It’s time to scratch up the old pages of strategy for what customer wants. This is the time to think about Gen Z and the future of automotive and define a strategy based on what the next generation of customer desires. Many marketing wizards, strategy gurus are working towards solving the riddle of Gen Z customers. It is very important to solve the riddle to have a clear picture of R&D, offering and production. At the moment approximately 25% of the global population comprised of Gen Z and in the near term, the range of percentage is going to increase for the Gen Z.
So the conventional approach for the attracting Gen Z customers won’t work as the perception of Gen Z customer is driven by the rational context. The companies need to reassess the established logic for engagement with new customers. Automo not only tracks Gen Z customers but the range of customers with different age group and gender. Our focus is also on other areas which help our partner client to formulate right strategy for right customer. The figure below showcases our focus area:
So who are these Gen Z customers and what do they want and how the automotive industry should cope up with these new customers?
Gen Z customers are socially driven and have a rational approach for everything. In addition, these customers are aware of and care about the environment. The most critical component for these customers is transparency in the operation and authenticity in the products. This group of customers purely focus on precedents to make a sound decision. They don’t like to be sold out by wrong marketing tactics, they do thorough research before buying any product. The Gen Z customer easily switches between the brands if required services are not provided efficiently, so brand loyalty will be a great issue in the future and it will be difficult to retain the customer if services are not provided as promised. These customers are technologically savvy and have the power to lift the brand to a great height and also has the power to degrade it if something goes the other way.
Automakers should keep in mind that in future it won’t be just limited to selling and buying, the customer will also prefer for the intangible and holistic experience with respect to the service. In addition, Gen Z also focuses on personalization, so automakers should be able to provide an option to the customer with respect to their preferred customization. In this way, it will help the Gen Z customer to avail a product which matches their ideology. Furthermore, Gen Z prefers mobile over other things, so the products and services should be available on the mobile platform.
Our team of experts tracks the market-based in different age group through a continuous survey. This further help our partner client to deduce their R&D, production and sales strategy for future customers. We also track the market for Gen X and Y age group.