CRM - November 2008 - (Page 28)

Generational Spending Generation Y more scheduled and driven than generations before them,” Subramanyam says, but at the same time, they want to be “chillaxed.” They’ll get the job done, but it doesn’t always require “face time.” Technologically connected in their personal lives, Gen Y expects to have the same tools in the workplace to help them be more efficient and productive. “We don’t want to have to come into the office for a meeting with someone in the U.S.,” says Thomas Tachibana, an intern in the Tokyo office of an American financial services firm. James White, the My First Million author, agrees:“We want a job, but we want flexibility.” Gronbach’s figures show more than 100 million Gen Yers by 2010, all aiming to fill the shoes of the 69.5 million Gen Xers—so competition will be fierce. Many youngsters are starting their own businesses, creating an expanding pool of what Wells calls “teenpreneurs.” Inevitably, Gen Y will end up meeting the needs of Gen Y, Gronbach says. In response, companies targeting Gen Y customers should look to hire Gen Y employees. Austin Lavin, at 24 years old the cofounder and chief executive officer of was the weakest year for summer-job hiring in over 20 years, which contributed to a 4 percent decrease in back-to-school sales. Teens do everything online, Lavin says, including searching for employment. Companies that could potentially hire teens and don’t post job listings online miss a huge opportunity, especially since gas prices are forcing more people to stay home, rather than stroll around looking for “Help Wanted” signs. Since teenagers with jobs are typically still living under the care of their parents, much of what they earn is discretionary. Some may be saving for college, but most of the time, teens are earning to spend. Hiring from the crowd you’re targeting will have long-term benefits as well. Businesses that cater to this demographic have a better chance of making a strong first impression on a very impressionable crowd, and of building customer loyalty as a result. “Everyone remembers who gave them their first job,” Lavin says. The mobile phone may be the defining tool for Gen Y—personally and professionally. Data from online marketingsolutions provider iPerceptions confirms that the most important product for vis- There will be more than 100 million Gen Yers by 2010, rising up to fill the shoes of the 69.5 million Gen Xers. online job site MyFirstPaycheck.com, says that companies that hire teenagers are more likely to attract teenaged buyers. If there’s a concern that Gen Yers are “generally poor performers”—an October 2008 Jobfox poll shows 30 percent of recruiters share that perception—Lavin counters by saying they’re not only affordable but enthusiastic. “You can’t pick a better group of brand ambassadors.” Urban Outfitters exemplifies a company that uses its employees to sell a certain image in its various retail chains: Anthropologie projects the feminine and Urban Outfitters fits the hipster look. Charleston, S.C.–based America’s Research Group (ARG) confirms that 2008 28 itors under the age of 25 is mobile phones (39 percent compared to 17 percent of the general population). Carriers are catching on: In August, Verizon Wireless released the Blitz, in an appeal to its “text-heavy” users—and their parents. PLAYING THE GAME One attendee at the Brand Innovation Conference asked a panel of Gen Yers if they were using new social technology, namely Twitter. One response was echoed by the rest: “I know I’m not,” said Andrew Schneider, a strategic research specialist at Mercedes-Benz USA. “We like to think they need all of these bells and whistles,” Wells says, when in actuality, if one medium can provide a similar service, there’s no motivation to add another to the list. Facebook’s status feed, for example, provides a Twitter-like service. “Understand why they want the things they want and why they do what they do, rather than assuming we know,” she says. As much as marketing is an art, some say it’s time to refocus on the science when it comes to understanding Gen Y. “There are a lot of myths out there,” Subramanyam says, and only research can remove them. Otherwise, she says,“you’re just using a 1950s methodology to talk to young people in 2008.” “At the end of the day, we need teens to buy what we’re selling and that means adapting to what they want,” Wells says. So before launching into what seems like the hippest new marketing ploy, do your homework, talk to actual Gen Yers, and immerse yourself in their world. Gen Y superstar Shawn Fanning changed the game in marketing when he created Napster during his freshman year at Boston’s Northeastern University, popularizing peer-to-peer file-sharing (and incurring the wrath of the music industry). It completely wiped out the need to purchase overpriced albums and videos, and while Napster’s ride eventually turned bumpy, it helped create the market for online distribution. Apple’s iTunes provided an alternative solution, offering singles for 99 cents, but even that doesn’t beat free. Sites such as imeem.com are limited to online streaming, but it was only a matter of time before someone figured out how to convert such files to the transportable MP3 format—something even I, an admittedly below-average tech-user for this generation, can now do. Knowledge spreads like wildfire and companies that continue to bounce back are those that are listening. Technology is empowering the Gen Y consumer and it should serve marketers in the same way. “We in marketing need to catch up with technology,” Wells says. “When we do, then we’ll be able to play this game fairly.” Contact Assistant Editor Jessica Tsai at jtsai@destinationCRM.com. www.destinationCRM.com CUSTOMER RELATIONSHIP MANAGEMENT | NOVEMBER 2008 http://www.imeem.com http://www.MyFirstPaycheck.com 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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