Recently, I've had the pleasure of leading some focus groups with early twenty-somethings (a.k.a. 'Millennials' or 'Gen-Y') in the workplace. These summer students opened up about how they use digital media, what they still do 'in person' and what they expect from 'big' companies. Marketers, take note: word-of-mouth advertising still reigns king, and if it's not about fun, you might as well cut and run. (Let's not forget shall we, that Gen-Y has to live up to its reputation for being less-than-motivated to work).The following are some of the key insights I gained from this up and coming generation:
1. We're Google-rats, not mall-rats
Before Millennials head out to shop, they check out stuff on Google and retailers' web sites. They value their time, and want to know the selection and inventory before visiting physical stores. This could mean valuable rewards for savvy merchants who are able to synch up their supply chain data with their web store - and provide slick tools for consumers to access it. Building trust with your customers is key - you can do that by ensuring you really have products in stock when your web site says you do, or offering users an automatic notification (by text) when it's back in stock.
2. The 90/10 rule applies online - we spend 90% of our time on fun & entertainment, and 10% on important stuff
Schoolwork aside (or not), Millennials favor entertaining sites and applications with the usual suspects topping the list - Facebook, YouTube, Tumblr, Twitter. The latest craze is in social photo sharing, so new startup apps like Snapchat and Tinder have been gaining a following. Even if your product or service isn't necessarily 'novel,' think about how you could make it fun and engaging for Gen-Y by creating an online game or social media tool that could help bring your brand into the innovative light.
3. Word-of-mouth advertising (ok, mostly via social media) is where it's at
Millennials want to be part of something cool and trendy, so they will quickly check out things they hear about their friends using. But merchants beware - Millennials want to remain in control of the social content sharing. Blasting unsolicited ads into social media applications will get annoying really quickly - just like Groupon emails did. Word-of-mouth still reigns king, where the consumer drives the promotion. Oh, and on that email note, Gen-Y said they simply won't read email unless they asked for it. If they ARE required to register for something, they will typically give one of many 'fake' email addresses they use to keep 'spam' away from their 'real' inbox. This is really something to keep in mind as the mobile advertising space takes shape - it's about building trust and leaving the user in control of what they choose to receive.
4. What makes an app popular? Two words -- F R E E and C O O L
The digital popularity contest is driven by the inherent value to the Millennial user - the app quality and 'fun factor' is what's important to this demographic, not the corporate sponsor (or lack thereof) behind it. If something's popular, Gen-Yers just assume its legit. For small guys, this means a level playing field... for big guys, it means you don't have your brand to enhance your popularity - your app needs to speak for itself. Oh, and the app is generally free, at least in the beginning, to encourage users to try it out.
5. We like free, but we'll actually pay for some applications now!
Millennials grew up with the belief that anything digital should be free. Blame it if you will, on the industry habit of building a web application and amassing a user base first, and trying to figure out how to monetize it afterwards. (Facebook, we're not pointing any fingers). Despite their heritage, however, MIllennials have come of age where they now justify actually paying for some digital applications, if it means they get something (such as a product/service) in return. A good example cited is SKYPE, which they now use regularly to make long distance phone calls. Another criteria they often use when considering a paid service is convenience. If it means they don't have to drive across town (in a car they don't even own) to pick up a parcel, or to purchase a concert ticket, they are likely to be willing to pay a convenience fee , but only up to a certain point.
6. Banks aren't exactly 'innovative,' but they're at least keeping up with the times
Millennials might be some of the most frequent users of online banking sites, visiting at least weekly, and in some cases up to daily. The only time they physically go to the bank is to deposit a cheque (and these are usually from the Government, which they almost expect to be trailing in innovation). They frequently visit online banking web sites (at least once a week). Only some had tried out mobile banking apps, saying they preferred the web site versions due to limited capabilities on the mobile versions. But Millennials had an optimistic view of banks in digital, saying they feel they have been at least keeping up in the space. With this in mind, when asked when they expect to be able to pay for things with their mobile phones? They unanimously said, "really soon."
