Tuesday, May 26, 2015
3 Ways Millennials Are Changing Business
It is happening. For years people have been preparing for the time when Millennials, born between the 1980's and the early 2000's, would be mature enough to drive the markets.
The arrival of the mature Millennials has been a game-changer, however, it has not worked out exactly as predicted. Much of the attention about the rise of Millennials has focused on personality traits, such as a supposed increased narcissism. But beyond these anecdotal trends, there are some radical shifts based on actual data.
There are three major Millennial-driven changes that are essential for every business leader to understand in order to adapt to what is happening, and what is coming up in the upcoming years.
1. Different research and purchase behaviors
When it comes to research, Millennials place more emphasis on online reviews. According to a survey conducted by U.S. News & World Report, 40% of Millennials say they visit at least one review site before making a purchase.
However, Millennial research does not stop at online reviews. As reported by U.S. News 68% of Millennials say they discuss every major purchase decision with someone they trust. A recent study done by MarketingProfs on B2B buying behavior found the same results; Millennials are more likely to trust recommendations from friends and family than Gen Xers or Baby Boomers.
When it comes to purchasing, Millennials are much more digital savvy and rely much more on mobile purchases. A report by eMarketer, found that 18-34 year-olds are most likely to rely on mobile shoppin apps, mobile retails websites, and request mobile price matches.
A key finding by a survey from Accenture, found that increased digital shopping is not all about price. Millennials are loyal to their favorite brands, and base purchase decision on ease, free returns, real-time availability, etc.
2. Millennials have different priorities at work
Millennials currently comprise nearly half of the workforce and 28% of all managers and are transforming the way business is done, as reported by a study conducted by oDesk.
The study found that there is a disconnect in what hiring managers think Millennials want, for example status and higher paying jobs, versus what Millennials really care about. Millennnials care more about the people they work with, exciting work and good mentorship and less about money than hiring managers realize.
Flexibility is another area where hiring managers should focus on. According to a PwC Survey, flexibility in hours and location are areas that rank in high importance for Millennials, 72% report having made compromises to get into work. Top compromises were around location and fewer benefits.
3. Aging Millennials
The millennial generation is not static, they are aging like everyone else. Millennials are often seen as single, however a study by FutureCast found that the older half of U.S. Millennials comprise of 10.8 million households with children.
This means that aging Milllennials may start to behave in a similar fashion as their older generational counterparts. A study by US News & World Report found that 55% of Millennials surveyed are starting to save for retirement, and an increasing number are purchasing houses.
However, there are areas where aging Millennials have values unique to their generation. For example FutureCast found that 52% of Millennial parents closely monitor their children's diet, and 64% say the environment has become a top concern now that they have kids. Also, 82% want their child to know that they don't need possessions to make them happy.