Millennial Women Changing the Car Buying Experience

Posted: October 30, 2015 by Anne Fleming, Car Buying Advocate

PITTSBURGH, PA – Millennials, the newest generation to come into buying power, has an estimated population of 80 million. According to J.D. Power and Associates, millennials accounted for 27 percent of new car sales in 2014, up from 18 percent in 2010. Of those millennial buyers, 53% are female, which is even higher than the statistics that show women of all age groups buy half the cars sold each year.

Women-Drivers.com, a car dealer review company focused exclusively on ratings from women, conducted a study of 620 reviews of car dealerships between November 2014 and May of 2015. This study sheds light on similarities and differences between millennial and non-millennial women. Here are a few of the differences.

“Excitement” is the number one emotion felt by all age groups when buying a car, but millennials ranked “relaxed” as number two, versus “apprehensive” for non-millennials. “Confident” ranked fourth for millennials and fifth for non-millennials. The difference in emotions indicates that the newest generation is more relaxed and confident. Additionally, younger women are more comfortable using technology to find the information they need to make buying decisions. While they may be less experienced than previous generations when it comes to buying a car, they now have a wealth of information at their fingertips and know how to find the answers to any questions they might have about their purchases.
“Trustworthiness” and “respect” are ranked #1 and #2 for millennials when it comes to the reason for buying from a particular sales advisor. “Understanding” ranks #3 for millennials, replacing “knowledgeable” for other age groups. Many millennials are first time buyers, and combined with the confidence and knowledge outlined above, want to feel they are making a comfortable choice. However, since “understanding” is higher on the list, it points to millennials feeling they have already done their research and are looking for sales advisors who support their decision.
Millennials are willing to travel significantly farther to find the deal they want, traveling 21.5 miles on average versus 15.4 miles for non-millennials. Millennial women are looking at the total deal, and being close to home isn’t as important.
While price is still the number one factor in a vehicle purchase by millennial women, “Style and Design” and “Brand and Model Reputation” rank high (#2 and #3, respectively). Millennial women rank appearance higher than non-millennials, and may be less likely to “settle” for a substitute. Warranty ranks #4, making sense for an age group that may be paying off student loans and doesn’t want the worry of unexpected repair costs. For non-millennials, “Space and Functionality” ranks #4 and Technology ranks #5. The differences in form versus function may be a matter of differences in age and whether extra space is needed to accommodate families.
In the service area, a courtesy/overnight vehicle ranks number one for millennials, and a wireless Internet connection and café rank second and third. Millennial women have a higher expectation of service and comfort. This will have a strong influence on which dealership they rely on for service.
One-quarter of millennial women (vs. one-fifth of non-millennials) report that they read car dealer reviews to help them determine where they are going to buy. In addition, social media is used more frequently by the millennial generation than previous generations. Increased use of technology by millennials represents a challenge and opportunity for dealerships to engage new customers in a communication style that is second nature to the newest generation of buyers.

The Women-Drivers.com survey shows that while many buying habits of millennial and non-millennial women are similar, the differences are significant enough for car dealerships to consider them when working to capture the loyalty of the savvy millennial generation.

About Women‐Drivers.com – Women‐Drivers.com is the premier car dealer review site focused on women and their families. It is a marketplace connecting women buyers and trusted Certified Women-Drivers Friendly© Dealers. The Company also provides ground breaking data and analytics through the Women’s Satisfaction Index to better understand the experience this buying segment has at car dealerships.

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Communicate tangible value-adds in your advertising.

If your store provides overnight loaner cars, include this in your messaging. It’s the #1 concierge item requested by women.

A confident, pleased buyer who writes a great review of her experience can influence countless other women to follow her lead.

Ask, track, and always respond to reviews.

Reviews are 3 times more influential than advertising when women buy a car.

Women want to read others’ experiences to help verify what dealerships to visit. Showcase these valuable testimonials on your home page or their own navigation section to build trust and credibility – don’t hide them in ‘About Us.’

One Size Does Not Fit All.

Step back and ask, who does your advertising really speak to?

Women are looking for connections with car dealerships.

Enhance your advertising by investing part of your ad dollars into what’s in it for her. Include dealer reviews and ‘Dealer of the Year’ awards. Remember to also sell your dealership, not only cars.

Never miss a simple action to upsell your store.

Offer a 3-minute tour, share about extended service center hours, mention that you offer overnight loaner cars, and give a free car wash coupon. Always look to surprise and delight.

Develop relationships with online guests.

Provide informative, helpful content in your BDC email response as well as link to reviews highlighting authentic consumer experiences.

76% of women rated their dealership’s website 3 out of 5 stars.

As the first point of engagement for customers, be sure your website represents your brand well, conveys trust, is welcoming, and contains educational content that adds value.

The #1 digital resource women use when buying a car is the dealership’s website.

Include images of women throughout your digital assets and online marketing campaigns.

It takes more than having a female spokesperson to market to women.

The #1 reason women choose to buy is TRUST which requires implementing new behaviors, attitudes, processes, and messaging.

Make your dealerships a welcome destination for all customers.

Always greet your customer through active listening, use empathy and understanding, and taking an interest in what they need or want – even if it’s outside the car purchase.

Include informative, engaging content on your website.

It helps build trust and ensures guests get value from your brand.

Behavior Economics demands tracking when your customers fall off.

Dealers with outdated behaviors and attitudes are losing traction with women in this competitive industry.

Measure and track the number of women leads and buyers each month.

You can’t grow what you don’t know.

Create the right conditions for the sale on the first visit.

Ask questions, listen, and get to know the customer. Never interrupt and don’t assume. Consider there won’t be a second visit.

Dealers need to shift the paradigm to effectively engage, market and optimize sales to women.

What is your Trust Dashboard with this market?

53% of millennial car buyers are women. Almost 4 in 10 women are the breadwinners in their family.

How is your current and future customer demographic represented in your front line team?

Crack the code by turning reviews into real-time data to make yours the go-to store.

Our platform collects unprecedented pre- and post-purchase analytics about what your #1 buyers want and prefer from participating dealers.

Transform your messaging and make the showroom more customer-centric.

92% of reviewers choose to opt into a 25-question survey summarizing their visit. This unbiased data is available in predictive analytics WSI (R) Dealer Data reports chronicling what these buyers want and experience.

Game-Changing Predictive Analytics.

What women want at the dealership has predominantly been an absent dialog; those statistics and conversations have generally been national. Dealers now have access to their own proprietary data through our platform. This provides leaders at each business the ability to have honest insights allowing for predictive awareness of behaviors, preferences, and experiences.