Millennials Consumer Behavior
Market analysis is the indisputable link for a company’s success. Regardless of how many resources that the company has procured, it means nothing without a proper analysis to its target audience. The continuously changing customer behavior in each period forces companies to adapt to this uncertain market atmosphere. To adapt to this situation, companies perform customers’ behavior analysis to deduce the latest trends of society. Since many of these trends are usually short-lasting and prone to sudden changes, companies instead look to the most relevant demographic to simplify their adaptational process.
By identifying its demographic target, a business company can influence said demographic audience to buy or use the company’s services. The company can do this by emotionally communicating with its customers. After attentively assessing the customers’ common behavior, the company can set up multiple ways to promote their service that relates to the customers in an emotional manner. This can range from the use of social media to the “trendy” depiction of their services to ensure utmost consumption. In addition, since the promotion of products in the modern era is closely related to the use of internet, it is no surprise that internet is heavily used here.
The internet has increased the relationship between the customers and companies for the last few decades. With the internet enables a more streamlined access for commerce and economy, it is only a matter of time before many commercial activities are internet-based. Since internet makes it easier for companies to promote their services, it makes it easier as well to promote them to a vast amount of potential customers. Furthermore, internet is laden with the society’s latest trends as well, so companies can just simply pay attention to these trends to analyze their customers’ behavior.
One of the most potentially beneficial demographic for many product companies is the millennials demography. Considered as one of the most internet-savvy part of the modern societal demography, millennials are credited with their knowledge of the modern internet. By understanding the rise of millennials demography as the majority of the products’ consumers, the current market must adapt to this particular demography. Moreover, the consumer behavior from the millennials demography is different when compared to the previous generations.
Compared to the earlier generations, there is a far greater numbers of products and services that millennials can enjoy. There is an abundance of products and services that millennials can enjoy in the modern economy setting. These results in a greater level of consumption by millennials that is not previously seen in the older generations. From fast food products to daily needs such as toothpaste and soap, there is no end of the list of products that can be bought and used in the modern daily life.
Because millennials are more adaptable to sudden changes in the societal trends, it is no surprise that millennials are affecting this progression as well. The short-timed nature of current societal trends from the millennials can be a finicky challenge for companies. Since consistency in the market is far easier for companies to make use of, the impulsive and quick-changing nature of modern trends can be off-putting for some. This is even more difficult for companies who rely on older customers who usually does not have a constantly changing taste. Since the number of older customers are decreasing in each year, companies will have to look for millennials as new potential customers.
A recent survey has shown that 60% of millennials prefer to use products that reflect their personalities. Products that can relate to the current spirit of millennials are prone to a higher number of purchase and consumption from them. This is strikingly different from baby boomers and X generation who tend things based on quantifiable needs. As a result, companies that can introduce their brand as millennial-friendly brands may expect some additional profitability from this particular demography.
Therefore, devising a relevant marketing strategy for millennials requires an in-depth understanding of internet as well. In practice, internet can provide a substantial space for advertisements for products from many companies. Because millennials prefer new and innovative products that are relevant to their needs and personalities, companies must maintain their ingenuity in designing new products. A lack of innovation and ingenuity from companies may contribute to the millennials’ lower trust to them, so it is important for companies to build loyalty and trust from them.
Moreover, reputation also plays a vital role in this marketing strategy. Millennials tend to buy and use products that treat both its customers and employees well, as this reflects a huge expectation from the customers. If a company does not put some concern on other people’s wellbeing, then the millennial customers may expect the company to do the same to them. This shows that millennials’ consumer behavior heavily relies on the trust and loyalty they have to business companies.
Accordingly, word-to-word promotions also contributes greatly to the millennials’ customer behavior. The existence of social media provides a platform for millennials to share their experiences about some products they have used before. As a result, they can judge the quality of a product from its users firsthand, which increases their caution in buying that product. Companies need to engage with this particular consumer behavior by actively listening to the reviews of their customers.
Finally, millennials’ customer behavior can be used to a greater benefit if it is utilized accordingly. While the challenge of facing customer behavior is never particularly easy, companies need to adapt to this changing behavior nonetheless. Millennials has shown that both technology and their demographic group are the indisputable elements of the companies’ future. In the end, these results in companies’ continuous efforts to ensure their brands will keep on thriving in facing this brave new world.
That is why Know Your Customer (KYC) is a powerful tool in credit scoring proses in every business lines of financial industry. PROFIND was developed to be the E-KYC that will help credit scoring process to reach unsegmented and millennials market. PROFIND will process prospective customer’s secondary data from well known application such as ride sharing and e-wallet to define a potential market.