Sustainability to set the tone of 2022 marketing activity

‘Going green’ is a common phrase that is rapidly entering the Australian lexicon. Faced with a weekly petrol bill and higher electricity costs thanks to a year spent homeschooling, many of us have begun to consider sustainable alternatives. Recent research commissioned by Gumtree, CarsGuide and Autotrader found that there is a growing consideration amongst consumers regarding the circular economy, the concept of reusing and repurposing materials for as long as possible. Ninety per cent of respondents surveyed agreed that they had considered circular economy motivations when it came to choosing which vehicle to buy*. This emerging trend in car buying is something that we feel marketers, dealers and manufacturers should be leveraging as we head into 2022.

by Shannon Fitzpatrick, Director of Commercial Partnerships

Buying a car is all down to emotions – in the end, how we feel and connect with that purchase is the number one reason why we all choose to buy. According to our research, 48 per cent of people want to upgrade their vehicle because they would either like something newer or would like a change. While 11 per cent upgrade for work or business reasons and just 7 per cent upgrade due to a lifestyle change like for instance a new family member. Sustainability is a trait that can be tapped into as a strong sales tool that supports a prospective owner’s emotional connection to their vehicle. That being said, buyers are not interested in sustainability at the expense of common sense. Circular economy considerations will get buyers over the line if the value and convenience is as good as or better than normal. A good example of the consumer mindset is how we would consider the purchase of a pre-loved vehicle to save money, but also because it extends the life of those resources. Or buying a new vehicle equipped with technology that offers better safety and technology performance, but also because it will have less of an impact on the environment. Keeping these attitudes in mind will give brands an edge over the competition as this messaging should feed into tailored collateral development including advertisements and social media, eDMs and website copy to appeal to these motivations. In addition, dealers can extend their sustainability messaging by looking at their day-to-day actions and crucially making sure these are communicated to customers. ‘Walking the walk’ by getting involved in local EV advocacy groups, powering their premises with renewable energy or having public charging stations available on site each demonstrates a genuine commitment to sustainable practices – a level of authenticity that the new age buyer now expects. Overall, investing the time in understanding the motivations and behaviours of the conscious consumer present a myriad of benefits that extend far beyond growing a database and generating sales. They will become key to cultivating long term relationships with a modern customer base as conversations around sustainability continue to remain front of mind. Clearly, Australian consumers are interested in purchasing more sustainable products. So, how does this impact the uptake of electric vehicles? To date, appetite to purchase electric vehicles has been constrained in Australia due to the higher price point of the vehicle, coupled with the limited availability of public charging infrastructure. Although electric vehicles are a widely discussed topic, mass adoption is still a long-term play as an interest in the environment does not equate to being in the financial position to purchase a Tesla. Even personally, while sustainability is still top of mind for me and my family and the intent is there to invest in sustainable practices, we are still yet to transition to an EV vehicle. This hesitancy presents a great opportunity for manufacturers and dealers to act as EV guides. Dealers should be utilising their own industry knowledge and firsthand drive experiences to communicate the longterm benefits of investing in EVs. Manufacturers should be investing in content and advertising that educates the consumer about the benefits of owning an electric vehicle. By working on strategies showcasing the long-term value of EVs – like reduced service costs and zero fuel cost – coupled with the reduced environmental impact, our industry can work towards supporting this purchase decision. As a company we are also living by this mantra. In 2022, we are launching advertising packages with incentives for sustainable brands across our network. We have made the decision to recognise and reward companies with green initiatives as part of our own commitment to playing a significant role in the circular economy. We are also educating consumers through CarsGuide’s EVGuide. One of the first dedicated EV platforms in Australia, it shares educational resources with consumers while remaining mindful that the environmental considerations of owning an electric vehicle do not outweigh the practical considerations we all face when buying a new car. There is no denying that marketing to a sustainably conscious customer base is becoming increasingly important. It’s the job of dealers to be tenacious in their approach, tailoring their collateral to entice, engage, educate and finally guide car buyers on the path to purchase. For additional tips and tricks and to get involved with the Autotrader community, visit www.autotrader.com.au

*Commissioned by Gumtree, CarsGuide and Autotrader, independent consumer research agency, F22 Market Research, surveyed 8,555 Australians between 8 – 28 June 2021 via an online quantitative survey. The figures have been weighted and are representative of all Australian adults (aged 18+).