Automotive News - October 17, 2016 - Supplement - S7

SPONSORED CONTENT OCTOBER 17, 2016 ❙ 7 B E S T P R A C T I C E S I N F & I / C U S T O M E R C O N S I D E R AT I O N S MILLENNIALS: winning their business M Researcher Jason Dorsey says digitalsavvy Millennials still appreciate a human contact at dealerships. illennials have moved into the sweet spot of American marketing: They're 18 to 35 years old now, and with more than 75 million members, have become the largest age cohort in the country. Understanding them as customers has never been more important. "Creating a great F&I experience for Millennials starts with understanding how they view the car-buying and financing experience," says Millennial researcher and automotive consultant Jason Dorsey, founder of the Center for Generational Kinetics. One of the key things, Dorsey says, is remembering that Millennials have the least experience in buying and financing cars than previous generations at that age. "Don't be fooled by the fact that they're 26 or 28 years old," he says. "This generation is doing a lot of things later in life. You might have had four or five cars by that age, but they may have only had one-and mom or dad came with them to help buy it." Dorsey says this inexperience is why Millennials have higher anxiety in the dealership than other groups. "They often feel they don't belong in the dealership, and that they're not being taken seriously. They're coming in with the fear that they are going to overpay or get a bad financial deal," he says. "So the dealership's goal should be to make them feel welcome and increase their confidence." One thing dealerships can do is to offer information online that demystifies the F&I process-information a Millennial customer can read before visiting the dealership. List the F&I products offered, and provide a brief explanation why a vehicle service contract, GAP and ancillary products such as Tire & Wheel and Dent Protect may make sense for them. Feature on the website a set of FAQs, maybe the top five questions about financing and other F&I products. Post a video that shows Millennial customers what to expect after deciding on a car. Dorsey also recommends simple things to make the buying and F&I experience as personal as possible: Shake hands, introduce an F&I manager by first name, offer a beverage or snack, and have pictures that show your local community involvement. Remind them that you are always available if they have questions. Set a positive tone that focuses on the end goal: "Tell them, 'We're going to work together so you can leave with the car you love,'" Dorsey says. He says it's often helpful to start with that end goal and work backward to show Millennial customers the steps involved in getting the deal done. Try to use plain English while discussing F&I options. "Recognize that Millennials may not know what you're talking about when you say APR, VSC or GAP. Both the financial terminology and the legal terms can be overwhelming," Dorsey says. Because members of this generation tend to be visual learners, he recommends breaking down the F&I process into steps, giving each a name and even perhaps a visual icon on a printed list. His research also shows Millennials tend to have unrealistic expectations about how long it takes to buy a car, he says. "It's a misalignment of expectations. They get frustrated sitting around and waiting, not moving smoothly through the F&I process. For most Millennials, that's unacceptable." He recommends suggesting that the customer visit the lounge (hopefully equipped with free Wi-Fi and lots of plugs) or enjoy some sort of snack or coffee while they wait. You can even let them check out a tablet to surf the web or watch a show. And despite their interest in digital commerce and e-contracting, Millennials "still find comfort and confidence in having contact with a human being when it comes to financing a major purchase like a vehicle," Dorsey says. "They may want technology to grease the wheels, but they still want to know there is a human being at the dealership they can talk to and have answer their questions."

Table of Contents for the Digital Edition of Automotive News - October 17, 2016 - Supplement