SHOPSMART AUTOS – CUSTOMER INFORMATION – SEPTEMBER 20, 2020
SHOPSMART AUTOS – CUSTOMER INFORMATION – SEPTEMBER 20, 2020 How to Sell High-Tech Vehicles Without a PhD from MIT (Pt.1) It’s tempting in auto retailing to think of vehicle technology as just bells and whistles. Sure, tech features sweeten the deal, but they probably won’t make or break the sale. Right?Not so fast. For a big percentage of today’s consumers, vehicle technology is a top consideration during the purchase process. According to a Tech Study, 48 percent of consumers think vehicle technology is more important than either vehicle body style or brand. That’s right. For nearly half of consumers, those “bells and whistles” matter more than the actual vehicle type. So a dealership sales process should account for that.
Teaching a sales team to sell vehicle tech effectively can be tricky. After all, salespeople probably got into the business to sell cars, not technology. But tech is just too important to today’s consumers for any dealership to ignore. For decades, Baby Boomers have dominated the car-buying market. But while boomers still have sizable buying power, Millennials are now the generation to watch.
Half of Millennials say they’ll buy or lease a car in the next 12 months. And because Generation Y is predicted to buy 40 percent of all new vehicles sold over the next 10 years, that age group of 20- and 30-somethings’ preferences will shape the market for years to come, according to the same study. Technology is one of the biggest selling points for Millennials when deciding what vehicle to buy. They’ve grown up with tech. They expect it in every aspect of their lives, from their phones to their homes to their cars. They’re not willing to compromise. Nearly 60 percent of Millennials would switch vehicle brands to get the technology they want. Only 42 percent of Baby Boomers are willing to do the same. Not delivering what Millennial buyers want risks losing their business. On the other hand, if you can sell technology successfully, the payoff among Millennials is enormous, because 55 percent of Millennial buyers are willing to spend extra to get the technology they want, compared with 38 percent of Baby Boomers. The average Millennial will pay $2,617 more for his or her ideal tech features – almost $600 more than Boomers will pay. Let’s play out those numbers. Say a dealership sells just 20 cars a month to Millennials. Multiply those sales by the $2,500-plus Millennials are willing to pay for the right technology. That’s more than $600,000 a year in additional revenue.
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Tags: 2019 Subaru Forester Touring, 2020 BMW iX3, 2020 Chevrolet Suburban, 2020 dodge charger, 2020 EQC, 2020 Ford Super Duty, 2020 Honda Pilot, 2020 Kia Soul, 2020 Subaru WRX STI, Audi Car, BMW SUV
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