For successful marketing, it’s essential to pinpoint the exact demographic you’re targeting and grasp what resonates with them. With this in mind, it’s particularly important to consider Generation Z, those born between 1997 and 2012, as they represent a growing segment in the car-buying market.
This article uncovers various challenges and provides essential tips that car dealerships should know in their marketing efforts.
Gen Z’s Car Buying Style
Gen Z engages in a hybrid car-buying process, conducting extensive online research—watching your videos on YouTube and Facebook, browsing your website, scrutinizing your inventory, and reading almost through all the reviews—before ultimately visiting the dealership in person, where they essentially restart their research journey.
This hybrid process highlights the need for strong digital marketing strategies, ensuring a seamless online-to-showroom experience for such potential customers. And this leads us directly to the importance of video marketing—the most effective way for digital natives.
Dealerships need to prioritize creating authentic and captivating video content to educate their audience, encourage prospects to go down the marketing funnel and get them converted. Additionally, adapting to Gen Z’s communication style is crucial. Car dealers should shift towards texting and social media messaging rather than traditional phone calls or emails.
Gen Z’s Preferred Cars
When considering Gen Z’s vehicle choices, there are two prevailing assumptions. One perspective suggests that members of Gen Z are more inclined to choose ordinary, budget-friendly cars over luxury models due largely to their limited income. It is because many in this generation are either still studying or just starting their careers, typically leading to lower disposable incomes.
In contrast, a study by CDK Global asserts that 39% of Gen Z are more likely to buy a luxury brand, which is higher than every other generation. A possible reason is the “parental support” that Baby Boomer or Gen X parents might provide their Gen Z kids. Additionally, this generation, because of their heavy consumption of social media content, is more likely to experience a change in value system and have an inclination to luxury.
Both perspectives on Gen Z’s car buying preferences hold validity and merit consideration. Ultimately, it may depend on the individual customer who walks into your dealership.
As sales professionals, dealers should be adept at determining which group a customer aligns with, tailoring their approach to meet the unique needs and preferences of each Gen Z buyer.
Car Buying Attitudes for Gen Z
Surprisingly, when it comes to the influence of a car brand’s ethics on their purchase decisions, Gen Z appears to be the least affected. Despite often being portrayed as a generation of activists prioritizing ethical considerations, this concern seems to take a backseat in their automotive choices.
Furthermore, Gen Z’s approach to brand loyalty shows a clear departure from older generations. They are more open to switching between car brands, seeking better experiences or value alignment.
For dealerships, this trend indicates that relying solely on the reputation of the car brands they sell is not enough. Instead, dealerships must also focus on cultivating their own reputation as a customer-centric business.
Conclusion
To conclude, the key to successfully engaging Gen Z in the automotive market is recognizing and adapting to their distinct preferences and values.
Dealerships should move beyond conventional sales tactics and embrace a more personalized approach, particularly in digital marketing and communication. By understanding Gen Z’s unique perspective on luxury, brand ethics, and their digital-savvy purchasing habits, dealerships can better cater to this influential demographic.
Staying agile and responsive to these trends will not only appeal to Gen Z buyers but also ensure dealerships remain relevant and competitive in an ever-evolving industry.
