To be successful, a car wash business owner should be a step ahead of the competition. This includes knowing their target market excellently and catering to its needs. And when considering contemporary target markets, we cannot do without the millennials. See why and how you should target millennials as part of your car wash marketing strategy.
Apart from technological breakthroughs, eco-friendly processes, and innovative equipment researches, car wash owners should be familiar with the consumers. It is important to explore the various advancements in the car wash industry’s target market. In order for one to keep up with the ever-changing needs of the times, a car wash business owner should learn what’s new in the market. He should be aware of the growing trends that are affecting the car wash industry.
Who Are the Millennials?
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Studies show that there is an emerging demographic in the market that is worth targeting for your car wash business: the millennials. They are also known as the Generation Y, the generation that came after Generation X. Born between 1984 and 2004, millennials have high regard of themselves and their capacities. They thrive in technologically advanced societies.
Millennials are critical players of the economy. In fact, according to a 2014 Forbes article, “Millennial customers are about to become the most important customers your business has ever seen.” In addition, authors William Strauss and Neil Howe give a lot of insights about millennials and their effect in various aspects of the American economy, culture, and society in their book “Generations: The History of America’s Future, 1584 to 2069”.
Why Target Millennials?
The Largest Population Group in the US
In October 2014, the Council of Economic Advisers of the Executive Office of the President of the United States released a report, 15 Economic Facts About Millennials. According to the report, millennials now represent the largest generation in the United States, comprising roughly one-third of the total population in 2013. This is supported by the Census Bureau’s estimate that the millennial population in 2014 was 74.8 million and will increase in size in 2015 to 75.3 million. This makes the millennials the biggest group, surpassing the projected 74.9 million Baby Boomers population.
Furthermore, the millennial generation continues to grow as young immigrants expand their ranks. In fact, their population is projected to peak in 2036 at 81.1 million. With these projections, now is the best time to get back to the drawing board and devise strategies to target millennials. This will give you a large customer base that is in for the long term.
A Significant and Increasing Buying Power
The figures show that millennials make up more than 25% of the US population. The question is, do they have buying power? According to studies, they do. In 2012, the millennial generation’s spending was estimated at $65 billion a year. Experts expect it to increase to more than $200 billion starting in 2017, forming a $10 trillion total spending in their lifetime. What’s more, according to Millennial Marketing, millennials make up 21% of consumer discretionary purchases. To top it off, they also have huge influence on older generations’ spending!
The figures above clearly show why you should target millennials immediately. In fact, Gourmet Retailer shared that a large department store chain had started to implement changes to cater to the millennial generation.
The growth of the millennial generation’s buying power is proportional to the growth of its population. Now, this is clearly an opportunity that is too good to pass up. Their growing number and their influence on the spending capacity are reasons enough to include millennials in your car wash business’ target market.
The Most Studied Generation
So, you finally decide to target millennials in your car wash business’ marketing and advertising. Yes, market research can be quite tedious and time-consuming. But with millennials, data gathering is much easier. According to the US Chamber of Commerce Foundation, millennials are likely the most studied generation to date. There is data to find pretty much whatever you are looking for. You wouldn’t have to start from scratch. You have general information and plenty of statistics available to you that you can use for your various marketing strategies. All you’ll need to do is narrow it down to specifics appropriate to your market.
Target Millennials Want and Need Cars
In the past several years, studies have shown that millennials do not care about cars as evidenced by the number of cars sold to them. Rather, they would lease a vehicle or not own one at all. Apparently, millennials in the past years were just too young to afford to buy their own cars then. They were just either renting them or using the cars of their parents. Now, they have grown up and started proving the studies wrong!
According to Bloomberg Business article, millennials accounted for 27% of new car sales in the U.S. last year. This is an 18% increase from 2010. While car-buying for millennials will not be what it was for Boomers, they have surpassed Generation X and are now next to Boomers in terms of new car sales according to a business article on The Atlantic. Another research suggests that young adults, who have popularized car-sharing options may be warming to traditional ownership. Some 71% of young adults would rather buy a car than lease one and 43% are likely to purchase a vehicle in the next five years, according to a survey from social site Elite Daily and research consultants Millennial Branding as published by Time’s Money division.
Conclusion
Millennials may not be falling back in love with cars, but more and more of them are definitely buying cars. As their population grows older every year, we can expect that more of them will start buying their own cars. Their ever-growing population, increasing buying power, and improving car ownership can mean good news for your car wash business. If you are ready to revise your car wash business plan and target millennials, let the car wash business experts help you.
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