For car dealers, Facebook draws fans, but not sales

Who “likes” a car dealership on Facebook?

Well, 415 people do, according to Millevoi Bros. Auto Sales Service’s fan page.

Mark Millevoi, the owner of the dealership in Northeast Philadelphia, joined the 750-million-member social media site in hopes that it would help sales. So far, Millevoi is disappointed.

“I’m very unhappy with Facebook,” Millevoi repeated – for the fourth time. He sold 400 to 500 cars in 2010, but only one through Facebook.

Millevoi constructed the fan page in January 2010 and slowly gathered a legion of 415 fans composed of relatives, friends, friends of friends, customers, and strangers. The page is visible to the public and contains links and photos to cars in his inventory. The links connect to his dealership website, which contains additional photos and information on prices, mileage, transmissions, etc.

The dealership fan page got 400 to 600 impressions a month, Millevoi said. Whether anyone paid real attention is another matter.

“I wouldn’t get questions from anybody,” Millevoi said. Except for one or two people who “liked” each update, there was no interaction between the dealer and his fans.

Frustrated, Millevoi changed strategies in March. Now he just posts inventory updates on his personal “Mark Millevoi” Facebook page, where he has 267 friends.

He gets more questions and comments, but still not nearly as many as he would like. The change has not been any kind of difference-maker for him and his business.

CNW Marketing Research Inc. estimates that 43 percent of U.S. car dealers were using Facebook as of 2010. But, car dealers are reevaluating the worth of Facebook, said John Giamalvo, director of dealer sales at Edmunds.com, an online car-finder.

He said there are four tiers of dealers using Facebook. The first tier are dealers who put up a Facebook page because they’ve heard that they need to be on Facebook. Yet, they do not update or monitor the page. Thus, when a customer contacts them through Facebook, they do not respond, therefore Facebook is hurting them rather than helping.

The second tier garners fans to improve their search results on Google. The third tier adds promotions and uses Facebook like a mass-marketing tool, similar to a TV-advertising spot. The fourth tier also tries to make its sales team expand the dealership name through having its own personal pages, hoping to expand name recognition beyond the dealership page.

So far, Facebook has been poor in improving sales.

“I think it’s something that’s going to take longevity. The people in the last tier are the ones that are going to reap those rewards,” Giamalvo said.

Facebook is called a social-media site for a reason, said John Curtis, senior social media and search-engine optimization strategist at L2T Media, which advises car dealers on using social media effectively. People go on Facebook to connect with their friends, not to buy cars, so selling cars on Facebook will not be as easy as selling on Craigslist or eBay, Curtis said.

Facebook helps a dealer build trust with potential customers, Curtis said. The first step is to use Facebook to provide value to the masses, meaning inventory updates are not enough. A person may buy a car every couple of years, but they get an oil change every couple of months, so dealerships should provide service coupons to their fans.

More people will “like” a fan page just for those coupons, and if they use it and are satisfied with the service, the dealer just moved “a couple levels up in the trust ladder,” Curtis said. When one of those folks is looking to buy a car, he will remember the dealership that gave him a discount on an oil change.

Facebook also allows businesses to listen in on conversations about their own business, Curtis said. When a dealer finds a relevant conversation, he should join in, Curtis said. A car dealer should offer his expertise, give advice on buying cars, do something to provide value to the conversation. A dealer should also create conversations with his fans by posting articles about cars, asking questions, and conducting polls.

Stephen Wade Nissan, one of nine Utah car dealerships owned by Stephen Wade, chairman of the National Automobile Dealers Association, tells a different Facebook story.

Two-and-a-half years ago, the Nissan dealership started a Facebook page that yielded no results. But two months ago, the Nissan outlet began an aggressive Facebook campaign. Since then, fans grew from 170 to 579 as of late last month.

A professional ad company constructed some features on the page, but, “The big difference comes when you get everybody in the dealership involved,” said Matt Muir, Internet sales director of Stephen Wade Automotive Group. Multiple people in the dealership have access to the Facebook account so that they can respond to questions and give quotes as soon as possible.

Last month, the number of fans grew by 279 in five days. The cause: A sweepstakes contest posted on its wall that said if the number of fans exceeds 500, the dealership group will give one fan a GPS system. If fans top 750, then he’d give some fan a Kindle, and if the count climbs above 1,200, a $300 gas card would be awarded to a fan.

The “Stephen Wade Nissan” Facebook page includes digital brochures, quick quotes, inventory, photos of its employees, free car washes, links to its blog, and newspaper articles about cars.

According to Muir, it is too early to have concrete data linking Facebook to car sales in the Nissan dealership, but Facebook has definitely generated more traffic, and sales associates have been getting more calls.

“It’s a noticeable difference when you walk from store to store,” Muir said. The Nissan dealership “is upbeat and friendly.”

 

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Contact staff writer Jingwen Hu at 215-854-2625 or jhu@philly.com.

 

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How Facebook Changed Gaming by Friending It

Facebook has irrevocably changed how we interact online, and even offline, but its influence has extended to other areas besides relationship statuses and vacation photo albums. This little-startup-turned-corporate-giant has changed society by helping usher in concepts such as social marketing.

But one of the biggest impacts Facebook has had is also one of the most overlooked: the gaming industry.

Facebook entered the market during a time when the blockbuster games were hitting their stride, with major franchises such as “Halo,” “Call of Duty,” “Zelda” and “Gears of War” leading the way. But Facebook developers saw an opportunity to sidestep the “hard-core” gamers and cater to the distracted teenagers, the bored employees and the moms who just needed a break.

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And suddenly, the casual game market took off.

There have always been casual games, but acceptance wasn’t widespread beyond some surreptitious rounds of Solitaire when the boss wasn’t looking. Now Facebook (along with the surging interest in smartphone game apps) has made it much more common for consumers to identify themselves as gamers, even if they never consider playing the traditional blockbuster games.

Peter Molyneux, a renowned game designer, has said that Facebook-style casual gaming is leading to a rebirth for PC gaming, which has been in a gradual decline since the advent of the modern game console. Indeed, social gaming companies such as Zynga and Playfish have user bases numbering in the hundreds of millions of players, something any PC game maker would envy.

So what has Facebook (and, to be fair, other online casual game sites) done to change the gaming landscape so dramatically? Here are a few factors:

Facebook made games mainstream

It’s a simple function of being the single largest social network in the world (around 750 million accounts). Everyone has had a chance to be exposed to FarmVille, even if they haven’t played it themselves. When so many people are trying it out, others want to see what the fuss is about, and Facebook has plenty of people to introduce games to those who wouldn’t have known about them otherwise.

Facebook made games social

One of the biggest draws of Facebook’s brand of casual games was adding multiplayer elements. The very nature of the social network makes it easy for players to help one another, share resources and offer tips. It’s an environment tailor-made for limited multiplayer gaming, and casual players thrive on the feeling of connecting with people while they play.

Facebook made games manageable

The classic gaming stereotype, while not always true, holds that gamers spend large chunks of their day playing. Many people don’t game because they just don’t want to commit the time to it. Facebook offered bite-size chunks of gaming, so to speak, that let people pop in when they had 15 minutes and leave again, knowing they could come back when they had another moment. This made gaming much more accessible and manageable for those who didn’t think they would ever try a game to begin with.

Facebook made games addictive

It’s no secret that some people already found games addictive, but Facebook game designers created an interesting twist that keeps people even more enthralled: the timer. As mentioned above, one of the keys of Facebook gaming is a game that manages itself well and only needs a player to check in periodically to monitor how things are going. FarmVille is the quintessential example. Players set up important processes, such as planting or feeding, and can leave the game for minutes, even hours, while they do other things. Then the player returns later to collect the rewards.

This kind of macromanagement has proved addictive to casual gamers, not only because it provides the illusion of being able to leave a game whenever they want, but also because gamers can let the game run in the background and just return for the rewards. Even though the game play is vastly different from traditional games (and consequently often boring to hard-core gamers), it has proved incredibly addictive for many people who impulsively return to the game at regular intervals to check on their farm or city or gang, etc.

Facebook made games free … ish

The “freemium” game model, where basic game play is free but players must pay for in-game accessories or additional features, had seen only limited use before social gaming came along. Designers had success stories, but until Facebook gaming took off, no one knew just how lucrative it could be.

Of course, playing games for free was key to those who just wanted a quick distraction or didn’t consider themselves gamers. But once they became engrossed in a game and had invested large amounts of time in their digital world, it became much easier to pay a buck or two for small perks. Over time, game designers have found that they can make even more money with the freemium model than with traditional game sales, and many consumers feel like they’re getting more for their money because they are paying for things they already have a vested interest in, rather than a game they have yet to play.

Facebook isn’t the end

Many an apoplectic gamer or game designer has spilled diatribes all over the Internet about how Facebook has destroyed gaming. Major game publishers such as Electronic Arts are investing heavily in social gaming, making many worry that time-honored gaming styles will be left behind.

Facebook has certainly changed the gaming industry permanently, but it’s hard to see this as the end of traditional games. New games for the Xbox 360 are having opening weekends that rival that of movie box offices, and the contingent of hard-core gamers is stronger than ever.

Still, everyone should get used to seeing Facebook integration in their consoles and solicitations for help with a troublesome cow, because those trends aren’t going away any time soon.

• How to Sign Up and Use Google+
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