Why are Generation Y an attractive target for businesses?
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.