Y consumers make a big splash (part two)

Let’s be honest. There are few forms of marketing that can out command word of mouth and nothing facilitates this better than connectivity. Connectivity means that the typical Gen Y can never have too many friends, too many interactions or share enough knowledge and experiences. Hence the avalanche of social media websites like Facebook, YouTube, Flickr and Twitter.

 

A recent study by Compete Inc, found that for over 71 percent of social media users, user generated content (ie. the opinions of peers on social networking sites) had a greater influence on their purchasing decisions than information from brand advertisers and marketers.

 

Social media refers to channels and tools within the web that are driven by users to facilitate creativity, interaction and information sharing in real time. Also known as social networking, examples include blogs, podcasts, vodcasts, file sharing and sites like Wikipedia.

 

What’s the big deal? Social networking is free, provides easy ways to access Gen Y, facilitates word of mouth marketing (let’s not forget viral marketing!) and its statistics are impressive.

 

Let’s look at Facebook as an example.

 

This social networking site is setting the hearts and minds of marketers on fire. 250,000 new users join daily, adding to the already existing 53 million active users. Facebook users spend an average of 21 minutes a day accumulating friends, creating and joining groups, posting comments, tagging photos and much more. This is astounding when you realise that the average time spent on most websites is a mere few seconds.

 

Maybe this is why Microsoft paid $240 million for a 1.6 percent stake of the action?

 

Aside from the potential to reach a lot of people, the real benefit to business is the ability to do so with greater cost efficiencies, creativity, personalisation, real time results tracking as well as an ability to test and tweak campaigns at a minute’s notice. Users can develop a more meaningful relationship with your product, service or brand and even contribute to its development.

 

STA Travel successfully capitalised on this in a recent campaign involving widgets; downloadable interactive tools that provide up to date information. In this instance, the STA Travel branded widgets enabled users to share their travel experiences on their desktop, Facebook page and blog.

 

This masterstroke of genius was beautiful in its simplicity.

 

By developing the widgets, the company made it easier for Gen Y travellers to tell friends about their wonderful travelling experiences. In doing so, the travellers were inadvertently doing the promoting for the company whilst also creating an air of credibility for the brand. Simultaneously, STA Travel was also seen as adding value to the Gen Y lifestyle by giving them the tools to enhance their connectivity. This is word of mouth marketing at its best. 

 

5 golden rules for Gen Y marketing:

 

1. Entertain them

This consumer group likes to share experiences and gain urban capital, so why not drill down to what they truly find interesting. Amusing emails are forwarded onto friends because people want to be seen as the “funny one” or music gig invites are sent around because they want to be perceived as being on the ball with what’s happening socially.

 

An example of an entertaining campaign is Dr Pepper’s “Cherry Chocolate Rain” video on YouTube.

 

This viral marketing video is a comedic sequel to Tay Zonday’s popular music clip “Chocolate Rain” and has since had over four million viewers world wide in only four months. Dr Pepper just paid for the video production, posted it on YouTube at no cost and let the viewers spread the word for them via blogs, email and chat rooms.

 

2. Don’t try to be something you’re not

Businesses must be authentic, true to their claims and earn the respect of the Gen Y crowd or face consumer backlash. We live in a world where information flows freely, so consumers are far more savvy and critical. Remember, if “Cherry Chocolate Rain” could spread to millions in a blink of an eye, then the same is true for negative communications too. 

 

3. Put them in control

Give them the tools to choose how they interact with your business, to shape your brand and to promote your business to their friends.

 

4. Niche is the new mass

These days, the web enables you to cost effectively approach markets that were before seen as too small for the high expense of traditional media.

 

Whether you’re a makeup artist, hairstylist or nail technician, why not look for new kinds of customers?

 

Rather than targeting the bigger end of the market where every over competitor is likely to be trying the same thing, why not appeal to smaller sub-groups? This means your messages, offerings and communication channels used are being specifically aligned with a better defined group, bringing you closer to hitting the bulls eye.

 

5. Leverage the power of networks

Take advantage of Gen Y’s connectivity and digital media usage to access their social networks. Word of mouth marketing and viral marketing can be very inexpensive and highly effective ways of spreading your message.

 

In short, savvy business owners from all industries should consider the lucrative possibilities of the Gen Y market. This high spending, trendsetting group can even do the promoting for you!  However, trying to reach the complex youth of today requires some careful planning, taking into consideration the factors that affect their lifestyles, attitudes and purchase decisions.

 

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