With Millenials surpassing baby boomers as America's largest generation, It's more important than ever for dealerships to revisit their "buyer experiences" and focus more on bespoke experiences that cater to the user and shift the focus from "selling" cars to letting users "buy" the car.
Here are some things to know about Millennials:
50% are married
The majority are college-educated
1 in 6 are currently making over $50K a year
Some studies find that Millennials prefer to spend their money on experiences rather than objects. Cars seem to be the exception to this rule. The Great Recession made for a slow start for many when it came to purchasing a car, but Millennials are making up for the time. In 2013 they made up approximately 28% of the auto buying market, in now in 2021, they are exceeding over 40% of the market.
According to Nationwide, Millennial shoppers also differ from Baby Boomers in their desire to have a personalized experience (primarily via mobile phones and apps) including sharing their own data with you and want to own the purchasing process requiring dealerships to play the role of trusted advisor.
"In addition to sharing personal data, millennials are also comfortable sharing personal experiences with products and services, and actively rely on others’ online reviews and comments to help make decisions.3 Maintaining a digital presence for your agency, including social media accounts where you actively respond to comments and questions, will help build interest and trust in your expertise.
Millennials are receptive to expert information — in fact, they expect it. This is the time to share your expertise and insights, whether it’s in person, on social media or on your website (ideally, all three). The information is out there, so if you don’t provide it and establish yourself as a trusted partner, they’ll get it from another source."
What does that mean for my business?
Millennials and Gen Z’ers will account for 75% of all vehicle sales by 2025
Millennials spend more than 17.6 hours browsing cars online before stepping foot on the lot
38% - 48% are more likely to buy on their first visit to a dealership.
Dealerships need to adjust their sales model to survive.
Respond as soon as possible!
If buyers on average are visiting one lot, you want it to be yours.
Respond to every lead no matter what.
This is your opportunity to help them complete their research and build loyalty.
Text first, then call.
75% of Millennials and Gen-Z would rather text than talk on the phone