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Maturing with the Millennials

Are organizations prepared for the Millennial consumer?

The baby-boomer generation is a demographic group that has influenced consumer spending, public finance, and corporate attitudes. As they retire, an even larger generation with potentially greater influence will replace them–the Millennials or “Generation Y.” Born between 1982 and 2001, there are approximately 80 million in the U.S. alone. They have grown up in a digital era saturated with media. To address the question of how to tailor the customer experience for this generation, the Economist Intelligent Unit (EIU) surveyed 164 C-suite and other senior executives from around the world to understand how they are attracting and retaining Millennial consumers. The findings are outlined below:

•  Few organizations have formally prepared for them in their strategic or marketing plans;
•  When it comes to purchasing products and services, millennials are swayed more by convenience, peer recommendation and viral marketing (that is, online promotional communications passed from one customer to another) than they are by price, corporate reputation and brand;
•  Companies are not up to par with the millennials’ preference for interacting through community-based technologies and rely instead on telephone, e-mail, and store/office-front points of contact;
•  To attract and retain millennials, organizations need to allow them greater choice in customizing products and services.

Although 60% of respondents report that millennials comprise less than 25% of their total customer base, 75% of respondents believe that this young and growing generation will lead to organizational change for businesses as their favoured technologies and social norms gain increasing public acceptance.

Source: Economist Intelligence Unit