Home' Hospitality Business : HB DEC 2016 - JAN 2017 Contents FOOD FOR THOUGHT
Restaurant Association NZ
Marisa Bidois - Chief Executive
HOW TO CONNECT WITH THE
TRENDSETTING POWERFUL CONSUMER
In his two outstanding presentations at the recent Hospitality
Summit keynote speaker, Chris Lucas spoke a lot about the
“power consumer”. These consumers are young, prepared to
spend money and eat out often. They are bored by traditional
brands and are looking for something cooler...essentially the
new power consumers are millennials.
We’ve had a lot of discussion over recent years about
millennials in the workplace, (as employees), but not so much
discussion about millennials as customers. According to
Chris, millennial customers are highly influential over older
generations and are trendsetters across all industries, from
fashion to food, making them a force to be reckoned with.
Hospitality business owners need to learn what pushes these
customers’ buttons and cater experiences that attract them to
their businesses – baring in mind that traditional advertising
methods will be ineffective in capturing their attention.
Millennials want something new, they want it more often and
there are profound implications for those that fail to recognise
this sector of societies’ worth.
We share with you the top 10 findings from a recent
study produced by American company Elite Daily on the
1. THEY ARE NOT INFLUENCED AT ALL BY ADVERTISING
Only one percent of millennials surveyed said that a compelling
advertisement would make them trust a brand more.
Millennials believe that advertising is all spin and not authentic.
That’s why they will avoid banner advertisements on Facebook
and various news websites.
2. THEY WOULD RATHER BUY A CAR AND LEASE A HOUSE.
Seventy-one percent of millennials would rather buy than rent a
car, whereas 59 percent would rather rent a house than buy one.
Sixty-one percent admit that they cannot afford a house. The
economy has had a major impact on millennials, many of whom
still live with their parents, have crushing student loan debt
and are underemployed. Since they are getting married, having
children and getting decent paying jobs later in life, they are
putting off owning a home. A car is cheaper and they need one
to get around if they are still living in their parents’ basement.
3. THEY REVIEW BLOGS BEFORE MAKING A PURCHASE
Thirty-three percent of millennials rely mostly on blogs before
they make a purchase, compared to less than three percent for
TV news, magazines and books. Older generations rely more
on traditional media, whereas millennials look to social media
for an authentic look at what’s going on in the world, especially
content written by their peers, who they trust.
4. THEY VALUE AUTHENTICITY AS MORE IMPORTANT
Forty-three percent of millennials rank authenticity over
content when consuming news. They first have to trust a
company or news site before they even bother reading the
content that the source produces. Blogs are meant to be
authentic and many of them are run by a single individual.
Millennials connect best with people over logos.
5. THEIR FUTURE INHERITANCE WON’T CHANGE THEIR
Despite the billions of dollars of inheritance that it is predicted
will transfer from baby boomers to millennials in the upcoming
years, 57 percent said that the money won’t change their
spending habits. This is surprising because most people would
think that this money exchange would make millennials spend
even more, yet the surveys’ findings report that it won’t have an
6. THEY WANT TO ENGAGE WITH BRANDS ON SOCIAL
Sixty-two percent of millennials say that if a brand engages
with them on social networks they are more likely to become
a loyal customer. They expect brands to not only be on social
networks but to engage them. This obviously takes more labour
from companies to be able to maintain social networking feeds
but it is worth it if you want to reach millennials.
7. THEY WANT TO CO-CREATE PRODUCTS WITH COMPANIES.
Forty-two percent of millennials said they are interested in
helping companies develop future products and services. In
our society companies usually create products and hope that
their target market will consume them. When it comes to
millennials they want to be more involved with how products get
created. Companies that enable them to be part of the product
development process will be more successful.
8. THEY ARE USING MULTIPLE TECH DEVICES.
Eighty-seven percent of millennials use between two and
three tech devices at least once on a daily basis. A further 39
percent are either very, or completely likely to purchase a tablet
computer in the next five years. When there’s new technology
available, you can bet that the millennials will be all over it! In
order to keep your brand relevant and appealing to millennials
you need to be able to engage them on new platforms as they
10 | December 2016 - January 2017 | Hospitality BUSINESS
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