Millennials have developed incredible purchasing power that impacts every industry—including auto.
Millennials make up nearly a quarter of the U.S. population, and their impact on retail continues to grow. Each year, they satisfy their shopping needs to the tune of a whopping $600 billion. Clearly, this generation is having a major impact on general consumer retail, but what about other industries—specifically auto? Let’s take a look at three important factors any auto industry leader should consider when targeting this influential generation.
Online experience matters
According to a recent study, 85 percent of Millennials shop online for vehicles, and 65 percent research their local purchase options before visiting in person. Chances are, by the time they walk out the door to purchase a vehicle, they know what they’re getting and where they’re going to get it. Industry professionals can help point the way with digital tools and a customized online experience – but don’t forget about mobile! 55 percent of Millennials make selections based on mobile research as compared to 48 percent of those 35 years or older.
Social networking works wonders
How’s this for a stat: Millennials are 247 percent more likely than other generations to allow blogs or social networking sites to influence their buying decisions. Yes, you read that right: 247 percent. If automotive leaders are looking to target these buyers across a number of industry sectors, it would be wise to start amplifying social media efforts. Unsure how? Focus on creating and posting content that can be helpful to those new customers—like tips for buying new or used, how to secure a great rate on an auto loan, or why regular preventative maintenance is key to vehicle resale. It’s the kind of added value and helpful info that will attract Millennials even more.
Technology turns heads
Vehicle technology keeps changing, and many Millennials want the latest and greatest to make the most of their driving experience. In fact, 89 percent of U.S. Millennials are already looking to pop for improved vehicle software, and will spend an average of $1,026 more on vehicle tech in general. Marketing and selling tactics that seek to showcase today’s technological bells and whistles are much more likely to grab the attention of this crucial customer segment.
The Millennial generation presents a huge opportunity for the automotive market if approached correctly, and every industry sector should adapt to make the most of these savvy shoppers.
For more on how auto can accommodate consumer trends, check out our blog on ways consumers are changing the auto industry!