Generation Y is moving up the career ladder and getting wealthier. By 2017, its 79 million members will have more spending power than the baby boomers and Generation X. Its spending patterns and purchasing habits will shape business and marketing for the next 20 years.
The members of Generation Y, also known as the Millenials, make up 25 percent of the US population. Born between 1977 and 1995, they will soon become the largest consumer group in history. Getting ready for the dominance of the Millenials is an essential part of every business’ long-term strategy.
These are the defining characteristics of Generation Y, from a marketing and business perspective.
Digital advertising trumps television
Millenials have been exposed to outbound marketing, such as television adverts, from birth. They are less responsive to advertising in general than previous generations, and are particularly immune to television adverts. Instead, Generation Y reacts positively to digital adverts. They respond best to attention-grabbing, creative adverts that break new ground. Millenials also like to engage with the content they consume, and the brands they buy. Feedback is key to maintaining their interest in a brand. Ignore their comments at your peril!
Millenials are comfortable with multiculturalism, and less likely to identify themselves solely by race than their parents. They are less likely to respond favourably to ethnicity-based marketing strategies.
It’s tough out there, and the Millenials are consequently highly price-sensitive. They are savvy buyers and habitually compare prices on-line. Millenials react favourably to discount offers, freebies and loyalty schemes. Generationalinsights.com reports that 77 percent of Millenials take part in loyalty schemes that involve free giveaways. They are also 50 percent more likely to tell their friends about schemes than any other generation.
Social networks are the natural habitats of the Millenials They do not consider on-line interaction to be inferior to face-to-face meetings. While the rules are still being written, Generation Y has strong opinions about on-line etiquette. Millenials frown upon excessive posting, lack of interaction, and platform-inappropriate messages. Marketing campaigns not only have to provide the right content, they also have to distribute it via the appropriate channels.
Brand new me
Millenials views their on-line identity as their personal brand, and, like any brand, are willing to modify it to suit their circumstances. Millenials have a fluid vision of their on-line selves: They assiduously curate their on-line identity, modifying on-line behaviour, and editing their photos, to improve their reputations. They see little distinction between their personal and professional on-line selves.
Trust in the crowd
The Millenials trust their families and close friends to make important recommendations about purchases and life decisions. However, they favour anonymous first-hand reviews more than third-party resources such as consumer websites and guidebooks. Millenials value authentic opinions and actual experiences above everything else. They are so used to managing their own brands that they understand how unreliable third-party reviews can be.
Content rather than opinions
With social media networks governed by nuanced codes of etiquette, Generation Y expresses its opinions by sharing other people’s content. Millenials prefer to post a video clip of someone else that they agree with, rather than expressing themselves directly. This presents a huge opportunity to content marketers. Tap into the way the Millenials think, and they will distribute your content across the Internet.
Pessimists with a conscience
Millenials are not optimistic about their professional prospects. Grassroots organization Generation Opportunity claims that 75 percent of them expect to have to delay major life choices and purchases due to financial constraints. Generation Y is not obsessed with career advancement and financial security. That is not to say that they are slackers: Many Millenials are turning to entrepreneurship rather than tackling the career ladder. Others are looking for work with a social angle. At work, they value access to social networks higher than a pay rise.
With Generations Y expected to spend almost 2.5 trillion dollars by 2017, it is time to get to grips with the first digital generation. It is the future of your business!