It may not be marked with permanent ink, but when it comes to making most retail purchases there is a generational dividing line. Since there is no one-size-fits-all marketing tactic, brands must know how each generation moves through the buying process in order to create and deliver the appropriate message. These distinctive segments help brands easily zero in on their particular audience; then they can shoot their best digital marketing arrows with greater accuracy.
Marketers who have done their homework know that each generation has its own preference for brand-to-consumer interaction. They also know that when Gen Xers are on a purchasing journey, they tend to gravitate toward social media. Gen Z members are more attracted to video and social media. Boomers can be drawn as if by a magnetic pole toward another channel altogether. About 92% of Boomers make up 23.5 percent of the U.S. population and learned to drive when gasoline was thirty-five cents a gallon. This generation prefers to gather information about products online as opposed to venturing inside a store or mall.
Capitalize on the purchasing power of several generations
Unlike other commodities, a vehicle in our mobile society is a cross-generational necessity; each segment of the population considers a set of wheels as highly relevant and nearly indispensable. This puts dealers in a unique marketing position, as they must reach a vast audience with varying degrees of knowledge – and different levels of technology acceptance. Further, their profiling skills must be more fine-tuned.
The wide range of ages presents as many challenges as it does opportunities. Many Boomers – 76 million strong – may have enough disposable income to purchase a luxury vehicle. Yet, with the retirement exit sign coming into focus down the road, they may prefer to stick to a belt-tightening budget and purchase something more affordable and practical. Brands will also want to understand the role Millennials play in vehicle purchases. In the first quarter of 2018, Millennials were credited with driving all new-vehicle sales growth. One of their hallmarks is its focus on environmental sustainability. And approximately 62% of them plan to buy their next vehicle from a dealership, according to a report by MSN.
Tips for dealers
Dealerships should take heart; the demand is still growing strong. Here are a few tips to help you ramp up sales:
Accelerate profits by showcasing technology and safety
Drivers are expressing heightened interest in safety, and the rapid advancement in technology is addressing some of these factors. Dealers have a golden opportunity to demonstrate product features of vehicles on their lots, yet studies show that they aren’t educating customers. These safety features could possibly save lives – and that’s something that should have sirens blaring! According to a study by McKinsey, only 70% of car shoppers are aware of the advanced driver-assistance systems (ADAS) available. An increasing number of vehicles can help improve safety for drivers by eliminating blinds spots and alerting them when they become drowsy. Offer the shopper a test drive and demonstrate all these bells and whistles, including lane-departure warning systems, side and rear cameras, and proximity detectors.
Steer clear from stereotyping consumers – customer profiling
Since Millennials grew up with internet-controlled gadgets, they will rely on these devices to help them make a new car decision. Bargain hunters know no boundaries, and a sliver in each segment will have an aversion to getting into debt. If your strategy is to promote incentives, be sure to communicate that valuable nugget. In 2020, Gen Z is projected to account for 40% of all consumers.
Show and sell
Post high-resolution photos of luxury vehicles on Instagram. The younger segment will follow you and eventually you will have amassed a large audience. That will be your signal that it’s time to launch dealership marketing promos Advertise to Gen Z on their preferred platforms using opt-in ads. Also, be transparent about pricing and rebate offers.
Nurture customer relationships
Dealers are finding it difficult to differentiate online from their competitors. During each nanosecond that they are at the dealership, customer service should be paramount; provide them with an exceptional shopping experience. Being face-to-face is an ideal time to tell your customer about your perks – such as a free oil change. Since data security is a hot button item, assure them that your dealership values their privacy. At some point in the future, the vehicle will come back for service. Make it a priority to connect with the customer at that touch point, as well.
By the time you learn all the names and nuances of each group, another one will surface. No matter what name is assigned to them, they will be key drivers in steering the industry toward giving them what they want.
