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How Auto Dealers Can Increase Sales to Millennials

Posted by Maria Shayna Tzouvelekis | Sat, Mar 19, 2016 @ 07:00 AM

In an insightful article about how automotive dealers can tap into the needs and wants of millennials*, four experts in their respective fields were asked what millennials really want. The article by Kurt Stephan appeared in the March 2016 issue of Dealer Marketing Magazine, and serves as a "teaching moment" for US auto dealerships. Topics include exploring and combating millennial stereotypes, the methods of communication desired by the generation, current auto trends, and addressing the specific financing challenges millennials bring to auto dealers. 

"[The current] supersonic rate of communication makes millennials — and a lot of today's car buyers — different from previous generations in that they expect faster, more efficient service in every aspect of car buying, from researching to buying to service," stated Dan Moore, Senior Director of Digital Strategy, VinSolutions. 

"In June 2015, the U.S. Census Bureau reported that millennials surpassed baby boomers as America's largest generation, topping 83 million and constituting more than a quarter of Americans," reports Stephan. 

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How to Communicate

  • Be Transparent: Millennials do the majority of their research online before visiting a dealership for a test drive or making a purchasing decision. Many review cars and dealerships through Yelp, so be sure to monitor your online reputation and reply to reviews. Since they've done their research, just be frank with them. 
  • Listen: Instead of a sales pitch or a lecture, millennials want an exchange of information and to be heard says Craig Vore, Insights Manager - Strategy and Optimization, Outsell. 
  • Educate: Utilize online marketing efforts to highlight the value of vehicles, warranties and add-ons. As Moore states, "millennials are willing to pay for these things; they just need to know why they're important." 

With a heavy emphasis on brand awareness and information available instantaneously, it will take concerted efforts by manufacturers and dealerships to use social media and online sources for educating consumers long before they arrive on the lot. 

How to use Technology

  • Concise Marketing: Use fast, concise, aesthetically appealing content to reach your audience on platforms that they use like Facebook, Instagram, Yelp, Twitter and YouTube.  
  • Highlight Safety Features: Many millennials are now parents with young children and are more likely to pay more for technology that enhances vehicle safety than any other demographic, according to Gary Galloway, Automotive Digital Marketing Evangelist, Netsertive and a J.D. Power study. 
  • Cater to Mobile: Websites should be designed to be responsive for mobile users, many of whom are millennials who use their smart phones much like a computer for research on the go. 

How to offer Payment Solutions

  • Lease: With an average of $20k in college debt, credit card payments, and difficulty finding good jobs, "the trend is going to be more leases than sales," said Tej Soni, CEO, izmocars. 
  • Maintenance: "Subprime lending is at an all-time high." Soni said dealers that aren't already doing so, should offer leases with full maintenance built in. 
  • Multiple Check: Auto dealers can offer consumers the option of Multiple Check or "Hold Check" to ease the financial burden. Offering millennials the ability to write 2-4 checks to break up the down payment guarantees that the dealership makes the sale and that the consumer walks out a happy customer, keys in hand. 

According to industry experts, millennials carry $170 billion annually in spending power. Download our free insider's guide to learn more about using Multiple Check at your dealership to get a piece of the $170 billion dollar pie: 

hold check, multiple check

 

* Dealer Marketing Magazine has defined millennials as "people born between 1982 and 2000." 

 

 

Topics: Auto Dealerships, Increase Sales

Written by Maria Shayna Tzouvelekis

Maria Shayna Tzouvelekis is an Inbound Marketer at CrossCheck in Petaluma, CA.