WHY MILLENIALS AREN’TBUYING CARS—AND WHATYOU CAN DO TO FIGHT IT
AGENDA1   Why Millennials Aren’t Buying Cars2   How This Affects the Car Industry    Change their mind: Before and After t...
• HubSpot (Inbound Marketing                           Software) Media Relations                         • Millennial Mark...
WHO ARE MILLENNIALS?Born from 1980-2000 (Ages 12-32 today)80 Million in US, 23% of total population$1 Trillion in spending
BY 2025, MILLENNIALS WILL            ACCOUNT FOR        75% OF ALL          VEHICLES       PURCHASED.                     ...
We’re less into cars thanprevious generationswere at our age.
Did you have your driver’s license when you were 16?How about 19?
Only 30% of 16 year olds had licenses in 2008.For those 19 and under, that percentage was stillless than 50%.             ...
New Vehicles Sold 21-34 Year Olds38%                     27%                    The Atlantic 2012
THE INHERENT VALUE OF CARS IS                  DECREASING                     BECAUSE THE NEED TO LEAVE THE HOUSE         ...
USED TO NEED A CAR FOR
USED TO NEED A CAR FOR                         BUT NOW WE HAVE
46% of 18-24drivers wouldchoose theinternet overtheir car     New York Times
MeetDawsonHe’s just youraverage 90ssoap opera teenwho loves themovies.
In the 90s, this is how he followed his film passion….
But today, he would probably do it all online.
The freedom you once got behind the wheel…
…is now behind a screen.
YOU DON’T JUST HAVE TOCONVINCE US TO BUY YOUR                     CAR.
YOU DON’T JUST HAVE TOCONVINCE US TO BUY YOUR                     CAR.  YOU HAVE TO CONVINCE US             TO BUY A CAR.
The average car costs $30,000 and sits parked 23hours a day.                                   New York Times 2010
18-29 year olds want to live neCities 2012   62%    public transportation
66% 18-24 year olds prefer tolive in walk-able communities                                Atlantic Cities
Car Sharing
Car Sharing767,000+ members300+ college campuses10,000+ cars (30 models)
Competition is changing fast
HOW CAN THECAR INDUSTRYTURN THINGSAROUND?Wired
More than 82% of millennials say they are“excited” to shop for a vehicle.                 (Only 71.2% of Gen X and 66.3%  ...
NOURISH THAT EXCITEMENT  BY CONNECTING WITH MILLENNIALS THE WAY    THEY WANT TO    COMMUNICATE.
The Internet is the New Showroom
The #1 reasonmillennials visitdealerships is totest-drive a car,not gatherinformation.         Deloitte 2011
“          I CAN’T EVEN          SEE MYSELF GOING          INTO A CAR          DEALERSHIP FOR          AT LEAST 4         ...
Grow yourrelationship onlinefirst.
Millennials visit an average of 25 sitesbefore buying a vehicle.                                   AutoNews 2012
1Millennial1 WebResearch                       88%                     Comparison                     References          ...
25% of millennials researched a vehiclebrand/model on social media in 2009.In 2011, that number grew to 67%.              ...
86% skip TV ads  44%  of direct mail is  never opened   91%   unsubscribe200mSay DO NOT CALL                      37
The new marketing playbook               SEO               Social Media               Blogging               Email Marketi...
• Brochures             • Radio/TVInstead of     commercials             • Interruptive online               advertisements
• Brochures                             • Radio/TV      Instead of               commercials                             •...
How to buy your first car
Buying Your First Car: Everything You Need to Know!Smart Dealership
OK, but how else do I engagemillennials BEFORE they come       to my dealership?
Use the Surrounding Millennial Community: Get their online data directly, stay in touch                                Gra...
Use the Surrounding Millennial Community: Hire         Millennial Writers/Sales People
Millennials at the Dealership
Over half of millennials consider negotiations with acar salesman more painful than a trip to thedentist.                 ...
52% millennials who’vehad a bad experience witha dealer never considerbuying that brand again                Deloitte 2011
EDUCATE, THEN SELL.
DO• Start courting process  online• Know comparative  data• Focus on features,  not sales• Woo Parents/Friends• Follow-up ...
DO                                DON’T• Start courting process   • Haggle  online                   • Contradict• Know co...
Features We’re Looking For               • 59% prefer                 hybrids               • Gas mileage               • ...
Seal the Deal Messaging             Will having a car             make me more             attractive to             emplo...
Seal the Deal MessagingWill buying a carnow save me moneyin the long term?
Seal the Deal Messaging                                                     What                                          ...
Seal the Deal Messaginghttp://www.youtube.com/watch?v=-xznLjEdrzg
WHERE DO WE GO FROM HERE?
My Story• 1 car per house   My car has great mileage, is fully   paid for—and sitting in my   driveway in my hometown. I  ...
“            GENERATION            Y IS THE            MOST            MOBILE            GENERATION            EVER.UrbanL...
One-third ofpeople in their20s move to anew residenceevery year.
Ideal Dealership• Get a car when you get a house• Shorter leases• Trade-in by location• Group ownership
FINAL THOUGHTS
Thank you!Lindsey Kirchoff@LindseyKirchoffHowToMarketToMe.comHowToMarketToMe@gmail.com                               HubSp...
Why Millennials Aren't Buying Cars
Why Millennials Aren't Buying Cars
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Why Millennials Aren't Buying Cars

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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 HowToMarketToMe@gmail.com. Enjoy!

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  • Name, profession/blog
  • Scott
  • Source: NYSE http://www.nysemagazine.com/convergys
  • Today it’s around 40%
  • Forbes http://www.forbes.com/sites/dalebuss/2012/03/30/from-apple-to-zipcar-auto-brands-hunt-millennials/ http://www.forbes.com/sites/larissafaw/2012/09/25/why-the-theory-that-millennials-dont-care-about-cars-is-wrong/
  • 21-34 year olds 1985: 38% new vehicles sold 2010: 27% new vehicles sold Source: http://www.theatlantic.com/magazine/archive/2012/09/the-cheapest-generation/309060/?single_page=true
  • Source: NYT http://www.nytimes.com/2012/03/23/business/media/to-draw-reluctant-young-buyers-gm-turns-to-mtv.html?pagewanted=all&_r=0
  • 1998-2003
  • Drove to work at a “Blockbuster” with Pacey Took Joey on a date to the movie theater Joined the film club after school Drives to enter film festivals
  • Has a Netflix Follows @Stephen Spielberg Blogs about movies Online friends with film geeks around the world
  • The freedom that you once got behind the wheel…
  • is now behind a computer screen.
  • Talking points: -Public transportation Less need to leave the house! Want everything as close as possible -2/3 18-24 year olds prefer to live in walkable communities Source Atlantic Cities http://www.theatlanticcities.com/commute/2012/04/why-young-americans-are-driving-so-much-less-their-parents/1712/
  • -2/3 18-24 year olds prefer to live in walkable communities Source Atlantic Cities http://www.theatlanticcities.com/commute/2012/04/why-young-americans-are-driving-so-much-less-their-parents/1712/
  • Fundamental shift Not just convincing them to buy at your dealership instead of another, have to convince them to actually buy a car
  • How do we re-direct millennials back to car purchasing? How do you sell to an unsellable market? How do you bring “sexy back”?
  • Clarify that it happens before going in store Source: Deloitte http://www.deloitte.com/assets/Dcom-UnitedStates/Local%20Assets/Documents/us_automotive_2011%20Deloitte%20Automotive%20Gen%20Y%20Survey%20FACT%20SHEET_012011.pdf
  • While 90% of car shoppers start their journey online— Less likely to be first activity buyers Larry just asked, “How much time would you spend researching a car?” Source AutoNews http://www.autonews.com/apps/pbcs.dll/article?AID=/20120806/RETAIL07/308069962/1422/marketing-to-millennials-make-it-online-fast-easy
  • Source Deloitte: http://www.deloitte.com/assets/Dcom-UnitedStates/Local%20Assets/Documents/us_automotive_2011%20Deloitte%20Automotive%20Gen%20Y%20Survey%20FACT%20SHEET_012011.pdf 86% use search engines 87% visit manufacturers’ website 88% reference sites that compare prices/features
  • Source Deloitte: http://www.deloitte.com/assets/Dcom-UnitedStates/Local%20Assets/Documents/us_automotive_2011%20Deloitte%20Automotive%20Gen%20Y%20Survey%20FACT%20SHEET_012011.pdf
  • More than half of Gen Y shoppers classified negotiations with a car salesman as more painful than a trip to the dentist. Source Auto News: http://www.autonews.com/article/20120806/RETAIL07/308069962#ixzz2CAWR28xM
  • Source Deloitte: http://www.deloitte.com/assets/Dcom-UnitedStates/Local%20Assets/Documents/us_automotive_2011%20Deloitte%20Automotive%20Gen%20Y%20Survey%20FACT%20SHEET_012011.pdf
  • Millennials would rather spend time in the dentist's chair than negotiate with a car salesman, according to reporting by  Automotive News . http://editorial.autos.msn.com/blogs/autosblogpost.aspx?post=7c132b23-6e4e-4ea2-85fe-c3728821d608 http://www.autonews.com/apps/pbcs.dll/article?AID=/20120806/RETAIL07/308069962/1422/marketing-to-millennials-make-it-online-fast-easy http://editorial.autos.msn.com/blogs/autosblogpost.aspx?post=7c132b23-6e4e-4ea2-85fe-c3728821d608
  • Source Time: http://business.time.com/2012/01/24/will-gen-y-lead-the-shift-from-gas-powered-cars-to-hybrids-and-electric-vehicles/
  • Car Ownership and Hire-ability Long-term savings time/money Missed opportunities Essential
  • Car Ownership and Hire-ability Long-term savings time/money Missed opportunities Essential
  • Car Ownership and Hire-ability Long-term savings time/money Missed opportunities Essential
  • Car Ownership and Hire-ability Long-term savings time/money Missed opportunities Essential
  • Source: http://urbanland.uli.org/Articles/2010/Nov/McIlwainGenY
  • Forty percent move back home with their parents at least once. Average of seven jobs in their 20s Sources: The NYT http://www.nytimes.com/2010/08/22/magazine/22Adulthood-t.html
  • The internet has changed everything. Industry-wide fundamental change Adapt to millennials, ahead of the curve!
  • Why Millennials Aren't Buying Cars

    1. 1. WHY MILLENIALS AREN’TBUYING CARS—AND WHATYOU CAN DO TO FIGHT IT
    2. 2. AGENDA1 Why Millennials Aren’t Buying Cars2 How This Affects the Car Industry Change their mind: Before and After the3 Dealership4 What the Future Looks Like
    3. 3. • HubSpot (Inbound Marketing Software) Media Relations • Millennial Marketing Blogger LindseyLindsey Kirchoff@LindseyKirchoff
    4. 4. WHO ARE MILLENNIALS?Born from 1980-2000 (Ages 12-32 today)80 Million in US, 23% of total population$1 Trillion in spending
    5. 5. BY 2025, MILLENNIALS WILL ACCOUNT FOR 75% OF ALL VEHICLES PURCHASED. TIME 2012
    6. 6. We’re less into cars thanprevious generationswere at our age.
    7. 7. Did you have your driver’s license when you were 16?How about 19?
    8. 8. Only 30% of 16 year olds had licenses in 2008.For those 19 and under, that percentage was stillless than 50%. Forbes 2012
    9. 9. New Vehicles Sold 21-34 Year Olds38% 27% The Atlantic 2012
    10. 10. THE INHERENT VALUE OF CARS IS DECREASING BECAUSE THE NEED TO LEAVE THE HOUSE IS DECREASING.
    11. 11. USED TO NEED A CAR FOR
    12. 12. USED TO NEED A CAR FOR BUT NOW WE HAVE
    13. 13. 46% of 18-24drivers wouldchoose theinternet overtheir car New York Times
    14. 14. MeetDawsonHe’s just youraverage 90ssoap opera teenwho loves themovies.
    15. 15. In the 90s, this is how he followed his film passion….
    16. 16. But today, he would probably do it all online.
    17. 17. The freedom you once got behind the wheel…
    18. 18. …is now behind a screen.
    19. 19. YOU DON’T JUST HAVE TOCONVINCE US TO BUY YOUR CAR.
    20. 20. YOU DON’T JUST HAVE TOCONVINCE US TO BUY YOUR CAR. YOU HAVE TO CONVINCE US TO BUY A CAR.
    21. 21. The average car costs $30,000 and sits parked 23hours a day. New York Times 2010
    22. 22. 18-29 year olds want to live neCities 2012 62% public transportation
    23. 23. 66% 18-24 year olds prefer tolive in walk-able communities Atlantic Cities
    24. 24. Car Sharing
    25. 25. Car Sharing767,000+ members300+ college campuses10,000+ cars (30 models)
    26. 26. Competition is changing fast
    27. 27. HOW CAN THECAR INDUSTRYTURN THINGSAROUND?Wired
    28. 28. More than 82% of millennials say they are“excited” to shop for a vehicle. (Only 71.2% of Gen X and 66.3% of Baby Boomers claim the same). Deloitte 2011
    29. 29. NOURISH THAT EXCITEMENT BY CONNECTING WITH MILLENNIALS THE WAY THEY WANT TO COMMUNICATE.
    30. 30. The Internet is the New Showroom
    31. 31. The #1 reasonmillennials visitdealerships is totest-drive a car,not gatherinformation. Deloitte 2011
    32. 32. “ I CAN’T EVEN SEE MYSELF GOING INTO A CAR DEALERSHIP FOR AT LEAST 4 YEARS.Jon, 22 ”
    33. 33. Grow yourrelationship onlinefirst.
    34. 34. Millennials visit an average of 25 sitesbefore buying a vehicle. AutoNews 2012
    35. 35. 1Millennial1 WebResearch 88% Comparison References 87% Manufacturer’s 86% websiteSearchEngines Deloitte 2011
    36. 36. 25% of millennials researched a vehiclebrand/model on social media in 2009.In 2011, that number grew to 67%. Deloitte 2011
    37. 37. 86% skip TV ads 44% of direct mail is never opened 91% unsubscribe200mSay DO NOT CALL 37
    38. 38. The new marketing playbook SEO Social Media Blogging Email Marketing Lead Nurturing Social CRM Landing Pages Video Marketing Automation Marketing Analytics
    39. 39. • Brochures • Radio/TVInstead of commercials • Interruptive online advertisements
    40. 40. • Brochures • Radio/TV Instead of commercials • Interruptive online advertisements• Interactive, informative websites• Inbound marketing• Comparison resources Try
    41. 41. How to buy your first car
    42. 42. Buying Your First Car: Everything You Need to Know!Smart Dealership
    43. 43. OK, but how else do I engagemillennials BEFORE they come to my dealership?
    44. 44. Use the Surrounding Millennial Community: Get their online data directly, stay in touch Graduation Class of 2013 New Job Moving
    45. 45. Use the Surrounding Millennial Community: Hire Millennial Writers/Sales People
    46. 46. Millennials at the Dealership
    47. 47. Over half of millennials consider negotiations with acar salesman more painful than a trip to thedentist. AutoNews 2012
    48. 48. 52% millennials who’vehad a bad experience witha dealer never considerbuying that brand again Deloitte 2011
    49. 49. EDUCATE, THEN SELL.
    50. 50. DO• Start courting process online• Know comparative data• Focus on features, not sales• Woo Parents/Friends• Follow-up ASAP Auto News 2012
    51. 51. DO DON’T• Start courting process • Haggle online • Contradict• Know comparative online/comparative data data• Focus on features, • Rely on brand not sales loyalty• Woo Parents/Friends• Follow-up ASAP Auto News 2012
    52. 52. Features We’re Looking For • 59% prefer hybrids • Gas mileage • Long-term value Time 2012
    53. 53. Seal the Deal Messaging Will having a car make me more attractive to employers?
    54. 54. Seal the Deal MessagingWill buying a carnow save me moneyin the long term?
    55. 55. 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.
    56. 56. Seal the Deal Messaginghttp://www.youtube.com/watch?v=-xznLjEdrzg
    57. 57. WHERE DO WE GO FROM HERE?
    58. 58. 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.
    59. 59. “ GENERATION Y IS THE MOST MOBILE GENERATION EVER.UrbanLand ”
    60. 60. One-third ofpeople in their20s move to anew residenceevery year.
    61. 61. Ideal Dealership• Get a car when you get a house• Shorter leases• Trade-in by location• Group ownership
    62. 62. FINAL THOUGHTS
    63. 63. Thank you!Lindsey Kirchoff@LindseyKirchoffHowToMarketToMe.comHowToMarketToMe@gmail.com HubSpot.com Blog.HubSpot.com Marketing.Grader.com
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