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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? …

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!
  • Transcript

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