Sophie is 27 years old. Two weeks ago, she wanted to straighten and colour her hair but wasn’t sure of which hair salon to go to. After trying several places that left her with damaged hair, she wasn’t prepared to risk anything. So Sophie started looking on the internet.

 

The salon websites that looked like b-grade school projects were immediately ignored. A couple of quality sites impressed Sophie so she looked for reference of them in blogs and chat rooms. She eventually chose a hairdresser based on the reams of positive blog comments posted by former customers who had also either had their hair straightened or coloured.

 

Sophie’s story gives rise to increasing importance of using social media to reach Generation Y. However, there’s more to Y than meets the eye. Businesses of all shapes and sizes should keep up or risk missing out on one of the biggest and most influential consumer groups in history.

 

Aged between 16 and 30 years, Y is the digital generation. From mobile phones, iPods, digital cameras, internet to gaming consoles and much more, Gen Y uses digital technology to connect with others, stay up to date and to express themselves.

 

Positive economic conditions during their upbringing have led to their optimistic views about money, career and their future. Thus, no other generation has had such a propensity to spend.

 

But before we dismiss them as spoilt and self centred, consider this; the three major motivating factors for this generation are personalisation (referring to the ability to customise, control or have a direct impact on aspects of their lives and the world around them), self expression and community.

 

For Gen Y, money does not equate to wealth. They seek urban capital; the accumulation of social wealth in the form of experiences, knowledge, skills and social connections. It is urban capital that shapes their sense of identity, individualism and value. This explains their inclination for travelling, going out, communicating with gadgets and spending ever increasing amounts of time on the net.

 

Furthermore Generation Y has a strong social conscience, being knowledgeable and upholding ideals on issues like climate change, poverty and the role of corporations in society.

 

In short, Generation Y are influential trendsetters, big spenders, are eager for change and are our future leaders. This is why businesses are tripping over themselves to capture this lucrative market.

 

Unfortunately many small businesses are struggling in the attempt to understand and keep up with them, lost in the complex weave of Gen Y’s prevailing attitudes, behaviours and needs which affect their reactions, lifestyles and purchase decisions.

 

Alternatively, some small businesses choose to ignore these factors altogether, instead pursuing their own agenda based on intuitive information.

 

This ‘stab in the dark’ approach seldom yields the desired results, disappointing many companies by wasting resources and money as well as peeving off the Gen Y clan. In extreme cases, this approach can even lead to consumer backlash.

 

Using consumer trends in the development of your marketing plan enables you to feel confident that your business is heading in the right direction and that each marketing strategy will hit the mark.

 

When trying to tap into the Gen Y market, take into consideration these trends:

 

 

1.  The best of life

 These wealthier and savvier consumers use premium goods and services as one source for urban capital.  Observant businesses are picking up on this and are innovating around premium versions of everything we could ever want.

 

2.  The best value

 In today’s fast moving world we are finding consumers with more money and less time.  The value of a product or service is becoming much more important than its cost, and clever businesses are capitalizing on this need.  These operators are finding ways to assist their customers in smarter, more relevant ways that show a new value to the product and engage with the brand.

 

For example, iselect.com.au is a site that takes the hassle out of searching for the right health insurance, creating convenience, quick comparisons and hence value for the user.

 

3.         Staying connected

Paramount to building social wealth is regular interaction and exchanges with peers, thought leaders, friends and interest groups.

 

It is hard to ignore Gen Y’s connectivity. The usage, power and spread of their friendship groups, or social network, is music to the savvy business owner’s ear.

 

It is recommended that you seek professional advice. If you require more information or assistance with your marketing, please contact Australian Business Marketing Services on 1800 505 529.

By Vanessa Tsui