CRM - November 2008 - (Page 24)

Generational Spending Generation Y Who, What, Where, When, Y The members of Generation Y are young, they’re smart, and they’re paving (if not paying) their own way. So who’s following whom? | By Jessica Tsai AGE: 14 to 31 (born between 1977 and 1994) BIGGEST ECONOMIC CONCERN: Paying tuition BIGGEST POLITICAL CONCERN: Economy and job market PREFERRED COMMUNICATION CHANNEL: Text messaging via cell phone or smartphone Only one year apart, my brother and I couldn’t be any more different when it comes to spending money. He refuses to buy clothing on sale because, according to him, if it’s on sale that means nobody had wanted it. I have no such qualms, immediately making a beeline for the clearance section upon entering any store. That stick-the-milk-in-the-back-of-the-store retail strategy is futile against this bargain hunter. My brother enjoys the latest and greatest; I’m currently using the hand-medown Motorola Razr he no longer needed when he pounced on a new iPhone. As different as the members of Generation Y are in our individual spending habits, there’s one thing we have in common—we all want to be treated as unique individuals. Popularly characterized as the most technologically adept group in history, it’s no secret that this generation has successfully differentiated itself from others simply because it has access to more information, not to mention the time to search for it. A February 2008 eMarketer study on United States Internet users reports that 91 percent of Gen Y is on the Web, comprising about 32 percent of the national total. This group’s spending power was estimated at $189.7 billion in 2006—and it’s rising, says Maryland-based consumermarket research firm Packaged Facts. While Gen Y is far from being the richest demographic, much of its spending is discretionary—and its members certainly do a good job as influencers: The 2007 Nielsen Homescan Consumer Panel found that American households with at least one Gen Y member spent 15 percent more than the average U.S. household. GENDER ROLE-OVER The 2008 presidential campaign has seen a female candidate for the top spot and a female vice presidential nominee—a sure sign that women are rising up in the ranks politically, socially, and economically— and Gen Y is at the forefront of that shift. “This is the first generation in history that’s driven by women,” says Radha Subramanyam, global insight strategy leader at Yahoo!. While open access to technology may be one factor, Subramanyam contends that the great equalizer is actually the upbringing of the modern child. www.destinationCRM.com { 24 “Fact! Kids don’t have bills to pay. Fact! They don’t pay taxes. But they do babysit and hold minimum-wage jobs that earn them wads of cash But these kids today aren’t dumb. They’re not gonna buy just anything. That’s why the government has been planting small subliminal advertising suggestions in today’s rock music. The results? We can now get these kids to buy just about anything. We can have them chasing a new trend every week. And that is good for the economy.” —Eugene Levy, Josie and the Pussycats (2001) CUSTOMER RELATIONSHIP MANAGEMENT | NOVEMBER 2008 http://www.destinationCRM.com

Table of Contents Feed for the Digital Edition of CRM - November 2008

CRM - November 2008 Contents Front Office Feedback Reality Check Customer Centricity The Tipping Point Working with the Years CRM on Twitter Virtual Spenders Contact Centers Chatting to Success The Complexity Chasm Required Reading Generational Spending: A Special Report Who, What, Where, When, Y The Slackers’ X-cellent Adventure The Boomer Boom The Matures Endure Boosting Productivity North of the Border Changing the Channel Invicta’s Thrill of Victory Secret of My Success Connect Re:Tooling Pint of View

CRM - November 2008

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