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BizReport : Trends & Ideas : March 08, 2007

Automakers use live chat to engage consumers

Forget product reviews and recommendations, automakers are taking the review process one step further by offering live chats to their customers. With live chat, users can talk anonymously without the pressure of being face to face.

by Kristina Knight

Kevin Kohn, executive vice president of marketing at LivePerson, a chat software company, said (via MediaPost), "We help [automotive companies] understand what's going on in the site, use a business-rules engine to target behavior that suggests a lead and then provide the ability to interact. The invitation is contextual, based on what is actually happening."

According to a Compete study, about 50% of the population rely on consumer generated media (CGM) to make product purchase decisions. Automotive and travel consumers are most likely to take consumer reviews and recommendations to heart, according to the study. So it is no wonder that auto dealers are taking CGM to the next level - live chat.

Saturn began the trend in 2006 when it offered chat features. Users were able to speak anonymously with a live agent, allowing them to ask questions without the pressure of a live salesman. Ford quickly followed suit, offering live chat to launch the new Lincoln MKZ. Seeing those results, Dodge jumped onboard the live chat bandwagon when it launched the Nitro vehicle.

Industry experts say, it is early to see exactly how chat is influencing buys, but so far the buzz from consumers is positive. If automakers see an increase in new car buys linked to the chat services, you can be sure that more car companies will follow suit.

Tags: automobile industry, consumer-generated media, Ford, interactive marketing, LivePerson, online reviews

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