What Matters to Millennials in 2019...AutoBuyersPath to Purchase, Google & comScore, 2017 1,768 new auto buyers within past 3 months, 18+ 2. Under the Hood: Mobile-First Auto Consumers,

What Matters to Millennials in 2019

Madison GrossDirector, Customer Insights

[email protected]

Download our mobile app to rate this session!(Search “Digital Dealer” in the mobile app store)

• Context: changing customer journey

• Influences on Millennial auto shopping habits

• Life stage

• Relationship with technology

• Relationship with vehicles

• Looking deeper: Millennial subsegments

• Tips: how to work with Millennials


Where does this data come from?

MAGNIFYING GLASS ICON + LOGO

SURVEY/CHECKLIST ICON (MULTIPLE, STACKED)


The changing customer journey – and Millennials' place in it




So what's driving that change?

Expectation of transparency and

instant info

Proliferation of info sources and self-

serve mindset

Mobile,mobile,mobile

Millennials?


Biggest in USPew Research Center

1981 - 1996 $69,000



Only age group with sales growth in Q1 20181

1 – Experian2 – JD Power

Now a large and growing segment

of all new cars by 20202

40%


The big caveat

• [BIG IMAGE- LARGE, VERY DIVERSE CROWD, MOSTLY MILLENNIALS]


Influences –Life Stage


Urgency of car purchase

8%

13%

25%26%

27%

Extremely Very Somewhat A little Not at all

Gen X and Boomers


Urgency of car purchase

8%

13%

25%26%

27%

12%

18%

34%

25%

11%

Extremely Very Somewhat A little Not at all

Gen X and Boomers

Millennials


3xmore likely to be purchasing due to a major life event

DESIGN – Big image here, or multiple images showing major life events

R.L. Polk & Co. / IHS Automotive reports, 2003 - 2015

How long do people keep cars?

4.2 4.3 4.55

66.5

7.4

2003 2006 2007 2009 2011 2015 2018



Millennials buck that trend

<2 years 2 to 4 years 4 to 6 years 6 to 8 years >8 years

2x

1x

0.5x

1.5x

-58%

+150%

Car ownership duration, Millennials compared to others


• Directly address the current need –don't focus on the long term


Influences –

Relationship with Technology


They are connectedCompared to the average shopper, Millennials are...

20% more likely to only use digital resources when car shopping

15%less likely to visit a dealership for research

33%more likely to watch online videos

32% more likely to do mostly mobile research

KEEP NUMBERS, REPLACE TEXT WITH ICONS


74%

60%

41%

Millennials Gen X Boomers

Used mobile to do additional shopping research while at a dealership


Mobile First Researchers

Non-Mobile FirstResearchers

Number of online shopping resources used1 7.3 4.9

Spent more than two weeks researching1 73% 63%

Know the exact car they want before visiting a dealership2 76% 69%

1. AutoBuyers Path to Purchase, Google & comScore, 2017 1,768 new auto buyers within past 3 months, 18+2. Under the Hood: Mobile-First Auto Consumers, Facebook IQ


Hispanics are mobile-first, too

46%[MOSTLY MOBILE ICON]

75% [MOBILE AT DEALERSHIP ICON]

ADD HISPANIC MILLENNIAL PIC


Millennial outreach preferences

32%28%

13%11%

9%7%

Phone call In-person visit Email Online form Online chat Text

+24% -25% -13% = +62% +40%Millennialsvs others:


When they do reach out...

less likely to visit in person without contacting in advance

• 45% more likely to reach out via listing or research website• 35% more likely to reach out via brand website• Only 10% more likely to reach out via dealer website

40%


3X [Electric vehicle picture]

more excited about electric vehicles39%


58% more excited about self-driving cars

say they'll probably own a self-driving car in the next ten years – 23% more than others32%


• Accommodate mobile shoppers at every stage – even when they're in your office


Influences –

Relationship with Vehicles

Maybe they're not "car people"

GfK / CarGurus digital tracking survey, March 2018, n=241



58%

41%

41%

39%

38%

38%

35%

32%

31%

28%

Buy or lease

What to do with existing vehicle

Locaton of dealersip

Exact dealership

Vehicle type

New or used

Car make

Ratings or awards

When to buy

Car model

"I thought I was certain about _______ but I later changed my mind"

20%Less likely to say brand is important

24%More likely to say online reviews of the seller are important important


say they're at least somewhat likely to switch brands for their next pickup – 18% higher than others

would consider another brand based on gas mileage - 60% more than others

78%

59%


Millennials and... sedans?!

-39%

[SUV icon]

Expect sedans to raise in popularity – 33%more than others65%

+41%

[sedan icon]


["HAVING FUN" ICON, I have no idea what that would be]

["SPECIAL CAR" ICON… gift bow maybe?]31%

21%


They value the opinions of friends & family

22% [TALK TO FRIENDS AND FAMILY/NETWORK]

30% [FRIENDS AND FAMILY ICON]

72% [SOCIAL ICON]


say they enjoy negotiating – 31% higher than others

say negotiating was one of the hardest parts -30% less than others

6%

54%


• Be a partner in their search – help them get to the right conclusion


Looking deeper: Millennial subsegments


Millennial women

56%

56%

30%

Reliability

Budget fit

Fuel & maintenance costs

vs. 43% of men

vs. 45% of men

vs. 23% of men

% of Millennial women concerned with…


Millennial men

69%

63%

57%

Are confident shoppers

Believe a car says a lot about its driver

Are auto-enthusiasts

vs. 55% of women

vs. 51% of women

vs. 27% of women

% of Millennial men who…


Millennial parents

% of Millennial parents likely to…

67%

45%

27%

Be certain about body style

Budget fit

Fuel & maintenance costs

vs. 58% of non-parents




Millennials without children

% of Millennials without children likely to…

67%

37%

28%

Find car-shopping stressful

Be making their first car purchase

Change their minds about brand

vs. 61% of parents

vs. 32% of parents

vs. 22% of parents


High-income Millennials

22%

22%

12%

Something new

To treat themselves

Based on looks

vs. 15% of low-income



% of high-income Millennials purchasing…


Low-income Millennials

33%

25%

16%

Prioritizing expect fuel & maintenance costs

Replacing a non-functioning vehicle

Fulfilling an urgent need

vs. 22% of high-income

vs. 19% of high-income

vs. 9 of high-income

% of low-income Millennials…


Working with Millennials

• Present options, propose alternatives• Don't push your expertise too hard• Be ready for web forms, emails, texts

– and calls!• Use the opportunity to prepare for

their visit

Share a takeaway from this session using #DD26

Download the Digital Dealer mobile app to rate this session!

GET SOCIAL

(Search “Digital Dealer” in your app store to download the free app)

Madison GrossDirector, Customer [email protected]

What Matters to Millennials in 2019...AutoBuyersPath to Purchase, Google & comScore, 2017 1,768 new auto buyers within past 3 months, 18+ 2. Under the Hood: Mobile-First Auto Consumers,

Documents