Millennials car buyers: Is your dealership ready?
Millennials are a huge generation, born any time between the early 1980s and 2000. While there are significant differences in life experiences and expectations between both end of the spectrum, the entire group has grown alongside an era of information boom. Millennials are adept at navigating online and highly proficient in obtaining information. They are the most sought-after demographic for marketers and advertisers (AdWeek 2016).
Most significantly, this demographic has reached an important point where their purchasing power for cars is heading towards its peak (Chicago Tribune 2016).
- 40 percent of approximately 3,000 millennial consumers in a global survey prefer self-service to human contact for their interactions with companies
- 70 percent expect a company website to include a self-service application (Parature 2014)
- 25 percent of millennials expect to get a response within ten minutes of reaching out (Entrepreneur 2015)
Implications: To continue enriching your customer’s experience requires that you consider carefully where human employees are adding value in creating the customer experience, and where they are a hindrance.
Millennials, and those who share a millennial outlook, hold different ideas about where human-powered service fits into the customer experience. Through years of experience with online and self-service solutions, millennials have grown used to the way technology is deployed to reduce the need for human gatekeepers, to ensure accuracy and to manage data. Does your future booking system empower self-service and round-the-clock business operations?
- Millennials aged 25-34 are the most frequent users of mobile apps (ComScore 2016)
- There is a 41 percent increase in mobile usage and only 1 percent increase in desktop usage among the millennials (Comcast 2016)
Implications: There is an increased importance for omni-channel marketing strategies incorporating mobile apps that empower your dealership to grow conversions, nurture engagement, improve retention and boost customer satisfaction. Does your dealership have a mobile app that enables customers to make appointments, book a test drive, track completed service bookings, view repair histories and generally interact with your business — anytime, anywhere?
- 33% of millennials rely mostly on blogs and social media before they make a purchase, compared to fewer than 3% for TV news, magazines and books (Forbes 2015)
- 43% of millennials rank authenticity over content when consuming news, blogs and social media. At first, they must trust a company before they bother reading content that the company produces (Forbes 2015)
- More than 50% of millennials report sharing of ideas, taking action on behalf of brands and sharing brand preferences in their social groups (Boston Consulting group 2015)
Implications: As social consumption is on the rise, there is an amplified influence of unbiased editorial content created by social influencers, user reviews of cars and dealers, moderated forums, and there is a far-reaching effect of social media “likes” on the millennials’ car buying journey. This evolving social behaviour has significant implications for dealerships. Millennials tend to make buying decisions collaboratively, and they review blogs and update social media entries. Therefore, Youtube posts, Instagram videos, social media listening and social medial integration are integral to understanding your prospects and reaching out to them. Does your system support social engagement? Does it have the ability to convert post to leads and instantly reflect the results in a Power BI dashboard?
- 85% of Millennials are more likely to make a purchase if it is personalized to their interests, both in-store and with digital displays (USC Dornsife, ND)
- 55% of millennials would likely be your brand advocate if they experience personalized experiences and service from your dealership (Brand loyalty report, 2014)
Implications: Providing integrated, end-to-end experiences begins, and ends, with the customer. From the initial point of contact with your dealership, throughout the sales process and post-sales communications, every touch point must be optimized. Providing a highly personalized experience in which your customer feels valued means using data insights to establish a comprehensive customer-view.
Integrate your first party data such as contact details, customer service records, website inquiries, with additional third-party data elements to create a rich customer view. These consolidated insights will enhance your knowledge of the customer journey and thus help to deliver personalized and relevant campaigns, and prevent break-downs in the customer experience.
Does your current Dealer Management System empower you to convert analytics into the necessary customer insights that are critical to creating a personalized customer experience?
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