the millennial tax: how generational buying patterns impact the way brands engage with customers |...

@michelfeaster |usermind.com

Michel Feaster@michelfeaster

@usermindinc

CEO & Founder of Usermind

How Generational Buying Patterns Impact Customer Engagement

The Millennial Tax


About Me

Apptio 2009-2012VP of ProductsFrom employee 17 to $80MM ARR

HPSW 2007-2009Led the $1.6B acquisition and integration of Opsware

Mercury 1998-2007Product management and presalesMichel Feaster

CEO & Co-Founder


The successful companies of previous decades are dying.

52%

of the Fortune 500

have disappeared

in the last 15 years

75

was the average

life expectancy

of F500 in 1955

15

is the average

life expectancy

of F500 in 2015



Why is this happening?

Spend $600 billion per year1

Cite price as more important than brand2

Prioritize experience over products3

Expect seamless, personalized customer interactions4

We’re in the largest generational buyer shift in decades. Millennials are radically different buyers.

1 Accenture 2 Goldman Sachs 3 Mary Meeker4 RIS, "Customer Engagement Tech Trends Study: The Personalization Imperative," Retail Info Systems News. [Online]

https://www.accenture.com/us-en/insight-outlook-who-are-millennial-shoppers-what-do-they-really-want-retail

http://www.goldmansachs.com/our-thinking/pages/millennials/

http://www.kpcb.com/internet-trends


Businesses who can’t understand this market segment and rapidly change to deliver customer engagement … will fail.

Millennials are the largest living population segment (79.8 million) — and will continue to be for 20+ years.

7581

6566

28

Millennial

Gen X

Boomer

Silent

Projected population by generationIn millions

Note: Millennials refers to the population ages 18 to 34 as of 2015. Source: Pew Research Center tabulations of U.S. Census Bureau population projections released December 2014 and 2015 population estimates. Pew Reseach Center


This is either a massive risk for your company — or a massive

opportunity.Millennials currently control $1.3T in consumer spending.

And will be the recipients of a $30T wealth transfer from baby boomers over the coming decades.5

5 Wealth-X Family Wealth Transfers Report @michelfeaster |usermind.com

http://www.wealthx.com/wp-content/uploads/2015/01/WealthX_NFP_FamilyWealthTransfersReport-2014.pdf


How can companies embrace this new reality?

Go direct to your customer — and own their data

Create a subscription business

Provide personalized service or experiences

1

2

3


Go direct to your customer — and own their data1


Get rid of the middle man


Leverage new channels to connect with customers

@michelfeaster

usermind.com


Differentiate on price

@michelfeaster

usermind.com


Create a subscription business2


Relationships > Transactions

In a world where brand matters less, how do you engage with buyers?



Historical customer data can be used to personalize new experiences


Provide personalized services and experiences

57%

60%

of millennials compare prices in-store6

think they usually know more about products than store associates do7

3

6 AIMIA Inc. “Born this Way: US Millennial Loyalty Survey” ©20127 Forbes, “Retail Tips From Salesforce On Winning With Millennials And Gen Z” ©2017

@michelfeaster |usermind.comb

Customer data = context in every interaction

@michelfeaster

usermind.com


Unified online and offline experiences



Unbeatable Price + Convenience= The New Normal


Companies that pay the Millennial tax will survive and thrive in today’s competitive

landscape.



How to do it:

Go direct to your customer — and own their data

Create a subscription business

Provide personalized service or experiences

1

2

3


Thank you. Questions?


the millennial tax: how generational buying patterns impact the way brands engage with customers |...

Marketing