Catering to their needs by increasing the digital and personalized aspect of the sales process, while also optimizing for mobile, will benefit more than just the customer
Since the introduction of the automobile more than a century ago, automakers and new car dealers have been forced to adapt to the changing needs and desires of generations of consumers, and the expectation is no different when it comes to millennials.
Compared to previous generations, millennials are typically waiting longer before getting their driving licenses and ultimately purchasing a vehicle. And yet, interestingly, they are also the fastest growing segment of car buyers.
Several motives are leading to this trend, the most notable being that as young adults start a family, they need a vehicle. Renting and ride-sharing have their limits, and the time comes when lugging around a car seat with ride-sharing simply isn’t practical.
As a first point of context, it’s important to recognize that the way millennials shop is far different from previous generations. Their experience typically involves extensive online research with a limited number of in-person visits to a dealership.
As a dealer or salesperson, you will not be the only source of information, so position your dealership website as a valuable asset. Some dealerships treat their mobile website or app experience as an afterthought. Considering some 98 per cent of 18 to
24 year-olds own a smartphone and
often use it for a buying process, it is essential that dealers have mobile in mind as part of the sales experience.
Personalization is important and can take many forms, from addressing customers by name in communication to segmenting them in your email marketing software so they receive customized content. Other innovative ideas include creating video test drives that allow potential buyers to better narrow down the cars that they’re most interested in.
Dealerships can also offer guidance on the type of cars that work best for your local area and quality-of-life features that daily drivers benefit from — including active lifestyles that may be focused around popular activities such as watersports, mountain biking or pet ownership. Many of the adults in this age group are more environmentally conscious and educated about issues related to climate change, and as they become auto consumers, they are looking for vehicles that support this mindset.
What people expect during their experience at a physical store is drastically changing. Young consumers are experiencing brands through social media and dedicated websites even before setting foot in a dealer showroom. By then, they largely know what they want, and why they want it.
In some circles, OEMs and dealers are moving towards providing smart phone apps that enable millennials to see full-scale virtual versions of vehicles that interest them, using augmented reality, and that save their preferences and send them to local dealerships in advance. In fact, Hyundai has announced a “digital showroom” with Amazon in the U.S.
Millennials, and most consumers today, expect when they engage a salesperson that they are speaking to a product expert, someone who can answer all pertinent questions related to the vehicle and all of its electronic and connected features as well. The flip side is that millennials get frustrated if they experience a disconnect between their online experience and their physical experience at the dealership. This is where clienteling, a means of establishing a long-term relationship with customers based on data about their preferences and buying behaviors — can help bridge the gap.
Look for opportunities to streamline the live and personalized experience, such as outfitting the sales team with tablets or other mobile devices, so they can immediately access information on car pricing, inventory and features. Armed with collaborative digital tools during the visit, sales associates can more appropriately function as the product experts their younger customers seek.
Consider a transparent and seamless financing process by integrating financing with mobile software so the customer has the opportunity to finalize the sale with the person they have been talking to, rather than going to the financing office and dealing with someone completely new. Offer payment terms that are clear and easy to understand, with no hidden fees, and create an environment where your customers are comfortable asking questions.
Evidence suggests if today’s millennials care enough about a brand, they will remain loyal to it — and what’s more, thanks to social media, spread the word. So, remember, an increasingly digital and personalized sales process, optimized for mobile, may turn today’s reluctant buyer into tomorrow’s devoted customer, influencing others to follow suit.
