A tough sell

Corporates are stressing on generation-specific products and communication to hook millennials now and remain connected with them as they progress to bigger and more expensive products

 

Generation Y or the millennial generation, generally defined as people born after 1980, has an approach towards life that is distinct - much different from what we have witnessed till now. They are also a generation that is not afraid to embraces change, and that puts them at an advantage, given the dynamic environment we are working in. This is also a generation that has grown up with information at its fingertips, and isn't afraid to use - or share - it, to influence and be influenced on where to direct their spending. As more and more of this ever-connected generation joins the workforce and business environment, we will see a radical shift in the way we do business.

Now look at the potential size of this population. According to a recent report by IBM, the millennial workforce is slated to represent 50 per cent of the global workforce by 2015, and about 76 per cent by 2020. It is, therefore, imperative to understand this generation's approach as they redefine businesses and organisational structures.

We are also in perhaps the most exciting age of business, where innovation is rewarded and consumers want to be engaged more than ever before. The Indian marketplace continues to evolve rapidly, with technologically-focused younger generations flooding the consumer and the employee landscapes. Digital, social and mobile spheres are quickly converging, connecting customers, employees and partners to organisations and to one another.

As individuals, millennials are increasingly relying on technology to engage and serve them better as they look for solutions that help and broadcast who they are. At the helm of enterprises, millennials understand that it is imperative to leverage technology to drive quantum change in understanding, meeting their needs personally and provide high value service. In the new world, the balance of power has undoubtedly swung in favour of the 'Individual'. Customers are increasingly engaged as individuals rather than market segments - anywhere and at any time. This is the 'new norm' we are operating in.

So, how can businesses capture the opportunities presented by these new buyers who are willing to share their feedback and preferences and in turn, level the playing field and compete with their counterparts?

A business owner today needs to consider two key aspects of the millennial effect: First, how millennials look to consume information, and second, what to do with the valuable data they provide. It is in this backdrop that marketing teams are inventing new ways to engage deeper with their customers through precise information, thus empowering consumers to influence their brands in new ways. This direct two-way channel between brands and end users is not just helping enterprises understand their customers better but is also enabling individuals to create a richer and personalised user experience for them.

Companies looking to attract millennials as consumers and convert them into influencers need to extend beyond simply establishing a strong brand presence. Complementing a brand campaign with mobile incentive programmes that provide millennials with relevant sales promotions is important. But to truly engage them, it is important to think in terms of frequent but short and contextually relevant interactions: tweet or text-like contributions that develop relationships with consumers over time, rather than the structured things of the past. Businesses need to think differently about supply chain interactions.

However, marketing will be able to do this only if they can manage vast amounts of unstructured data, using analytics to generate insights that are predictive, not just historical, all on a massive scale. With the explosion of big data, enterprises have to use cutting edge techniques to track and analyse this unstructured data. This coupled with predictive intelligence on big data will help enterprises can invent new ways to engage with users and address customer needs with their brands - something that fits well with the millennial generation's brand engagement aspirations. As a result, businesses that leverage innovative Big Data analytics and mobile technologies to collect and analyse insights affordably will be one step closer to this elusive consumer. This advantage is already being felt. Millennial consumers are better informed and expect to find relevant, engaging and actionable information wherever they are and at any time. Perhaps for the first time ever, consumers are both willing and able to tell marketers exactly what they want. It is now up to the marketers to provide the information and also interpret the deluge of data through which these desires are expressed.

With digital convergence, the millennial generation has been able to go beyond traditional methods of communications and structure, to become more 'open' and 'mobile'. As CEOs move ahead toward these digitally enabled relationships, they have a vast pool of expertise they can bring on board. Businesses in India clearly seem under prepared to manage the social media and the increased mobile phone penetration and are not clear how these will manifest themselves over the next few years. With this generation increasingly switching between various social media platforms, they are able to provide a constant stream of customer feedback, providing better insights to design service and experience to cater to what they hear from their customers. Enterprises will need to adopt a unified approach to deliver on promises and develop a long-term relationship with their customers.

In that sense, millennials and the new-age businesses are becoming a hotbed for innovation that will, in turn, promote cutting edge application oriented research and digital empowered smart marketing technologies.

It is not astonishing, then, to see a young Harvard graduate create the next big thing on a social media platform, where 'staying connected' is what drives the business rather than profit margins or revenue models. Millennial clients are clearly ahead of the enterprises who market to them. No wonder this makes the traditional way of engaging with them increasingly irrelevant. Businesses, therefore, need to use big data around its customers' social media and mobile exchanges across new age interaction platforms to meet their needs precisely and gain their loyalty.

There is a new elephant in the room and businesses can choose to act with the speed and decisiveness of a millennial or ignore it at their own peril.

Jeby Cherian
vice-president & managing partner, Global Business Services, IBM India/South Asia