The Role of KPI Analysis to Resolve Business Problems
Measuring social media metrics is important for understanding the performance of your respective Pages no matter what industry you are in. With advanced measurement reporting of social Pages, companies in markets throughout the world can identify business problems and resolve these problems from the valuable insights gained from analytical tools. However, the problems that companies face are vastly different from industry to industry. This report will focus on how proper social media measurement can help resolve business problems for automotive companies.
When it comes to marketing the brand name for car models, automotive companies have a challenging task. The average consumer’s decision to purchase a car relies heavily on the brand name and reputation. To complicate matters, the majority of car sales occur onsite at dealership locations and it is often difficult to track the marketing return of investment on a macro scale. However, by properly using social media measurement tools, automotive companies can increase brand awareness, receive product feedback, bolster dealership traffic, and more!
In 2013, the car brand with the highest level of brand loyalty was Kia. In a recent study, they boasted that 48% of their buyers this year were returning customers. This statistic is just an example of how important it is to maintain a positive and memorable brand image for automotive manufacturers. With effective social media measurement, automotive brands can effectively raise brand awareness and foster brand loyalty, which ultimately results in increased sales.
The Importance of Brand Awareness and Customer Loyalty
For automotive brands, social media is an incredibly powerful communication channel for increasing brand awareness. Considering the fact that the customer adoption ladder (point in which they are made aware of a product until the final sale) can take years, it is critical that consumers recognize the brand as soon as possible.
Additionally, improving the brand reputation of an automotive company has a direct correlation for raising the price of a car. This is especially relevant for luxury cars. For instance, in 2012 the automotive brand with the strongest brand name was Ferrari. During this year they made record profits, while selling 7,318 cars. At the same time, they had more than 10 million Fans. Considering the price of a Ferrari and the strength of the brand name, it is apparent that brand awareness affects the overall demand, which in turn raises the equilibrium price (optimal price for maximizing profits based on supply and demand – see below image).
How to Increase Brand Awareness and Customer Loyalty
The steps and strategies for increasing brand awareness and customer loyalty on social media mainly should focus on increasing Fan growth rates, engagement rates, and responding to Fan inquiries.
In order to increase fan growth rates and engagement rates, automotive brands should do the following things:
Most Important KPIs: Brand Awareness/Loyalty
Soft ROI for Dealership Traffic
Even as digital sales increase across industries, nearly all sales of cars still occur onsite at a dealership. The reason is simple. With a high-cost product that can differ drastically in performance, consumers want to test and hear about the product at a greater length. Therefore, one of the main goals of brand marketing for automotive companies is to increase dealership traffic on either a micro or macro scale.
How to Increase Dealership Traffic
There are two main methods of increasing dealership traffic via social media. The first is driving dealership traffic by organic methods (no payment involved) and the second is via paid social advertising.
Here are some options for increasing dealership traffic by organic means:
Here are some options for increasing dealership traffic with paid advertisements:
Most Important KPIs: Soft ROI for Dealership Traffic
Check out this interesting case study on how featured car brands on Facebook performed during the 2012 Mondial De L’Automobile!
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