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White Paper on Millennials and Instant Gratification

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Aa a trend essay about Millennials, I did research using sites like Pew Research Center and analyzed the data to identify a connection between young people and instant gratification. With that information I saw brands like Uber and Amazon use their knowledge about Millennials to thrive in a dynamic marketplace by building a relationship with these consumers that is tailored to what Millennials want.

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White Paper on Millennials and Instant Gratification

  1. 1. THEY KNOW WHAT THEY WANT AND THEY WANT IT NOW MILLENNIALS AND INSTANT GRATIFICATION A WHITE PAPER ALLISON SCHMOCKER
  2. 2. Table of CONTENTS INTRODUCTION…………………………………………………………………3 Defining Millennials..........................................................................................................................................4 Who's Got It......................................................................................................................................................6 Amazon.................................................................................................................................................................................................6 Uber......................................................................................................................................................................................................8 GrubHub.............................................................................................................................................................................................. 10 FINAL THOUGHTS…………………………………………………………...…11
  3. 3. INTRODUCTION Millennials are known for being impatient, but these digital natives are set to be the largest consumers in the market. Knowing how to market to them is a trick a few companies already have insights on. Using them as an example, we will help you better understand millennials and get them in your corner. We will be using research and data from sources like the Pew Research Center, along with some first hand information as well.
  4. 4. DEFINING MILLENNIALS Millennials, Generation-Y, Generation Next. This generation seems to have as many stereotypes as names. Understanding the people behind the numbers is key to marketing to this demographic. They were born in the 80s and 90s and have come to age in the new millennium. They have been described as impatient, lazy, and arrogant. That isn’t always the case. With 75.4 million Millennials, there is bound to be variation. However, research has found that there are some major misconceptions. They are known as digital natives, growing up with phones and computers. According to a Pew Research survey conducted in 20091 , more than 80% of Millennials surveyed said they sleep near their phones in order to stay connected at all times. At the same time, they are conditioned to having all the information they could ever need right at their fingertips. Expecting immediate results is often seen as being impatient but is rather a result of a fast-paced lifestyle. In conjunction with a high level of immediacy, researchers found that 80% of Millennials want immediate feedback from their bosses2 . Our survey found mixed results. Perhaps it is more of a personal preference, but one thing is for sure: constant communication is important to this connected generation. Only 41% of Millennials are employed fulltime, a significantly smaller number than Gen-X (54%) and Boomers (65%)3 . To some, this low number can be perceived as laziness, but in actuality, it is a result of the recession from 2008. Fewer jobs mean fewer employed. Young people graduating college during tough financial times are more likely to suffer long- term consequences as a result4 . 1 Pewresearchcenter. "Millennials a Portrait of Generation Next." (n.d.): n. pag. Pew Research Center, Feb. 2010. Web. 2 Kiisel, Ty. "Gimme, Gimme, Gimme--Millennials in the Wokplace." Forbes. Forbes Magazine, May 2012. Web. Oct. 2016. 3 Pewresearchcenter. "Millennials a Portrait of Generation Next." (n.d.): n. pag. Pew Research Center, Feb. 2010. Web. 4 Lisa B. Kahn. “The Long-Term Labor Market Consequences of Graduating from College in a Bad Economy,” Yale School of Management, Aug. 13, 2009 (forthcoming in Labour Economics).
  5. 5. Millennials like to buy, but at a discount. In 2009 55% of Millennials said they were watching their money “very closely” which is an increase from the 43% in 20065 . This is a trend we still see today. One of the most prominent ways we see this is in the trend of Thrifting. Between 2010 and 2011, there was a 7% increase in the number of thrift and consignment stores6 . According to eMarketer, Millennials cut more coupons or download them on their phones than any of their older generations. So basically, Millennials are always looking for the best deals. Keeping the personality of Millennials in mind, some companies are really killing it. We’ll take a look at how they’re doing it and how you can follow their lead. 5 Pewresearchcenter. "Millennials a Portrait of Generation Next." (n.d.): n. pag. Pew Research Center, Feb. 2010. Web. 6 "Millennials Thrift Instead of Buying New." Homepage. N.p., 7 Jan. 2016. Web. Oct. 2016.
  6. 6. WHO’S GOT IT AMAZON Amazon is more than just a retail site. It is a Millennial dream come true—or at least close. According to a survey conducted by w00t Media in 2013, Millennials ranked Amazon at number one for their “most liked” tech brand (see Figure 1). The question is what is Amazon doing that sets them apart? We’ll look at at how they use advertising, the thrifty side of Millennials, and their desire for instant gratification to beat the competition. According to a 2013 report done by eMarketer, Amazon made $610 million that year in net ad revenue7 . They also estimate more than a billion dollars in revenue today. The majority of Amazon’s ads were placed near or around search engine results of products. Millennials are also the most likely generation to click on online ads. Combine all of these elements and it is clear how Amazon uses advertising as an ally. If Millennials are constantly looking for the best deal, giving them a site that allows them to compare prices and get the cheapest option all in one area makes Amazon a clear winner. The added features of Amazon Prime and the Dash Buttons make it even easier and faster to shop online. Amazon Prime’s biggest feature is the two-day shipping to most Millennials. Amazon even offers a student version of Amazon Prime that is cheaper, but still let’s 7 "Amazon Earned Over $600 Million in Ad Revenue Last Year - EMarketer." Amazon Earned Over $600 Million in Ad Revenue Last Year - EMarketer. EMarketer, 04 June 2013. Web. Oct. 2016. Figure 1 taken from Adkins, Alyssa. "Why Amazon Is Killing It with Millennials (and Advertisers)." Why Amazon Is Killing It with Millennials (and Advertisers). N.p., 10 June 2013. Web. Oct. 2016.
  7. 7. students get what they want in just a few days, free of charge—sort of. Prime Student still costs $49 after the one-year free trial. The Dash Buttons feature is fairly new and appeals to those who frequently buy the same things on Amazon. You have to buy a button to use it. After that, you click it when you want to purchase that item and they will automatically purchase the item through your existing payment method and send it to you without you doing any further work8 . The combination of these two features is a recipe for Millennial brand loyalists. Easy, cheap, and quick, Amazon has established itself as the ultimate meeter-of-Millennial-needs. 8 "Manage Your Dash Button Settings." Amazon.com Help:. Amazon, n.d. Web. Oct. 2016.
  8. 8. UBER “The Zipcar and Uber Generation” is yet another nickname given to Millennials9 . In 2010, Millennials made up 30% of the population but purchased only 17% of the new cars. This gap is partially a result of ride share trends and a decline in young people getting their drivers licenses, but the main reason for the lack of Millennial car owners stems from a poor economy. One other feature associated with Millennials is debt. And lots of it. Debt and cars don’t exactly go together when you’re a young recent college graduate wearing clothes from a local Goodwill. An article from Forbes in spring 2016 claims that Millennials hardly care about cars at all, seeing them only as transportation. Uber has come out of Europe to be one of the most favored and popular brands in America through ownership. Targeting a generation who desires to experience, Uber has made a powerful company on the idea that they are “for the people, of the people, by the people10 .” Millennials have been switching from cable to streaming at a fast pace to meet their on-demand, immediate lives, and Uber is ride right along, taking advantage of the new lifestyle of the largest demographic. One of their biggest draws is the way they are available for Millennials unlike traditional transportation; They satisfy an instant gratification by arriving in just minutes, almost anywhere. Everything is done on the phone which most Millennials already have in their hands anyway. Uber maintains a strong online presence especially on Twitter. They post relevant content, often encouraging their personal relationship with their users. During notorious party nights, Uber, its drivers, and its riders post to social media free rides to help prevent accidents and keep everyone safe. Flu season is full of images encouraging getting a flu shot, but Uber takes it a step further. They offer free flu-preventing care packages and the option to receive a flu shot from a registered nurse for the individual or up to five friends11 . Not only are they enticing Millennials through experiential and personal giveaways, but also through making positive life decisions just a tap away. 9 Godfrey, Neale. "Will Millennials Just Uber Their Life?" Forbes. Forbes Magazine, 22 May 2016. Web. Oct. 2016. 10 Fromm, Jeff. "Secrets To Win With Affluent Millennials: Uber, Bose And Brands Getting Traction." Forbes. Forbes Magazine, 2 Nov. 2015. Web. Oct. 2016. 11 @Uber. "Let's Take Care of Each Other." Uber Global. Uber, Oct. 2016. Web. Oct. 2016.
  9. 9. Uber Eats is a relatively new feature by Uber that takes the immediate service and expands it to food. They advertise bringing local food to you quickly, and all-inclusive—meaning you don’t have to worry about tipping because they already have that covered in the bill12 . It’s available as an app, making it very Millennial friendly. Prior to launch, Uber Eats made personal relationships with its partners a top priority. They established exclusivity and use delivery via real people to build the same ownership, connected feel that Uber became so successful on. At first, they were a part of the same Uber app which helped draw in young people through ease. Later Uber Eats separated into a different app in order to accommodate a larger audience. They maintain the low costs of deliveries to fight competitors and bring in more Millennials. Food delivery has become a huge part of Millennials’ eating habits. Uber Eats isn’t the only one trying to get in the bellies of young people. 12 "UberEATS Chicago." UberEATS. Uber, n.d. Web. Oct. 2016.
  10. 10. GUBHUB Anyone living in an urban environment has likely seen their ads lining the inside of public transportation or on the side of bus shelters. GrubHub, one of the first big name food delivery services, has done some good and some bad when it comes to Millennials. The increasing cost of their meals turns deal-hunting Millennials away. GrubHub captured 61% of the market in food delivery in 201413 , but their numbers have been steadily decreasing. Competitors like Uber Eats, Go Puff, Flavor, and more have been influencing sales with Millennials in the driver’s seats. While the food delivery trend is still very much alive, the old companies might not be for much longer. Expectations are changing for better or worse. Millennials are asking for things faster and faster. 56% of Millennials said they expect companies to offer same- day delivery14 . So getting food faster is definitely on the minds of Millennials. They also want more options and want them cheaper. In the land of instant gratification, the definition of instant is getting smaller and smaller. Business Insider did an experiment testing seven of the food delivery sites based on cost, delivery time, and the food in summer 201615 . The results were placing GrubHub at a solid number four for being relatively cheap and arriving in an acceptable amount of time. Uber Eats made it to number two for being cheaper and quicker. With so many options, Millennials are out to find the cheapest and quickest. Where they go, the market will too. 13 McGrath, Maggie. "Why Market Share Concerns Shouldn't Be Eating at GrubHub." Forbes. Forbes Magazine, 13 July 2015. Web. Oct. 2016. 14 "Delivery: Millennials Want What They Want, and They Want It Now." Homepage. N.p., 23 Feb. 2016. Web. Oct. 2016. 15 Carson, Biz, and Jullian D'Onfro. "RANKED: We Tried 7 Food Delivery Services to See Who Would Bring Us the Best Lunch." Business Insider. Business Insider, Inc, 24 July 2016. Web. Oct. 2016.
  11. 11. FINAL THOUGHTS Being impatient today is not a bad thing for Millennials. They know what they want and they want it now, and soon enough they’ll be able to get—instantly. Their desire for instant gratification is influencing the way companies interact with their consumers. As the largest generation today, they control much of the industry. Companies are finding ways to shift the way they engage. Following suit with companies like Amazon, using technology and immediacy to make the lives of Millennials easier and more fluid, your company can find new consumers and expand your audience. If you can’t deliver in two days, you can use Uber’s technique of ownership and personalization to tap into the experience-craving side of Millennials. Overall, the best way to reach them is in the palm of their hands. The use of technology comes second nature to Millennials and is something all of these companies have in common. Finding ways to adapt your company to the digital space will drastically increase your interest to younger consumers. Both Amazon and Uber use apps to make their information even more accessible. GrubHub and its competitors, like Uber Eats, take advantage of Millennials’ short attention spans to deliver interest and satisfy their need for instant gratification. You know how they do it, now go apply it to your own company. Technology and instant gratification are nearly one in the same—and Millennials agree. They are impatient, but for all the right reasons. In a hyper-connective world that is both fast-paced and instantaneous, Millennials are driving the markets and changing the way companies interact with them. They know what they want, where to get it cheapest, and how long is too long to wait for it. Our survey found an average of 12 days is too long to wait so perhaps they’re much more patient than we give them credit for. One thing is for certain, Millennials aren’t going anywhere, and with so many of them, the changes have only just begun.

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