Millennials drive Change in Retail

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2017 is the year Millennials overtake GenX; and it is a headache for retailers.

According to McKinsey Retail Report, it is going to be the year when Millennials will have more buying power than any generation ever. Almost 70% of them say they are influenced by friends’ social-media posts; 83% say they trust recommendations by friends and family.

Millennials increasingly discover products online before going out to shop.

68% research offers on-line before going shopping. Moreover, this generation spends more time on personal hand-held and wearable devices then any preceding one. “Who needs a computer if you’ve got phablet, iPad or Android smartphone?” You can read more on this here.

The need, then, is to create a seamless experience between on-screen and on-site shopping.

Fortunately, technology today offers several viable solutions:
  • Using smartphone for e-checkins, e-communication and e-engagement with shoppers and consumers, to blend the offline and online shopping experience. There are successful startups that offer such experience already.
  • Creating “virtu-real” formats to provide consumers with a more interactive retail experience, for example, through the use of virtual fitting rooms and augmented-reality zones. Burberry flagship store in London does exactly that.
Millennial consumers want to shop for experiences as well as products. They expect personalised interaction and offers. And through an App on the smartphone.
These changing shopping habits pose a real threat for traditional retailers and brands. However, as always, there are innovative ways to capitalise on these demographic trends. Startups like RLClub help business do it today… I suspect — this will become a new trend in marketing.

 

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New reality… #marketshift

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The news consumption game has passed a new milestone – social media outstripped TV according to the report, published @BBC.  The article is actually about the implications for propaganda and political campaigns.

However, this shift clearly has implications for marketeers and sales teams too.

Of the 18-to-24-year-olds surveyed, 28% cited social media as their main news source, compared with 24% for TV.

My teenage children do not consume TV at all… 0% (have a look here). So, whoever is trying to send a message to them via the most creative and ubiquitous (but traditional) TV add will heat no one. Not a single viewing. Millennials are like that — they feed on their personal gizmos. And they expect personalized and relevant content — delivered to them, intended for them – for the individual, not a data point in a target segment…

Social networks and respective mobile Apps on iOS and Android devises offer precisely that. No surprise they outstrip TV. It is a result and reflection of the demographic shift and it will only become bigger every year. 92% of teens report going online daily — including 24% who say they go online “almost constantly,” according to a new study from Pew Research Center.

These people are future customers. Are you working hard to change the comms strategy and processes in your business and to capitalize on this trend? You better be.

 

Chasing the change

I remember the days, when being a sales rep I had to pop into the office every morning before taking off to my customers to get my call list for the day, file the visit report form previous day and check the deliveries. All on paper! We did not have mobile phones and did not use email to communicate with customers. Fax machine was the technological edge.

For the last 20-odd years one cannot imagine sales and marketing operation without a Route Optimization software, CRM, Content mass management and delivery systems, etc. The world of these solutions, however, is very different today from what it used to be a couple of decades ago.

Traditional way of building information technologies for sales and marketing – define your business strategy, map out your business process, buy/build a solution that suits your strategy and process. Repeat in 5-10 years. This does not hold water any longer.

The pace of market change has accelerated dramatically. We no longer talk years – in sales and marketing business definitions and processes change continuously. So should the solutions do too. Continue reading “Chasing the change”