A person born between 1980 and 2000 belongs in the ‘Millennial Generation’. Born in the middle of the old century and new technology, Millennials have confused people for years. However, understanding the key facts of this demographic can be very good for business.
A study conducted by Accenture looked into the shopping behaviors of 6,000 consumers (1,707 are Millennials) in the United States (U.S.), the United Kingdom, Japan, China, Brazil, Sweden, France, and Germany. The study also considered the proprietary abilities of 60 retailers worldwide to see if they are capable of reaching the demands of the Millennial Generation.
In the U.S., Accenture estimated that the 80 million Millennials spend as much as $600 billion combined. This demographic is currently in their 20s and 30s. Many have already started or even reached a point of stability in their careers. Still, the multinational giant believes that Millennials’ consumer power will reach its top force by the year 2020 with a projected spending of $1.4 trillion annually. This demographic covers almost 30 percent of the total consumer sales in a year and many businesses believe that targeting Millennials will have a potent impact on their growth.
Millennials: Goldmine for Business
Here are some key findings that can help you figure out how to tap the potential Millennials gold mine.
Millennials are savvy online shoppers. The Accenture study found that 68 percent of Millennials ‘demand’ a seamless online shopping experience. Roughly, this translates to the unified shopping experience from the website to the store. If a business’ online shopping platform is not integrated into the physical store, expect Millennials to walk out. There goes your profit.
Millennials remain loyal to brands, as long as you treat them right. Who wouldn’t want to feel special when they walk into a store? But Millennials demand more than just the red carpet treatment. This demographic expects a customer-centric shopping experience.
In the said study, one of the surveyed Millennials summed up the notion, “There is [something] about the product and its cost, but there’s also a big part about being treated like a valued customer.”
The numbers proved that Millennials want to be treated like royalty. Ninety-five percent of the Millennials surveyed pointed out that they want brands to ‘court them’. Personalized marketing and promotions, regular customer discounts, digital-savvy updates all work for this demographic. If you want their loyalty, prepare to treat them like royalty.
Be part of Millennials’ online conversation. This demographic is notorious in social media, for both good and bad reasons. According to a survey conducted by BCG Perspectives, 60 percent of Millennials admit that the brands they wear reflect their personality and style.
In an article posted in Forbes.com, entrepreneur staff Kate Taylor wrote, “The average millennial spends 18 hours a day consuming media – often multiple forms at once. These forms are completely different from those favored by prior generation. For example, the average millennial checks his or her smartphone 43 times and spends 5.4 hours on social media per day. They may still be watching sports and movies – but that only makes up 14 percent of media viewing.”
But tread carefully. A Facebook like or a retweet from a group of Millennials doesn’t equate to customer loyalty and increased sales. Even if a brand’s Facebook page is booming with Millennial fans, if they are not ‘engaged’, you’re not marketing to the demographic the right way.
Millennials are notorious in social media for content and conversation. The key is to become a part of the Millennial’s conversation in social media. When you hit the right nerve, you may have just gotten yourself the best kind of free advertising. But be very afraid, a slip of the tongue can destroy your band in 140 characters or less. Here are few examples of brands that have experienced social media disasters, including 7-Eleven, Chrysler, Johnson & Johnson.
Millennials: Powerful Workforce
According to the Deloitte Millennial Survey 2015 conducted by Deloitte Touche Tohmatsu Limited (Deloitte Global), businesses need to adjust and make significant changes to entice and maintain its workforce. After all, the manner of conducting business transactions has changed over time. It’s not just about products and services anymore. These days, many successful businesses focus more on people and purpose.
The Deloitte study found that about 75 percent of Millennials believe that businesses are focused on their own agenda rather than the society. “The message is clear: when looking at their career goals, today’s Millennials are just as interested in how a business develops its people and how it contributes to society as they are in its products and profits,” said Deloitte Global CEO Barry Salzberg in a press release. “These findings should be viewed as a wake-up call to the business community, particularly in developed markets, that they need to change the way they engage Millennial talent or risk being left behind.”
ERE Media‘s Sean Bisceglia published a long list of nightmares HR professionals endure when hiring Millennials. The list includes entitlement, high ambitions to reach the corporate ladder faster, lack of face-to-face communication skills and troublesome work ethics. But there is so much to gain when companies begin to understand the potent power of this demographic in the workforce. An HR professional involved in the joint study by Scout Exchange Oracle HCM Users Group said, “A company has to provide a strong platform to support their natural use of technology or they become frustrated.”
Singapore’s Affluent Millennials
Singapore has approximately 1.2 million Millennials, which make up 22 percent of the country’s total population. This demographic is vital to the country’s economic standing. A joint study by Ipsos and LinkedIn looked into a subcategory of Millennials, the Affluent Millennials whose investable assets exceed SGD 150,000.
The 2015 Singapore Affluent Millennials Research Study Infographic revealed that the Affluent Millennials are twice more likely to rake in wealth by starting their own business. The study found that 4 in 5 Affluent Millennials believe the sacrifices they undergo today will rake in benefits in the future. This finding may be based on how Affluent Millennials are amassing their own wealth by starting a business.
With both locals and expats setting up businesses in Singapore, they need a strong corporate services provider to guide them on how to incorporate their business. We at Richmond offer a wide range of corporate services that will get your business from the drawing board and into the business arena.