04/03/2025

Understanding Gen X, Millennials and Gen Z are critical to shop profitability

Source: aftermarket MATTERS

Last time we were together we had a deep dive into our Boomers who have made up a lot of our business the past many years and how they are critical to shop adaptability and prosperity. The same is true for every generation — the trick is to understand each one and who they are. Here’s the breakdown.

Gen X 

These folks are 44 to 59 years old, having been born between 1965 and 1980. While pragmatic and financially conservative like their parents (mainly Boomers), they have been raised knowing the digital world. They are anxious about the future. They are the first generation to get tied into some basic social media, though as an adult. They value being independent and having a work/life balance. They are weary of having to adapt themselves to the world around them.

So what does that mean to you as a shop owner? As compared to the boomers, as a rule, these are busy people who tend to appreciate someone who is able to provide the auto service they need that addresses their tendencies. Many of these people are in the later stages of their careers and that work/life thing makes their use of time more important. This is one area where independent shops have an advantage over dealership service and repair. Their chances of pulling into a dealer, being received promptly and getting their vehicle in and out are slim. Dealership volume and systems really don’t work that way very well. 

Shops should pounce on this. Are your bays jammed? Your techs juggling tickets? Your service advisors buried at the counter? As easy as it is to say but as hard as it is to do, take the time. Make the time. If their check engine light flashes and you have a full shop, go ahead run a diagnosis. At the very least, schedule for later. But give them the time of day. Is the vehicle not driveable? Arrange a rental car or get a Uber or Lyft, then contact them ASAP with final diagnosis and pick up date or time. Picking up or dropping off are really appreciated for Gen X.

Consider what we have here. A group that straddles both Boomers and Millennials. As a result, communication differs. While you can have online scheduling, use social media and more, they really appreciate a personal touch. One shop owner I talked with shared that he maps out the year ahead for Gen X maintenance and safety checks and sends/gives a copy to the vehicle owner. As the dates near they get an email and/or a postcard at home with a few date and time options. Offer to give them a ride back to home or work. As a number of studies have shown over the years, people who frequent your place tend to live within fives miles of your shop. When you think of this group, think personal relationship and a system that saves them time and money.

Millennials

They are very different. This group might be as wanting change, wanting to be passionate about what they do and they want the world personalized. And they want it all very quickly. And they want attention, but that attention better be a quick transaction. And don’t expect an outpouring of gratitude. 

Millennials are on the frontend of your technology. They grew up with it, know it and use it. There was a comment in a news article I read recently that this group may very well complete an entire transaction like a vehicle service without actually ever having spoken with anyone. 

If you wish to market to this group proactively and offer a different approach than your competitors, then take 30 minutes tonight and think how someone could do business with you having never made a call. Here are some things to consider;

• They must learn of you. That means having an attractive and professional website. It also means using social media to your advantage since that is where you will often find them. Have a talk with a good social media company. It will save dollars and be more effective in the end.
• Tie your website into your schedule. As an example, offer popular service options right up front along with the ever popular “Other.” You know how long it takes to do brakes for example. If one opts for the brake option your calendar is able to offer them days and times where that is available, and the owner schedules him/herself for service. If they do choose “other” offer a list of possibilities to choose from.  An example is “Engine Light” is on. Then ask for their phone and permission to call them to discuss their issue. Then call ASAP. Wait for a day or two and they may well be on to a competitor.
• After the appointment is arranged, shoot them back an immediate email or text with the date, time and type of service. Then another about three days away from the appointment and another the day before.
• Use online payment systems with your site.
• Arrange to have the vehicle outside and waiting for the customer for later delivery. Another tip. You take the valet key from the fob. Leave them with the fob and throw the valet key under the mat. Remind them of that arrangement when they pick up the vehicle.

By now you are likely realizing that this will take a tag-team effort on your part. You will need to have a strong IT partner. And, you will need someone either at the shop or at home monitoring your incoming and outgoing social media and returning inquiries, posting specials and getting out information on an ongoing basis.

Gen Z

They are really good at saving money, especially having been brought up in the high inflation period. And as a result, they tend towards being pragmatic. They love to question rules and act independently.

Fortunately, the same technology-driven system you need for the Millennials will work with Gen Z, as well. But, we must never forget that this tends to be a cynical group, having had their young lives impacted by the Covid lockdowns. Some argue they have little in the way of soft skills because their lives, education and careers were marked by nearly three years of having little personal interaction. 

In addition, the people in Gen Z have much higher levels of anxiety and stress than prior generations. This has all formed them as people and our customers. However, they are very different in how they act as compared to the Millennials. There loves in life tend to be things like travel, community activities, video games and more. They look at maximizing their time and their money to support these activities. This has an impact on us.

For you, what this means is that your social media had best be able to work with online platforms such as TikTok, Instagram, YouTube, Facebook and similar sites. Other’s opinions are weighed heavily. FYI, they also love podcasts and “broadcast” social media.

And don’t forget the specials saving them some bucks. And do put a video game set up in your waiting area.

So, do we need to look at every generation? The answer is yes. Here are the numbers:

So, as an industry, we cannot afford to ignore every one of these groups. Instead, we must look at our business models and figure out now how to adjust to each generation.