It’s been well-documented that today, consumers are driving changes in the car buying experience and automakers are adjusting their marketing strategies to influence the decision making process. According to PricewaterhouseCoopers’ Autofacts Analyst Note for August, automakers are investing in new social media and digital campaigns to launch vehicles and engage the next generation of consumers.
“As the use of social media continues to expand, automakers need to better understand how to connect with end consumers from purchase consideration to the length of vehicle ownership,” remarked Erich Bergen of PwC’s automotive customer impact consulting practice.
“To succeed,” Bergen said, “automakers need to consider a holistic approach to selling to the next generation of buyers. From training retail outlets to engaging through a loyalty program, each buyer has their own digital footprint and this creates an opportunity for automakers to engage.”
Three underlying consumer trends that are creating opportunities for innovation and driving change in automotive retail include:
- Millennials, defined as 18 to 30 year olds, make up 40 per cent of the total available car buying population, contributing $200 billion to the U.S. economy annually;
- The acceleration of social media usage, with 70 per cent of consumers using social media to learn about other customer experiences when making car buying decisions;
- Proliferation of connected mobile devices, such as smart phones, provides integration and connectivity for OEMs to develop cross-platform apps to enhance the driving experience. Each factor is connected to the car buying experience, ultimately molding the strategies of OEMs’ marketing programs.
Based on the findings from a recent PwC survey, consumers are more likely to recommend a product after following the brand on Twitter. Specifically, 69 per cent of consumers share their negative experience with others through social media, and 40 per cent of consumers value the option to shop across multiple channels, such as web, mobile and in-store. As a result, automotive retailing has transitioned from one-way sales to a two-way digital platform.
According to PwC, expectations continue to drive toward flexibility and accessible purchasing options. OEMs should embrace the benefits of a strong social media presence and utilize the on-going dialogue of their brand and products to better understand consumer sentiment to adjust their marketing strategies and help drive revenue growth.
More details about PwC’s social media experience and the digital consumer can be found at: autofacts.com
