Millennials also referred to as Generation Y is the section of the population that comes after the generation referred to as X. They have no particular date of commencement or cessation although demographics place them between the early 1980s to early 2000s. Owning a home is a remote possibility for them, and they are scarcely fascinated with what is regarded as a transitional period in life where teenagers learn how to drive.
The Millennial Generation Loves Adventure
So if millennials are not investing in property or purchasing cars, what do they spend their money on? There are two key areas where the (YOLO) You Only Live Once generation eagerly uses their resources. This generation is very happy to travel, and this is a fixation that has become profoundly rooted in their conceptualization as a priority for them. Typically, they are well traveled and are invariably looking for the next adventure.
The Millennial Generation and Challenging Experiences
Secondly and even more curiously is that their perspective about traveling is very divergent to that of their predecessors. A greater majority of them travel in search of eccentric encounters and escapades. When they get to their destination, they prefer to spend more of their time where the locals love to hang out, look for dishes that are genuinely local and will choose eccentric and sometimes demanding experiences.
Differences in Generations
Their attitudes are driven more by the desire to make memories and share experiences, and this has given rise to the new economy that is now referred to like the experience economy. They prefer to spend their time and resources on experiences and events. This is as contrasted to the older generation that has a mindset that prefers the culture of materialism and consumerism.
The Rise of the Experience Economy
The millennial generation has opted to buy experiences and preferred to collect moments and not things. The way they behave has given the economy a new definition known as the experience economy. For them, it is more adventurous to look forward to new experiences rather than to look forward to new things. The classical economy looked at utility instead of usability. It looked at products and services instead of looking at experiences.
New Trends in the Experience Economy
In the new economy, the key to reaching customers is not found in utility and the satisfaction gained from consumption. To get to a customer, there is a need to look at usability. The outcome of the experience is more important than the feelings derived from the experience. This is a new development that is affecting global trends in marketing. Consumers are looking for distinctive, impulsive and immersive experiences. They are seeking skills that are multisensory and do not want to be limited in time and place. In the experience economy, consumers are looking for experiences that are distinguishable and sharable.
What’s Propelling the New Economy?
Certain ingredients are making the new economy to move in a specific direction. New technologies are notably energizing new types of experiences, and social media is a very strong driver of this direction. While millennials are not moved by material things, they are fond of sharing experiences. To millennials, documenting their experiences and then sharing these experiences with friends is important. Tweets and posts have taken center stage, and it is now possible to share experiences in real time. Today’s social environment has moved into a new platform that is multifaceted where people share and engage.
The Experience Economy and Business Strategy
With the shift turning to experience in the new economy businesses need to sit down and take notice. Perspectives must shift as well, and businesses must look for ways to give their customers a richer and more engaging experience. A company that cannot offer this is putting brand loyalty in the line. Customer retention will depend on the ability to adopt new ways in the new economy. If changes do not happen, any business is letting competition walk right through the front door to take over. The new economy is one that can be disrupted suddenly by a new approach, new features, a new way of doing something or engaging customers. Businesses must look for new approaches to communicating with customers. In this new economy, the focus must be placed on building and growing customer relationships through new experiences.
Changing the Gears of Business Focus
Today’s business environment is like a car that is in motion that has to shift gears suddenly. It might be jolted into a different motion, but it will move into the new gear and pick up again. Businesses that will not do this risk driving into headwinds instead of tailwinds. A tremendous shift is taking place that is affecting lifestyles and spending habits. What businesses have put in place to grow their brands might no longer work. The current generation of consumers is exceptional and progressively wants to know how your business can enrich their experience. Every business entity must become innovative and must habituate into the new economy. This is the only way to meet the dynamic needs and demands of today’s consumer. The consumer will not be moved by what is communicated. Rather, they will be moved by what they feel when they engage with a brand. They are looking for unique and immersive experiences and brand that do not offer that risk getting driven out of business.
Technology Can Help Actualize Memorable Experiences
In today’s business environment, it helps to apply technology in bringing about memorable moments to the customer in the experience economy. There are numerous amazing examples of disruptive innovations that have created new markets and displaced the existing business order. Customers are looking for a more personalized and immersive experience. It is no longer what you say or does that matters. It is how you make your customers feel. Businesses that want to be a success in the experience economy must develop brands that are valuable, involving, authentic and relevant. Products and services must come to the people wherever they are. Today’s audience is increasingly becoming sophisticated, is more discerning than the previous generation, and must be satisfied through actual memorable experiences.