Engaging Digital Natives
Because they grew up in an era of fast evolving technology, digital natives are distinct from all previous consumer groups. For dealers hoping to succeed in a contemporary market, it is imperative that they have a thorough understanding of digital natives, including their mindset and methods of interaction.
Digital natives are those who…?
Millennials and Generation Z are two generations that have grown up in the digital age and are considered digital natives. It’s important to examine this tech-savvy cohort more closely because older generations may have certain misconceptions about them.
The millennial generation has surpassed the baby boomers as the largest generation. Because of their sheer size, they are an essential customer base for dealerships. Experiences are more valuable to this group than cost savings.
Millennials actively utilize digital tools to inform their decisions, having grown up with the internet at their fingertips. The 2008 recession, when many Millennials first entered the workforce, helped to mold them into astute financial planners.
For dealers, this means that 79% of Millennials think owning a car is essential. LendEDU reports that 60% of Millennials were not shocked by maintenance costs because they had done their homework beforehand, and approximately 54% of Millennials looked at auto financing rates before buying a car.
The personal lives of Generation Z were infused with technology from an early age. They frequently use virtual peer groups to communicate with one another and to experience drama and life events.
Despite having improved cognitive abilities, Gen Z is nonetheless plagued by worry and an abundance of information. Gen Zers are without a doubt the most adept at influencing consumer trends due to their fondness for social media.
It’s interesting to see that 39% of Gen Z aspire to buy a luxury car rather than just any old car. Also, 81% of consumers wish to know what their options are before making a buy.
Dealing with Digital Natives in Business
Digital natives collectively have $3 trillion in purchasing power. Understanding how to interact with them effectively—that is, according to their tastes and habits—is the key to opening their wallets. These are the necessities.
Make Interactive Websites
A resounding 89% of customers would rather communicate by text than over the phone. The chat option on websites is the equivalent of sending a text message. It is your responsibility as a dealer to match this preference in your correspondence. This is not going to work. You are disqualifying yourself from consideration if you are unable to deliver a dependable and consistently excellent experience through digital messaging on your website.
Make sure that messaging is enabled on your Google Business Profile (GBP) listing because they receive five times as many views as webpages.
Pay attention to reviews and ratings
Acknowledge that social influence plays a major role for digital natives. Online reviews are important to 91% of this demographic and are frequently the first consideration when selecting a dealership.
Based on ratings and reviews, Google also decides which dealerships are shown in what order. Dealerships ought to prioritize this as the first three search results receive 98% of clicks. Ask your own associates who are digital natives for feedback if you need to make improvements to your online evaluation procedure.
Accept the online method.
Eighty percent of car buyers believe that buying everything online is an excellent or fantastic idea, according to Cox Automotive’s 2022 Car Buyer Journey Study. Notably, 44% of respondents state they only intend to browse websites that let them finish desired car tasks online.
While many dealerships have reverted to the old appointment approach, several also allowed remote buying during the pandemic. This is an error. When making a purchase, digital natives are astute shoppers who look for the best deal and consider all available possibilities. More prospective customers will eventually enter the online purchasing funnel if you give them the information they need and let them communicate with your dealership digitally.
Dealerships need to align their communication preferences and practices to effectively engage with digital natives if they want to survive for years to come. This include encouraging online reviews, providing interactive messaging on websites and GBPs, and enabling a larger portion of the purchasing transaction to take place digitally.
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