It’s easy to brush aside the impact young consumers have on dealership service departments, especially with the misnomer that Millennials aren’t buying cars still prevalent at some stores.
But the reality is that about 29 million Millennials get their car or truck serviced each year, and that service generates billions of dollars in revenue. However, capturing that revenue isn’t as simple as opening up the doors to your dealership – it takes a completely new way of thinking about fixed ops marketing.
A Generation of Choice
Millennials like to know they have options, and they’re not afraid to go through extra work to find the best deal in terms of price, quality and overall experience. Compared to older generations, Millennials consider a greater number of service providers (e.g., repair shops, dealerships, national chains) before making a decision. They want to make sure all of their options are on the table before committing to any single one. Though they gravitate towards national chains, the good news is that they’re still very open to working with dealerships.
Quality matters to Millennials. In fact, a recent study by GfK shows that 70% of car owners within the age group are willing to pay more for vehicle repairs and maintenance if the quality of service justifies it. Indicating that Millennial decisions are based on more than price alone, dealerships have an opportunity to tout their technicians’ certification and manufacturer parts as a complement to already-competitive prices.
Just like on the sales side, Millennials depend heavily on online tools throughout the service process. Get the ball rolling by building up service-related content wherever your dealership is already marketing its sales department. From updating and/or adding appropriate contact information on Cars.com to sharing digital content about the service amenities your dealership provides on your store’s website, small but important changes to the way your dealership views its marketing strategy can go a long way towards retention and acquisition.
For more Millennial insights, check out the Cars.com 2015 Millennial Outlook.