Moaning about Millennials Misses a Generational Business Opportunity

The millennials are coming. Within a decade, the generation born between 1980 and 1996, will make up almost 75% of the workforce. Diverse, digital savvy and allergic to hierarchy, millennials seems tailored made for the start-up world.

However, one problem with much of the writing about "millennials" is that it is focused on them being employees, often junior employees. Written by current managers and executives, it is a complaints buffet. Often, Millenials are depicted as having a low work ethic or chronic sense of entitlement.

But this reads the millennial "problem" upside down. Far from being internal, corporate culture challenge, Millennials represent the largest consumer opportunity in a generation.

Stop and think for a moment. Three-quarters (75%) of your working age customers will be millennials within ten years. Yes, there will be lots of Baby Boomers and Gen Y customers. They too will be key. But the lion share of your market (and growing part) will be made up of millennials looking to buy things that represent their values, aspirations, and way of doing business.

So what does this mean for large, more traditional companies or public institutions? Can you plod along oblivious, perhaps with a few concessions to online shopping or a brushed up social media presence? I think the earthquake in the retail, service and the marketplace will be much more profound. Here are three reasons why?

1. Millennials are Market Game Changers
Today in the United States, millennials represent about $200 billion in annual buying power. Some analysts have even pegged that number as high as $600 billion.

With less than half of all millennials having entered the workforce, their spending power as consumers will only skyrocket. By 2020, it is estimated that US Millennials' spending will grow to a stagnating $1.4 trillion in retail sales.

That is game changing.

But beyond the simple demographic swing, the 80 million American Millennials bring their own subtleties. Millennials are not a homogenous group. Differences are plenty. Diversity is celebrated and embraced. Like all adults, they will go through different life stages. But their journeys will be their own.

Some patterns are clear. In an online world, business hours have evaporated. Fast, friendly and integrated service is the base-level expectation. Not a company's aspiration.

Preferably, with a touch of green and clean, most millennials want to experience a product before they buy. They want information before they commit.
Having easy access to real-time (unbiased) product information will be critical to influencing millennials' consumer choices. In other words, knowing the story of the product may be greater than merely an online shopping cart.

2. Social Purpose…is the Differentiator
Millennials believe in brands that give back. Companies that extol values to create positive social change are a shoe-in with millennials. Not only do 80% millennials say they want to work for companies with a cause but they also want to buy from firms with a social passion.

Can this be a surprize to other generations? Remember, millennials were a generation brought up not only with the internet but to recycle since school. Global concerns, like climate change, are a generation's call to action. For millennials, digital solutions and social causes are the starting point. Not afterthought.

Far from being fickled about brand loyalty, millennials embrace companies that mean what they say about their commitment to the environment or positive social change. They do their research too. Do not think they are going to be fooled by anemic and insincere corporate social responsibility efforts. In a digital, connected age companies that walk the talk with having passionate and committed fans.

3. Trust is a Personal Connection
The traditional role of many prominent organizations has been to be a conduit for knowledge and services. From news corporations, real estate and government agencies to financial institutions, each has carved out a traditional role as interpreter and communicator of a customer's needs.

But that model is dying. We have long since past the point where a "nation" sat down and watched the same "broadcast" in their homes. Rarely, do we now experience the same event together?

Technology has spawned multiple channels and ways to consume information. The news is not just at your fingertips; it is immediate and unfiltered.
No generation is better plugged into global connectivity than millennials. Generation X trusts their friends over institution voices. Assuming you have a monopoly of information is to bank your future on a debased coinage.

Study after study confirms that Millennials trust peers groups over promotional offers. Far from controlling information, big organizations can only be one voice in the eco-system. It is a free information marketplace. You can have a big tent, but you are only one stall.

What this means is that pouring huge amounts into adverting to gain trust may be futile. In a recent study, only 1% of millennials said they were liable to trust a brand more because of its advertisements.

Instead to build trust, your organization must become more porous. Inquiries are not to be fenced with but embraced as insights. Ideas that can and will shape your business will come from both inside and beyond your company's boundaries. In an information jungle, openly sharing is more than caring. It is the lifeblood trusted business.

Final Thoughts
Millennials are your neighbor, classmate, and colleague. They are the future for your organization. Not only will they reshape business landscape, but they will also be the market. To remain relevant in a Millennial-driven marketplace, you will have to move to where your customers are or will be. Technology and digital offerings are a given. But as Millennials put a premium on loyalty, trust, and unbiased insights, your organization must meet this generational challenge. Remember, only half of the millennials have entered the workplace. But they are already customers. What you choose to do will decide whether they will be your customers tomorrow.

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About the Author

Simon Trevarthen is Founder and Chief Inspiration Officer of Elevate Your Greatness (EYG). EYG helps individuals, teams and organizations unpack the secrets of success by becoming even better versions of themselves through dynamic keynotes, seminars and workshops on innovation, inspiration and presentation excellence.

Learn more about Elevate Your Greatness see www.elevateyourgreatness.com

 Follow EYG on twitter: @Simon Trevarthen

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