Companies are not ready to cater to the growing millennial market, says Economist Intelligence Unit surveyMillennial customers—approximately 80m individuals born between 1982 and 2001 in the US alone—will have a significant impact on business. Yet more than half of the senior executives polled in a recent Economist Intelligence Unit survey do not have a strategy to target or retain this demographic group. Four out of 10 executives say that Web 2.0 technologies, such as webcasts and online forums, are the best way to serve millennial customers. But respondents report that telephone, e-mail and physical storefronts are the top three ways that millennials can interact with a company to research or buy its products and services at present. While survey respondents appear to acknowledge the need for new tactics to target the millennial customer, their responses indicate a lack of preparedness, according to Maturing with the millennials, a report from the Economist Intelligence Unit, sponsored by Genesys. The executive summary is based on an online survey of 164 executives from around the world. Although respondents believe that convenience and customer service are a priority in attracting millennial loyalty, many acknowledge slow progress in shifting from traditional modes of contact, such as telephone (45%) and physical storefronts (39%) as primary points of contact “The Four C’s—convenience, customisation, community and cool—drive millennial purchasing behaviour,” says Shaun Young, senior editor, Industry & Management Research at the Economist Intelligence Unit and editor of the report. “And while companies recognise these characteristics, the survey finds they lack the wherewithal to capitalise on them.” Other principal findings of the survey include: - Executives believe that millennials have specific consumer needs, but few organisations have tailored their marketing strategy for this generation. More than 80% of executives agree that consumer needs vary by age group, and 42% believe that a bigger share of investment should go towards millennial customers. In addition, 39% say it should be allocated to older demographic groups, such as generation X and baby-boomers.
- Respondents say that millennials care more about convenience than price. More than 70% of the respondents say that when it comes to purchasing decisions, millennials care most about convenience, followed by overall style and taste (69%), peer recommendation (67%) and accessibility (65%). They say that price—a traditional influence on purchasing decisions—is one of the least important buying factors for millennials.
- Business processes are not keeping pace with millennial preferences. While 44% indicate that communicating the right messages in the right medium and at the right time is critical to their success, the majority have yet to leverage enriched content, peer recommendations and enhanced online experiences as part of their outreach—even though they acknowledge these are among the most effective ways to communicate with millennials.
- Executives consider customer service to be a competitive differentiator. About one-third of all executives cite the goal of offering superior customer service and value as their main customer priority over the next three years. Nearly 66% agree that customer service is a critical way to grow and retain their customer base. More than 40% recognise that online communities in which customers can post comments are the most effective way to serve millennial customers.
Maturing with the millennials is available at
www.eiu.com/sponsor/Genesys/Maturingwiththemillennials Press enquiries: Joanne McKenna, Press Liaison, +44 (0)20 7576 8188, joannemckenna@eiu.com
Shaun Young, Senior Editor, +1 212 554 0615; shaunyoung@eiu.com
Notes for editors Maturing with the millennials is an Economist Intelligence Unit executive summary, sponsored by Genesys. The research is based on an online survey conducted in June 2008 of 164 executives from around the world and across 19 different industries. One-third of respondents’ organisations had annual revenue greater than US$1bn and just over one-half (51%) had less than US$500m in revenue. Board members and CEOs comprised 30% of respondents. CFOs, CTOs and other C-level executives made up an additional 19%. The remainder were senior and middle managers. About the Economist Intelligence Unit The Economist Intelligence Unit is the business information arm of The Economist Group, publisher of The Economist. Through our global network of more than 650 analysts and contributors, we continuously assess and forecast political, economic and business conditions in more than 200 countries. As the world's leading provider of country intelligence, we help executives make better business decisions by providing timely, reliable and impartial analysis on worldwide market trends and business strategies. About Genesys Telecommunications Laboratories, Inc. Genesys, an Alcatel-Lucent company, is the only company that focuses 100% on software to manage customer interactions over the phone, Web and in e-mail. The Genesys software suite dynamically connects customers with the right resources—self-service or assisted service—to fulfil customer requests, optimise customer care goals and efficiently use resources. Genesys software directs more than 100m customer interactions everyday for 4,000 companies and government agencies in 80 countries. These companies and agencies can leverage their entire organisation, from the contact centre to the back office, to improve the overall customer experience. As a result, Genesys helps stop customer frustration, drive efficiency and accelerate business innovation. For more information, go towww.genesyslab.com or visit the industry blog at www.betterinteractions.com. |
