BLAIR QUALEY SHARES HIS TIPS ON HOW TO GET MILLENNIALS OFF THEIR MOBILE DEVICES AND INTO SHOWROOMS
For a long time, the car sales experience has focused on baby boomers. With unprecedented disposable income, this demographic has traditionally led to new car purchases.
However, that is changing. Millennials, commonly defined as the generation born between 1980 and 2000, are starting to buy more cars.
As of 2014, millennials made up 27 per cent of new vehicle sales in the U.S., right behind baby boomers.
A survey by research firm Abacus Data found similar results in Canada. Research showed 28 per cent of millennials between the ages of 20 and 24 had purchased a vehicle. Among older millennials, this number jumped to 48 per cent.
As millennials continue to come out of student debt and move up in the working world, there’s no doubt that sales in this segment will skyrocket — and dealers should take note. Catering the car-buying process to the rising generation will be essential in the coming years.
Current trends show that practicality is the most important factor when millennials look for a new vehicle. Maritz Research has found that compact and mid-sized cars are the top two segments considered and purchased by young buyers.
As demonstrated at the 2016 Consumer Electronics Show (CES) in Las Vegas, technology in vehicles is developing at a dizzying rate, driven by demand, especially from millennials. Any CES attendees would see how engaged millennials are with technology in all aspects of their lives, including vehicles.
Millennials are used to being connected, and manufacturers are taking this extremely seriously, integrating a variety of accessories from 4G LTE wireless connectivity with WiFi hotspots, to a future of semi-autonomous and self-driving technologies.
The connected car represents both opportunity and challenge for manufacturers. Companies such as GM and Volkswagen debuted current and concept models that they claim are the most tech savvy cars they have ever developed.
Millennials are also more brand-conscious than previous generations. According to a survey of millennial habits by Autotrader.com, this group may purchase practical, but it often aligns with luxury brands.
As millennials continue to come out of student debt and move up in the working world, there’s no doubt that sales in this segment will skyrocket — and dealers should take note.
Millennials want their car to fit their unique vision of themselves — sophisticated, innovative and stylish. In short, they buy Hondas and Fords, but may be moving to Audis and BMWs in the future.
How does this translate to the sales floor? Emphasize customizable options when talking about a vehicle and put a focus on cars with best-in-class technology and infotainment systems.
In the age of the “digital native,” online research is also a key part of the millennial purchase process. A survey by global services company Accenture found 84 per cent of consumers consult at least six websites before buying a vehicle.
Word-of-mouth is also a leading purchaser influencer amongst millennials.
When your dealership’s website is one of many in the research process, it has to stand out. Make sure your site is as seamless as possible, and don’t forget to include a mobile version available on multiple types of smartphone operating systems.
This seamlessness should also translate to the purchasing process. According to research by DrivingSales, 64 per cent of younger shoppers said they would buy a new vehicle more often if the process wasn’t so difficult.
When millennials come into your dealership, they will usually already have an idea of what they want and the price they want to pay.
Your role as a salesperson is to provide any additional information they need in an efficient and transparent way.
The same DrivingSales study found that young people are more likely to trust dealers, but don’t respond well to high-pressure sales tactics. Give them time and space to make a decision, and they’ll value your expert input.
For millennials, buying is more about the process and the experience than the purchase. Self-serve perks such as free coffee, good WiFi, and chairs in a comfortable lobby, go a long way to create a positive sales experience.
Millennials may have less knowledge about buying cars, but as dealers, we’re here to help.
Learning millennial preferences, developing a seamless sales process and using an informative approach go a long way toward cultivating return — and even customers for life.
