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Turn Millennials Into Customers
Millennial Performance Institute
You’re in the right place…
S You want to maximize engagement of customers among different generations, which increases your revenue
S Learn more about who Millennials are, how they think, and how to reach them
S How to attract more millennial customers for repeat business
S Plan for future growth & development
The Big Picture
S The “Greater Wealth Transfer” has begun; $30 trillion will be transferred between generations
S The transfer will have a large impact on the US economy and will effect every industry
S This symbolizes a major shift in the workforce and consumer market
Accenture, The “Greater Wealth Transfer, 2012, Image: Bureau of Economic Analysis, Measuring the Economy, 2014
Generations Today
Where do you fit in?
S What generation are you in? How do you think it effects your spending habits?
S Have you noticed any generational differences when making purchasing decisions? If so, what are they?
S In your organization, where do you think is the most room for growth regarding attracting millennial customers?
What is customer engagement?
Emotional connection between your customers and your company
S Multiple dimensions: use of service, frequency & magnitude of thoughts/feelings, interaction with business, involvement with competition
S Not to be confused with customer experience!
Gallup, 2015, Walker, Customers 2020, 2015
Meet the Millennials
S $600 billion in annual buying power; $1.4 trillion by 2020
S Will make up 75% of the workforce by 2025
S 80 million people in the US; 2.3 billion worldwide
S More ethnically diverse than previous generations
Accenture, Who Are Millennial Shoppers?, 2015, Deloitte Millennial Survey, 2014, U.S. Census Bureau, Red Tree Leadership, 2012
Millennial Customer Challenges
S Lack of brand loyalty
S Low millennial customer base
S Lack of interest in services
Alternative Transportation
How important is your car?
Understanding Millennials
S 95% of Millennials want their brands to court them actively
S 95% say coupons sent via email or mailed have the biggest influence on them
S US Millennials touch their smartphones 45 times a day
Accenture, Who Are Millennial Shoppers?, 2015, Nielsen, 2014, SDL, 2014
Millennial Mindset
S 95% of Millennials say friends are the most credible source of product information
S Only 6% consider online ads to be credible
S 51% would share information with companies in exchange for an incentive
Social Chorus, Millennials as Brand Advocates, 2013, USC, Annenberg College 2013
What’s in a label?
How does your organization stack up?
Your Results…5-9 Points
Dominated by the Past – Your organization is still operating based on the ideals of previous generations.
S You might have trouble attracting millennial customers
S Most Millennials wouldn’t feel compelled to buy from you
S Many opportunities to increase customer engagement & financial performance
Your Results…10-18 Points
Changing with the Times - Your organization is starting to catch on to what the millennial consumer is looking for.
S Millennials see potential in your service offering
S There are ways to increase your customer engagement and revenue
S With a few improvements, your service will be in high demand with younger customers
Your Results…19-25 Points
Sought after Service- Your organization is progressive and Millennials can tell!
S There’s probably a lot of interest in your service
S Your organization is aware of what’s important to the marketplace
S You can incorporate a few programs or incentives to reach your specific goals
Don’t be fooled…
If you think your organization is already addressing millennial, customer engagement with:
S A website
S Offering discounts
S Billboard & online ads
1. Social Consciousness/ Authenticity
S Only 1% said a compelling ad would make them trust a brand more
S 43% rank authenticity over content
S 75% believe businesses are too fixated on their own agendas and not focused enough on helping to improve society
Elite Daily, Millennial Consumer Trends 2015, Deloitte Millennial Survey, 2015
Social Consciousness & Spending Habits
2. Technology
S 87% of Millennials use between two or three tech devices at least once on a daily basis
S 68% demand an integrated, seamless experience, regardless of the channel (smartphone, personal computer, in store)
S More than 1/3 use their smartphones during the trip planning lifecycle
Accenture, Who Are Millennial Shoppers?, 2015, PhoCusWright, The US Millennial Traveler, 2014
But they still want an experience…
Accenture, Who Are Millennial Shoppers?, 2015,
3. Online Reviews
S 33% rely mostly on blogs before they make a purchase
S Less than 3% rely on TV news, magazines, and books
S Nearly seven-in-ten consumers actually base their purchases on the digital recommendations of strangers (81% categorized as Millennials)
Elite Daily, Millennial Consumer Trends 2015, Mintel, 2015
Who do you trust?
Ipsos, Millennial Social Influence Survey, 2014
What’s out there about your company online?
S Customer reviews?
S Current/former employee reviews?
4. Social Media
S 62% say that if a brand engages them on social networks, they’re more likely to become a loyal customer
S Five out of six Millennials connect with companies on social media
S There’s more than Facebook…Twitter, LinkedIn, Tumblr, Pintrest
Elite Daily, Millennial Consumer Trends 2015, Accenture, Who Are Millennial Shoppers?, 2015,
Social Media & Likability
Goldman Sachs, Millennials Coming of Age, 2015
Sharing the Experience
Goldman Sachs, Millennials Coming of Age, 2015
5. Affordability
S Average Millennial has $25-33K in student loan debt
S 57% of Millennials compare prices
S 57% said money won’t change their spending habits
AIMIA Inc., Born this Way: US Millennial Loyalty Survey, 2012; Elite Daily, Millennial Consumer Trends 2015,
Price vs. Quality
Goldman Sachs, Millennials Coming of Age, 2015
What is effective?
Organizations with high engagement of millennial customers:
S Focus on the Experience
S Provide Value
S Have Seamless Technology
S Active on Social Media
S Embrace Authenticity
Success Strategy: Seamless Technology
Uber is a technology based transportation company, originally focused on providing app based taxi services
S USA Today’s #1 Technology Company in 2013; $18 Billion
S Millions of users; operates in hundreds of cities on 6 continents
S Experienced much controversy for disrupting the traditional taxi industry, by allowing more convenience through technology
S Future- Focus on mass mobility (driverless vehicles, smart routes, shared rides)
Mobility Lab, 2015, Business Insider, 2014
Success Strategy: Affordability
Free public transit systems attract riders and provide many other community benefits
S Lower administrative costs, enhanced community pride, increased productivity of public investment, more support from bus operators
S Communities where most effective: rural/small urban, universities, & resorts
S 35 Communities in US: Charleston, SC limited, free bus service in 2013; 2014 set an annual ridership record of 5 million; its estimated that they eliminated 12,500 car trips daily. They currently have a free trolley
Mobility Lab, 2015, Charleston Area Rapid Transportation Authority, 2015
Success Strategy: Focus on the Experience
The most avid users of mobile devices are boosting Chicago’s transit ridership numbers (despite fare increases)
S 56% of Chicago’s commuter rail riders were engaged with technology in 2015 (3x higher than 5 years ago)
S Correlation between digital amenities and transit ridership
S Providing Wi-Fi service (in stations and on trains), power outlets, & airport style waiting room environments
Mobility Lab, 2015, Metra, 2015, Chaddick Institute for Metropolitan Development, Digitally Connected Commuter, 2015
Success Strategy: Provide Value
STM, Montreal’s transportation system, has added innovative ways to make bus and train travel exciting
S Their app uses geolocation technology to provide customers with relevant promotional offers based on their location
S Recommendations are based on customized criteria established by the customer
S Increased ridership and provides fun, new experiences
Forbes, 2015
How can you put this all together?
What are three things your organization can do to increase your amount of millennial customers?
1. ?
2. ?
3. ?
Contact
Porschia Parker, CPC, ELI-MP Founder Millennial Performance Institute www.millennialpi.com (404) 422-7875 [email protected]
Special Report:
7 Truths Your Millennial Employees Aren’t Telling You…Before They Quit!
