Why Millennials Arent Buying Cars

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

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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!

Transcript of Why Millennials Arent Buying Cars

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

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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

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Lindsey

Lindsey Kirchoff@LindseyKirchoff

• HubSpot (Inbound Marketing Software) Media Relations

• Millennial Marketing Blogger

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

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BY 2025, MILLENNIALS WILL ACCOUNT FOR

75% OF ALL VEHICLES

PURCHASED.

TIME 2012

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

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

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

Forbes 2012

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New Vehicles Sold21-34 Year Olds

38% 27%

The Atlantic 2012

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THE INHERENT VALUE OF CARS IS DECREASING

BECAUSETHE NEED TO LEAVE THE

HOUSE IS DECREASING.

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USED TO NEED A CAR FOR

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USED TO NEED A CAR FOR

BUT NOW WE HAVE

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

New York Times 2012

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Meet Dawson

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

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

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But today, he would probably do it all online.

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The freedom you once got behind the wheel…

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…is now behind a screen.

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YOU DON’T JUST HAVE TO CONVINCE US TO BUY

YOUR CAR.

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YOU HAVE TO CONVINCE US TO BUY A CAR.

YOU DON’T JUST HAVE TO CONVINCE US TO BUY

YOUR CAR.

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New York Times 2010

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

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

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

Atlantic Cities 2012

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Car Sharing

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

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Competition is changing fast

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Wired

HOW CAN THE CAR INDUSTRY TURN THINGS AROUND?

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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).

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NOURISH THAT EXCITEMENT BY CONNECTING WITH

MILLENNIALS THE WAY THEY WANT TO COMMUNICATE.

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The Internet is the New Showroom

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Deloitte 2011

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

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

“” Jon, 22

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Grow your relationship online first.

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AutoNews 2012

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

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Deloitte 2011

11Millennial Web

Research 88%Comparison References

87% Manufacturer’s

website86%

Search Engine

s

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

Deloitte 2011

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37

86% skip TV ads

91% unsubscribe200

mSay DO NOT CALL

44% of direct mail is never opened

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The new marketing playbookSEOSocial MediaBloggingEmail MarketingLead NurturingSocial CRMLanding PagesVideoMarketing AutomationMarketing Analytics

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Instead of• Brochures• Radio/TV

commercials• Interruptive

online advertisements

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Instead of

Try

• Brochures• Radio/TV

commercials• Interruptive

online advertisements

• Interactive, informative websites

• Inbound marketing• Comparison

resources

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How to buy your first car

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Buying Your First Car: Everything You Need to Know!

Smart Dealership

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OK, but how else do I engage millennials BEFORE

they come to my dealership?

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

GraduationClass of 2013New JobMoving

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Use the Surrounding Millennial Community: Hire Millennial Writers/Sales

People

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Millennials at the Dealership

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

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

Deloitte 2011

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EDUCATE, THEN SELL.

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DO• Start courting

process online• Know comparative

data• Focus on features,

not sales• Woo

Parents/Friends• Follow-up ASAP Auto News 2012

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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

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Features We’re Looking For

Time 2012

• 59% prefer hybrids

• Gas mileage

• Long-term value

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Seal the Deal Messaging

Will having a car make me more attractive to employers?

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Seal the Deal Messaging

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

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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.

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Seal the Deal Messaging

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

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WHERE DO WE GO FROM HERE?

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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.

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GENERATION Y IS THE MOST MOBILE GENERATION EVER.

“”UrbanLand

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

New York Times 2010

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Ideal Dealership• Get a car when you get a house

• Shorter leases

• Trade-in by location

• Group ownership

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FINAL THOUGHTS

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Thank you!

Lindsey [email protected]@gmail.com

HubSpot.comBlog.HubSpot.com

Marketing.Grader.com