Top Banner
WHY MILLENIALS AREN’T BUYING CARS—AND WHAT YOU CAN DO TO FIGHT IT
65

Why Millennials Arent Buying Cars

Aug 11, 2014

Download

Automotive

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!
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: Why Millennials Arent Buying Cars

WHY MILLENIALS AREN’T BUYING CARS—AND WHAT YOU CAN DO TO FIGHT IT

Page 2: Why Millennials Arent Buying Cars

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

Page 3: Why Millennials Arent Buying Cars

Lindsey

Lindsey Kirchoff@LindseyKirchoff

• HubSpot (Inbound Marketing Software) Media Relations

• Millennial Marketing Blogger

Page 4: Why Millennials Arent Buying Cars

WHO ARE MILLENNIALS?Born from 1980-2000 (Ages 12-32 today)80 Million in US, 23% of total population$1 Trillion in spending

Page 5: Why Millennials Arent Buying Cars

BY 2025, MILLENNIALS WILL ACCOUNT FOR

75% OF ALL VEHICLES

PURCHASED.

TIME 2012

Page 6: Why Millennials Arent Buying Cars

We’re less into cars than previous generations were at our age.

Page 7: Why Millennials Arent Buying Cars

Did you have your driver’s license when you were 16? How about 19?

Page 8: Why Millennials Arent Buying Cars

Only 30% of 16 year olds had licenses in 2008. For those 19 and under, that percentage was still less than 50%.

Forbes 2012

Page 9: Why Millennials Arent Buying Cars

New Vehicles Sold21-34 Year Olds

38% 27%

The Atlantic 2012

Page 10: Why Millennials Arent Buying Cars

THE INHERENT VALUE OF CARS IS DECREASING

BECAUSETHE NEED TO LEAVE THE

HOUSE IS DECREASING.

Page 11: Why Millennials Arent Buying Cars

USED TO NEED A CAR FOR

Page 12: Why Millennials Arent Buying Cars

USED TO NEED A CAR FOR

BUT NOW WE HAVE

Page 13: Why Millennials Arent Buying Cars

46% of 18-24 drivers would choose the internet over their car

New York Times 2012

Page 14: Why Millennials Arent Buying Cars

Meet Dawson

He’s just your average 90s soap opera teen who loves the movies.

Page 15: Why Millennials Arent Buying Cars

In the 90s, this is how he followed his film passion….

Page 16: Why Millennials Arent Buying Cars

But today, he would probably do it all online.

Page 17: Why Millennials Arent Buying Cars

The freedom you once got behind the wheel…

Page 18: Why Millennials Arent Buying Cars

…is now behind a screen.

Page 19: Why Millennials Arent Buying Cars

YOU DON’T JUST HAVE TO CONVINCE US TO BUY

YOUR CAR.

Page 20: Why Millennials Arent Buying Cars

YOU HAVE TO CONVINCE US TO BUY A CAR.

YOU DON’T JUST HAVE TO CONVINCE US TO BUY

YOUR CAR.

Page 21: Why Millennials Arent Buying Cars

New York Times 2010

The average car costs $30,000 and sits parked 23 hours a day.

Page 22: Why Millennials Arent Buying Cars

18-29 year olds want to live near public transportation 62% Atlantic Cities 2012

Page 23: Why Millennials Arent Buying Cars

66% 18-24 year olds prefer to live in walk-able communities

Atlantic Cities 2012

Page 24: Why Millennials Arent Buying Cars

Car Sharing

Page 25: Why Millennials Arent Buying Cars

Car Sharing767,000+ members300+ college campuses10,000+ cars (30 models)

Page 26: Why Millennials Arent Buying Cars

Competition is changing fast

Page 27: Why Millennials Arent Buying Cars

Wired

HOW CAN THE CAR INDUSTRY TURN THINGS AROUND?

Page 28: Why Millennials Arent Buying Cars

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).

Page 29: Why Millennials Arent Buying Cars

NOURISH THAT EXCITEMENT BY CONNECTING WITH

MILLENNIALS THE WAY THEY WANT TO COMMUNICATE.

Page 30: Why Millennials Arent Buying Cars

The Internet is the New Showroom

Page 31: Why Millennials Arent Buying Cars

Deloitte 2011

The #1 reason millennials visit dealerships is to test-drive a car, not gather information.

Page 32: Why Millennials Arent Buying Cars

I CAN’T EVENSEE MYSELF GOING INTO A CAR DEALERSHIP FOR AT LEAST 4 YEARS.

“” Jon, 22

Page 33: Why Millennials Arent Buying Cars

Grow your relationship online first.

Page 34: Why Millennials Arent Buying Cars

AutoNews 2012

Millennials visit an average of 25 sites before buying a vehicle.

Page 35: Why Millennials Arent Buying Cars

Deloitte 2011

11Millennial Web

Research 88%Comparison References

87% Manufacturer’s

website86%

Search Engine

s

Page 36: Why Millennials Arent Buying Cars

25% of millennials researched a vehicle brand/model on social media in 2009.In 2011, that number grew to 67%.

Deloitte 2011

Page 37: Why Millennials Arent Buying Cars

37

86% skip TV ads

91% unsubscribe200

mSay DO NOT CALL

44% of direct mail is never opened

Page 38: Why Millennials Arent Buying Cars

The new marketing playbookSEOSocial MediaBloggingEmail MarketingLead NurturingSocial CRMLanding PagesVideoMarketing AutomationMarketing Analytics

Page 39: Why Millennials Arent Buying Cars

Instead of• Brochures• Radio/TV

commercials• Interruptive

online advertisements

Page 40: Why Millennials Arent Buying Cars

Instead of

Try

• Brochures• Radio/TV

commercials• Interruptive

online advertisements

• Interactive, informative websites

• Inbound marketing• Comparison

resources

Page 41: Why Millennials Arent Buying Cars

How to buy your first car

Page 42: Why Millennials Arent Buying Cars

Buying Your First Car: Everything You Need to Know!

Smart Dealership

Page 43: Why Millennials Arent Buying Cars
Page 44: Why Millennials Arent Buying Cars
Page 45: Why Millennials Arent Buying Cars

OK, but how else do I engage millennials BEFORE

they come to my dealership?

Page 46: Why Millennials Arent Buying Cars

Use the Surrounding Millennial Community: Get their online data directly, stay in touch

GraduationClass of 2013New JobMoving

Page 47: Why Millennials Arent Buying Cars

Use the Surrounding Millennial Community: Hire Millennial Writers/Sales

People

Page 48: Why Millennials Arent Buying Cars

Millennials at the Dealership

Page 49: Why Millennials Arent Buying Cars

Over half of millennials consider negotiations with a car salesman more painful than a trip to the dentist.AutoNews 2012

Page 50: Why Millennials Arent Buying Cars

52% millennials who’ve had a bad experience with a dealer never consider buying that brand again

Deloitte 2011

Page 51: Why Millennials Arent Buying Cars

EDUCATE, THEN SELL.

Page 52: Why Millennials Arent Buying Cars

DO• Start courting

process online• Know comparative

data• Focus on features,

not sales• Woo

Parents/Friends• Follow-up ASAP Auto News 2012

Page 53: Why Millennials Arent Buying Cars

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

Page 54: Why Millennials Arent Buying Cars

Features We’re Looking For

Time 2012

• 59% prefer hybrids

• Gas mileage

• Long-term value

Page 55: Why Millennials Arent Buying Cars

Seal the Deal Messaging

Will having a car make me more attractive to employers?

Page 56: Why Millennials Arent Buying Cars

Seal the Deal Messaging

Will buying a car now save me money in the long term?

Page 57: Why Millennials Arent Buying Cars

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.

Page 58: Why Millennials Arent Buying Cars

Seal the Deal Messaging

http://www.youtube.com/watch?v=-xznLjEdrzg

Page 59: Why Millennials Arent Buying Cars

WHERE DO WE GO FROM HERE?

Page 60: Why Millennials Arent Buying Cars

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.

Page 61: Why Millennials Arent Buying Cars

GENERATION Y IS THE MOST MOBILE GENERATION EVER.

“”UrbanLand

Page 62: Why Millennials Arent Buying Cars

One-third of people in their 20s move to a new residence every year.

New York Times 2010

Page 63: Why Millennials Arent Buying Cars

Ideal Dealership• Get a car when you get a house

• Shorter leases

• Trade-in by location

• Group ownership

Page 64: Why Millennials Arent Buying Cars

FINAL THOUGHTS

Page 65: Why Millennials Arent Buying Cars

Thank you!

Lindsey [email protected]@gmail.com

HubSpot.comBlog.HubSpot.com

Marketing.Grader.com