Thursday, August 17, 2006
Generation Y - Is this your market?
I've written at length about the importance of knowing your target market. A very simple way to do this, at least for established businesses is to look at who your existing customers are. If you don't have records that display the age demographic, then it's time to start doing some sampling. If you find that your customers are in what's referred to as "Generation Y" then there are some things to consider.
The Internet is a powerful tool to reach customers who are 18 to 30 in the United States. Here in Bowling Green, KY, small businesses enjoy a significant market in this age range due to the explosive growth and existence of Western Kentucky University.
In a recent article on the American Marketing Association website, they published an article titled "The nation's 18- to 25-year-olds are positioned to have a major economic impact." Here is an excerpt:
The nation's 18- to 25-year-olds, known as Generation Y, live at the forefront of a fast-paced world connected by technology.
They shop. They spend. They surf the Internet and pay bills through their cell phones.
Gen Yers number some 60 million people in the United States. By most estimates, that's nearly three times the size of their predecessors, Gen Xers. And it makes them the closest rival to the baby boomer generation, which numbers some 75 million people.
The article goes into detail about how the big money advertisers are reaching and servicing this large segment of the market. In the end, the Internet is the tool of choice and from banks to pubs, companies are going to great lengths to provide more online services to meet the demand of their target market.
The article goes on to say that 80% of those 60 million customers are online every day.
A focus on Internet services may be well warranted.
Of 18- to 24-year-olds in the United States, 82 percent use the Internet every day, according to a 2005 Pew Internet and American Life Project study about teen and adult online habits.
That figure jumps to 85 percent with 25- to 29-year-olds.
Some analysts say the Internet is only the first step to attracting Gen Y and that financial institutions need to find a way to hook them while they're young and hope they remain faithful as the generation grows older.
It's more than just getting online. People of generation "Y" have high expectations from their websites. They want speed, features, and ease of use. They want the option to make their reservation, buy their products, contact support and/or ask questions. For many, (I venture most) in this demographic, no significant purchase will be made without first consulting the Internet.
Sure, I'm a web developer so this article definitely underscores the need for my services, but that's not my point. Whether you use Soky.net or not, you must face the fact that if your target market is young adults in the United States, you would do well to consider making an investment in your online presence. Just like the attention you give to servicing your customer at your shop or office, you should consider it equally important online.
A friend of mine has a company whose market is squarely within the 18-30 demographic. His products and services are tailored for this group of people and his website is so bad that I suggested that he take it off line. Since he is a friend, I didn't try to pitch him or gain him as a client, but I did do my best to express the importance of his online presence without coming off as though I was trying to get in his wallet.
The fact is, if your website is out of date, has broken links or images, includes obsolete information and you are marketing to the gen Yers, you are doing much more harm than good because these people will make significant judgment on your business based solely on the lack of professionalism displayed online.
That's just the way it is. From newspapers to mechanics, small businesses would do well to consider the appearance of their company online, especially when trying to reach the younger third of our population.
That's how I see it, what do you think?
