Auto dealership market can be well set up by tapping into the lifestyle of the Millennials as well as the Hispanics, because they are going to drive the automotive economy for the better part of 21st century. They can form a strong customer base depending on the sole fact that they will be the customers of today, tomorrow, and many more decades to come.
Growing up in an intensely technological era has caused millennials to adhere to technological speed very strongly. Since they are a product of the times they grew up in, they are naturally inclined towards anything that technology offers – faster connectivity, convenience, and up-to-date features.
As for the Hispanic consumers, they could well be the auto industry’s leading growth-driver for the next 20-30 years. According to a report by AMDS Geoscape 2015, between 2015 and 2020 the Hispanic population would grow by 1,637,800 per year. Considering the fact that Hispanic households are bigger and many Hispanic millennials still live with their parents, it can present an ideal opportunity for car dealers to sell more cars to the same household and also get more referrals from this close-knit community.
Of the 5.9% overall sales growth in the automotive industry in 2014, Hispanics alone contributed 15% of it. The average age of Hispanics buying their first car is 30 years compared to non-Hispanic’s average age of 42 years. Also, with the increase in their household income, Hispanics are not just limiting themselves to entry-level cars but are also foraying into the luxury brand market.
How to appeal to both the groups?
There are certain imperatives that car dealers ought to keep in mind that can enhance their appeal to sell to these two groups of buyers:
- Since the Millennial buyer is more updated with store inventory and pricing from online sites, they would usually do their homework before fixing on the type of car they want to buy and from which dealer to buy. Hence dealers need to ensure their inventory is merchandised correctly on all the third-party auto sites as well as their website too. They need to be upfront and updated with their information from where the millennial buyer can choose from.
- The buyers from these two sets of demographics are especially tech-savvy people. A focus on the technology and the performance part of the vehicle would generate interest among the buyers
- This generation is heavily dependent on online media. Therefore, web, mobile, social and gaming media are the easiest channels to market to them. Presence of automotive companies on these media should be strong enough or else they would end up losing a share of their customer’s heart.
- In addition to looking forward to generous warranties, this generation is also keen on fuel economy, and the availability of eco- and technology-friendly features. So while engaging a customer, a dealer needs to keep these as imperatives.
- Create a memorable experience for the buyers. For example, while trying to sell a car to Hispanics, it’s important to have a bilingual sales team to facilitate their car purchase.
- This generation of buyers expects fast transactions including online documentation for sales and financing. Also, since this age group continues to grow well financially, they would need aggressive financing plans that the dealer would need to keep in mind.
These demographics are fast becoming aggressive car buyers and the best-selling factor that can influence them is an all-informed data from which they can form their own opinion. A well designed Car Dealer App is one of the most powerful channels to reach out to this tech-savvy population