How much companies know the Millennial generation?
It has been written a lot about Millennials generation. With less than 30 years ago, they are assumed technologically native, well prepared and independent and an important target, increasingly, as the generation is growing and gaining purchasing power. But what companies know that audience?
A recent study by WWD (Women’s Wear Daily) and Berglass Associates has analyzed their knowledge of retail brands in this segment of the population, through a survey of 120 senior executives of companies in the sector in the United States. With the caveat that this is a qualitative study and cannot easily be extrapolated to all retailers, it draws attention to its conclusions. Many respondents expressed their ignorance of key issues of the Millennials, as their purchasing power or factors that influence their purchasing decisions.
Assuming that the definition of this group and age ranges covering varies from one study to another, it is logical that brands are somewhat disoriented in this field. But surprisingly precisely why they have not been launched to investigate a type of consumer tremendously powerful theory.Only 44% of respondents recognized offer benefits to customers in exchange for personal information.
For now, companies “know or believe” that what most influences purchases of Millennials are the opinions of their friends (70%), and a lower proportion ads brands (25%). 34% of respondents also believe that privacy is not as important to this generation.
75% of executives underestimate the buying power of Generation Y, which the studio stood at $ 200 billion [USA]. In addition, only half of the retailers know that within five years, the Millennials will spend more than their predecessors of the Baby Boom. This study last statement contradicts another Nielsen publication a year ago, which estimated that by 2017 half of the US population would be over 50 years and would these adults who will control 70% of disposable income.
In any case, a clear fact that sheds light WWD survey is that many brands are not investigating this generation as target audience. It is true that treat any group of consumers as a uniform airlock and involves many risks and perhaps labels “narcissistic” or “socially responsible” that have been hung Millennials may not apply to all of them. But it’s hard to question that adoption of new technologies is much higher among the younger audience or that their use of the media is different from their parents. For undertakings to ascertain whether consumers really are the biggest spenders, if more or fewer workers, what their real concerns, and tune in the knowledge they have of them. But the reality is that 6 out of 10 executives surveyed are not interested in a study of this type.
The data surprised when almost half of the companies that have different targets have different marketing strategies designed for each of them.