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Social Media Is Fun, But Why Isn't It Selling Cars?

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We here at SocialCarNews will be the first to advocate that social media is fun. Connecting with people across the world over your passion is a new way of making friends. But while it may be fun, a new report from Automotive News says it isn't selling cars.

A poll performed last summer by R.L. Polk & Co. and AutoTrader revealed that a mere 3 percent of 4,005 new and used car buyers were influenced by social media. That's a ridiculously low percentage indicating that while social media may be fun, it is clearly not selling cars. While dealers are acknowledging the problem, few have found the solution.

Most dealers agree that social media is great for building relationships and engaging with fans. This helps build awareness around both the dealerships and car brands. But turning all that into a cash transaction seems to be an issue.

While many are struggling to find the answer, Papa's Chrysler-Dodge-Jeep-Ram in New Britain, Conn. says it is seeing the return on investment. A.J. Maida, Director of Digital Marketing for the dealership said it has sold up to five vehicles per month due to social media. While A.J. Maida may see this as a return on investment, five vehicles per month is only 3 percent of the annual sales.

What do you think the missing link is? How can dealerships turn social media campaigns into sales, or is that even the point? Let us know what you think in the comments below.

[Automotive News]

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  1. I think the consumer needs to feel comfortable with the fact dealers are there to sell cars, by providing good communication and transparency. The dealers need to understand pro-active, non-threatening behavior, talk don't pitch, on Twitter and FB. The blog works for a little of both if done well. Once there is balance, more consumers will realize they are being influenced by social networking relationships, right now it's too new. Any new medium takes years for majority adoption, look how fast mom and grandma got FB pages? it's happening...and will grow as we all learn to do it better. This form of communication in a niche environment will drive advertising costs down as we become more engaged in our customers & their circles of influence
     
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