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46% of 18-24 drivers would choose internet access over their car (NYT 2012). Wait, how is that a choice? And what does the internet have to do with car ownership anyway? Adapted from a presentation at Kain Automotive (kaintraining.com), I explore why exactly millennials aren't enamored with the ideal of cars--and how car dealerships and brands can change their mind. Feel free to tweet me with questions (@LindseyKirchoff) or email [email protected]. Enjoy!
WHY MILLENIALS AREN’T BUYING CARS—AND WHAT YOU CAN DO TO FIGHT IT
AGENDA
Why Millennials Aren’t Buying Cars
How This Affects the Car IndustryChange their mind: Before and After the Dealership
What the Future Looks Like
1234
Lindsey
Lindsey Kirchoff@LindseyKirchoff
• HubSpot (Inbound Marketing Software) Media Relations
• Millennial Marketing Blogger
WHO ARE MILLENNIALS?Born from 1980-2000 (Ages 12-32 today)80 Million in US, 23% of total population$1 Trillion in spending
BY 2025, MILLENNIALS WILL ACCOUNT FOR
75% OF ALL VEHICLES
PURCHASED.
TIME 2012
We’re less into cars than previous generations were at our age.
Did you have your driver’s license when you were 16? How about 19?
Only 30% of 16 year olds had licenses in 2008. For those 19 and under, that percentage was still less than 50%.
Forbes 2012
New Vehicles Sold21-34 Year Olds
38% 27%
The Atlantic 2012
THE INHERENT VALUE OF CARS IS DECREASING
BECAUSETHE NEED TO LEAVE THE
HOUSE IS DECREASING.
USED TO NEED A CAR FOR
USED TO NEED A CAR FOR
BUT NOW WE HAVE
46% of 18-24 drivers would choose the internet over their car
New York Times 2012
Meet Dawson
He’s just your average 90s soap opera teen who loves the movies.
In the 90s, this is how he followed his film passion….
But today, he would probably do it all online.
The freedom you once got behind the wheel…
…is now behind a screen.
YOU DON’T JUST HAVE TO CONVINCE US TO BUY
YOUR CAR.
YOU HAVE TO CONVINCE US TO BUY A CAR.
YOU DON’T JUST HAVE TO CONVINCE US TO BUY
YOUR CAR.
New York Times 2010
The average car costs $30,000 and sits parked 23 hours a day.
18-29 year olds want to live near public transportation 62% Atlantic Cities 2012
66% 18-24 year olds prefer to live in walk-able communities
Atlantic Cities 2012
Car Sharing
Car Sharing767,000+ members300+ college campuses10,000+ cars (30 models)
Competition is changing fast
Wired
HOW CAN THE CAR INDUSTRY TURN THINGS AROUND?
More than 82% of millennials say they are “excited” to shop for a vehicle.
Deloitte 2011
(Only 71.2% of Gen X and 66.3% of Baby Boomers claim the same).
NOURISH THAT EXCITEMENT BY CONNECTING WITH
MILLENNIALS THE WAY THEY WANT TO COMMUNICATE.
The Internet is the New Showroom
Deloitte 2011
The #1 reason millennials visit dealerships is to test-drive a car, not gather information.
I CAN’T EVENSEE MYSELF GOING INTO A CAR DEALERSHIP FOR AT LEAST 4 YEARS.
“” Jon, 22
Grow your relationship online first.
AutoNews 2012
Millennials visit an average of 25 sites before buying a vehicle.
Deloitte 2011
11Millennial Web
Research 88%Comparison References
87% Manufacturer’s
website86%
Search Engine
s
25% of millennials researched a vehicle brand/model on social media in 2009.In 2011, that number grew to 67%.
Deloitte 2011
37
86% skip TV ads
91% unsubscribe200
mSay DO NOT CALL
44% of direct mail is never opened
The new marketing playbookSEOSocial MediaBloggingEmail MarketingLead NurturingSocial CRMLanding PagesVideoMarketing AutomationMarketing Analytics
Instead of• Brochures• Radio/TV
commercials• Interruptive
online advertisements
Instead of
Try
• Brochures• Radio/TV
commercials• Interruptive
online advertisements
• Interactive, informative websites
• Inbound marketing• Comparison
resources
How to buy your first car
Buying Your First Car: Everything You Need to Know!
Smart Dealership
OK, but how else do I engage millennials BEFORE
they come to my dealership?
Use the Surrounding Millennial Community: Get their online data directly, stay in touch
GraduationClass of 2013New JobMoving
Use the Surrounding Millennial Community: Hire Millennial Writers/Sales
People
Millennials at the Dealership
Over half of millennials consider negotiations with a car salesman more painful than a trip to the dentist.AutoNews 2012
52% millennials who’ve had a bad experience with a dealer never consider buying that brand again
Deloitte 2011
EDUCATE, THEN SELL.
DO• Start courting
process online• Know comparative
data• Focus on features,
not sales• Woo
Parents/Friends• Follow-up ASAP Auto News 2012
DO DON’T• Start courting
process online• Know comparative
data• Focus on features,
not sales• Woo
Parents/Friends• Follow-up ASAP
• Haggle• Contradict
online/comparative data
• Rely on brand loyalty
Auto News 2012
Features We’re Looking For
Time 2012
• 59% prefer hybrids
• Gas mileage
• Long-term value
Seal the Deal Messaging
Will having a car make me more attractive to employers?
Seal the Deal Messaging
Will buying a car now save me money in the long term?
Seal the Deal Messaging
What experiences can you only have with a car?
Music festivals, road trips, surprise visits, long-distance relation/friendships—> Having a car helps me maintain the relationships I have online.
Seal the Deal Messaging
http://www.youtube.com/watch?v=-xznLjEdrzg
WHERE DO WE GO FROM HERE?
My Story
• 1 car per house
My car has great mileage, is fully paid for—and sitting in my driveway in my hometown. I can’t find a place for it in my new life in the city.
GENERATION Y IS THE MOST MOBILE GENERATION EVER.
“”UrbanLand
One-third of people in their 20s move to a new residence every year.
New York Times 2010
Ideal Dealership• Get a car when you get a house
• Shorter leases
• Trade-in by location
• Group ownership
FINAL THOUGHTS
