Why Millennials Arent Buying Cars
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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 HowToMarketToMe@gmail.com. Enjoy!
Transcript of Why Millennials Arent Buying Cars
- WHY MILLENIALS ARENTBUYING CARSAND WHATYOU CAN DO TO FIGHT IT
- AGENDA1 Why Millennials Arent Buying Cars2 How This Affects the Car Industry Change their mind: Before and After the3 Dealership4 What the Future Looks Like
- HubSpot (Inbound Marketing Software) Media Relations Millennial Marketing Blogger LindseyLindsey Kirchoff@LindseyKirchoff
- 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
- Were less into cars thanprevious generationswere at our age.
- Did you have your drivers 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 stillless than 50%. Forbes 2012
- New Vehicles Sold 21-34 Year Olds38% 27% The Atlantic 2012
- THE INHERENT VALUE OF CARS IS DECREASING BECAUSE THE 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 18-24drivers wouldchoose theinternet overtheir car New York Times
- MeetDawsonHes just youraverage 90ssoap opera teenwho loves themovies.
- 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 DONT JUST HAVE TOCONVINCE US TO BUY YOUR CAR.
- YOU DONT JUST HAVE TOCONVINCE US TO BUY YOUR CAR. YOU HAVE TO CONVINCE US TO BUY A CAR.
- The average car costs $30,000 and sits parked 23hours a day. New York Times 2010
- 18-29 year olds want to live neCities 2012 62% public transportation
- 66% 18-24 year olds prefer tolive in walk-able communities Atlantic Cities
- Car Sharing
- Car Sharing767,000+ members300+ college campuses10,000+ cars (30 models)
- Competition is changing fast
- HOW CAN THECAR INDUSTRYTURN THINGSAROUND?Wired
- More than 82% of millennials say they areexcited to shop for a vehicle. (Only 71.2% of Gen X and 66.3% of Baby Boomers claim the same). Deloitte 2011
- NOURISH THAT EXCITEMENT BY CONNECTING WITH MILLENNIALS THE WAY THEY WANT TO COMMUNICATE.
- The Internet is the New Showroom
- The #1 reasonmillennials visitdealerships is totest-drive a car,not gatherinformation. Deloitte 2011
- I CANT EVEN SEE MYSELF GOING INTO A CAR DEALERSHIP FOR AT LEAST 4 YEARS.Jon, 22
- Grow yourrelationship onlinefirst.
- Millennials visit an average of 25 sitesbefore buying a vehicle. AutoNews 2012
- 1Millennial1 WebResearch 88% Comparison References 87% Manufacturers 86% websiteSearchEngines Deloitte 2011
- 25% of millennials researched a vehiclebrand/model on social media in 2009.In 2011, that number grew to 67%. Deloitte 2011
- 86% skip TV ads 44% of direct mail is never opened 91% unsubscribe200mSay DO NOT CALL 37
- The new marketing playbook SEO Social Media Blogging Email Marketing Lead Nurturing Social CRM Landing Pages Video Marketing Automation Marketing Analytics
- Brochures Radio/TVInstead of commercials Interruptive online advertisements
- Brochures Radio/TV Instead of commercials Interruptive online advertisements Interactive, informative websites Inbound marketing Comparison resources Try
- How to buy your first car
- Buying Your First Car: Everything You Need to Know!Smart Dealership
- OK, but how else do I engagemillennials BEFORE they come to my dealership?
- Use the Surrounding Millennial Community: Get their online data directly, stay in touch Graduation Class of 2013 New Job Moving
- Use the Surrounding Millennial Community: Hire Millennial Writers/Sales People
- Millennials at the Dealership
- Over half of millennials consider negotiations with acar salesman more painful than a trip to thedentist. AutoNews 2012
- 52% millennials whovehad a bad experience witha dealer never considerbuying 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 DONT Start courting process Haggle online Contradict Know comparative online/comparative data data Focus on features, Rely on brand not sales loyalty Woo Parents/Friends Follow-up ASAP Auto News 2012
- Features Were Looking For 59% prefer hybrids Gas mileage Long-term value Time 2012
- Seal the Deal Messaging Will having a car make me more attractive to employers?
- Seal the Deal MessagingWill buying a carnow save me moneyin 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 Messaginghttp://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 forand sitting in my driveway in my hometown. I cant find a place for it in my new life in the city.
- GENERATION Y IS THE MOST MOBILE GENERATION EVER.UrbanLand
- One-third ofpeople in their20s move to anew residenceevery year.
- Ideal Dealership Get a car when you get a house Shorter leases Trade-in by location Group ownership
- FINAL THOUGHTS
- Thank you!Lindsey Kirchoff@LindseyKirchoffHowToMarketToMe.comHowToMarketToMe@gmail.com HubSpot.com Blog.HubSpot.com Marketing.Grader.com