The Real Meat of the Question

For BurrellesLuce, I can answer this question with a "yes." We can directly attribute some sales to our participation on Twitter and LinkedIn. I can't yet answer the ROI question - we aren't yet tracking and valuing the time spent by sales, client services, and marketing staff on participating in and monitoring social networks.

Funny you should ask, someone told me recently that this social media as sales vehicle thing is just not going to work. I'll file my report after I prove them wrong.

I'm not sure that any Social Media program on its own is going to make someone buy something.

Where it can certainly help is when a potential client is trying to choose between a number of competing products - the one that relates to the client personally is likely to have an edge.

In the Ford case, I don't see the program making someone decide it is time for a new car. If they are in the market already and are clients that would consider Ford, it can only help the Ford case.

Is there an effective way companies can be ranked according to their "goodness" rating (e.g. how ethical they are, good use of resources, care for employees, customers etc)? Seeing this would help convince me to buy something and social media could help convey this information to me. But how can you objectively measure a company's "goodness"? How to prevent it from being skewed/abused either by the corporation itself or by consumers who tend to complain rather than commend, or are biased?

Yes Social media can sell products. No hard results to report right now, but it's only a matter of time, and not much of it. My firm's brand has high unaided recall and a lot of long time customers. I feel we are in a unique position in our industry to succeed in this space.

Dell surely says YES! The question is more about marketing than social media at the fundamental level. Without the complete evidence yet, I would say yes it can without much concern to be wrong. It is how our society is evolving.

I don't know that people will buy a car because of social networking, but I believe the association can be powerful. Having just returned from New Zealand, you may have noted that Holden (GM) and Ford have very big followings and young people 'have' to belong to one fraternity or the other to fit in with their social group.

When people buy a car, they often associate themselves in a group which is loyal to that particular brand in many ways. I suspect that they would be very open to overtures via social networking and would collaborate, especially through applications on Facebook, if they were available. The larger the participative group of people that they associate with within a car brand, the more likely they might be to buy from that brand or at least stay away from the brand's main competitor.

A car is very often a status symbol, where status doesn't necessarily mean expensive. People who buy cars will go to great lengths to justify why they bought that particular make or model and where it becomes a group thing, eve more so.

If I was a car manufacturer or distributor, social networking would be strong in my marketing mix.

You may say yes, but at this point you have absolutely no proof that it will sell cars. Any "social" media campaign must be integrated with other forms of marketing to be successful. Wonder how many extra bags of Skittles have been sold as a result of the "brilliant" "social" media marketing stunt the company pulled last month? I honestly don't see how putting 100 "digerati" in Ford Fiestas is going to sell more cars. I hope I am wrong.

Hmmm... thru SM relationships I've already involved hundreds and hundreds of people in helping some of the poorest villages in the world... Seems to me it's ALL about relationships... in EVERY sector... in ALL of life...

This really is the BIG question for companies. Even once they understand the value of being part of the conversation, ultimately they'd like to know that their business will be better off after investing their time and money into social media.

I think this will help Ford sell more cars. If your potential customers are using social media, then anything you can do to create any sort of bond with them, or level of trust about your products through social media platforms will help you. In terms of Ford cars, everyone isn't going to need a car right now, but when they're in the market for their next car, they'll feel more familiar and comfortable with the Ford name, and its products.

Dave

At least their trying something new - kudos on Ford for experimenting - that's what it's all about. Also, Cashmore says "beta test" - I'll say imitation is flattery here (beta testing traditional products was an idea I had, and implemented last year for a tangible product - and then went on to create a final product based on the feedback).

In the sense that effective use can help make sales that otherwise wouldn't have been made, possibly. Directly as a sales tool, perhaps not, at least, not in the way, say, advertising a special discount would. But does that mean we have to change our minds about social media, or about what makes people buy?

Even with straight-up advertising, there's that old adage that "half of my advertising budget is wasted, but I don't know which half". On the other hand, some people absolutely swear by word of mouth, but can't quantify its impact.

And how about this - the fact that you're writing about it is going to make me look it up, because I hadn't heard about this campaign, and I want to buy a new car this summer. If I buy a Fiesta, or some other type of Ford, does hearing about the campaign from your blog count as a yes or no for social media influencing a sale? Because technically I wouldn't have known about it if you hadn't mentioned it... but maybe the fact that you had to mention it means that it isn't working the way its supposed to... and yet, by blogging about it, it IS still being spread through social media.

I am a fervent believer in social media but I do not believe it will have any immediate impact to Ford's sales efforts. Social Media today is is first and foremost about creating conversations, communicating about brands (corporate or personal) , and these conversations and branding exercises take time.

In addition, while I am unclear if I am in the minority or the majority I have an unfortunate distaste for Ford cars because of the poor quality of my last Ford. I want to believe in the company but turning these perceptions around will take time, time I am unclear if Ford has.

John Moore
http://johnfmoore.wordpress.com
http://twitter.com/JohnFMoore

Hey there Chris. For me the answer is a definite yes. Let me draw on a real world example and ask a similar question. Yesterday I did my semi-annual "go shopping for clothes" trip to get it over with. :) There is one particular store I like to go to each time, partly because of the clothes but partly because of the service. So I'll ask this question, do you think floor salespeople help sell clothes in clothing stores? I'm pretty sure the answer is "yes" because nearly every store has them (except the discount ones where people are mostly motivated by price). And note, clothing floor sales folks that do the process right don't bother you when you enter the store. They don't try to shill you or push product. They simply say hello once and then go about doing other stuff while waiting for a point of need - the point at which the shopper gives off signs that he/she needs some help. And again, they don't push but they provide customer assistance by offering to help get a size etc...

Listening for the point of need is just as applicable in social media as it is in the real world. People publicly express needs, often looking for help. For instance, in the past month on Twitter alone approximately 900 people have tweeted the expression "buy a car" and "buy a truck", and that doesn't even include the many dozens of other ways a need for a vehicle could be expressed. Again, I stress, this should never be an invite to jump into "salesy mode" and press for a sale on unsuspecting Twitterers. It is simple a chance to reach out and say hello and offer up a simple phrase, "we're here if you need any help" or "here a few sites comparing vehicles that may be helpful." It's about building a relationship, sharing and helping and if it stays in that realm then 9.9 times out of 10 the person on the other end is totally thrilled you reached out.

I assume Ford's social media project is a component of an overall marketing strategy shift. Perhaps Ford's 2009 top exec pay cuts, early retirement packages, elimination of performance bonuses for salaried workers along with the company's resolve to operate without needing to access bailout funds from the U.S. government all contribute to the company's commitment to rebrand Ford as a 'socially responsible' company.

I already know a hell of a lot more about the Fiesta than I would have otherwise. I typically pay no attention at all to Ford. Considering most of these people's audiences will likely only get larger, the investment should be cool to see. Top of mind for the savvy online community might already of started to produce results. Question is, will that top of mind result in enough sales? I think a key to this, is that a lot of these folks may be trendsetters offline as well as online. Should be a great influencers case study one way or another.

@Mel Webster - you and I agree on the Skittles perspective. I don't rate that effort a success. This, however, I'm not so sure. I'm not sure it will motivate me to buy a car if I'm not looking for a car, but if I am looking, will it motivate me to choose Ford over some other brand? That's the question, I think.

Further, would social media be any more or less effective than traditional car sales efforts? What makes this better or worse than a 30 second spot on TV?

I've seen very little in the way of social media campaigns that actually sell more product. It's not that it can't be done, but the purpose of social media isn't really to sell - it's to inform and persuade.

Salespeople close. Websites sell. Social media is horrible at both of those things, which is why only anecdotal evidence from small businesses exist. Dell points to a million dollars of revenue, but how much of that is cannibalization?

Social media is good at referrals, which is why recruiters and salespeople and service people get good results. Those are easy to track off Twitter, LinkedIn, and Facebook. Money saved from SEO and PPC campaigns are also powerful trends, but the selling is still based on conversion, traffic, and usability, itself an inexact science.

The real problem is marketing and PR and customer service have problems actually proving increased sales - and as social media is a subset of those, it will have the same problems.

Add in that social media programs rarely spend over $100,000, and do the comparison. How much can you really sell for such small budgets, and what to do you expect?

I ultimately say yes. It is proof already with this string of comments that it builds brand awareness which as all marketers know indirectly leads to sales. Until I read a twitter post on the campaign, I had never even heard of the car let alone the campaign behind it. Measuring brand awareness even in traditional spaces has always been a challenge but companies are always willing to put money toward the tools that will get in-front of consumers. In this case, the topic of the campaign and its use of social media aspect is enough to get us talking about it.

There are a number of goals with respect to the Fiesta Movement. It's not simply about selling more cars. After all, the Fiesta won't even be available here in the U.S. for over a year - a full 6 months after the Movement program is complete.

What you'll see happen in the interim is that Ford will be in the spotlight, both through the online content that the agents generate, as well as the offline appearances of the vehicle in public areas - their 100 cars, plus another 40 that will be making the rounds of 100 cities across the country. Throughout, people will begin to notice that Ford is different and will be able to see firsthand what our new products are like. And that in turn will change brand awareness and perception - something we really need right now.

Jim Durbin's point above is another key one - that social media is more about influencing and making an impact in the middle of the marketing funnel, rather than at the end. Yes, this may ultimately affect sales, but it's about more than that.

Scott Monty
Global Digital Communications
Ford Motor Company

I think, like every other commenter thinks. No one can answer the question if it is a lead source/traffic driver for consumer products or b2b. I don't think it is valuable except maybe as a touch point in a 7-9 touch marketing program, and that is if adoption and identification is wide enough that you can count on a touch. Lots of ifs there. So, I think it is not valuable for outbound marketing, it is really a brand protection tool, every example I have seen is a response to listening. Not a bad thing but doesn't close a deal.

It's all going to come down to whether people trust those that were invited to participate to be honest and the product itself. If people don't believe the reviews as being honest or the product is not what it should be; it will not sell cars. AND I'm not so sure that would be a failure. I'm sure in Ford's eyes it will be seen as a failure and I also think it would be a success with respect to using social media. The crux of social media is that it is a meritocracy. If things are not of quality, they will fail.

I know Scott Monty says that it is more than just about selling cars but there is always a bottom line and I'm positive none of the big three can just not be in it for selling cars. However, I do agree it is more than just about selling a car or a Ford Fiesta. Personally, this movement has me looking at a Ford Fiesta when before I would have never looked. It actually has me looking at Ford differently and even when I'm convinced to buy a Ford Flex (love the vehicle) I am more convinced now then ever to go with Ford. On many levels but I love that Ford is thinking out of the box and being non-traditional. Actually, Henry Ford was never traditional so if he was around today he'd be smiling. It good to see divergent thinking when the consumers are more divergent today then yesterday. Ford is speaking our language, walking our walk and that will sell more cars.

Global companies should be prepared for the truth of their market, afraid of 140 and the power of ... little people with a keyboard.

Yes, I think that social media can help me sell products but I have to work on building relationships and earning trust. Right now I am working on building relationships, and I have to figure out how to provide real value. What are people really looking for? Avil http://www.twitter.com/avilbeckford

I think the problem is with the "make you" language, to be honest. No one can "make" someone do anything. What advertising and social media should be about is making a case, building an argument that your product is relevant and solves someone's problem or fills their needs. Especially with large consumer items like cars, this is not gum at the cash register where Wrigley's is as happy with an impulse buy as a well-considered and fully weighed decision. People buy large ticket items (at least most of us...) with a fair amount of research, and the job of marketing and PR is to make sure when people are considering that decision, you are in their matrix of possibilities. You have provided enough background information, enough data, enough exposure that you are a contender. That's where social media is valuable- the conversation around cars for people who are in the market can help convert people on the fence on a more one on one basis, beyond the pressure of the dealership.

So when my minivan, a Toyota Sienna with 186,000 miles and still going strong, eventually gets sick and needs to be put out to pasture, the fact that I know Scott Monty and he talks to me about his companies vehicles that might meet my needs, or that GM is interested in engaging me makes them part of the matrix where I may have discounted them before. Who knows what we'll end up with in the end- that's an economic decision, matched up with the needs of our family, such as whether we need another minivan or can we reasonably go down to a 4 seat passenger car. Other things like whether it's a hybrid are significant in our matrix as well, but the sale is made from the researched contenders + dealership experience + price combined.
The advertising alone only gets my attention, it doesn't "make me" do anything.

Good discussion here! I agree that social media can't stand alone and needs to be part of integrated marketing and sales efforts. Clearly, this is the case for my company, a B2B firm with an established brand among PR professionals. But I can tell you social networking participation is an effective touch and has resulted in sales, per my previous comment to this post.

I don't see the Fiesta SM experiment pulling in a lot of new customers, but I defiantly think that it could influence someone already interested in the product. Given the down turn in car sales converting a maybe into a yes is a very valuable thing. If it can do that I would say the experiment is a success.

I think more and more people are heading to the internet to research big ticket purchases such as computers, televisions, and cars. So having content out there such as the Fiesta Movement could be invaluable to company's like Ford.

Just recently I purchased a new Nikon Camera. Before I even thought about spending a dime I went online to find reviews of the product. Of course, the most influential reviews are the actual customer reviews I found on places like amazon or the best buy website. Ultimately, that first hand account of the camera is what made me buy it.

Now one does have to wonder if the reviews come from a company sponsored marketing device such as the Fiesta Movement how that will effect the out come. But as we all now, if the social media content is transparent and is a true representation of the consumers experience then it might just work.

Interested to see how it turns out.

Yes, I will be more interested in buying a car ... if my friend drives one. In fact I just bought my best friends car from her and God help me, it was a Ford. Yes I am interested in hearing about this type of story from my "friend" because she matters to me more than a brand, more than German engineering, more than all of the perceived marketing dept. benefits of the vehicle. My best girlfriend's recommendation is worth more than a season of football sponsorship in trust and reliability ...because, if she says so, it is. That is the power of social media ... truth and relationships. Can Ford sell some cars through social media? Yes. I think it depends who is delivering the message.

I was disappointed to see that only 6 or 7 out of the 100 contestants (from a pool of 4,000) choosen by Ford are non-whites. Great marketing idea, but sadly they really missed the diversity boat.

Chris, We are in the process of finding out just how well social media will help our website www.twolia.com. I worked in the automotive advertising business for a few years. Direct mail was a huge success in driving traffic to the store, but will SM work the same magic? As stated by you above, if in the market for a car already then advertising in any medium is becoming a necessity. Social Media absolutely should be a part of that strategy, and chances are, using the right demos the results may be quite effective.

The same question was once asked of advertising... "How many cars will I sell if I place an ad in the Sunday paper?" Social media is another touchpoint / channel for consumers. Most people won't buy anything directly because a company has a twitter account (just as they wouldn't because the company advertised in their favorite magazine).

However it is important to point out that SM has the advantage (as mentioned above) of personal recommendations. SM users are likely to place nearly as much value on suggestions or comments from their online followers/friends as they would for their "real" friends.

This is a great post because it really forces the company/organization/etc. to take a good look at themselves and who they are trying to target. It's my belief that have an active social media presence online isn't the appropriate avenue for everyone, although it may be for the majority. I would say one of the most important questions one has to ask them self before jumping in is: Are my publics online?
I really like how you end with: Are you putting it to the test? Any results to report yet? It draws one's attention to the fact that you can get out there on the web, but if you're not monitoring how you're doing while you're out there, what's the point?

At the end of the day, people buy from people or companies they trust. Before you trust someone or something you must know them. Social media helps you be known whether you are alive or an institution. Find which of the SM tools are used by your target market and then go about being known. Build your network - without it social media is useless. The key here is that SM is about tool. You have to add value or no one buys anything. I have found almost all of my clients and engagements as a direct result of my LinkedIn presence. I am still working Twitter into the mix. We'll see.

Ed
twitter.com/edcallahan

We use a Blog (4equallogic) with a strong call to action of Self-Service Pricing to sell high-end Dell EqualLogic equipment for our company, Federal Appliance. Having a Social Media strategy without a conversion strategy is like setting up a free lemonade stand outside your store. The point is to get them IN the store on their terms, i.e. using inbound techniques.

We use a Self-Service Pricing Tool to allow interested prospects to see if they can afford our solutions; no email blasts. 100% inbound permission based responses with 70% resulting in sales ready leads.

Our results since implementing the blog: $185,702,716 in Marketing Funnel Value

Email Addresses Captured 2338
Budgetary Quotes Requested 2764
Budgetary Quotes Denied 324
Total Sales Ready Leads (Quotes Approved) 2439
Value of Approved Budgetary Quotes $185,702,716

See the Live Customer Report HereNo BS, it's live.

Dale - Federal Appliance

I'm a bit more skeptical. Ford's campaign feels very slick and we don't really know how much, if any, control Ford will have over the content. Isn't it better to find authentic fans and engage and promote them instead? Some thoughts here:

http://www.matttillotson.com/matts_blog/2009/04...

Ford and the other car companies still need to advertise. Downturn or not, the businesses still have to function normally.

Success of a social media campaign is the same as any other marketing campaign. I have to connect with the problem their product seeks to solve. Using social media It goes beyond transportation but what transportation requirements do I have in common with others or "my tribe". In terms of social media, People consider and buy products they've see others use to solve similar problems.

That's why I see so many SUVs in the school carpool line. Everybody else has one, I must need one too! (I don't and won't drive a SUV, see below)

Though I am not currently in the market for a new car payment, the campaign didn't influence me because:

1. I didn't see anybody middle-age couples with two young children. Everybody was younger than us without kids. Conclusion: It must be a car for 20-somethings.
2. I like station wagons because they have lots of cargo space, are safe, and fuel efficient. Conclusion: Didn't see a wagon option, there must not be one.
3. My other car is a 1996 Toyota Avalon which as been extraordinary reliable. If I shop for a sedan I'll likely return to Toyota again. Conclusion: Nothing said about what make a Fiesta a better choice. I'll stick with what I already know.

Am I wrong?

Chris, thanks for the post. Although I do not have any statistics or know for sure, I would think social media would have to help a business sell more.

This is because social media helps to expand the know factor of a business and give more customers knowledge. More customers with knowledge can only mean more customers that go through and actually buy.

I'm late to this post, but the answer is HECK YEAH! Ford is doing something innovative and fun, and really, it's not about social media success, but great idea success. It's not about the tools all that much really. It's about doing something different, and use these new tools if they fit.

As for me, there are plenty of ways that I see social networking/media could be used for local businesses and aren't on yet. Heck, they aren't reaching me and I live down the street. Because I don't get a paper, I don't get any information on them and wouldn't know where to go without googling. Then it's hit and miss assuming they even have a site up, and likely it just has a phone number to the store. A phone which some teenager is going to answer and barely be able to tell me if they even carry bolt size 12x.

Oh yeah, there's room for the new media and networking tools to bring prosperity, but mostly it involves skills and knowledge they already have that just needs a little leverage.

Skittles is getting a lot of publicity about their social media stunts and their wacky commercial advertisements like the one seen on Adwido. They should give their PR people a raise.