Nothing stands still and neither does the customer landscape. Millennials are classed as people born between 1980 and 2004, and they are entering the car buying market at high speed. It’s been reported* that by 2020 Millennials are expected to capture 40% of the new car sales market.
So, with this influx of Millennials, I wanted to ask- how well do you understand this customer? Every generation has different wants, needs and concerns and these differences will need to be addressed, which will result in a new approach. Below I’ve listed a few things you need to take into consideration when it comes to the millennial customer.
This generation are very cost conscious and who can blame them with the ridiculous costs of going to university and trying to secure a mortgage. Millennials need vehicles that fit in within their budgets.
Now back in the day, sorry to make you feel old but, let’s be honest, before Millennials, when a vehicle was purchased it said something about the buyer and their status, it was seen as an extension of their personality.
This has all changed with Millennials. As mentioned earlier, they are cost conscious with educational debt and trying to save for a mortgage. Millennials see vehicles simple as a means of transportation with a purpose, for example driving to work and back. But what does matter to this market is technology, as they have grown up in a digital world where smart phones, tablets and information within a click of a button is seen as the norm. Horsepower and engine size will not appeal to the majority of his audience but technology will- Autotrader reported that 70% of Millennial buyers listed technology and infotainment as must-haves.
Finance & Insurance
Finance and Insurance are a great way to appeal to the Millennial audience. These can help them manage their budgets and finances without any unexpected expenses. Millennials will see these tangible services of significant value as they fit in with their lifestyle.
Hopefully you will see why it’s important to understand the Millennial market. For dealerships to take advantage and tap into this market one of the key elements they all need to adapt is technology. When I say technology, I don’t just mean in the vehicles but also in the way you communicate with the customer. Remember, this generation have grown up with smart phones and tablets, online and digital communication is a norm to them. So dealers need to embrace this and speak to them on their terms, on their channels.
Ref: *J.D. Powers Power Information Network