Millennial shoppers have own set of demands
For the past few years, there has been a debate among car manufacturers, auto analysts, government agencies, and automotive journalists about the car-buying trends of the millennial generation.
In 2014, a U.S.-based advocacy group, PIRG, reported that younger drivers are “driving less; taking transit, biking and walking more; and seeking out places to live in cities and walkable communities where driving is an option, not a necessity.”
This trend could be the result of a sluggish economy or a lack of employment opportunities among post-secondary graduates who are burdened with student debt. Others attribute it to the rise of telecommuting and freelance work where car ownership isn’t as critical.
Another explanation is the growing popularity of car sharing and carpooling programs, bicycling and public transportation, all of which have flourished in urban areas.
Teenagers and twentysomethings may have legitimate reasons to avoid car ownership at this point in their lives, but it doesn’t preclude them from purchasing cars at some point.
When younger people reach their 30s and 40s, their personal circumstances often change. Many will move to the suburbs, work at fulltime jobs and begin raising families, in which case, owning a vehicle becomes practical and necessary.
Thousands of teenagers and twentysomethings still buy and lease vehicles every day, and savvy car dealerships (and manufacturers) are learning how to market to this sizable demographic.
Marketing to younger car buyers is different than a generation ago. Today, top considerations include vehicle quality, brand reputation, dealership reputation, safety features, safety ratings, fuel economy, versatility, on board technology, consumer reviews and recommendations from friends.
Many dealerships have developed mobile-optimized and responsive websites and have explored social media and digital marketing options in an effort to remain visible and relevant to this group of potential buyers. Manufacturers have tweaked their grad programs to include high school graduates, not just college or university grads.
I recently had an opportunity to chat with a group of twentysomethings who work in the tech and automotive sectors and asked them about their car-buying experiences.
These twentysomethings confirmed that mobile is everything when searching for a vehicle today. When they are in a dealership looking for a car, they will conduct all of their research on a mobile device, checking out dealership and manufacturer websites, review sites, classified sites (autotrader.ca), and carsandjobs.com.
When it comes to marketing messages, these millennials admitted that they are wary of traditional forms of advertising and traditional messaging. They are apt to seek out their own sources of information and make up their own minds about makes and models.
Another message I heard was the need for speed. If a millennial contacts a dealership requesting information, they expect a quick response. Fifteen to 30 minutes is an adequate response time; a full day or longer is unacceptable.
This may explain why so many dealers now have live chat features on their websites.
Perhaps the most refreshing thing I heard is that relationships are important in the car-buying experience. Millennials may navigate a different path in buying a car than their parents, but they still expect great service and fair prices.
Inasmuch as cars and technologies are altering the car-buying experience, dealerships and manufacturers that provide great service (along with great products) will have a distinct advantage in selling to all generations. This column represents the views of TADA. Email president@tada.ca or go to tada.ca. Doug Sullivan is president of the Trillium Automobile Dealers Association. He’s a new-car dealer in Huntsville, Ont.