Tap Profiles to Attract Auto Buyers
Results from an R.L. Polk & Co. study of 3,200 new and used car buyers in September 2007 produced some interesting segmentation insights. They categorized four segments that auto dealers can leverage in marketing campaigns, employing a targeted and tuned approach, rather than counting on a spray and pray effort.
The four segments are:
Budget-conscious/entry level buyers
These are the younger buyers up to their mid twenties who have some college background and earn from $50K to $74K per year. This segment primarily uses their vehicles for errands, pleasure, commuting to school or work. Fuel efficiency and low maintenance costs will be key factors, as well as related insurance costs. Although these buyers earn enough to want a few luxuries, they'll probably give them up if the trade off costs them in budget-conscious areas. The good thing about these entry-level buyers is that you have the opportunity to deliver a great experience and generate some loyalty that will bring them back for their next purchase, if you meet their needs with this one. This segment is also the largest at 31% of study responders. They shop for Dodge and Pontiac models that are on average 3 years old.
Domestic "premium" aspirers
Typically 35 to 44 years old, are high school graduates, work in service or sales and make $75,000 to $99,900 a year. This group is more middle of the road and uses their vehicles for similar reasons to the general-buying public. These will be the hardest to define, but given the "aspirer" part of the segment name, it's a good guess that they may be interested in status or keeping up (or ahead of) with their friends. The amenities that they wouldn't expect to find in a particular car could be a good hook. They tend to purchase Cadillacs, Chevrolets or Jeeps that are on average 2.7 years old.
Business/Do-it-yourselfers
45 to 54 years old, have earned a four-year college degree, also work in management and professional positions but earn $35,000 to $49,000. These drivers use their vehicles primarily for business, family outings and hauling materials for do-it-yourself projects. Space is a concern for these buyers. The ease and ability to load things in and get them out, including both DIY materials and family members, including the family pets. If they're self-employed, don't forget the importance of the GVWR for accelerated depreciation write offs. Efficiency and environmental impact could also play well with them. This group buys Dodge, Mazda and Toyota models that are three years old.
Luxury import buyers
55 to 64 years old, have graduate degrees, work in management or professional professions and make more than $100,000. These buyers drive their units for vacations and to attend to kids' needs, so security features are going to be of primary importance. The available options will also hold stronger appeal for those long road trips with the kids. Safety, handling and comfort would be a good campaign theme. But don't forget status. These executives also like to impress their peers, clients, friends and look great tooling around town. Think respect. They work hard for it, and don't just focus on the respect they'll get when driving the car. Treat them that way throughout the process and you'll develop a great repore. [This one goes for all segments.] They purchase Acuras, Audis, BMWs, Toyotas, VWs or Mercedes-Benz vehicles that are on average 3.6 years old.
Building segment profiles for used car buyers and aiming your marketing campaigns to address their specific needs can serve to differentiate your dealership from their other choices. By deploying targeted, more relevant marketing content and communications, you can impact prospective buyers by showing them you're attuned to their specific needs.
Consider that audience attention is now fragmented across the Internet. Your buyers may go to "car" sites when they decide to buy a car, but what if you could use the profile information that best fits the buyer of the cars you sell and target ads on a community site that serves them? It won't be long before you'll be able to specify which geographic locations you want to pull leads from. The evolution of the Internet is progressing quickly and it's prudent to start thinking ahead, or more importantly, like your customers. You might start by checking out Quantcast to see who might have an audience you're interested in reaching. The future will be here before you know it.
In today's fast-paced world, the need for relevance cannot be overstated.
If you'd like to read the original article, you'll find it here.
