WHY MILLENIALS ARENTBUYING CARSAND WHATYOU CAN DO TO FIGHT IT

AGENDA1 Why Millennials Arent Buying Cars2 How This Affects the Car Industry Change their mind: Before and After the3 Dealership4 What the Future Looks Like

HubSpot (Inbound Marketing Software) Media Relations Millennial Marketing Blogger LindseyLindsey Kirchoff@LindseyKirchoff

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. TIME 2012

Were less into cars thanprevious generationswere at our age.

Did you have your drivers 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%. Forbes 2012

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 IS DECREASING.

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

MeetDawsonHes 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 DONT JUST HAVE TOCONVINCE US TO BUY YOUR CAR.

YOU DONT 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 areexcited to shop for a vehicle. (Only 71.2% of Gen X and 66.3% of Baby Boomers claim the same). Deloitte 2011

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 CANT EVEN SEE MYSELF GOING INTO A CAR DEALERSHIP FOR AT LEAST 4 YEARS.Jon, 22

Grow yourrelationship onlinefirst.

Millennials visit an average of 25 sitesbefore buying a vehicle. AutoNews 2012

1Millennial1 WebResearch 88% Comparison References 87% Manufacturers 86% websiteSearchEngines Deloitte 2011

25% of millennials researched a vehiclebrand/model on social media in 2009.In 2011, that number grew to 67%. Deloitte 2011

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 Marketing Lead Nurturing Social CRM Landing Pages Video Marketing Automation Marketing Analytics

Brochures Radio/TVInstead of commercials Interruptive online advertisements

Brochures Radio/TV Instead of commercials Interruptive online advertisements Interactive, informative websites Inbound marketing Comparison resources Try

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 Graduation Class of 2013 New Job Moving

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. AutoNews 2012

52% millennials whovehad 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 ASAP Auto News 2012

DO DONT 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

Features Were Looking For 59% prefer hybrids Gas mileage Long-term value Time 2012

Seal the Deal Messaging Will having a car make me more attractive to employers?

Seal the Deal MessagingWill buying a carnow save me moneyin the long term?

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.

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 forand sitting in my driveway in my hometown. I cant find a place for it in my new life in the city.

GENERATION Y IS THE MOST MOBILE GENERATION EVER.UrbanLand

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 HubSpot.com Blog.HubSpot.com Marketing.Grader.com