sales

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.

Seven Important Video Marketing Statistics

by Tim James

While statistics may seem boring, they are certainly key when choosing a marketing strategy. They can highlight where you should direct your efforts in order to be the most effective and maximize ROI.

There are a ton of statistics floating out there and thousands of articles which – if you don’t believe me – should be sufficient to convince you that video content and marketing is THE most effective medium to engage consumers – both now and for the foreseeable future.

To illustrate this for you, I assembled seven statistics that caught my eye from this published list of 50 Video Marketing Stats to Help You Create a Winning Social Media Strategy in 2017.

I picked the seven I feel will be of particular interest, without overwhelming you with hundreds of statistics.

  1. “Online videos will account for more than 80% of all consumer internet traffic by 2020, according to CISCO.”

    What does that mean for car dealers? Unless you have video content on your website, and all the consumer touchpoints, you may find your dealership falls into that sad 20% of internet traffic that misses eight out of ten car buyers.

  2. “73% of marketers plan on increasing their use of videos, according to Social Media Examiner”

    I’m fairly certain there are some pretty smart people among the 73% of marketers that plan to increase video use. If such a large percentage of marketers chooses to increase their video strategies and budgets, they must be finding video an effective medium that produces revenue.

  3. “55% of people consume video thoroughly – the highest amount of all types of content, according to HubSpot”

    If you’re going to create content to market your dealership and your inventory, why not create the best, most effective type of content that your customers (or potential customers) will actually watch? Makes perfect sense to me and, apparently, video is the content type that consumers want.

  4. “43%of people want to see more video content from marketers in the future, according to HubSpot.”

    Again, if consumers want more video content, the only possible reason is that video is how they want brands and businesses to engage with them. It’s much easier, more engaging and memorable to present your message in a way that engages all the consumer’s senses – and that’s what video does (and probably why consumers want it.)

  5. “4X as many consumers would rather watch a video about a product than reading about it. 4 in 5 millennials consider video content when researching a purchase decision and 70% of millennials are likely to watch a company video when shopping online, according to Animoto.”
    I lumped these together because these statistics illustrate that consumers want video content, are watching company-produced video content and are using it to make purchasing decisions. That certainly sounds like something I would be interested in if I were a car dealer trying to attract buyers – especially the anonymous buyers who are shopping your inventory online without your knowledge.
  6. “Companies which use videos in their marketing grow revenue 49% faster year-on-year than those which don’t, according to the Aberdeen Group.”

    I think it’s safe to say that any business – including car dealerships – is interested in revenue growth. If having a video marketing strategy in place can increase revenue by 49%, it should certainly be common-sense to implement one. Of course, it’s not just about USING video, but about using it RIGHT with a strategy in place. And what happens when you have a strategy in place…

  7. “Companies which use video in their marketing enjoy 27% higher CTR and 34% higher web conversion rates than those which don’t, according to the Aberdeen Group.”

    I don’t know about you but the whole POINT of having a website, investing in digital marketing of all types, and merchandising your inventory through third-party sites and all the other touchpoints, is to engage the customer and, ultimately, have them engage you back by contacting you or submitting a lead. If using video will increase click-throughs and conversions at that level, why wouldn’t you want it?

I hope these seven points I chose provide food for thought to help prove the point that any time and effort spent implementing a strategic video marketing strategy will produce ROI. And believe me when I tell you that it’s not as hard or time-consuming as you may think. Chances are you have the essentials to get started right in front of you– heck, you may even be reading this blog article with it – a smartphone.

Video marketing can be easy and take little effort and time. Sure, you can also spend more time and money and produce even more slick videos with sets and expensive equipment, if you should desire. The point is that it shouldn’t be a question of whether you SHOULD be doing video marketing, but rather WHEN are you going to start?

Come on – Does Video REALLY sell cars?

by Tim James

Technology has drastically changed the way businesses and auto dealers operate. Hey, think about it. It was not too far in the distant past that we did just about everything via fax machine. Leads came in, financing was secured and, well, just about everything was via fax.

Consider this… there was once a time when radio and newspaper were the dominant media for disseminating messages to consumers. Potential customers read the newspaper every day and listened to the radio as a primary form of entertainment.

Then along came this revolutionary device known as television. At first, it was expensive and limited to the more affluent classes. However, it very quickly grew into almost 100% of households. Then along came TV commercials. Many car dealers asked themselves, “Why do we need to advertise on television? How is that going to sell more cars?”

However, they soon saw the results and eventually came around. Television continues to be a major player in most dealerships’ marketing budgets. Radio focuses on listening, newspaper focuses on reading, while television combines the two, making for a much more impactful message.

Then along came the Internet and these curious things named “websites” popped up. Consumers were fascinated and dial-up connections became AOL’s claim to fame. Remember those discs which used to be packaged in every magazine, arriving in your mailbox every other day?

The Internet continued to advance. Businesses started buying domain names and setting up websites. And dealers asked, “Why do we need a website? How is that going to help me sell more cars?”

Fast forward to today and every dealer has a website, whether they want one or not, courtesy of the manufacturers.

Now let’s visit mobile phones. Remember when phones were in big suitcase looking things? They were that way because they had to be. Slowly, as technology advanced, they became the brick phones, then consumer demand kept making them smaller… and smaller.

However, as bandwidth increased, and streaming video became popular, all of a sudden Samsung came out with a phone that was… BIGGER!  Why? What changed the trend away from smaller and towards bigger? Video. Video is easier and more entertaining to watch on a bigger screen. And other manufacturers followed suit.

Of course, we cannot talk about cell phones without talking about the providers. It wasn’t that long ago when just about every provider had an unlimited data plan. Slowly but surely, as data usage by consumers increased, those unlimited plans were eliminated.

But, you have to ask yourself, “What event precipitated the disappearance of those plans?”

The answer is simple. Data usage spiked. The reason it spiked is simple… video. With only 1 GB of data, you could visit 3,000 webpages, receive 1.5 million WhatsApp messages, upload 4,000 photos, send or receive 10,000 emails, watch 310 minutes of YouTube videos or listen to 160 songs.

Once video became the most popular media, data usage spiked, as it takes up a lot of bandwidth. Rather than clog up their networks, cell providers opted to eliminate unlimited plans and, in some cases, throttle speeds for heavy users.

But now the trend has reversed… again. Cell providers know that mobile users are streaming video. Cell companies with smaller market shares began to differentiate themselves from their larger competitors by, once again, offering unlimited data plans. Slowly, the other smaller carriers fell in line until the largest, Verizon, finally began offering unlimited data on February 13th.

The point is that consumers want… and crave… video content. Technology has reversed itself from small to large, cell phone providers have reversed themselves from eliminating unlimited data to embracing it. All because the media of choice for today’s consumer is video.

Let me state that here again — the media of choice for today’s consumer is video.  So, if you are still asking yourself, “Why do I need video? How is that going to sell me more cars?” Well, that’s like just a few short years ago when dealers were asking, “Do I need a website?  How is a website going to sell me more cars?”

Technology is not going to slow down and wait for us just because we aren’t ready to embrace it. Video IS already the most powerful online marketing strategy for those businesses that have already embraced it.  As with any new technology, there are “Leaders,” and there are “Laggers.” Which side of history do you want to be on?

Video Marketing: Sell, Don’t Tell.

by Tim James

Why are we obsessed with television and movies? Because, just like books, they have the ability to capture our attention and transport us into fictional situations and universes.

Regardless of whether the movie or television show is fiction or non-fiction, this is an engaging way to tell a story that we’re interested in hearing and also seeing. TV, movies and video make stories come alive in ways that connect with our emotions – whether through fear, sympathy, action or drama.

But what if you went to a movie and rather than watching the story of a young farm boy transforming into a hero by blowing up a huge space station, you were presented with only the facts. Just an outline or bullet-points. That wouldn’t be very engaging, would it?

Video marketing is no different. It’s really easy to forget that in order to engage the viewer, you need to connect with them. Telling them how great your product is with facts alone would be like doing a walkaround for a customer, simply reading the information on the window sticker.

That is certainly not very interesting, engaging or creative.

In car sales, salespeople are trained to do vehicle walkarounds by first identifying any attributes of importance to that particular customer. The salesperson then shows and explains any features and benefits in the vehicle which fulfill that individual customer’s interest. To put it plainly, great salespeople tell stories about their products that put their audience “in the story.” They don’t just present facts, they generate a desired emotional response by focusing on “why” a product is needed, not just what the product is, (sell “why,” not “what”).

Effective video marketing – including walkarounds, personal video messages and any other kind of video you can think of – is no different. That’s why so many consumers love Super Bowl commercials. It is also why some commercials make us smile, laugh out loud, or even bring a tear to our eyes. They are effective because, in most cases, they manipulate our emotions to connect those products and services with us on a personal level and make us want to engage.

You can do the same thing with your video marketing efforts and, by so doing, establish more of a bond with the customer. Show your customers that you are interested in helping them with THEIR needs (not just selling them a car) and it will increase the likelihood they will engage with you, or reach out to you, should they simply come across a video on a VDP.

Video marketing isn’t rocket science. BUT you still need to have a strategy to do it effectively. Try changing your focus from trying to talk to everyone, to talking to a single person. Tell your story, the vehicle’s story, or whatever story you wish to relay with your video, as if that person is standing right in front of you. These types of videos resonate with individuals more than any other tactic. Why? Because the viewer feels as if you’re talking directly to them, rather than to some generic mass audience. And those are the types of videos that both engage and connect with the viewer.

Most advertising attempts to connect with as many people as possible. Sure, it may be segmented so that the message is demographically or geographically targeted. But, in the end, people can tell the difference between if you are speaking to them directly, or to a generic, random group of people. Yes, they may intuitively know that some video on some random VDP page wasn’t made specifically for them. But, EMOTIONALLY those videos will have a more impactful influence on them. And that’s the whole point of video marketing. Facts may provide details about your product, but an emotional story will sell it.

Design a Video Showroom to Banish Customer Fears

by Tim James, COO, Flick Fusion

Car shoppers still hate to visit dealerships. Ask them why and they’ll tell you they don’t like pushy salespeople, they’re afraid of being ripped off and that buying a car still takes too much time (among other reasons).

In an attempt to banish these customer fears, dealerships come up with marketing slogans like, “No haggle guarantee,” and “Your friendly neighborhood dealer.” But car shoppers remain skeptical. They take to social media, ask friends for recommendations and read online reviews. And increasingly, they’re watching videos.

Video is by far the most powerful communications medium because it taps into our emotion at a sub-conscious level. As human beings we evolved to pay attention to how other humans talk. We interpret their body language. We sense their sincerity. Our very survival can depend upon whether we decide to trust someone–or not.

Instead of telling prospects to trust you, show them they can trust you with videos designed to banish their fears. Create a video showroom on your website that mirrors your sales process and answers your customer’s biggest question: “How will I be treated when I visit this dealership?”

Once you have some good video content, your strategy needs to evolve around getting this video content in front of the right shopper at the right time. Just throwing it on the Homepage or About Us pages of your website doesn’t solve the problem.

Think about it: you train your sales team to “sell the dealership, sell themselves, and then sell the car” when taking an up. This should also be your strategy on your website. Your value proposition and testimonial videos need to be on a landing page along with your inventory videos. So when shoppers click to watch your inventory videos, you are selling the dealership and building trust when it matters most.

What videos should you include on your inventory video landing page? Here are some great ideas:

Value Proposition Videos. After a car shopper decides which make and model they want, the next question they ask is, “Where should I buy it from?” Your video showroom should contain several value proposition videos that give your customers reasons to buy from you.

These videos may have titles like, “Family owned,” “Community involvement,” “Huge selection of vehicles,” or “Fair and upfront pricing.”

Educational Videos. First-time customers and even repeat customers who have not purchased in a while may not know what to expect when they visit your dealership. One of the best ways you can avoid disappointing customers is to set expectations. Create at least one video that takes the customer step-by-step through the process of buying a car. Tell them how much time it will take and explain why each step is necessary.

Customer Testimonials. Today’s car shoppers want social proof. It’s critical to have several customer testimonials in your video showroom that show ordinary people talking about why they like your dealership. When videotaping your testimonials, ask your customers to share what their biggest fear was, and how it turned out they had nothing to fear at all.

Intro Videos. Introduce your general manager, sales manager, service manager and parts manager with personal profile videos. Ensure that the subject is at ease and comes across as likable and friendly. People want to do business with people they like. Video can immediately create that perception, giving your prospects the feeling that they already know and like your staff.

The more you can remove your prospects’ fears and objections, the more you should see an increase in calls, appointments and ups.

What are you customers’ greatest fears? Do you have ideas for videos that will banish those fears?

If a Picture Is Worth 1,000 Words, How Many Is a Video Worth?

If you haven’t drunk the video marketing Kool-Aid yet. Or, perhaps are overwhelmed by the thought of creating and distributing videos, it’s time to consider the advantages of having a video marketing strategy.

There was a time in my career when dealers used to complain about having to take multiple PICTURES of a vehicle. Now, however, most dealers include as many as 40 or more for each vehicle. Why? Because buying a vehicle is an emotional purchase and your online merchandising must transfer information while inspiring emotion. By providing more photos (and a good vehicle description) dealers give shoppers more information and help to facilitate them in becoming emotionally attached to a vehicle.

Once dealers understood that with multiple pictures customers would be more interested and they’d receive more inquiries, that’s all that mattered. And then along came video….

Look, technology is rapidly advancing and consumers are advancing with it. If video marketing didn’t benefit you in the only way that matters — which is to help you sell more cars — I’d be the first to tell you not to worry about it. But, the facts are the facts.

An excellent article published on Business2Community shared a wealth of statistics on the benefits of video marketing for businesses in general. While all of them are impressive, here are some highlights from the article that I thought applied specifically to an automobile dealer:

  1. Including video in an email leads to a 200-300 percent increase in click-through rate.
  2. 90 percent of people say that a video is helpful in the decision making process.
  3. Including a video on a landing page increases conversion by 80 percent, while including one on your homepage can increase conversion by 20 percent.
  4. Video ads increase purchase intent by 97 percent and brand association by 139 percent.
  5. An introductory email that includes a video receives an increase click-through rate of 96 percent.
  6. Video increases organic traffic from search engines by 157 percent.

Think about these statistics. The highest converting (as in sold) leads come from your dealership’s website. Why then, would it not be prudent to increase conversions on your home page by 20 percent? Or how about an 80 percent conversion increase on a landing page (like a VDP)? How many leads are you getting per month from your website and inventory? You do the math. These leads are gold waiting to be mined.

And what about your salespeople sending follow up e-mails to customers? Or replying to leads for the first time which get no response at all? Don’t you think that increasing click-through rates by 97 percent by having the customer watch an introductory video tailored specifically for them would increase engagement?

Give your sales staff (or BDC) an edge with video. The stats are there to prove that you’ll interact with more people. Think of it this way. If you had a lot full of customers, but your salespeople weren’t allowed to interact with them until the customer interacted first, you’d probably sell less cars. Of course, you wouldn’t allow that to happen! But that’s what’s happening with all of those people on your virtual lot!

People can be lazy. Most people would rather watch the movie than read the book. Why? Because it’s easier. We enjoy it more. The same applies to your marketing and follow-up efforts.

Want to increase views, conversions and engagement? Send your customers a video. You’ll see how powerful video content is.

And, before I forget, I’d be neglectful if I didn’t answer the question I posed in the title of this blog. According to Forrester Research, one second of video filmed at 30 frames per second (which means that it has 30 pictures per second) is the equivalent of 10,000 words. This means that a 60-second video is worth 1.8 million when it comes to the amount of information that you can deliver with a video, versus static photos. However, you can’t even begin to measure the increased emotional impact that a video will have versus the static photos…and emotion sells.

Want to make an impression on your customer? Seems as if video says – and produces – more than a picture by far. Take advantage of video marketing. The results will speak for themselves.