Previously we’ve introduced you to Generation X, Y & Z, but now we delve into why they are important, specifically Generation-Y A.K.A. Millennials.
As you know, everyone’s talking about them, but why? In short, it’s because of their potential, massive potential at that! So here’s a few points to explain that potential and exactly why businesses are desperately seeking out Generation Y:
- They’ve recently become the largest generation in world history and are therefore set to be the largest spenders. That’s a big deal and one of the main reason many businesses want to tap into this market. When you think of their current spending and then their lifetime potential spending, it’s a no-brainer as to why brands are rushing to get in front of this market.
- They are the social generation, social media is embedded into almost every aspect of their life. As a result they are much more inclined to seek opinion and feedback online, whilst also taking to social media to share (or shame) their purchases. Electronic word-of-mouth is a powerful marketing tool among millennials that brands will hope to exploit.
- There’s a myth that because Generation Y have a short attention span and that they just flicker between brands looking for the best offers, but they’re surprisingly loyal. Gen Y rate loyalty rewards as the top incentive they look for when exchanging personal information with marketers and nearly half of Gen Y are willing to promote products & brands through social media in exchange for rewards.
- In many aspects Gen Y play a key role in influencing, these include; their peers, inspiring generation z, they influence generations before them, Gen Y influences these older generations in household purchases as well, and they also influence brands in a number of ways. Michael Perman, formerly Snr Director of Marketing at Levi, gets it spot on; you have to let go of controlling your brand, “We’re essentially a brand now that is based on co-creation, self-expression and originality. Our Millennial customers are a big part of that.” Gen Y are trendsetters and brands are looking to tap into this from a financial aspect but also as a way of improving what they offer.
- This generation will also make up their workforce, if it doesn’t already. It’s crucial that brands understand Gen-Y as individuals and on a human level in order to get the most out of them in the workplace. Businesses Gen-Y motives aren’t just related to external factors.
- They’ve been raised Baby Boomers who, historically, are the big spenders as they’ve had extra cash from decades of saving and investing, according to Forrester. Gen-Y aren’t as anywhere near as tight Gen-X and therefore brands are hoping to cash in on their disposable incomes.
If you’re trying to attract Generation Y to your business, get in touch. It’s what we specialise in, contact us at 3manfactory.co.uk to discuss this further.