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

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

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Lindsey

Lindsey Kirchoff@LindseyKirchoff

• HubSpot (Inbound Marketing Software) Media Relations

• Millennial Marketing Blogger

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

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

Did you have your driver’s 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 still less than 50%.

Forbes 2012

New Vehicles Sold21-34 Year Olds

38% 27%

The Atlantic 2012

THE INHERENT VALUE OF CARS IS DECREASING

BECAUSETHE 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 18-24 drivers would choose the internet over their car

New York Times 2012

Meet Dawson

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

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 DON’T JUST HAVE TO CONVINCE US TO BUY

YOUR CAR.

YOU HAVE TO CONVINCE US TO BUY A CAR.

YOU DON’T JUST HAVE TO CONVINCE US TO BUY

YOUR CAR.

New York Times 2010

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

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

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

Atlantic Cities 2012

Car Sharing

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

Competition is changing fast

Wired

HOW CAN THE CAR INDUSTRY TURN THINGS AROUND?

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).

NOURISH THAT EXCITEMENT BY CONNECTING WITH

MILLENNIALS THE WAY THEY WANT TO COMMUNICATE.

The Internet is the New Showroom

Deloitte 2011

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

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

“” Jon, 22

Grow your relationship online first.

AutoNews 2012

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

Deloitte 2011

11Millennial Web

Research 88%Comparison References

87% Manufacturer’s

website86%

Search Engine

s

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

Deloitte 2011

37

86% skip TV ads

91% unsubscribe200

mSay DO NOT CALL

44% of direct mail is never opened

The new marketing playbookSEOSocial MediaBloggingEmail MarketingLead NurturingSocial CRMLanding PagesVideoMarketing AutomationMarketing Analytics

Instead of• Brochures• Radio/TV

commercials• Interruptive

online advertisements

Instead of

Try

• Brochures• Radio/TV

commercials• Interruptive

online advertisements

• Interactive, informative websites

• Inbound marketing• Comparison

resources

How to buy your first car

Buying Your First Car: Everything You Need to Know!

Smart Dealership

OK, but how else do I engage millennials BEFORE

they come to my dealership?

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

GraduationClass of 2013New JobMoving

Use the Surrounding Millennial Community: Hire Millennial Writers/Sales

People

Millennials at the Dealership

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

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

Features We’re Looking For

Time 2012

• 59% prefer hybrids

• Gas mileage

• Long-term value

Seal the Deal Messaging

Will having a car make me more attractive to employers?

Seal the Deal Messaging

Will buying a car now save me money in 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 Messaging

http://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 for—and sitting in my driveway in my hometown. I can’t find a place for it in my new life in the city.

GENERATION Y IS THE MOST MOBILE GENERATION EVER.

“”UrbanLand

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

New York Times 2010

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.comBlog.HubSpot.com

Marketing.Grader.com