Driving Customers Away: Bad Marketing Is Not Simply Ignored – Use Social Logins to Get Better Data
Posted by Ralph Paglia
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.
About Ralph PagliaRalph Paglia; President of ADM Consulting, LLC former Vice President - Digital at Tier10 Marketing. Director - Digital Marketing at ADP Dealer Services from 2007 through end of 2010 where he was responsible for industry vertical thought leadership and solution creation while establishing new ADP digital marketing solutions. For many years, Ralph has created automotive marketing business models that support business revenue growth and generate shareholder value, while building a network of relationships and partnerships resulting in alliances that support revenue growth.
Posted on January 21, 2014, in Advertising, Automotive, Automotive Digital Marketing, Automotive Social Marketing, Car Dealers, Email, Facebook, Social Media Advertising, Social Media Marketing, Strategy and tagged Advertising, Automotive, Automotive Marketing, Automotive Social, Automotive Social Media, Automotive Social Media Marketing, Digital Marketing, Facebook, Marketing, Social Marketing, Social Media Marketing, Social Media Strategy, Twitter. Bookmark the permalink. Leave a comment.