The largest generation to drive the American economy thus far is about to be usurped by Millennials. Baby Boomers have been the generation most marketed to for several decades now, but all that is about to change as Millennials are set to become the largest demographic group at some point in 2019, according to US Census estimates. Additionally, only Millennials and Generation Z are gaining in automotive market share at this time, according to Experian data.
Experian Data Shows Changing of the Guard
Millennials have turned just about every perception of their generation on its head, and that includes the insight that they have no interest in buying vehicles. Experian market data is proving that impression to be false.
The data shows that Millennials and the even younger Generation Z are the only groups making gains in the automotive market. Over the past four years, Millennials have gained nearly 5% in automotive market share, hitting 27.2% in the last quarter of 2018, up from 22.6% in Q4 2014, according to Experian.
The slightly older Generation X has shown no growth in this time frame, dropping from 27.2% in Q4 2014 to 27.0% in Q4 2018, while Baby Boomers fell from 38.7% in Q4 2014 to 33.8% in Q4 2018.
With all these changes in who is buying cars, what does it mean for your dealership? As we've pointed out, change is imminent, not only in to whom you're marketing to, but in the way you're marketing.
Marketing to Millennials and Younger Generations
One thing that highlights the shopping habits of the Millennial generation is their transition into digital marketing and online purchasing. As a dealer, this means new progress in online marketing and shopping features needs to play into the future of your store if you hope to benefit from the boom in sales that's coming.
Just because you need to increase your online presence doesn't mean that you should neglect the showroom floor or abandon older forms of advertising like television and radio. Instead, it means you should transition to a system where all these forms of marketing come together seamlessly.
Millennials do more research, and come into dealerships more prepared. Your store's sales staff should be ready with demonstrations and sales tactics that support and build on what these new shoppers have already learned about the vehicles they're interested in. Nothing can replace time in the showroom, where physically experiencing these cars and taking a test drive can really seal the deal for any shopper – regardless of generation.
A 2018 survey by OpenX and Harris Poll looked at the media, advertising, and holiday shopping habits of Millennials compared to other generations. They found, not surprisingly, that younger consumers aren't watching traditional TV, but are spending more time on phones and laptops. In fact, the poll found that a third of Millennials spend more than six hours a day on mobile devices.
This means that your online efforts in marketing should be optimized for mobile viewing on phones, laptops, and tablets, and that the amount of information available via these media platforms needs to be more in-depth and transparent. Today's shoppers aren't only looking for product details, but expect consumer reviews, pricing specifics, trade-in information, and financing options to be available before they step into a showroom.
Getting the Customers You Want
In order to get the results you're looking for from prospects, you need to get them in the door. This is where we can help. When you depend on Auto Credit Express and our over 20 years of lead-generating experience, you see results!
Specializing in subprime leads, new and used vehicle leads through our partnership with CarsDirect Connect, bankruptcy marketing, and one-of-a-kind direct mailers, you can tailor the message you're sending and get the consumers you're looking for through your doors! Plus, with the help of our dedicated BDC call center, we can prepare your customers for the process and even set appointments, so all you have to do is focus on selling cars.
See what we can do for your store by calling us at 888-535-2277, or fill out our contact form and we'll get in touch with you! What are you waiting for? Start growing your business with us today!