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Should You DIY or Outsource Your Video Marketing?

By: Tim James

So you’ve decided it’s time to differentiate your dealership from the competition, and that video is the way to do it. Your next probable question is, do you produce, distribute and market the videos yourself, or outsource some, if not all of these functions?

The answer to this question is, it depends. We’ve got dealers who are successfully doing both. In my experience there are three factors to consider when making this decision.

1) Motivation

If your decision to implement video marketing was arrived at rather reluctantly, then you should probably outsource. Motivation requires passion. It requires an understanding of the rewards that will be reaped from putting your time and effort towards this undertaking. It requires buy-in and excitement from your staff. It requires commitment.

I’ve talked to many dealers who spend time waffling over whether they should go the DIY video route. Here’s what I ask them: If not you, who? If not now, when?

Video is not a trend. Remember the music video, “Video Killed the Radio Star?” The actual song was released nearly two years before the music video debuted on MTV in 1981. Hardly anyone heard of the song, but once the video aired, the song became a huge hit. That was 35 years ago. Online marketing video is here to stay, and it’s just a matter of time before it kills the static Vehicle Details Page (VDP).

2) Internal Resources

The second factor to consider is what your internal resources are. Even if you’re highly motivated to launch a video marketing program, someone has to take responsibility. Someone has to take ownership to make sure it’s successful. Someone has to learn how to shoot videos, how to get the videos on the right touch-points and how to measure whether the program is successful or not.

The ‘pros’ of producing videos internally are that you already have staff at your disposal. With an established process, inventory videos should take less than 24 hours to upload.

In addition to inventory videos, it’s important to create value proposition videos, customer testimonial videos and service videos. Internal employees are in a better position to spontaneously capture a glowing customer testimonial video, and may have a better handle on how to sell your dealership’s unique value proposition than an outside entity.

However, when analyzing internal resources, be brutally honest. Are your current employees already struggling to keep up with what’s on their plate? If they are, adding new processes may be too much of a burden.

It’s possible to split the responsibilities between internal and external resources. If your in-house staff is currently tasked with taking inventory photos, it’s not much of a stretch to task them instead with shooting a walk around video. Photos can be easily extracted from video, so there is no need to do both. If you use a lot services company to take your photos, task them with shooting a video in addition to taking your photos.

If you decide to use internal resources, distribution and marketing are two important areas to be addressed. Who will be tasked with ensuring that your videos appear not just on your website, but distributed to as many touch points as possible; including third-party auto shopping sites and social media channels?

Who will be in charge of incorporating video into your digital ad and/or email marketing campaigns? Who will be in charge of collecting viewer data and using that data to increase the relevancy of your videos? Meaning, it’s important to ensure that the right video is shown to the right car shopper at the right time.

Another question to ask when evaluating internal resources is what the turnover rate is in your dealership. Are you confident that your Internet Manager or the staff in that department will be with your dealership for a long time? A potential pitfall of producing videos internally is that you’ll have to constantly train new staff.

3) Dealership Volume

Last but not least, volume is another factor to consider. How many units does your dealership move per month? The greater inventory turnover there is, the greater time investment involved and the greater commitment there must be to the video marketing process.

The good news is, a successful video marketing program will increase your overall sales volume, but for some dealers this can present its own challenges. Kia of Puyallup in Washington saw a nine percent uptick in sales after implementing a video marketing program. How many more units can you handle moving per month?

Now, is everything as clear as mud? Good! The fact is, only you can decide what’s best for your dealership. It’s easy to get excited about the idea of video marketing and want to do it yourself. But it’s important to be able to objectively analyze your motivation level, internal resources and overall volume.

I’ve seen too many instances where dealership salespeople will produce a few videos, upload them to YouTube and don’t see any increase in leads or sales. The dealer points to these paltry efforts and claims that videos don’t work.

Well, of course that level of effort doesn’t work! Producing a few videos is nowhere near the same thing as having a comprehensive video marketing program. It’s like deciding that you want to go into space so you build a shuttle in your backyard. Without an actual space program, with testing, logistics, a launch pad and experts to tell you when and where to go, you’re not likely to get very far.

Outsourcing some (or all) of your video process may involve investing a little more in your merchandising budget than you currently spend, but the end results will be well worth the investment.

No matter which direction you choose to go, the important thing is that you start now — Not next week or even tomorrow. You can start slowly if you need to, but you must start in order to find the process that works best for you and your dealership. The end will justify the means.

Use Video to Increase Service Upsell

It’s widely known that video walkarounds, email responses and other types of video attract more attention from car buyers and better engage them once they reach out to you. But, one of the biggest mistake I see most dealerships make is to neglect the service department in their video marketing efforts.

Most importantly, utilizing video in your service department is a key part of a complete Video Marketing Strategy, and an easy way to capture your service customer’s viewer profile (data) to match with your CRM records.  In other words, you can know if your service customer is also watching your inventory videos on touch-points such as AutoTrader or Cars.com, in addition to your own website, Facebook pages, Email Campaigns, Blogs, etc.  You can then leverage this knowledge by sending targeted messages to that service customer that include videos with offers specific to their vehicles of interest, while passing that data to your CRM to queue the customer up for Sales Follow Up. Essentially, the targeted messaging occurs via your existing videos in “real-time,” based off the data gathered from your video views. It’s re-marketing just as you would have through a Google Ad Campaign, except you are using your own videos and your own data.

Video can dramatically increase the service department’s footprint on your website and serve as a useful resource for your customers. It is also an excellent way to educate customers and increase service recommendation acceptance.

When customers drop their cars off for a scheduled repair, one of their biggest fears is an unnecessary upsell. Unfortunately this fear can create resistance to any repair recommendations. A short video created by the service adviser can help to alleviate this fear and provide “visual proof” that a repair is really needed.

Videos are far more effective than photos because the service adviser can explain how the old part is worn and compare it visually to the new part, along with an explanation of how important it is to get the repair done now. Additionally, advisers can mention the potential impact and costs of related problems that could be caused by not completing the service now.

Creating an upsell video simply involves two parts: the “why you need it” and the tutorial. The “why you need it” portion of the video plants the seed in the customer’s head that they had better get this taken care of soon or they are likely to end up with a more expensive repair, stranded on the side of the road, or possibly even in an accident.  The tutorial section shows how much work it really is to fix this issue, the cost of the parts, and the time involved with the fix; thus, justifying the cost of the repair.

Once the upsell video is created, the adviser can text it directly to the customer so they can see the video on their mobile device and make a quick decision. You can remove additional fear and the “oh they’re just trying to up-sell me” mentality from the customer by delivering each video on a landing page that contains your Value Proposition Video, Service Manager Introduction Video, and a couple of Testimonial Videos so that the customer can quickly see that you have their best interest at heart and can be trusted.

If the customer refuses the additional service, send them a “how to” (on the same landing page) so that they can appreciate how serious you believe this service is, and that it needs to be completed ASAP (even if they prefer to do it themselves).  The more you can help the customer understand that this about “their safety” and that you aren’t just trying to sell repairs that aren’t necessary, the more likely the customer will trust you and approve the additional repairs.

These type of videos also create content on your website and increase the odds that your dealership will show up in service related searches (VSEO). You never know when someone searching for an answer will stumble across your service video and make the decision to choose your dealership for their service repair.