It’s often only the benefit of time that allows us to see how our predecessors have shaped the economic world we live in today. We can look back to see the impact of the hardworking ‘silent’ generation who were taught to be seen and not heard; the baby boomers who, by their very existence, demonstrated triumph in the aftermath of World War II; Generation X, the creators of the internet and ‘dot com boom’ rhetoric. And now; the Millennials; next up in the generational evolutionary process.
Adrian Alexandrou, account director at software company, Gentrack says it’s imperative that water service providers understand how to interact with this informed and shrewd generation. He says there will be no need to ‘look back’ to understand the Millennial impact because the catalyst of technology has allowed us to see the process in ‘real time’ and water businesses need to make sure they understand Millennials now.
Aged around 18 – 24 years old, at the moment, Millennials represent around 20% of the population and their influence is gathering pace. In The Observer (28.05.17) journalist Karen Kay states that Millennials are ‘turning the world of marketing upside down’. Meaning that the careers are catapulted by the kind of internet fame that has generated a whole new marketing genre.
So what does this say about Millennials? It says that with around 600 million + Instagram users worldwide (the preferred social media platform for the younger generation) social media influencers are advertising savvy and passing on this know-how to their followers.
Get personal
These followers need to be presented with a unique line of communication. Presenting service offerings to an already knowledgeable group of consumers requires companies to put time aside to get a comprehensive understanding of their behaviours.
This doesn’t mean reverting to the ABC1 classifications from your marketing text book or fragmenting your database into age groups. Although there will always be a role for socio- demographics to play in customer relations, today’s profile and behaviours are more colourful and ambiguous.
Personalising offers will help marketing-aware groups feel more open to communication, so adopting a below-the line marketing approach to engage customers means both engagement and interaction resulting in a high functioning relationship with measurability to boot.
Variety is nice, on a device
Millennials want choice, they want to see multi-product and service offerings that put them in the driving seat of their own services. Real-time marketing messaging and processing should form part of the marketing plan for water companies, customers who are able to switch more rapidly are likely to opt for your services.
As the Internet of Things, explodes globally, so do the opportunities for better customer relationship management. According to Intel, there were two billion smart objects in 2006 and it is predicted that by 2020 there will be 200 billion objects, accounting for 26 smart objects per person on earth.
The opportunity for frictionless commerce is also presented with the Internet of Things which uses data from devices and websites to provide buying opportunities to consumers as simply and easily as possible. This way of buying will become second nature for Millennials who have been brought up in an era of contactless payments and devices.
More connected devices in the future and the increased use of Artificial Intelligence in the home means more information is available to consumers, equalling more informed decisions and more data available to businesses means more informed marketing, resulting in the opportunity for further customer nurturing.
Millennial psyche
Engaging on Millennial’s terms is the lynchpin approach to success for water companies. So, as well as leveraging the technology available, providing access to data and information and understanding buying behaviour, companies will also need to understand the Millennial psyche.
In part, this will mean having an active role in water and waste service sustainability and community-based water initiatives. Sustainability and the environment are big drivers in the decision making process for Millennials, so being able to communicate these messages effectively should be a major part of your customer relationship management strategy.
Demonstrating the availability of simple, yet rapid sign up processes for new connections will also hold weight for water supplier customers who value their time as well as their finances.
By incorporating these tactics water companies are presenting the Holy Grail to Millennial consumers; choice. It is what Millennials know, understand and expect.
Water 2020
In addition, as Water 2020 approaches, the challenges of resilience, affordability and climate change addressed within it are drawing closer for water providers. Customers will expect service standards to improve and bills to be lower and it is imperative that companies listen to Millennials on the issues important to them.
As a socially aware group, Millennials want to hear what companies are doing to address the community and environmental issues that are important to them. As with sustainability, this dynamic within an organisation is more important to this generation than their predecessors and companies need to pay attention to these emerging needs.
More change afoot
Water providers need to adapt to a market that is changing more fundamentally and frequently than ever before. Predictable change, such as a new set of price review objectives, Water 2020 and the potential and possible slow move into a deregulated domestic market are one thing, but a sea change brought about by consumers raised on a digital diet changes the very nature of how we do business. Adapt to it, plan for it, remain agile and be prepared for Generation Z.
Check out www.gentack.com for more information.
