The Millennial Tax: How Generational Buying Patterns Impact The Way Brands Engage With Customers |...
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Transcript of The Millennial Tax: How Generational Buying Patterns Impact The Way Brands Engage With Customers |...
@michelfeaster |usermind.com
Michel Feaster@michelfeaster
@usermindinc
CEO & Founder of Usermind
How Generational Buying Patterns Impact Customer Engagement
The Millennial Tax
@michelfeaster |usermind.com
About Me
Apptio 2009-2012VP of ProductsFrom employee 17 to $80MM ARR
HPSW 2007-2009Led the $1.6B acquisition and integration of Opsware
Mercury 1998-2007Product management and presalesMichel Feaster
CEO & Co-Founder
@michelfeaster |usermind.com
The successful companies of previous decades are dying.
52%
of the Fortune 500
have disappeared
in the last 15 years
75
was the average
life expectancy
of F500 in 1955
15
is the average
life expectancy
of F500 in 2015
@michelfeaster |usermind.com
@michelfeaster |usermind.com
Why is this happening?
Spend $600 billion per year1
Cite price as more important than brand2
Prioritize experience over products3
Expect seamless, personalized customer interactions4
We’re in the largest generational buyer shift in decades. Millennials are radically different buyers.
1 Accenture 2 Goldman Sachs 3 Mary Meeker4 RIS, "Customer Engagement Tech Trends Study: The Personalization Imperative," Retail Info Systems News. [Online]
@michelfeaster |usermind.com
Businesses who can’t understand this market segment and rapidly change to deliver customer engagement … will fail.
Millennials are the largest living population segment (79.8 million) — and will continue to be for 20+ years.
7581
6566
28
Millennial
Gen X
Boomer
Silent
Projected population by generationIn millions
Note: Millennials refers to the population ages 18 to 34 as of 2015. Source: Pew Research Center tabulations of U.S. Census Bureau population projections released December 2014 and 2015 population estimates. Pew Reseach Center
@michelfeaster |usermind.com
This is either a massive risk for your company — or a massive
opportunity.Millennials currently control $1.3T in consumer spending.
And will be the recipients of a $30T wealth transfer from baby boomers over the coming decades.5
5 Wealth-X Family Wealth Transfers Report @michelfeaster |usermind.com
@michelfeaster |usermind.com
How can companies embrace this new reality?
Go direct to your customer — and own their data
Create a subscription business
Provide personalized service or experiences
1
2
3
@michelfeaster |usermind.com
Leverage new channels to connect with customers
@michelfeaster
usermind.com
@michelfeaster |usermind.com
Relationships > Transactions
In a world where brand matters less, how do you engage with buyers?
@michelfeaster |usermind.com
@michelfeaster |usermind.com
Provide personalized services and experiences
57%
60%
of millennials compare prices in-store6
think they usually know more about products than store associates do7
3
6 AIMIA Inc. “Born this Way: US Millennial Loyalty Survey” ©20127 Forbes, “Retail Tips From Salesforce On Winning With Millennials And Gen Z” ©2017
@michelfeaster |usermind.comb
Customer data = context in every interaction
@michelfeaster
usermind.com
@michelfeaster |usermind.com
Companies that pay the Millennial tax will survive and thrive in today’s competitive
landscape.
@michelfeaster |usermind.com
@michelfeaster |usermind.com
How to do it:
Go direct to your customer — and own their data
Create a subscription business
Provide personalized service or experiences
1
2
3