What's the sales potential in social networking? - - Aftermarket Business - Wholesaler, retailer automotive parts

What's the sales potential in social networking?

Source: Aftermarket Business

Earlier this decade, the word “friend” became a verb in our lexicon, and the way we perceive business relationships was never the same. As digital social networking has skyrocketed into the public consciousness, auto parts distributors and repairers now have access to a vital avenue for marketing, sharing repair information and keeping track of industry colleagues.

But these communities can be elusive, and there’s a fine line between engaging an audience and heaping an overabundance of marketing materials upon them. Turning a profit through social networks involves unprecedented business savvy, and even the social network powerhouses like Facebook, Twitter and YouTube struggle with business models that can bring about a tangible return.

Nonetheless, user-generated content has revolutionized the Internet and e-commerce, for good or bad, and every avenue of the auto industry has the same opportunities available, whether you’re selling auto parts, gathering car enthusiasts to try your product, or if you’re a technician looking for advice on installing brakes on a vehicle in your bay.

There is a sales potential to social networking, but profiting means reaching beyond the traditional business paradigm. Social networks enable new ways of reaching people, which can still be lucrative. Scholarship programs and non-profit programs are one example.

“We use Twitter and Facebook to let online users know about scholarship programs,” says a Honeywell spokesperson. “At the end of the day, because it wasn’t self-serving, because we were genuinely trying to let people know we were giving away money, Facebook and Twitter worked great for that.”
Auto parts distributors are struggling to find the value in social networking, as social networking seems to benefit companies most when working with consumers, who can get a direct education about car care and maintenance issues.

The Automotive Distribution Network plans to use social networks to reach a targeted level of consumer. “Our focus would be to assist our Parts Plus Car Care Centers in attracting the female consumer,” says Bob Barstow, VP of the Network.

To make the most profit from social networking, use these sites in tandem with your company’s marketing plans, not in place of it, advises the Honeywell spokesperson. “One thing to think about, is your target market even online? Where are they and what are they doing? Give them something that’s useful but not too commercial.”
Also, be sure that your company’s Web site is branded and tied into the major social networks, like Facebook, YouTube and Twitter.

Distributors are advised to use social networking on a local and regional level, which may appear contradictory given the Internet’s global reach. For example, designate someone on the staff (or externally hired) as a technical expert, who can visit online discussion forums and offer advice for techs and DIYers. And if the opportunity arises, have them recommend your channel partner’s products and your company’s services if they meet the needs of the users who are online.

Jay Buckley, technical training manager at Honeywell, can often be found discussing tech issues on various social networks in cyberspace.

The local and regional focus should also be on the minds of repair shops, which can use social networks to send out maintenance reminders to customers and stay in touch with their parts distributors.

To assist in recruiting and hiring, LinkedIn has become a viable avenue for scouting potential employees and networking with like-minded industry colleagues. Trade schools use social networks to promote enrollment and conduct student outreach.

The most effective social networking revolves around building relationships, engaging others and developing solid word-of-mouth marketing, says author Patrice-Anne Rutledge, who wrote “The Truth about Profiting from Social Networking.”

“This new form of networking enables you to take your face-to-face network online and expand it exponentially in the process,” she writes. Rutledge points out the value that social networks have for market research. Connecting with customers and channel partners through networks like LinkedIn and Facebook opens doors to free and effective market research as you can discuss the merits of your products and services online.

To be successful when marketing through social networks, it’s important to focus on the brand and the user experience rather than getting lost in heavy product promotion.

In the same way that TV viewers now have the luxury of watching commercials in fast-forward, social network users will tune out if they think they’re just getting a hard sell.
Although the landscape of social networking has changed, it’s unlikely to go away. If Facebook were a country, it would be the fourth largest in the world, according to socialnomics, a social media blog site.

Companies are encouraged to focus on being transparent and helpful to users of social networks, focusing on the customer’s needs first, making a “hard sell” lower on the list of priorities.

A short history
Many consider the site Classmates.com as one of the first Web locations to use a social networking model on a widespread level. That was 1995.

Although Classmates.com is still noted as a Top 10 U.S. social networking site, its cache has diminished. More recently, in 2005, MySpace appeared to be the social network of choice for a wealth of Web users. So much so that Rupert Murdoch’s News Corporation bought MySpace in 2005 for $580 million. Now, the site is a virtual collection of glittery animated ads and digital tumbleweeds, as its users have since picked up stakes and moved over to Facebook.

Twitter has yet to turn a profit, but that didn’t stop the site from receiving a recent valuation of $700 million.

As these snapshots attest, today’s most popular social networks are likely not to be among the top choices in just a few years. This makes it even more difficult for marketers and businesses to get a handle on this elusive medium.

An early adopter still going strong
The gold standard of technician-centric communities in the automotive industry is perhaps the International Automotive Technician’s Network (iATN) Web site, which has been in operation long before social networks and forums became in vogue.

The site was launched in 1995, and, unlike its peers from that time frame, iATN is still relevant, with almost 70,000 members from more than 150 countries, says Scott Brown, iATN’s director of operations.

As far as the iATN mission, “We were able to fill a void in automotive service professionals wanting to share knowledge and information,” he says, adding that the group maintains the same focus today.

While iATN’s business model may not match those of other networking hubs, it serves as an example of a long-standing organization that continues to serve an industry that is not always thought of as very technologically advanced.

“We have industry professionals dealing with professionals and that is what makes it completely different (from other mainstream social networks),” Brown adds. “They are being productive when they are communicating. They are learning new things. They are gaining from their experience. This is what makes it very valuable.”

Repairers have a definite need for real-time technical information, but going to the Web for repair information may not be as high on the DIY list.

“While automobile ownership seems to be one of the topics people like to talk to each other about, the problem is, when it comes to repairing your car, I don’t know if that’s an area where people want to do a lot of talking and conversing with peers,” says David Sturtz, CEO and co-founder of RepairPal, an online hub for car owners seeking repair estimates. The company recently struck a deal with AOL Autos, which reached 6.9 million unique visitors in October 2009.

Although RepairPal has a technician forum, Sturtz sees his site as more of a utility. “I don’t know if the social element is terribly relevant to (our users).”
He adds,” I think social networking works really well for a few sites out there that have managed to capture sufficient momentum and interest.”

As social networks continue to evolve and better serve members and users, aftermarket companies, along with other industries, will be pushed to analyze ways to make this medium profitable.

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