3 Tips to Leverage the Power of Social Media Marketing - Consumer blog | Deloitte Australia has been saved
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The rapid rise of social media over the past decade has caused businesses in all industries to feel like they have had to hit the reset button on their approach to marketing and advertising. The current approach of mass marketing via TV and radio advertisements has led to a less than effective way to reach consumers, with consumers now more responsive to targeted and personalised advertising. Having a social media marketing strategy is no longer a nice-to-have, but a requirement – one that can produce a much higher Return on Investment (ROI), than a traditional ‘one size fits all’ approach.
We look at 3 ways to help harness the power of social media marketing to reach your consumers in your Dealership’s operations.
As the name implies, social media database marketing involves uploading a database of customers onto a platform, enabling the segmentation of customers to generate targeted, individualised adverts accordingly. For Dealerships, this could apply to customers with a finance contract ending within 3 months, or with a service booked in the coming weeks.
Social media platforms will then use this information to run tailored advertisements for these clients, promoting deals such as a potential upgrade model for customers at the end of their finance contract, or specific upgrade accessories for those customers booked in for a service.
‘Lookalike marketing’ leverages machine learning and artificial intelligence to segment potential customers based on their social media activity. The key difference here is that potential customers are categorised and targeted based on what they engage with and like, not their database profile.
First, conduct some research and identify a customer profile you want to target – an example could be a 25–30-year-old who lives in your PMA and loves leisure travel. Social media platforms are then able to use their complex algorithm to run advertisements for a certain vehicle or accessory that will show only in the newsfeeds of these ‘lookalike’ customers.
While the Industry was slow out of the blocks when it came to influencer marketing, we have seen a number of larger capital city Dealerships tap into this strategy over the past year.
Influencer marketing involves collaborating with a social media influencer – most commonly on Instagram – who has a dedicated and engaged following with whom they have built up a large amount of trust.
While it can be an expensive approach depending on the size and reach of their following, collaborating with an Influencer to post photos and endorse your dealership can provide a very attractive ROI on your marketing spend.
How have you found marketing via social media? We would love to hear about the success you’ve had, or if there are any aspects of social media marketing, such as developing a marketing strategy or consumer profile study, that we could help you with, to boost your Dealership’s social media presence.
Lee has nearly 20 years experience in the automotive industry, and is charged with overseeing our OEM distributor network and dealership performance optimisation practice. Lee has experience leading long term engagements with OEMs and Dealers and bringing the best of Deloitte to our teams. Lee is a Partner in our Deloitte Motor Industry Services team, and has worked with automotive clients across Asia-Pacific in numerous roles, including dealership optimisation, network financial analysis and OEM retail of the future modelling. As an experienced partner within our Deloitte Motor Industry practice, Lee is responsible for leading our team of Automotive experts and brings a wealth of knowledge and expertise from the industry to every engagement.