"Millenials" are a common topic regardless of the industry being discussed, which is why it's not all that surprising to learn that the millennial generation is the most studied generation in history. Therefore, the study of millennials in the mobility sector is not unique, but that does not diminish its importance.
The millennial generation will soon surpass the baby boomers as the largest living generation of the population. This fact, along with increased technological abilities over the past few decades, makes it more clear why the millennial generation is so heavily studied. Not only are the Millenials coming of age to make up the largest purchasing group in existence, but they also surpassed Gen X in 2016 as the largest generation in the U.S. labor force (pewresearch.org).
These numbers can not be ignored in the dealership world. Autotrader recently put out a study on Millennials, "The Next Generation Car Buyer", and the article brings a multitude of interesting information to light. We learned that in 2016, Millenials made up 1 out of 3 new vehicle purchases, and by 2020, they are expected to be the largest car buying group in existence. We also learned exactly what Millenials desire in a vehicle; an infographic from the article detailing the top 5 desired features can be seen below:
It probably comes as no surprise that all five of the top five features desired by Millennials in their vehicles have little to do with the vehicle's mechanics and everything to do with the vehicle's technology. Putting a focus on the vehicle's technology during the sales process is a tactic dealerships should be considering and implementing in the immediate future.
Understanding the prevalence of millennials in the workforce is important for dealerships as well, especially since the average turnover rate for a sales associate is estimated to be around 67% and still on the rise. Because a new hire costs the dealership an average of $10,000, reducing employee turnover is vital to increasing overall dealership profitability. As stated previously, millennials have the largest presence in the workforce, so understanding what drives a millennial's choice in an employer is key. According to the Deloitte Millennial Survey, 78% of millennials are strongly influenced by how innovative a company is when deciding to work there. Putting a focus on technology in the dealership is not only important to millennial buyers, but also to millennial workers.
Love them or hate them, the millennial generation is inarguably a dominant force in the automotive market: both as consumers and employees. Best practices for winning the millennial over, whether as a consumer or an employee, should include an aspect that focuses on the technological aspects of the vehicle.
Check out emeraldinfotainmentspecialists.com for more information on adding a technological focus to your dealership.