The wait is over! The Nation’s largest living generation is warming up to the idea of car ownership (ok, maybe lukewarm). But, it’s a start. We all need to realize that the future of the auto industry is in the hands of the millennials.
We all remember 2008 -2009. It was a devastating time for many industries and unfortunately, the auto industry was perhaps the hardest hit. As you know, many car dealerships had to shut their doors and thousands of people lost their jobs… Now, look at it from the view of a millennial – many of them had just graduated from college, which in previous generations was a prime period to buy a car. However, many of these graduates left school with a tremendous amount of debt and very little career opportunities. Their spending habits were established during this great recession, some habits that are good, some that are not-so-good.
Along with the financial changes in our country came technological changes. With the rise of Amazon, Apple, Netflix, Uber, Lyft and other advances, many things became much more convenient for consumers as we became an on-demand society. Putting the desire for a new car on the back-burner for many millennials.
The good news is the times are changing! Last year alone Millennials accounted for 29 percent of all car purchases in the industry (over 4 million purchased). And, even bigger news, by the year 2020 that number is expected to rise to 40 percent. In order to prepare your auto dealership for this emerging market, it’s important to know how the average millennial shops…
Going Mobile…
The new consumer is using mobile for most of their purchasing research. Anything from pricing, specs, locations, and reviews are available to them on their phone. You need to make sure your dealership’s website is mobile friendly and is prepared to respond quickly with valuable communications.
Content is King…
Along with the research comes confidence. The new generation of buyer is more persuaded by quality online content than a sales associate at a dealership. In order to bring in new buyers, you must post valuable content via blogs, videos and social media. Really give them the information they can use – not a sales pitch. Build trust.
Social Proof…
They’re not going to take your word on anything. Millennials are savvy and will use all their search resources to hear from real customers. Apps like Yelp and other consumer review sites are packed with real time consumer experience data. This forces all business to be at their best in every interaction with their customers… Testimonials are a true value to your new or used auto dealership. Ask past customers for feedback and testimonials then post to all fronts of your online presence (video is best).
The average millennial spends more time researching their car purchase than any generation prior (up to 17 hours). They’ve done all the legwork before even stepping foot onto your dealership… if they even step onto your dealership. That’s why you need to go to them where they are. You must build a bigger online presence with valuable content and make sure you have robust mobile capability.
