From Business 2.0: A Motor City Marketing Lesson

[Globalist]

A Motor City Marketing Lesson
GM's new corporate blog works. Here's why.
By Thomas Mucha, March 10, 2005

Last October, General Motors (GM) tiptoed into the blogosphere, quietly launching a blog to coincide with the 50th anniversary of its small-block V-8 engine -- the high-performance roar behind decades of Corvettes, Camaros, and other muscle cars. The company's virgin blog has attracted a small, happy group of gearheads who write lovingly about power-train codes, horsepower modifications, and other riveting under-the-hood topics. "It was a safe group for us," admits Michael Wiley, GM's director of new media.

Encouraged by this early success, GM has moved into the blogging big time. In January it launched Fast Lane, an online forum hosted by the company's vocal -- and, it turns out, highly literate -- vice chairman Bob Lutz. "People were already talking about us all over the Internet," Wiley explains. "This blog was an attempt to get GM more involved in the dialogue and to get people talking to us. We see this as a direct line to enthusiasts, supporters -- and detractors."


It's working. The site, which focuses on topics such as GM design, new product launches, and business strategy, averages 4,000 to 5,000 hits per day from people around the world. Those consumers are talking back, and then some: Each posting receives between 60 and 100 comments, a mix of positive and negative reactions to Lutz's thoughts. Some are comically precise about what he should do next. Here's a recent posting by "Bruce," clearly a motivated GM consumer: "Mr. Lutz, how about a small, open air Hummer to compete with the Jeep Wrangler? Also, why not produce a stripped down (cloth seats, no a/c, eliminate many power features), no options, hard core (Z51) version of the Corvette (similar concept to the Porsche 911 RS America)? Call it the Stingray. It would appeal to the hardcore enthusiast, rather than the luxury, Grand Tourer market and could be sold for less. It would eliminate the need for a new Camaro."


It's hard not to admire a corporate blog that can spark that kind of passion. Fast Lane works because GM has found the right public voice. Lutz is an auto-industry rock star who, over a 42-year career, has held senior executive positions with GM, Ford (F), and Chrysler. The man can talk the talk because he's a real car guy, not a bean counter from GM's all-powerful finance department, where it grooms top execs. His weekly postings are open, honest, and insightful -- just the kind of stuff that attracts readers. For instance, he wrote in mid-February: "Tuesday's New York Times featured a story about the 'Saab-ness' of the new Saab 9-7X SUV that raised a lot more questions than it answered. Let me see if I can't clarify the issue here." Charlene Li of Forrester Research says, "You couldn't find a better evangelist for the GM brand." The main benefit of Lutz's automotive celebrity is traffic, the lifeblood of any blog. "Corporate blogs work if you can attract and engage a community," Li says. "This community is certainly engaged."


GM's blog provides other key lessons to any corporation thinking about starting a blog or wondering why its offerings attract only scorn. One big reason for Fast Lane's success: GM is willing to accept and post criticism. Smart move. Nobody wants to read a sanitized blog. The site is also inclusive. In addition to Lutz, the company has opened the floor to other blogging GM executives, which helps give the behemoth brand a more human, approachable, and likable positioning. Moreover, GM started small with its small-block-engine blog, so it was able to work out kinks with a smaller, more forgiving audience. If there is a problem with Fast Lane, it's that Lutz doesn't post his thoughts often enough.


But the company is doing everything else right. Most important, GM hasn't advertised the blog. Rather, it has wisely allowed the site to grow organically, gaining further street cred. "We're really committed to avoiding corporate-speak and keeping this really transparent," Wiley says. "This is not a marketing tool."


C'mon, of course it is. And that's OK. GM is on fertile marketing ground here. Blog fans are actually an appealing consumer segment for an automaker, despite their image as a gaggle of unemployed malcontents sitting around in their pajamas. According to Forrester, they are most likely to be male, with an average household income of $57,900. A quarter of all bloggers are ages 18 to 24, which makes them a good long-term investment. Perhaps most important, bloggers tend to be highly opinionated and highly influential -- a real benefit for a company that peddles big-ticket items in an industry where more than half of all shoppers begin their research online.


The blogging community is still small, which may lead some big companies to dismiss the opportunity. Almost half of online consumers have never heard of blogs, though the trend is certainly growing: Forrester says the portion of online consumers who regularly read blogs increased from 2 percent in 2003 to 5 percent in 2004.


Many bloggers, being bloggers, will no doubt view GM's experiment with suspicion, so the company will need to maintain its street cred by not micromanaging content. It also needs to let the criticism roll -- no matter what. And above all it needs to keep letting Bob Lutz be Bob Lutz.

[mgescuro]

Good. About time GM did something right.

[nhoth2o]

Hopefully they will pay attention to what is written.

[Randle2I]

I honestly think that if used right, as it has been so far, this GM blog could become invaluable to them. Concepts and ideas could be bounced off the minds of these people, seeing what works and what doesn't. As the online community grows, which it will, this will open new ideas and customers to GM. I applaud them for doing this and hope to see more of it.

[Globalist]

Originally Posted by nhoth2o

Hopefully they will pay attention to what is written.

I hope so. I don't think they will waste their time doing it if they are not serious about it.