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Driving Customers Away: Bad Marketing Is Not Simply Ignored - Use Social Logins

Automotive Consumers Don’t Just Ignore Irrelevant Marketing Messages from Car Dealers… They Take Action!

Almost all car buying consumers and service customers claim to have received information or promotions from a car dealer that were not relevant to them. This includes offers that show the dealer doesn’t know who they are (71%). Dealers are also guilty of sending mixed, or inconsistent information across different methods of communication (51%). Many times, the dealer's messaging includes basic errors about the consumers’ identities (41%).

A new Janrain and Blue Research report details out the data in newly-released survey results touting the benefits of social login. In response, more than 9 in 10 respondents have developed an unfavorable attitude to the dealership or taken some kind of action to limit the messaging.

 

Specifically, 94% of respondents reported taking at least one of these actions in response to a dealership that consistently mis-targeted them in their marketing efforts:

  • Automatically deleted the emails (68%);
  • Unsubscribed from emails (54%);
  • Categorized emails as “junk” or “spam” (45%);
  • Became less likely to buy products (29%);
  • Visited the website less frequently (13%); and
  • Never visited the website again (10%).

Apparently, it only takes a couple of missteps to turn off a sizable proportion of automotive consumers: almost half said they automatically delete emails or categorize them as “junk” after being mis-targeted twice; 38% unsubscribe after receiving two mis-targeted emails.

 

Use Social Media To Build A Better Database

By delivering data that can be used by auto industry marketers to personalize their communications, social account profile and login based campaigns can avoid these pitfalls, per the researchers, who indicate that 9 in 10 respondents have encountered social login at some point and half use it.

Among Social Login Users, 9 in 10 are Satisfied with the Experience

The primary reasons for consumers to use social logins being faster registration (65%) and one less password to remember (50%). That brings to mind a survey released early last year by Janrain and Harris Interactive, which found that 88% of online adults don’t like being asked to register on a website, with 51% of those turned off by the idea of having to remember another user name or password.

 

Interestingly, though, social login use is currently not driven by a desire for more personalization; only 12% said they chose social login to “ensure websites are more personalized.” That either implies a lack of awareness of the benefit among consumers, or that they simply are not as enamored by website personalization as they say they are.

Privacy Concerns Obviously Play a Role

Among those not using social login, half say a primary reason is a lack of trust in the company to use their data appropriately, with one-third concerned that the company will post to their feed, and 1 in 6 concerned that the company will spam them or their contacts.

 

Automotive Consumers May Not Be Convinced of the Value Exchange

In a study released late last year by Forbes Insights and Turn, only 2% of B2C customers said they believe they benefit more than companies when sharing their data, and a majority indicated that their privacy concerns outweigh benefits from sharing information.

 

Some reassurance would no doubt help: according to the Janrain study, respondents would be most likely to respond to reassurances that the dealership will not contact others in their social network... Sending advertising messages to a customer's 300 Facebook Friends is not something that automotive consumers seem to warm up to. These same consumers also want to know that their information would only be used to personalize their experience. Sending free trials, gift cards or promotions won’t do the trick for many.

 

The survey finds that in general, “consumers see value in personalization enabled by social login.” However, the results require a slightly closer look. For example, the study indicates that “60% find suggested products/promotions based on profile info useful.” However, respondents were deemed to find this “useful” if they rated its utility anywhere from a 5 to a 10 on a 10-point scale. (One would imagine that those rating it a 5 would be quite neutral on the topic.)

 

Even with this rather broad view of “usefulness,” only a minority of respondents would allow mobile phone apps to offer special “Dealership Offers” (49%) or would like suggestions based on their social media account profile info (44%), among others.

 

About the Data: The data is based on a national survey of 594 adults, most of whom (55%) fell into the 35-64 age range.

Source 1: Marketingcharts.com/consumers-dont-just-ignore-irrelevant-messaging

Source 2: Janrain.com/increase-lead-conversion-social-login-your-site

  

Views: 488

Tags: AutoMarketing, Away, Bad Marketing, Customers, Driving, Email, Ignored, Irrelevant, Marketing, Message, More…Social Media

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Comment by Ralph Paglia on January 25, 2014 at 10:00am

Alexander's comment is interesting in that the sample size is more than adequate to achieve a statistically valid result with a standard deviation of less than +-2%, however the age of the targeted demographics is something worth considering. Selecting consumers over the age of 34 may not be the best approach for businesses that sell products or services that appeal to younger consumers. However, for most makes and models of NEW vehicles sold in the USA, the average buyer is over 30 years old. I am reminded if the confusion at Toyota Motor Sales two years after the Scion brand was launched... Although targeted directly at the youth market, the average Scion buyer was well over 40 year old. At the time, my thoughts were that targeting the under 30 market may be a more effective way to attract older car buyers than anyone had previously realized.

Comment by Alexander Lau on January 21, 2014 at 7:36am

I don't like the same size. "About the Data: The data is based on a national survey of 594 adults, most of whom (55%) fell into the 35-64 age range." That should be heavily increased, it's not large enough for my blood. A bunch of users in that range probably don't understand social authentication on 3rd party sites or they fail to trust it. The actions of the NSA doesn't help. I would think more people are going to start using aliases, rather than legitimate credentials, in coming years.

I've paid for and used Janrain and hated it, too many bugs. Now that was about four years ago, using it for authentication purposes @ StockFuel, a user-generated content / brokerage site I've created. I've dumped it, but need another option. Outside of the need to use tools ($) like Janrain for profile data storage and targeting and segmentation, rather use OpenID @ http://openid.net.

Also, it depends on what you're after, there are plenty of 3rd party Facebook applications that will allow you to capture the credentials of Facebook users, in order to market to them at a later point.

Your point on more relevant user experience is a great one. Unbeknownst to most, Google is going to require this in the future to stay ranked. It might be many years away, but that is definitely the direction they are headed. It's ALL about the user experience and their bot will be powerful enough to sniff out crap user experiences.

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