Millennials, or Generation Y, follow the demographic cohort Generation X. Born in the years stretching from the early ‘80s until the early ‘00s, they’re changing the buying process, pushing it in a more digital direction – and we’re already witnessing this change all over the country. You may well be a Millennial yourself.
It’s clear to see when you think about how many Millennials don’t go to banks and just use online banking, how many don’t carry cash and just use contactless cards and Apple Pay. They’ve been plagued with student debt, a lack of affordable housing and unemployment, while the ‘lucky’ ones struggle with indecision, having been given so many options they don’t know which way to go! Sound familiar?
With such a split in this broad and vaguely-defined group, it’s difficult to categorise Millennials into one demographic for advertising purposes – there are too many people with different personalities and preferences, so they can’t be targeted in one fell swoop. But we can learn from their habits.
Having been brought up in the recession, Millennials tend to be more careful with their money, usually shopping around to find the best price, but they’re also willing to spend a little more to get a great customer experience or to support a worthy cause. We can also see that Millennials are spending more of their hard-earned cash on experiences, like restaurants and travelling rather than designer brands and other material possessions. Similarly, it appears that where money is available, Millennials would rather pay for someone else to carry out jobs around their homes than do the work themselves – their time is deemed more precious than their money and they want their time outside of their paid work to be spent on fun as opposed to more work.
What does this mean for the automotive industry? Well, we must adjust the way in which our businesses work in order to take advantage of this huge opportunity in automotive retail, tailoring our customer experience to the requirements of all our customers, Millennials included. After all, as consumers ourselves we don’t want buying a car to be deemed as a chore, more of an exciting experience that we’re going to remember for all the right reasons.
As a digitally-savvy generation, it should be pretty straightforward to reach Millennials with our advertising, but they’re a demanding bunch with specific ideas about how the transaction should unfold – and being comfortable with technology at their fingertips, it’s no surprise that mobile and digital are used to make car shopping as fast, simple and friendly as possible. So that’s what we must do too!
Our digital showrooms, aka our websites, need to be as optimised and engaging as our showrooms in the real world, so everything you could find out in the dealership should also be available online. Additionally, our research here at Cox Automotive has taught us that 63% of all shoppers – including Millennials – are more likely to purchase Finance and Insurance products if they can learn about them in their own time, so by taking their time to research the right deal for them online, they can find the right balance between budget and aspiration. Millennials also take four months on average to research the right deal for them, so we must make sure our websites are constantly updated and always 100% correct, working 24/7 to provide the information and engagement options so we're there when needed.
And have you ever considered selling a car on social?! Well, this could be the future with Generation Z growing up…
If Modix sounds like the right partner to help optimise your digital marketing, get in touch today on 0333 444 0351.