Automotive News - September 12, 2022 - 14

14 * SEPTEMBER 12, 2022
OPINION
Automotive News encourages industry leaders to address our readers directly.
To submit an opinion piece, email it to AutomotiveViews@autonews.com.
How to win, retain Gen Z car shoppers
A
Brendan Dougherty
ssumptions about Generation
Z abound. Born in 19972012,
this group has been
pegged as needing instant
gratifi cation, from seamless online
purchase experiences to real-time
social media engagement. However,
according to a recent study by CDK
Global, this assumption isn't
necessarily true when it comes to
buying a car.
CDK asked more than 1,100
shoppers of all ages who recently
purchased a vehicle about the carbuying
experience. Turns out Gen Z
respondents spent more time
weighing decisions than any other
generation. Unfortunately, they also
found the experience of buying a car
more frustrating than any other group
and were the least likely to
recommend a dealership to others.
Dealerships can't aff ord to shrug off
these insights. Gen Z's spending
power is on the rise. According to a
Brendan
Dougherty
is director
of modern
retail at
CDK Global.
recent Bloomberg report, the young
students and professionals in this
group command $360 billion in
disposable income. It's smart to fi gure
out how to court this group because
the key to longevity is winning over
multiple generations.
Th is is especially important in today's
retail environment when dealers are
selling anything they can get their hands
on and consumer loyalty is falling by the
wayside as vehicle availability reigns
supreme. Th e old notion of " just get
them into the store and into a test drive "
won't win today when there's limited
inventory selection to off er in-stock
options.
A salesperson who can build rapport
(Ad #2 of 3 In rotaiton)
lumn x 6-inch (1.925 " x 6 " ) Automotive News Ad
AD DUE: 08/30/2022
SSUE DATE: 9/12, 10/3, 10/24, 11/14, 12/5 & 12/26
JOE VERDE
86%
86% don't end up buying
what they said they wanted.
To sell more now, your salespeople
just need to learn
how to follow my 8-step selling
process and they'll...
start selling from inventory!
JVTN®
is our online training
network, and we have dozens
of courses your salespeople
can take like a college class,
or use for a quick pick-me-up.
Whether it's selling
from
stock, closing the sale, dealing
with price, or driving
more traffic, we have the
courses you need to sell
more units at higher gross
profits to happier customers.
Call Today And
Sell More Tomorrow
JoeVerde.com/JV62
(888) 277-9069
Call Now
081622
SC 12134
with Gen Z consumers by nurturing
one-on-one relationships built on
stellar service can keep this cohort
loyal once the inventory shortage is
resolved.
Here are four tactics to help your
dealership create an experience that
will appeal to Gen Z buyers.
1. Answer every question. Eighty-one
percent of survey respondents said
they want time to understand their
options, both online and from a
knowledgeable dealership
representative. If your sales team and
business development center agents
push for the appointment before
answering every question, you're
going to miss the boat with these
buyers. A hard-sell approach from the
beginning also signals you'll likely be
diffi cult to deal with in-store. Instead,
coach employees to be well-informed
on both your vehicles and your buying
process so they can answer detailed
questions through the buyer's
preferred channel. Next, audit your
website. Are your vehicle pages
detailed? Do you off er walk-around
videos? Are digital retailing tools easy
to fi nd and navigate? Do you explain
taxes and fees? Th e more information
you can provide the better.
SKOCZEN
continued from Page 12
Another important aspect to
consider is what happens when all the
charge points in one location are used
at the same time.
Th e grid will need to support this
demand, and each charge point will
be designed to supply the most power
possible. But there may not be local
grid capacity to support this
instantaneous demand.
Th e solution is to impose some sort
of load balancing. In practice, the
policies are still in development, but
it will require the vehicle to share
information. Th is may extend
beyond its current battery capacity;
it may also include details of the
2. Audit your digital to in-store
process. According to the survey, Gen
Z found it more diffi cult to buy a car
online than any other generation. For
56 percent of respondents, this was
their fi rst vehicle purchase, and the
complexity of the process likely took
them by surprise. Buying a car is not
like buying a smartphone. Th ere are
seemingly endless options from
accessories to service packages to
fi nance and insurance. Your
dealership must make it easier to buy,
and one of the best ways to do that is
with a seamless online to in-store
process. Your digital retailing tools
must be integrated with your CRM so
all the work a customer does online
fl ows into your store and into the
hands of your salespeople. A next step
is to make sure the people working the
deal in-store are using the same
desking calculation used on your
website. A simple audit of the
payment calculation on your digital
retailing tool and your in-store
desking tool should show the same
payment and deal detail. Th is shows
the customer the tools are accurate
and trusted, but it also opens
opportunities to explain every step as
you walk through the process together.
3. Educate about fees and payments. A
big source of frustration for 52 percent of
Gen Z respondents was additional and
unexpected fees. Th ere are a couple of
ways to tackle this problem. First, you
can create a comprehensive list of fees
that you post on your website and also
provide to salespeople and BDC agents
so they can educate customers on what
to expect. Second, compare calculators
on marketplace sites so your eyes are
wide open to what customers are seeing.
Th ose calculators are generic and
onward journey.
Load balancing can take various
forms. Charge points may be supplied
from up to three phases of AC from
the grid, so balancing by phase is one
option.
Another would be to use time, by
giving each vehicle an equal amount
of time to charge at their highest
possible rate. A more collaborative
approach would be to charge each
vehicle in turn to a defi ned level,
giving priority to the fi rst vehicle to
arrive.
Cloud connectivity
All these scenarios can be managed
through secure negotiation with the
equipment (if supplied by diff erent
vendors), the vehicles and the grid.
Th is adds complexity to the control
obviously don't include dealershipspecifi
c fees or even accurate tax
information. Th e payment estimates
they provide could be off by hundreds of
dollars. Be prepared to explain this
reality to potential customers and
emphasize that your dealership website
will give the most accurate payment.
Th is is also an eff ective way to move
them off a marketplace site and onto
your site so it's your experience without
the outside noise.
4. Consider a one-person touch point
model. At the top of the friction point
list was waiting on a salesperson.
Forty-fi ve percent named it the most
frustrating part of buying a car. You
can leverage technology to move
through the steps more quickly. Using
your CRM's mobile app, for example,
can help the salesperson stay with the
customer instead of running back and
forth to the desk. Another option is to
move to the one-person touch point
model where the salesperson handles
the transaction from start to fi nish.
Th is is controversial and many
dealerships aren't ready for such a
drastic change. In that case, take a
hard look at your waterfall process
and pinpoint areas where you can
reduce the amount of friction
generated as customers are passed
from one person to the next.
You won't win sales and loyalty from
Gen Z if you try to force them to play
by an old set of rules. Th e game has
changed. Overcome friction points
and meet their needs with these four
tactics that leverage new tools and
strategies.
Th ese tactics can be a diff erentiator
that keeps Gen Z customers loyal to a
dealership once vehicle inventory
rebounds.
system. It will likely require
connectivity to a cloud platform
where negotiations take place.
Given the location of the charge
points, the communication will most
likely use cellular networks. Precertifi
ed cellular modules could be
used , potentially even providing local
Wi-Fi access to the customer.
Th e EV charging infrastructure is
growing at an astonishing rate, all
around the world.
Technically, electric vehicle supply
equipment is more complex than a
wall socket, and that complexity is
increasing as the industry needs to
consider critical issues including
security and load balancing. Th ese
demands draw on existing solutions
from the electronics industry, with
new innovations on the way.
EDITORIAL
313-446-0463
Email autonews@crain.com
Website autonews.com
1155 Gratiot Ave.
Detroit, MI 48207-2997
KC Crain
Publisher and CEO
Chrissy Taylor
Vice President of Editorial Operations
DETROIT
Jamie Butters
Executive Editor
Mary Beth Vander Schaaf
Managing Editor
NEWS EDITORS: Nick Bunkley,
Omari Gardner, Dan Shine
COPY EDITORS: Amy Butters,
Elizabeth Hardy, Carrie Roca
Steve Massie Design Director
Tim Good Graphics/Copy Editor
REPORTERS: Pete Bigelow,
Vince Bond Jr., Melissa Burden,
John Huetter, John Irwin, Hannah Lutz,
Michael Martinez, C.J. Moore,
Richard Truett, Lindsay VanHulle,
Larry P. Vellequette, Jack Walsworth
Mary Raetz/Director,
Automotive News Research & Data Center
Heather Rowe, Researcher
Dan Jones, Office Manager
ATLANTA
Amy Wilson/Retail Editor 678-732-9603
Urvaksh Karkaria/Reporter 904-422-5205
HOOD RIVER, ORE.
Doug Newcomb/Reporter 310-570-9197
LOS ANGELES
Jerry Hirsch/News Editor
jerry.hirsch@crain.com
Carly Schaffner/Reporter 917-776-1255
NASHVILLE
Lindsay Chappell/News Editor 615-750-5990
SHANGHAI
Yang Jian/China Correspondent
yangjian@autonewschina.com
SILICON VALLEY
Laurence Iliff/Reporter 619-860-6779
TOKYO
Hans Greimel/Asia Editor hgreimel@crain.com
TURIN
Luca Ciferri/Europe Editor lciferri@crain.com
WASHINGTON
Audrey LaForest/Reporter 586-770-2515
autonews.com
Philip Nussel/Editor
pnussel@crain.com
David Phillips/Managing Editor
Victor Galvan/Web Editor
Wes Raynal/Assistant Web Editor
Terry Kosdrosky/
Audience Engagement Editor
Marisa Marcinkowski/Social Media Editor
Tierra Riddick/Social Media Editor
Tim Reck/Newsroom Developer
AUTOMOTIVE NEWS MULTIMEDIA
Hilary Rubin/Coordinating Producer Video
Angelina Czarnecki/Reporter
Jackson Hallauer/Reporter
Laura Harris/Reporter and Anchor
Kristen Strakalaitis/Reporter and Anchor
Jake Neher/Coordinating Producer Audio
Kellen Walker/Podcast Host/Producer
FIXED OPS JOURNAL
Dan Shine/Editor-in-Chief
ADVERTISING
313-446-0496
DETROIT
Josh Freed
Head of Operations
Matt Miller
Sales Director
Rob Couto, Matt Parsons,
Sara Pope, Jerry Salame
Regional Sales Managers
Angela Schutte, Classified Sales Manager
313-446-0326
LOS ANGELES
Taren Zorn, Regional Sales
Manager, 310-426-2416
NEW YORK
Henry Woodhouse, Regional Sales
Manager, 212-210-0125
MARKETING
Ellen Dennehy
Global Director of Relationship Marketing
Michele L. Trombley
Associate Creative Director
CONFERENCES
Libby Irwin, Conference Director
PRODUCTION
Terry Driscoll, Production Manager
Alan Luckwald, Media Services Manager
SUBSCRIBER SERVICES
customerservice@autonews.com
877-812-1584
Subscriptions (USD):
U.S. $169 /Canada $239 / other $395.
Single copy sales: $6 /issue plus shipping.
Automotive News is published by
Crain Communications Inc
Keith E. Crain, Chairman, Editor Emeritus
Mary Kay Crain, Vice Chairman
KC Crain, President and CEO
Chris Crain
Senior Executive Vice President
Robert Recchia, Chief Financial Officer
G.D. Crain Jr., Founder (1885-1973)
Mrs. G.D. Crain Jr., Chairman (1911-1996)
http://www.autonews.com http://www.cbamoney.com http://www.autonews.com http://www.JoeVerde.com/JV62
Automotive News - September 12, 2022

Table of Contents for the Digital Edition of Automotive News - September 12, 2022
