your review at
www.dealerfeedback.com
OR
Text “Text Auto” to 00000
for a link to the survey
Receive 1 chance to win $1,000
daily by calling 1-877-555-9091
back.com
NCES to
DAILY
Enter the
below wh 4-digit code
en promp
ted
Disagree
Agree
Strongly Agree
Visit
alerfeed
for 10 CHA
Strongly Disagree
Receive 10 CHANCES to
WIN $1,000 CASH DAILY
Question 2
For complete rules, eligibility, Sweepstakes period and
PREVIOUS WINNERS please visit www.dealerfeedback.com.
No purchase/survey required to enter. Sweepstakes sponsored
by Empathica Inc. across multiple clients.
***KEEP THIS RECEIPT TO ENTER***
Must be legal age to enter. Void where pohibited. Please
visit www.mydealerfeedback.com fo PREVIOUS WINNERS
and complete sweepstakes details. Please respond within 10
days of receiving this invitation.
7
An Empathica Whitepaper: What is the Opportunity for “SoLoMo” (Social. Local. Mobile.) to Improve the Automotive Customer Experience?
3. Drive local action through social media advocacy
Automotive brands and dealerships today have an opportunity to change the way
they approach how they market to and engage with customers — provided they
are adequately prepared to do so!
According to a Neilson Global Trust in Advertising Survey Report issued in 2012,
“92% of consumers around the world say they trust earned media, such as word
of mouth and recommendations from friends and family, above all other forms of
advertising.” See Figure 8.
Figure 8
To what extent do you trust the following forms of advertising?
Trust Completely/ Somewhat
Global Average
Don’t Trust Much/ At All
“Most brands have a
silent majority of happy
customers. In fact, having
conducted hundreds of
millions of customer surveys
at Empathica, we’ve found
that over 80% of respondents
indicate that they had a high
level of satisfaction with the
brands and stores
they frequent. ”
8%
Recommendations from people I know
92%
Consumer opinions posted online
70%
30%
Editorial content such as newspaper articles
58%
42%
Branded Websites
58%
42%
Emails I signed up for
50%
50%
Ads on TV
47%
53%
Brand sponsorships
47%
53%
Ads in magazines
47%
53%
Billboards and other outdoor advertising
47%
53%
Ads in newspapers
46%
54%
Ads on radio
42%
58%
Ads before movies
41%
59%
TV program product placements
40%
60%
Ads served in search engine results
40%
60%
Online video ads
36%
64%
Ads on social networks
36%
64%
Online banner ads
33%
67%
Display ads on mobile devices
33%
67%
Text ads on mobile phones
29%
71%
Source: Nielsen Global Trust in Advertising Survey, Q3 2011
The old model of marketing to new customers was a war of attrition. Target a very
large group of people and whittle away through a qualification funnel until you get
to the right ones. Whether that ended up being 1% or 10% of the original pool,
was always a bit of a gamble. This practice was both very time consuming and
also very expensive.
There is a hidden opportunity for brands that has always existed, but has yet to be
fully taken advantage of. Most brands have a silent majority of happy customers.
8
An Empathica Whitepaper: What is the Opportunity for “SoLoMo” (Social. Local. Mobile.) to Improve the Automotive Customer Experience?
In fact, having conducted hundreds of millions of customer surveys at Empathica,
we’ve found that over 80% of respondents indicate that they had a high level of
satisfaction with the brands and stores they frequent. In addition, the majority of
these customers is also open to sharing these stories, and indicates a high intent
to recommend to their friends (see Figure 9).
Figure 9
Thinking about automotive service that you receive, please rate out dealership on the following statements:
1.
Find Satisfied
Customers
Strongly
Disagree
Neither
Disagree Agree Nor
Disagree
Agree
Strongly
Agree
Overall, I was satisfied with the assistance provided by the service team.
I felt like I could trust the service team to take care of my vehicle.
It was easy to get an appointment for my vehicle to be serviced.
I was able to drop off my vehicle and get on my way quickly.
The service advisor quickly understood my problem.
Concidering the repair, my wait time was acceptable.
I was kept informed throughout the day on the status of my vehicle.
I was provided with a omplete explanation of the charges.
My service concerns were addressed on the first visit.
2.
Convert
Customers to
Advocates
Would you like to recommend
our dealership to friends
via FACEBOOK ®, Twitter or email?
You’ll also receive 10 additional CHANCES to
in our daily draw!
3.
Amplify the
Voice of Your
Advocates
Julia Staffen
The rep was very knowledgeable and friendly. He answered all my questions and
made some great suggestions.
I recommend Chemere's Auto at Argentia and Hwy 401.
Click on the image or my recommendation to get a discount
on your next oil change.
9
An Empathica Whitepaper: What is the Opportunity for “SoLoMo” (Social. Local. Mobile.) to Improve the Automotive Customer Experience?
Building great word of mouth to drive brand growth and local advocacy is simply
a matter of connecting the dots between those happy customers, their social
networks and their friends and followers. What better way to move beyond
generic unbranded marketing messages than highly personalized word of mouth
delivered through personal networks from trusted friends?
Everything Old is New Again
In a sense, for savvy brands to keep up with changing consumer demands they need
to simply continue doing what they’ve always done — deliver great experiences that
consumers will remember and tell their friends about. Today the opportunity is to do
so while incorporating the new technologies that have become an integral part of all
of our lives. Social, local and mobile consumers may have access to new ways to
communicate and new expectations, but ultimately they still want to be loyal to their
favorite brands, and share great experiences with their social circles.
Watch this two minute video to get a quick overview
on active advocacy for your automotive business.
www.empathica.com/auto-video
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About Empathica
Empathica is the leading provider of social Customer Experience Management (CEM) programs to the world’s most respected
multi-unit brands in the retail, food services, banking, petro and hospitality sectors. Its rich analysis of survey data using state-ofthe-art surveying and dashboard reporting software allows for performance-improvement solutions, evidence-based marketing
insights, and customer experience management consulting.
Annually, Empathica’s 30 million customer surveys in 25 languages reach more than 70,000 locations in over 50 countries. A
privately-held organization, Empathica is headquartered in Toronto, Canada with executive consultant offices throughout the
United States and a European office in Birmingham, England.
www.empathica.com
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