
By John R. Hendrie
Look for the gurus, hire the wizards, retain the seers. Help us portend the future of our Hospitality Businesses. Oh, please do!
Every once in awhile, you find a source which brings the marketplace into play and provides some guidance - never the total answers but the indicators, trends, data and opinions which ring true for those of us who study the Customer Experience. Our business is about people - how to provide for their lodgings, meals, entertainment, recreation, shopping - the gamut, away from home. Our report card is how we delivered on what we said we would; was this done with respect, care, sincerity, honesty and the like. If we frame an Experience, we better provide the results expected.
We need to touch those various Generations out there who have very specific needs and biases, so we better study up and learn about those ever-changing dynamics. The February, 2012 issue of Customer Relationship Management magazine featured three articles about three very distinct Generations - all of whom we serve, some probably better than others. I would like to "borrow" many of the salient thoughts from each to help build a more complete composite of that Generation and Consumer. Certainly, from a marketing and business perspective, we may learn a few things to help us understand which each needs, what to avoid, and how we can better reach them.
Generation Y - The "Millennials", born between 1977 and 1994, numbering about 72.5 million. By the way, their spending power is almost $200 billion a year. So who are they: probably in their first job or unemployed, perhaps still living at home (their investment in the future), burdened by student loans and a fickle economy. They watched their parent's life implode - pension erosion, foreclosures, layoffs, etc.; they have decided to have fun. They rove about in tribes and admire Brands which are aspirational and inspirational in making a difference. Since they are so technically connected, they share everything, and word-of-mouth marketing is of utmost importance. These are children of the Cyber Revolution; the Internet and mobile devices, where everything is visual and contextual, are normal aspects of their lives. They seek Brands which are engaging and endorsed by their friends. You reach them through their various media. Did you know, Millennials dine out 3.39 times a week, in comparison to 2.54 for Generation X and 2.34 for Boomers. Order up!
Generation X - "MTV'ers", born between 1965 and 1976, numbering about 49 million. They are like an Oreo cookie, sandwiched between children at home and aging parents, which accounts for, in addition to the world "boom and bust" events in the last twenty years, some of their cynicism and self-reliance - no smoke and mirrors work here. They are also very connected, using technology to be informed, whether it be personal, business and most certainly shopping. This generation has a high number of women college graduates, who have entered and stayed in the workforce, therefore delaying marriage and offspring. The emphasis is on the balance between work and family. Additionally, a high number of immigrants are now in this grouping, and diversity is treasured. Gen X'ers have less income than predecessors, therefore tend to be more risk-averse, very independent and less trusting, whether it be government or Corporate America; they value honesty and transparency. The touchstones are family, diversity and honesty with the Internet as the window to their consumerism. They need a break!
Baby Boomers - born between 1946 and 1964, numbering about 76 million. No retirement plans for this crowd, and, until the housing market rights itself, they are stuck in their homes, worried about their pensions, health and life expectancy. Their Golden Years plans have been eroded. Priorities have also shifted or been abruptly disrupted where interest in material things has moved to greater interest in the ethereal - acquiring more experiences rather than more stuff. With their own mortality in the rear view window, this generation is looking at ways to retain the vitality of their youth - looking good, feeling good. Sixty is the new forty! This may be seen with their objectives in financial well-being, the physical (health, fitness and appearance), social interaction, mental stimulation and the spiritual sphere. Additionally, they have again embraced family, recognizing that their earlier engagements with their children might have been fragmented (half of all Boomers have been divorced once, and 25% divorced twice). Lastly, in the face of misconception, they are pretty well wired and engaged with Social Media, but just prefer to speak with a real person when making a purchase decision or solving a problem. Where is Ponce de Leon when you need him!
What have we learned from this wonderful source, Customer Relationship Management. For one, each Generation has its own quirks and definers. Secondly, the profiles can change quickly - just look at the Boomers and their economic realities. We have seen that all three are technology savvy and marketing must be driven in that direction. Remember what has happened when e-books hit the market - talk about a transformation of an industry with speed. We have seen that Consumers want authenticity and honesty and Brands preferably representing something good for society - deceit and fluff will be uncovered (and communicated) quickly. Lastly, it is all about engagement and relationships with the most successful marketing plans ageless, focusing upon the Experience.
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