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Automotive Social Media Report 2009-2012 - 9010 Group

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A white paper on the impact of social media on the automotive industry based on three years of experience of working in the industry and evidence gathered from across it. …

A white paper on the impact of social media on the automotive industry based on three years of experience of working in the industry and evidence gathered from across it.


FOREWORD
‘Connection is not just relevant to the development of the new connected car, it also speaks to the challenges and opportunities automotive companies around the world now face. Never before have car manufacturers had so many direct touch-points with their customers. This not only represents a significant disruption to manufacturers and the agencies who seek to serve them, but also an unparalleled opportunity for customer proximity and centricity. I believe that the consequence of this will be a reinvention of the role the manufacturer plays in a customer’s life and of the roles of the people hired to manage their relationships.’

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  • 1. CONNECTING THE CAR3 years of Social Media and the Automotive Industry AUGUST 2012
  • 2. Connecting the Car 3 years of Social Media and the Automotive Industry August 2012Contents1. Foreword2. Introduction3. Experimentation4. Campaigns5. Communities6. Social Media Resourcing / Staffing7. Monitoring: Engagement & Insight8. SCRM – Social CRM9. Connected Car10. Open Innovation11. Social Media Challenges12. Social Media Opportunities13. Conclusion14. Terms15. Links 1 +44( 0) 207 2530354 www.9010group.com david@9010group.com twitter.com/ninety10group
  • 3. Connecting the Car3 years of Social Media and the Automotive IndustryAugust 2012 Foreword ‘Connection is not just relevant to the development of the new connected car, it also speaks to the challenges and opportunities automotive companies around the world now face. Never before have car manufacturers had so many direct touch-points with their customers. This not only represents a significant disruption to manufacturers and the agencies who seek to serve them, but also an unparalleled opportunity for customer proximity and centricity. I believe that the consequence of this will be a reinvention of the role the manufacturer plays in a customer’s life and of the roles of the people hired to manage their relationships.’ Jamie Burke, Chief Executive Officer 90:10 Group 2 +44( 0) 207 2530354 www.9010group.com david@9010group.com twitter.com/ninety10group
  • 4. Connecting the Car 3 years of Social Media and the Automotive Industry August 2012Introduction engaging projects, but ones that rarely feed into a broader business and90:10 Group is a pioneering Pan-European marketing strategy, instead focusing on‘Open Business’ consultancy. Its focus is to employing short-term tactics to grow fanshelp companies open up marketing and and followers.innovation to their customers and partnersthrough social media. Our people haveworked with Honda Europe1 for the pastthree years to help them adapt to socialmedia across Marketing, PR and Insights.This report is an aggregation of thecollective knowledge and experience of 15analysts and change managers who haveworked on the account.Experimentation Ford, driven by its strength in the US market – and its ready supply of early adopters - has consistently been the first“If your business is represented in social to join new social platforms (Google+) 2media, there is great opportunity to and test their latest features (Twitterdifferentiate yourself from the 3 Advertising) while Peugeot was the firstcompetition.” Scott Monty, automotive brand to launch a Pinterest 4 Head of Social Media, campaign. Ford Motor Company. In the rush to engage with social media,It should come as no surprise that an many failed to understand the basicindustry focused on technological principles of online community culture suchinnovation has readily adopted social as openness, transparency and trust. 5media and sought new ways to outshine Spamming (Toyota), rigged competitions 6 7competitors in its application. The last (Nissan), buying bloggers (Honda) andthree years have seen a great deal of restricting the use of official collateral haveexperimentation by the automotive been a hangover of a ‘control media’industry in social media. Often this has approach which pays little attention to thebeen agency-led and therefore highly fact that everyone can publish andcampaign-focused. This has led to some distribute online. 3 +44( 0) 207 2530354 www.9010group.com david@9010group.com twitter.com/ninety10group
  • 5. Connecting the Car 3 years of Social Media and the Automotive Industry August 2012Mercedes, with its premium brandheritage has taken a more cautious Campaignsapproach8 to experimentation. Still, it has “Shift from buying media to makingmanaged to find its own unique form of content.”social media success. Eleftherios Hatziioannou, Former Social Media Manager andMost brands have learnt that because their Change Agent, Mercedes.customers and stakeholder groups areinvolved in social media, they are too – Most campaigns have been conducted in alike it or not. Some have responded with somewhat haphazard, disconnectedofficial presences, but have struggled to manner. To be fair many have been carriedmaintain them in a 24 hour, 7 day a week, out with limited expectations. No companyreal-time environment. This has stretched has aimed to launch a new car with anot only their central teams but also their single social media campaign, for example.contracted agencies as both have had to They are usually viewed as part of the mix,develop new services and competencies in of a way of amplification – often as a boxresponse to the new reality as it has to tick.emerged. As such there is rarely a tangible link toSo far, we have seen relatively low levels core business strategy and they are farof online activism against the automotive from the heart of the brand’s efforts. This,industry (VW, Greenpeace)9 and (Toyota, it should be noted, despite an ever-growingSexism)10 compared to other sectors body of evidence that social media has long(FMCG, Nestle). There has been increased 11 since outstripped traditional media in theresponsiveness and use of social media as crucial ‘time spent’ metric.a tool to manage and limit damage whenthings do go wrong (Mitsubishi, News of In the period we observed – which begins 12The World). Toyota even went as far as to with Ford’s Fiesta Movement 15 in 2010.use what we would term; Open There have been 53 other campaigns ofCommunications (Toyota; CEO YouTube)13 note (where social media has been awith an open feed of customer feedback on significant component) from major 14(Twitter MEMEs). automotive brands across the board. 4 +44( 0) 207 2530354 www.9010group.com david@9010group.com twitter.com/ninety10group
  • 6. Connecting the Car 3 years of Social Media and the Automotive Industry August 2012The three charts below show a breakdown Role of content / partnershipsof the type of campaigns that have takenplace, the involvement of social media and As automotive brands try to reach newthe platforms that have been used over. consumer audiences in the green segment,The data is derived the 53 major many have turned to lifestyle content,campaigns we tracked in the 2010-2012 marketing (Honda, Live Every Litre)16period. through media partnerships to engage new audiences both for brand and product 17 purposes (Hyundai, New Thinkers; and Vauxhall, Visit Britain). For example, 18 Toyota challenged a number of agencies to prove their competency with test-and-trial work on the Toyota Yaris 19 launch. Communities “Social media is a stage for customers to tell their brand story.” Eleftherios Hatziioannou, Former Social Media Manager and Change Agent, Mercedes. Communities relating to automotive brands come in two forms; official and unofficial. They are found in and primarily serve the customer/owner segment. Other key stakeholders such as dealers or other related communities such as students, designers, etc are unrepresented. Unofficial communities Unofficial communities have sprung up across the web, usually as owner forums, since the early 90s and haven’t moved on +44( 0) 207 2530354 www.9010group.com david@9010group.com twitter.com/ninety10group 5
  • 7. Connecting the Car 3 years of Social Media and the Automotive Industry August 2012a great deal. Depending upon thecategory, the focus will usually be on;‘petrol head’ culture, racing, performance,customisation and almost always parts.These are rich environments for post-purchase insights and CRM but largely lackany official presence or engagement byautomotive brands. One of the mainreasons is that they are difficult to trackwith online monitoring tools as many don’thave RSS Feeds and therefore requiretime-consuming manual tracking and/or Whether single or multiple product orpersonal engagement. This is especially brand, these communities represent achallenging in markets such as Germany significant opportunity for parts-saleswhere forums are still popular, often with especially in a down-turn economy withcommenting and discussions at a similar depressed new car sales in Europe. Aspace and frequency to Twitter. customers keep their old cars for longer, the need for replacement parts hasAnother reason for this is that the creators increased.of these communities are quite strict aboutbusinesses entering for commercial Top Global Unofficial brand-relatedpurposes; e.g. to advertise, promote or Communities;sell products and services. You will often 21 VWVortex (Volkswagen)find a section within the community rules 672,335 fans; 72,865,638 poststhat will be either Forum Traders Rules 20 or 22 BenzWorld (Mercedes)‘Forum Business Rules’. So if planning on 80,774 fans; 4,301,889 poststaking part in these communities, brands BimmerForums 23 (BMW)have to be very careful to ensure that their 396,922 fans; 23,274,170 postsreason for joining the community is to CivInfo24 (Honda)bring value and not simply to boost sales 42,109 fans; 1,220,004 postsor brand awareness. Official brand 25 Ford Owners Club (Ford)representatives are of course more likely 33,031 fans; 182,855 poststo be welcomed in single-brand fancommunities. +44( 0) 207 2530354 www.9010group.com david@9010group.com twitter.com/ninety10group 6
  • 8. Connecting the Car 3 years of Social Media and the Automotive Industry August 2012Official communities are primarily on public Top European Official Communities;platforms such as Facebook and Twitter.Often, from territory to territory, these Audi DE Facebook Page 31range wildly for both numbers of 567,775 fansfans/likes/followers and for levels of BMW DE Facebook Page 32engagement with those communities (from 393,114 fanssimply broadcasting PR and marketing BMW France Facebook Page 33messages, through to engaging in 284,957 fansconversation and gathering insight from Volkswagen DE Facebook Page 34them). This is due of course to differences 226,540 fansin local resourcing and in local managers’ BMW UK Facebook Page 35appetite for social media – and 168,329 fansunderstanding of its differences from thetraditional media they have ordinarily been Some closed owner communities arecharged with using. beginning to be used for on-tap or adhoc innovation such as Ducati.com 36 (AudiBelow are the top 5 global and European owned). This not only allows forofficial communities. They are all on customer-centric planning, but developsFacebook: brand affinity and loyalty by demonstrating trust and openness and by facilitatingTop Global Official Communities; involvement. The number of official communities beyond Facebook, Twitter andBMW (US) Cars Facebook Page 26 other established social media platforms9,937,300 fans that have created stand-alone onlineFerrari Facebook Page 27 communities is very limited.8,257,346 fansMercedes (US) Facebook Page 28 Mercedes created Destination Smart in7,336,692 fans 2009 for their Smart Car fans and theAudi USA Facebook Page 29 community has made good progress in the5,224,693 fans UK. Users regularly share photos andFord Mustang Facebook Page 30 experiences with one another. The4,044,559 fans community has also witnessed the emer- gence of owner-experts (Smart Car enthu- siasts) who respond to a range of customer enquiries. By doing this Smart is +44( 0) 207 2530354 www.9010group.com david@9010group.com twitter.com/ninety10group 7
  • 9. Connecting the Car 3 years of Social Media and the Automotive Industry August 2012able to scale its customer service provision We believe this demonstrates that theat the simple and effective cost of offering importance of social media is rising up thea platform for its customers to meet. agenda of the automotive industry. It shows that there is a desire to implement social media with more strategic marketing goals. Companies are acknowledging thatSocial Media Resourcing/ to do so requires more senior managersStaffing with the experience to command the authority to drive significant change."We have to move our entire business so The two charts below show informationthat everything we do is delivered by the based on eight social media and digitalinternet. Thats a huge step. We have to managers in automotive companies. There-assess where the boundary is between first one shows what their backgroundsVolkswagen, our partners and our are. The second one shows the length ofcustomers, and what sort of services to their experience, over three years or less.offer to each via social media." Nick Gaines, UK Chief Information Officer, Volkswagen.When 90:10 first began working withHonda three years ago, there was nosocial media manager or dedicated team inplace. This was largely true of allautomotive brands in Europe. Over timethey have made internal appointments,like Honda, from their pool of digitalnatives entering the business - creatingnew roles and responsibilities. If we look atthe major automotive brands in Europe,only 12 have ‘social media managers’listed. Previously most would have comefrom a PR background and graduate pools,but as we can see in the charts (right),these roles are now increasingly beingfilled by people with more professionalexperience and proven digital marketingbackgrounds. +44( 0) 207 2530354 www.9010group.com david@9010group.com twitter.com/ninety10group 8
  • 10. Connecting the Car 3 years of Social Media and the Automotive Industry August 2012Many brands are beginning to understand With senior management buy-in, and thethe operational and cultural challenges to leadership of experienced changerealising the changes required to benefit managers with history in managing 37from Open Business. The ex-Mercedes multiple vendors for technical andglobal social media manager had ‘change operational excellence, automotiveagent’ added to his title38 to give a clear companies can take advantage of the newsignal of his evolving role and its place in bounty available to them.organisational change. The challenge for automotive brands inIt is our belief from working across a adapting to digital media and culturalnumber of sectors that leaders in the innovation is an historical over-reliance onautomotive industry are preparing to take their agencies. Some agencies are tryingcharge of the journey to Open Business. to evolve to meet their customersThe benefits are too wide-ranging and emerging needs (Edelman, desk.com) 39 butcross-silo for anything other than a top- the scope of change social mediadown lead. encompasses suggests the age of brands outsourcing marketing, communicationsThose benefits include: Better market and and intelligence to their agencies is comingcustomer knowledge; Better fit with to an end. Now, traditionally very lightcustomer need; Accelerated, more internal teams have to develop newsuccessful innovation; Evidence-based competencies around CRM, Brand anddecision making; New access to capital; Customer Insight to adapt to their and ourMore effective knowledge management; increasing ‘connectedness’. It is our beliefImproved internal and external that this will lead to a fundamentalcollaboration and idea generation; Lower restructuring of how the important(distributed) risk through networks of agency-brand relationship works with anpartners; A greater sense of doing increasing focus on agencies as partners ofbusiness that benefits the society in which change.you operate; A greater sense of customerand employee ‘ownership’ through thedemocratisation of business; Raised levelsof trust – and customer and employeeloyalty and satisfaction which derives fromthis; More attraction for the right talentand customers. +44( 0) 207 2530354 www.9010group.com david@9010group.com twitter.com/ninety10group 9
  • 11. Connecting the Car 3 years of Social Media and the Automotive Industry August 2012Monitoring: Engagement Whilst this makes the river of data more manageable, it also reduces the value it& Insight can bring for game-changing insights and therefore innovation. This reductionism is“We listen, pay attention, then jump into not unique to Automotive; it is a signifi-the conversation using their language. No cant challenge to all sectors and will onlyone wants to hear jargon or marketing be amplified by the socialisation of thespeak.” in-car experience, something the industry Scott Monty, is readily adopting due to customer Head of social media, demand. Ford Motor Company. While most have put in place basic monitoring solutions to be able to react, few have begun realising the power of social media to proactively deliver timely insights to inform everything from brand engagement to a deeper understanding of the purchase cycle. For us these insights are in three key areas: 1. Broad Cultural InsightsThe single greatest challenge for The development of social media insights,automotive brands is managing the designed to provide a wider picture ofgrowing river of social media data coming social interaction and culture, identifyingfrom an increasingly diverse number of trends, behaviour and values that can besources, platforms and formats. This data mirrored or referenced in content andforms the basis of most opportunities and communications.threats an organisation faces in socialmedia, including PR and customer service 2. Focus on Brand Conversationsbut also CRM and direct sales. Our own Evaluation around the minority ofexperience with Honda Europe has seen conversations that are directly brand-a 200% increase in volume over the last related. What content is being shared?three years, forcing a move to a Sentiment around the brand, products andpart-automated solution. communications. +44( 0) 207 2530354 www.9010group.com david@9010group.com twitter.com/ninety10group 10
  • 12. Connecting the Car 3 years of Social Media and the Automotive Industry August 20123. Focus on Brand BehaviourIdentify people and map the sharing andconversations happening at key stages inthe purchase cycle.The graphics below represent aninteresting redrawing of the traditionallyviewed automotive purchase cycle whichhighlights the growing importance ofunderstanding advocacy and loyalty. Social Media & The New Automotive Purchase Cycle (by GfK, Dealer.com & DriverSide) SCRM - Social CRM “What they (the customer) are suggesting is, ‘Let’s make the process a little bit friendlier, so I don’t have to deal with the hard sell.’ And that is a cultural change that’s going to take some time.” Accavitti wants Honda’s Facebook page to be a matchmaker of sorts, directly connecting dealers with the brand’s friends. “And then you start texting your dealer to arrange test drives,” he says. “That’s where I think the work that needs to be done from a social media perspective is a good opportunity.” Michael Accavitti, Chief Marketing Officer, Honda US. +44( 0) 207 2530354 www.9010group.com david@9010group.com twitter.com/ninety10group 11
  • 13. Connecting the Car 3 years of Social Media and the Automotive Industry August 2012Most of the market leaders have already unofficial communities into ‘owned’ or attested the popular social media channels least managed social networks beyond just(primarily Twitter)40 for customer service a broadcast style ‘messaging at’and have begun to integrate it into their relationship.operational workflow, but many are onlyjust undertaking designing an SCRM While this is unlikely to happen untilprocess across all customer touch-points. brands begin ramping up internal teams toIt is critical that legacy departmental silos manage direct customer relationships, in aare bridged for consistency in engagement real-time environment this level ofacross this challenging and expanding customer-centricity (and the resultingcustomer landscape. intelligence) will transform the automotive industry.From our own experience, the arrival ofsocial media often heralds the first time Tied to this is the adoption of NPS. Whilesome departments actively collaborate in a Fiat began using NPS 41 back in 2008, thereco-ordinated fashion. has been limited public adoption of it as an industry-wide KPI or of its evolution as aOwners Net Promoter System - the adaptation of its principles at an operational level. NPSThe activity on unofficial communities becomes a central component of SCRM andalways outweighs the level of user a critical measure of business areas andcontributions to official communities. The activity.unofficial communities are often wellestablished and formed as either Dealersbrand/product/genre dedicated orsub-topics of broader lifestyle One of the most important stakeholders tocommunities. Forums remain the most be on-boarded on to the SCRM platform ispopular medium for these communities. the dealer network. Dealers are critical to the ROI of social media and the success ofThey often offer far richer insights into automotive brands to drive new and repeatcustomers, their needs and a brand’s sales, as well as connect HQ to valuableproducts than can be found in open customer and sales insights. First Toyota 42conversation on the web or in official and then Honda began integratingenvironments. The opportunity and company-wide Salesforce solutions, andchallenge is in encouraging the transfer of more recently Ford US launched a +44( 0) 207 2530354 www.9010group.com david@9010group.com twitter.com/ninety10group 12
  • 14. Connecting the Car 3 years of Social Media and the Automotive Industry August 2012Facebook & Youtube Dealer Direct 43 systemthat allows real-time dealer stock to be fed Connected Carinto social media profiles. There is a "Now that cars have screens that aregrowing appetite from dealers 44 for social intelligent, you would expect that moremedia, often coupled with a lack of clear, and more car manufacturers will want toconsistent guidelines regarding how they make those screens capable of allowingshould approach communities. This people to connect with their friends andrepresents a significant challenge for take advantage of the social context thatautomotive companies, as brand managers comes along with that,"need to guide single-franchise dealer Dan Rose,partners through structured thought- Vice President of Partnerships andleadership and training programs. It is also Platform Marketing,clear that no one brand yet leads in dealer Facebook.social media, presenting a clear opportunityto the brand that moves first to meet this The next frontier for the automotiveneed. industry is undoubtedly the ‘connected car’ with the majority of automotiveScott Monty, Head of social media at Ford manufacturers already committed to thesaid, "We provide our 3,000 dealerships ‘connected car’ project, and joining bodiesnationwide with as much social media best such as The Connected Car Consortium topractices and guidelines as we can." This establish industry standards. That bodybecomes critical to managing dealer already includes Representatives of brandsactivity in social media which can be such as BMW, Honda and Fiat.sometimes disjointed and too aggressivefor community culture”.Aside from social media, SCRM solutionsoffer an unprecedented opportunity tocollaborate cost-effectively with dealers,bringing them into an open innovationprocess to tap into their significant cus-tomer intelligence, connecting and sharingmore effectively and efficiently with Mar-keting and R&D than ever before. +44( 0) 207 2530354 www.9010group.com david@9010group.com twitter.com/ninety10group 13
  • 15. Connecting the Car 3 years of Social Media and the Automotive Industry August 2012Currently, due to safety concerns it is The extent of the future potential can bethought there will be a ‘walled garden’ glimpsed through examples such asapproach led by a number of key strategic Toyota exploring the integration of theirpartnerships with companies such as connected car platform into their Salesforce 46Vodafone and Microsoft, and including CRM system process and Mini’s in-carinnovations in direct collaboration with social network MINI Motoring app wheresocial media companies such as Facebook. users get virtual points for their activity.The consequence will be an explosion of MINI owners can also get access to theirtechnological innovation around apps and Financial Services lease or loan accountswidgets for the car with an inevitable and earn points by paying their billsemphasis on the socialisation of the driving through the app. Non-MINI owners canexperience. receive digital items such as smartphone wallpapers and physical promo items.Mercedes-Benz USA has recently workedwith Facebook 45 to develop a limited factoryfitted in-vehicle service via the car’stelematics system. The focus is on the Open Innovationlocating of nearby friends and businessesas you travel. According to Facebook Vice Monty warns marketers to fix productsPresident of Partnerships and Platform before using social media marketing.Marketing, Dan Rose, if a particular “Otherwise,” he cautions, “all people will dodestination is already entered into the cars is talk about your lousy products or service.navigation system, the driver can opt to Fix the root of the problem first.”auto-publish a Facebook posting stating Scott Monty,they are en route to that destination, along Head of social Media,with an estimated time of arrival, based on Ford Motor Company.the current traffic patterns. The opening of the innovation process,This development is just one of many. whether marketing or product, is central toTogether they will lead to an the Open Business philosophy and hasever-increasing level of brand-related been readily adopted by the automotiveconversations in the social stream for industry. There is still a good deal oforganisations to manage and make sense confusion as to the differences betweenof. what is reported as crowd-sourcing and co-creation, but the appetite to open and +44( 0) 207 2530354 www.9010group.com david@9010group.com twitter.com/ninety10group 14
  • 16. Connecting the Car 3 years of Social Media and the Automotive Industry August 2012engage in collaboration with external The types of output range from the simpleagents is alive and strong. Over the last personalisation of advertising all thethree years we have recorded a total of 20 way through to genuine innovation.real examples of Open Innovation, SMART and Toyota have both usedincluding; 12 crowd-sourcing initiatives creative communities to help designand 8 co-creation examples (see below). elements of campaigns. BMW, Ford andThe majority has been for the purpose of Ducati have all taken it one step furtherengagement marketing (8), with six for and created continuous co-creationproduct innovation and the remaining for communities to work on everything fromengagement of other non-customer interiors to technical detailing.stakeholder groups such as students andtrade generally around concept cars andadhoc initiatives. Social Media Challenges & Opportunities 1. Manage Relationships: Social CRM/Dealer Onboarding existing and potential customers into a centralised (socially enabled) SCRM platform connected to dealer networks is key to ensuring real ROI from social media. For the first time automotive companies can directly own and manage the relationship with the customer and ensure a consistent brand experience throughout the purchase cycle. This is especially important as we see ever evolving purchase behaviours that must be rapidly understood by marketers and their respective agencies to deliver improved optimisation. +44( 0) 207 2530354 www.9010group.com david@9010group.com twitter.com/ninety10group 15
  • 17. Connecting the Car 3 years of Social Media and the Automotive Industry August 20122. Build Dealer Effectiveness: teams, not just locally but globally, behindDealer Community a consistent message and tone as well as apply a flexible and responsive process toMany automotive brands have begun to its brand management will gain aexperiment with B2C customer significant advantage over the competition.communities for the purpose ofco-creation, insight and innovation but no 4. Faster Innovation from Insight:one has yet openly tapped into the huge Customer Direct Relationsappetite of the global dealer community foronline collaboration and information shar- Social media monitoring enablesing. automotive companies to connect directly, or indirectly, with the customer at allWe believe there is a first-mover stages of the purchase-cycle. This simpleadvantage to creating a community for fact will shift the roles the automotivedealer marketing best practice in social manufacturer and dealer play in themedia and beyond. This will leverage process. We have seen bricks-and-mortardealers’ first-hand knowledge of the retail space in the electronics marketcustomer and their feel for the market. become the place for the physicalSuch a platform can also act as a way to experience of a product - with the actualserve and share the best B2B content purchase often happening online. Couldmarketing and support. Applied effectively the same happen for automotive?this can become a deciding factor inattracting and keeping the best dealer There is no doubt that much of thepartners. research potential buyers would once have conducted in magazines, among peers and3. Local and Central Staff at dealers, is already replaced by onlineEffectiveness: Brand Management experience. Some dealers are already reporting lower footfall as a result. But theMost automotive companies will continue upside is that those crossing the thresholdto struggle with brand management in a are more often extremely hot leads.challenging online and social environment.With an increasing number of agents Automotive companies can no longer relyspeaking on their behalf, in real-time, on the interpretation of their market placegovernance will need to be an area of via third party intermediaries. They nowintense focus. The brand that can align its have the opportunity to learn first-hand +44( 0) 207 2530354 www.9010group.com david@9010group.com twitter.com/ninety10group 16
  • 18. Connecting the Car 3 years of Social Media and the Automotive Industry August 2012from the customer themselves. Those thatreduce the time it takes to go from insight Conclusionto action will gain a significant advantage At 90:10, we speak to 4 fundamentalto out innovate their competitors in challenges as we shift from an industrialmarketing, services and products. economy to a networked one; each is very relevant to the disruption faced by the5. Developing new teams and automotive industry:competencies: Diagnose & Design 1) Declining/Migrating TrustAutomotive companies have had relatively 2) Exponential growth of datalight central teams with rigidly defined 3) Corporate Citizenshiproles. They have preferred to use external 4) Glocalisationagencies to manage their relationship withthe market and customer. The examples Declining/Migrating Trust requires theand evidence in this report demonstrate development of ever-closer relationshipsthat the role of the automotive company in with customers, built and sustained tothis key area must change significantly global standards but with the flexibility toover the next 5 years to respond to this fit with local nuances. Social media offersnew environment. automotive companies the opportunity to have the most direct relationship with theirThe main need for change is in the internal customers yet. Previously these relation-structuring of teams and their ships, and the knowledge of customers andcompetencies. Better cross-departmental their needs they bring, has been theinternal collaboration is required as roles domain of agencies, traditional media andblur; e.g. good or bad customer service in dealers.social media is consequently good or badPR. Our experience suggests the industry is gearing up. It’s raising its internal socialNew roles and even new departments media competencies and taking stepsmust be created to manage a presence in towards the organisational change socialan expanding, real-time, always on, glocal media demands. Together with effectiveand open environment. This will mean new CRM and the transition to (Social) SCRM,corporate cultures and processes that and more deeply ingrained Net Promoterconnect up the old with the new with a Systems, automotive firms are beginningsignificant requirement for change to redefine their requirements of agencies,management and management innovation. the media and their dealer networks. +44( 0) 207 2530354 www.9010group.com david@9010group.com twitter.com/ninety10group 17
  • 19. Connecting the Car 3 years of Social Media and the Automotive Industry August 2012Innovations in dealer networks currently The key questions remaining for leadersremain an under-exploited opportunity but in Automotive are:we think it is a matter of time before betterconnected dealer networks will pay 1) Where does this shift lead to?dividends for automotive brands. 2) What are the benefits for the brand, its customers and the wider world?Gathering the rapid feedback of insight 3) And, of course, what is the road map?from dealers and, through social media, therest of the world is critical to high For those on the journey, and thoseperforming automotive brands in the 21st wishing to begin, we’re here to help.century. The growth of data is real andshows no sign of slowing.But just as critical is the ability to act onthat data – to turn insight to action. Andthat requires the will to see the broaderpicture for the organisation beyondmarcomms. It means changes in culture,focus and skill-sets. If your customer isyour partner, how does that change whatyou do?Partners give more than customers. Butthey demand more, too. And as demand forincreased Corporate Citizenship grows,social media’s role in encouragingtransparency will reward those who joinwith their partners to work honestly,openly, fairly and positively.Finally, the customer is being offered theopportunity to take their rightful place atthe heart of the business. Companies builtto succeed in today’s connected world arewelcoming them in with open arms. +44( 0) 207 2530354 www.9010group.com david@9010group.com twitter.com/ninety10group 18
  • 20. Connecting the Car 3 years of Social Media and the Automotive Industry August 2012TermsOpen Business - Open business represents a concept of doing business in a transparentway by intimately integrating an ecosystem of participants, collaborating in public spaces.It is the art of making partners of customers.Connected car - A new type of car that has social media technology integrated into itssystems.Open Communications - The concept that that anyone, on equal conditions can getaccess to and share communication resources on one level to provide value addedservices on another level in layered communication system architecture.Gamification - The use of game design techniques, game thinking and game mechanicsto enhance non-game contexts.Reductionism - An approach to understanding the nature of complex things byreducing them to the interactions of their parts, or to simpler or more fundamentalthings.KPIs (Key Performance Indicators) - Are commonly used by an organization to evaluateits success or the success of a particular activity in which it is engaged.Ideation - Is the creative process of generating, developing, and communicating newideas.SCRM solutions (Social Customer Relationship Management) - Is a widely implementedmodel for managing a company’s interactions with customers, clients, and salesprospects.Walled Garden - Refers to a carrier or service providers control over applications,content, and media on platforms and restriction of convenient access to non-approvedapplications or content.Widgetary - Method of providing bite sized chunks of information, easily digestible to awider audience.Glocalisation - A combination of the words "globalization" and "localization" used todescribe a product or service that is developed and distributed globally, but is alsofashioned to accommodate the user or consumer in a local market.NPS - Net Promoter Score/System. +44( 0) 207 2530354 www.9010group.com david@9010group.com twitter.com/ninety10group 19
  • 21. Connecting the Car 3 years of Social Media and the Automotive Industry August 2012Links1. 9010 group case study for Honda http://www.9010group.com/case-studies/honda-europe2. Profile of Henry Ford on Google+https://plus.google.com/u/0/114277687548103339609/posts?gpinv=AGXbFGwA98KHtfLaVxD16AtQ261bAd1jBhol5gAkxtv9GdisriMlXBxQhwk881U3CnaUBS0W3NRChEeigk6N28C4a02AzMiTvVOd1yLkyr57AtUEqzpiI&amp%3Bhl=de3. Article on Fords Twitter promotion campaign http://www.mackcollier.com/ford-begins-promoting-3rd-party-content-via-promoted-tweets/4. Article on Peugeot Pinterest campaign http://www.psfk.com/2012/03/peugeot-pinterest-jigsaw-puzzle-contest.html5. Article on Toyota Twitter spam http://technorati.com/social-media/article/toyota-drop-the-ball-with-super/6. Article on Nissan Australia scandal http://www.theage.com.au/national/nissan-crashes-into-social-media-storm-20111123-1nv0r.html7. Article on Honda paying bloggers http://jalopnik.com/5893022/how-honda-pays-bloggers-to-write-about-their-cars8. Article by Brian Solis http://www.briansolis.com/2011/03/revolution-series-2-debut-eleftherios-hatziioannou-of-mercedes-benz/9. VW Darkside website http://www.vwdarkside.com/10. Article on Toyotas Australia advert http://www.brandrepublic.com/News/973915/Toyota-Australia-pulls-online-ad-labelled-incestuous/11. Greenpeace social media article http://jamieburke.co.uk/open-business-online-activism-interview-with-greenpeace12. Article on Mitsubishi and NOTW http://www.activative.co.uk/csr-cause/mitsubishi-diverts-notw-adspend-to-childline-collaboration-2239913. Video of Toyota’s president apologising Toyota; CEO Youtube http://www.youtube.com/watch?v=jAz0JqGfi2o14. Article on Toyota tweet meme (Twitter MEMEs) http://www.readwriteweb.com/archives/what_the_tweetmeme_toyota_portal_looks_like_under.php?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+readwriteweb+(ReadWriteWeb)15. Article on Ford social media Fiesta Movement http://green.autoblog.com/2010/05/03/social-media-initiative-pays-off-ford-reports-125-000-people-in/16. Honda road trip website (Live Every Litre) http://www.liveeverylitre.com/17. Hyundai New Thinkers site http://adage.com/article/global-news/hyundai-tests-customers-brains-thinkers-index/230808/?utm_source=digital_email&utm_medium=newsletter&utm_campaign=adage%20article%20about%20Hyundai18. Article on Vauxhall, Visit Britain http://www.oneswoop.com/research/articles/news/vauxhall-launches-social-media-campaign-3260.aspx +44( 0) 207 2530354 www.9010group.com david@9010group.com twitter.com/ninety10group 20
  • 22. Connecting the Car 3 years of Social Media and the Automotive Industry August 201219. Article on Toyota Yaris social media http://mumbrella.com.au/toyota-yaris-social-media-pitch-the-final-metrics-1319920. Forum trader rules page http://type-r-owners.co.uk/forums/faq.php?faq=vb3_reading_posting#faq_f21. VW forum http://forums.vwvortex.com/22. Mercedes Benz forum http://www.benzworld.org/forums/23. BMW forum http://forums.bimmerforums.com/forum/24. Honda civic forum http://www.civinfo.com/forum/25. Ford forum http://www.fordownersclub.com/forums/26. BMW Facebook page http://www.facebook.com/BMW27. Ferrari Facebook Page http://www.facebook.com/Ferrari28. Mercedes (US) Facebook Page http://www.facebook.com/MercedesBenz29. Audi USA Facebook Page http://www.facebook.com/audi30. Ford Mustang Facebook Page http://www.facebook.com/fordmustang31. Audi DE Facebook Page http://www.facebook.com/AudiDE?ref=ts32. BMW DE Facebook Page http://www.facebook.com/BMWDeutschland33. BMW France Facebook Page http://www.facebook.com/BMWFrance34. Volkswagen DE Facebook Page http://www.facebook.com/VolkswagenDE35. BMW UK Facebook Page http://www.facebook.com/bmwuk36. Article on Ducati http://www.conversationagent.com/2010/04/tribal-marketing-ducati.html37. Open Business page on 9010 site http://www.9010group.com/about/open-business38. Article by Brian Solis http://www.briansolis.com/2011/03/revolution-series-2-debut-eleftherios-hatziioannou-of-mercedes-benz/39. Article on Volkswagen article http://www.desk.com/blog/edelman/40. BMW Twitter article http://www.cardealermagazine.co.uk/publish/bmw-using-twitter-and-facebook-trends-to-spot-problem-cars/5787941. Net Promoter conferences site http://conference.netpromoter.com/npc/london09/program/-sessions.php42. Article on Toyota marketing http://www.dejavutimes.com/marketing/digital-marketing/667-salesforcecom-and-toyota-form-strategic-alliance-to-build-toyota-friend-social-network.html43. Article on Ford social sale tool http://econsultancy.com/uk/blog/8925-ford-launches-social-sales-tool-for-us-dealers44. Social dealer website http://www.socialdealer.com/45. Worked with Facebook http://latimesblogs.latimes.com/technology/2012/01/ces-connected-cars-mercedes-subaru-aha.html46. Article on Toyota salesforce http://www.eweek.com/c/a/Cloud-Computing/Salesforce-Toyota-Team-Up-for-InCar-Social-Networking-898536/ +44( 0) 207 2530354 www.9010group.com david@9010group.com twitter.com/ninety10group 21