Generational transformation should be the next thing on your agenda.
In the MENA region alone, more than 28 per cent of the population is between the ages of 15 and 29. And, the way that they behave is disrupting traditional workplaces, business models and even how brands sell themselves. Generational transformation is probably one of the biggest challenges facing businesses today. From a business point of view, the challenge is two-fold. On one hand, businesses need to build a more purposeful culture to attract millennial talent as employees. On the other hand, they need to find a way to connect with this new generation as consumers. So, how can businesses adapt to stay responsive to this demographic? Here are some key areas to consider –
Addressing a new generation of consumers
Over the last decade, consumer behaviour has rapidly shifted as millennials have become the most influential customers. Goldman Sachs predicts that this demographic contributes to 25 per cent of all spending dollars. One of the most prominent change has been the transition from in-store to online purchases. Digital native millennials want easy and quick access to products on-demand. The challenge for retail businesses is to revamp their systems to be able to cater to their customers in real-time and stay aligned with consumption patterns. This means correctly using customer data to create an enhanced buying experience, with personalised content. Using mobile technology for payment and e-checkout is also important. As millennials spend significantly more time online – particularly on mobile devices, they tend to prefer buying online as well. But, it’s not just important to see how they are spending, it’s equally critical to note what they are spending on. Another research points out that 81 per cent of millennials are more likely to spend on travel, 65 per cent on dining and 55 per cent on fitness rather than saving for their financial future.
Assessing the future of brands
According to the Aspect Consumer Experience Index Study, more than 50 per cent of millennials abandon brands every year. In fact, 25 per cent of millennials abandon a brand after one bad experience and 82 per cent do so after three unsatisfactory experiences. As a business, the way you earn and maintain brand loyalty is crucial. Millennials are seeking brand intimacy, where experiences and products are tailor-made. Moreover, brands will also need to embrace social issues and sustainability. A report by A.T. Kearney remarked: “Of the 149 Millennial survey respondents who cited a most important sustainability practice, only 21 per cent specified social responsibility. This is less than half the number who said that the “inherent sustainability” of the product (that is, the product directly helps consumers live sustainable lives) matters most. Millennials’ demand for sustainable products, not just socially responsible companies, represents an important shift in consumer priorities.”
They are reshaping the workplace
If there were three words that describe the transformation of the workplace, they would be purpose, drive and transparency. Millennials want to be part of something meaningful; something that works towards a larger objective. In fact, they have often been called the ‘purpose-driven’ generation, and have been known to prefer making a difference over a higher pay check. Companies that help employees find their sense of purpose and make them feel like their work matters have a larger chance of retaining good talent. Transparency is another area that businesses need to focus on, and this is where building communication channels becomes crucial. Millennials want to feel included and informed. Contribution to environmental and social issues as well as social responsibility is important for a millennial. Let’s look at some of the statistics – To retain talent and to bridge the generational divide, a Deloitte report suggests three key actions – Identify, understand and align with millennials’ values Satisfy the demands millennials have of employers Support millennials’ ambition and professional development There has been a lot said and written about millennials and their impact on how we work, consume and live, and there’s no doubt that businesses need to act. As a business owner, it’s imperative to not see this new demographic as a challenge, but to engage them in the right way to create a powerful impact.
