Automotive News Canada - September 2019 - 9

* S E P T E M B E R 2 019

Grasping the
millennial mindset
Online retailer adapts
to buyer expectations
in the era of Amazon
By DOUG FIRBY

CALGARY CORRESPONDENT

MILLENNIALS SEEKING A ONEclick buying experience are fueling
the emergence of online-only used-vehicle dealerships. It's a trend that
means retailers must cater to the
buying habits of a seemingly elusive
group of consumers that constitutes 27
per cent of the population, according
to Statistics Canada.
Stephen Seibel of Halifax started
clutch.ca in 2017 to target millennials
like himself.
And despite no previous auto-retail experience, the 27-year-old and
his partners are in a growing business. Seibel said it's because his team
understands that millennials want to
buy vehicles on their own terms.
This consumer is looking for an
"Amazon-type" experience that's easy
and straightforward, he said.

BUYING HABITS
A CarGurus' survey this year of
about 3,000 U.S. buyers found
that nearly three-quarters of millennials use a mobile device to do
additional shopping research while
at a dealership, which is nearly
double the rate of boomers. Fully
three-quarters know the exact car
they want before visiting a dealership. They are also 25 per cent
less inclined to do in-person visits
than other buyers and 62 per cent
more likely to use online chats.
Millennials are also more likely to
rely on reviews on social media.

Clutch.ca, for example, includes
several photos (including any damage), Carfax reports, an inspection
report and financing information.
Limiting the amount of information about a vehicle on dealership
websites to attract buyers into the
showroom "doesn't work so well for
millennials," Seibel said. "They want
the fewest points of contact [with a
dealership] as possible."

'THEY COME IN READY'

Online-only used-vehicle retailers,
such as clutch.ca are responding to
consumers, particularly millennials,
who want to bypass dealerships.
PHOTO: SCREEN GRAB

LESSONS FROM U.S.

When Seibel and his team were
While dealerships remain central
designing clutch.ca, they looked at
to the transaction, the retail model
several U.S. online-only sites, includneeds to change to match the prefering Carvana, Vroom, Shift and Fair.
ences of these consumers, said Maya
The lesson he took from them was
Ivanova, a senior quantiheightened customer
tative researcher for J.D.
experience.
Power in Washington,
Applying those lessons
D.C.
"has allowed us to gain
Millennials "do most
market share and tracof their legwork" online,
tion much faster than we
where they learn as much
anticipated," he said.
as they can about the vehiSeibel would not discle, including reviews
close total units sold.
from owners. Only then do
Potential buyers can
they go into a dealership
search for a vehicle on
to complete a transaction,
clutch.ca and view conIvanova said.
dition reports and pho"That's totally true,"
tographs. The listing
said Susan Gubasta, CEO
includes a "no haggle"
of Mississauga Toyota
price, biweekly financing,
Stephen Seibel
and former president of
sales tax, Clutch's service
of clutch.ca says
the Trillium Automobile
fee and a price analysis
millennials "want
Dealers Association in
from CarGurus, a U.S.the fewest points
Ontario. "They come in
based research and shopof contact [with
ready."
ping website that coma dealership] as
Many dealerships tell
pares local listings for
possible."
Gubasta that sales staff
used and new cars.
have had their "come to
Buyers can then apply
Jesus" moment when they realize
for financing, put a hold on the car or
they have to deal with millennials in
book a test drive by clicking. Clutch
the way the buyer wants to be treated,
brings the car to the potential buyer.
she said. That includes being armed
Dealerships can benefit from adaptwith information and having cars
ing to millennials' shopping habits,
ready to go when a millennial steps
said Madison Gross, director of coninto the dealership. These buyers hate
sumer insights at CarGurus.
wasting time.
"Having a mobile-friendly way to
"It's how we shop," Gubasta said.
learn about vehicles is really critical,"
"That whole online experience."
Gross said. - ANC

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WHAT THEY WANT
Madison Gross, director of
consumer insights at
CarGurus, offers these tips to
dealerships that want to court
millennials:
* Respect

that the millennial has
researched both the vehicle
and the price.

* Don't

push too hard on your
own expertise; respect the millennial's knowledge.

* Be

equipped to handle all kinds
of contact points, including
mobile and text.

* If

a millennial buyer gives you a
heads-up, use that opportunity to create an "excellent experience" by having a car clean
and information ready when the
buyer walks through the door.

* The

key word is "transparency,"
Gross said. Millennials often
will have used online sources
to determine the fair price for a
car. They also want dealers to
be completely open about the
condition of the car.

Trevor Trinidad | VP Sales
Call / Text: 604-723-3622
Email: trevor@dsgauto.ca

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http://www.Clutch.ca http://www.clutch.ca http://www.clutch.ca http://www.clutch.ca http://www.clutch.ca http://www.clutch.ca https://dsgauto.ca/

Automotive News Canada - September 2019

Table of Contents for the Digital Edition of Automotive News Canada - September 2019