2. Communicating to Generation Y and Z:
Your Future, Your Business
Mandi McCoy, Senior Product Manager
DST Customer Communications
May 12, 2015
3. About Your Speaker
3
Ms. McCoy is responsible for
deploying address quality and postal
initiatives that drive down postage
costs, improve response rates and
extend customer loyalty and
profitability.
Mandi McCoy
Senior Product Manager,
DST Customer Communications
4. Agenda
✔ Who are Gen Y and Z?
4
✔
Generations Define Technology
Expectations
✔ Best Practices and Insights
✔ Peer-to-Peer/Questions
7. Who are Generation Y?
Also known
as Millennials
Between ages
20-35
82 million+
people
25% of the U.S.
population
Larger than
the Baby
Boomers
3X the size of
Generation X
Y # i %
> 3x
Tech savvy
http
Buying power
of $2.45+
trillion
$
7
8. Generation Y
8
Generation Y – The Now
Key Characteristics
• Highly social, networked with technology and personal
relationships
• They want technology to assist—not dominate– communication
• Peer-to-peer sphere of influence – make decisions based on
friend’s recommendations and opinions
• Environmentally and socially aware
• Most educated and diverse generation in history
• Adaptable and open to change
9. Who are Generation Z?
Also known
as Millennials
Between ages
20-35
82 million+
people
3X the size of
Generation X
Y # i %
> 3x
Tech savvy
http$
9 Source: Oracle
Also known
as Creators or
iGen
Under 20
years old
78 million+
people
~25% of the
U.S.
population
Multi-task
across
screens
1 in 4
volunteer
Z # i %
5
Technoholics
http#$
Buying power
of $44+ billion
10. Generation Z
10
Generation Z – The Future
Key Characteristics
• Culturally connected
• Communicates via images (emoticons, emojis, pictures, video)
• Entrepreneurial and independent mindset
• Prefers preference settings and control
• Lacks brand loyalty – will change brands in search of higher quality
11. 11
Generations Define Technology Expectations
Characteristics Generation Y
(1981-1995)
Source: Barclays
Formative
experiences
9/11 terrorist attacks
PlayStation
Social Media
Invasion of Iraq
Reality TV
Google Earth
Glastonbury
Economic downturn
Global warming
Global focus
Mobile devices
Energy crisis
Arab Spring
Produce own media
Cloud computing
Wiki-leaks
Attitude towards
technology
Digital Natives “Technology” entirely
dependent on IT;
limited grasp of
alternatives
Signature Product
Communication
Media
Communication
Preference
Preference when
making financial
decisions
Google glass, graphene,
nano-computing, 3D
printing, driverless cars
Hand-held (or integrated
into clothing)
communications devices
Tablet/Smart Phone
Text & social media
Online & mobile
(text messaging) Facetime
Maturists
(pre-1945)
Baby Boomers
(1945-1960)
Generation X
(1961-1980)
2nd World War
Rationing
Fixed-gender roles
Rock ‘n’ Roll
Nuclear families
Defined gender roles –
particularly for women
Cold War
Post-War boom
“Swinging Sixties”
Apollo Moon landing
Youth culture
Woodstock
Family-orientated
Rise of the teenager
End of Cold War
Fall of Berlin Wall
Reagan/Gorbachev
Thatcherism
Live Aid
Introduction of first PC
Early mobile tech.
Latch-key kids; rising
levels of divorce
Largely disengaged Early information
technology (IT)
adaptors
Digital Immigrants
Automobile Television Personal Computer
Formal letter Telephone E-mail & text message
Face-to-face Face-to-face ideally, Text messaging or e-mail
Face-to-face meetings Face-to-face ideally
Online – would prefer
face-to-face Face-to-face
Solutions will be
digitally crowd-sourced
Generation Z
(Born after 1995)
12. 12
Print and digital are not in
competition; they are
complimentary. And you will need
them both.
14. Best Practices and Insights
14
For the best response
rate, use a multi-touch
approach
Keep the conversation
going
Continuously innovate
products and services
15. Best Practices and Insights
Collaborate and Crowdsource
• Solicit input and ideas to come up with innovative products
the customer wants
• Content creators and users
15
16. Best Practices and Insights
There’s a Difference in Social Media Preferences
16
19. 19
• Both are actively engaged in making the world a better
place
• Promote community outreach both local and global
Social Responsibility
20. 20
Offer Repeat Incentives
Behavioral incentives
• Create a user experience that allows an interaction (coupons, scan
QR/augmented reality, etc.)
• 68% of Millennials (ages 18-24) and 75% (ages 25-34) react to
advertisements in print newspapers (including coupons)
- Newspaper Association of America
Loyalty incentives
• Send an incentive ‘just
because’ and let them
know they are valued
(Source Iron Mountain)
21. 21
Consider it now. With 160+ million
Generation Y and Z members, the
future is right around the corner—and
in some cases already at the door.
Question: How could some of these
concepts fit within your business model?
26. 26
Fun Facts about Millennials
ALMOST 8 OUT OF 10 MILLENNIALS SAY “PHYSICAL CARDS/LETTERS
MAKE THEM FEEL MORE CONNECTED TO PEOPLE THAN DIGITAL NOTES
(EMAILS, SMS, EVITES, ETC.) (source Iron Mountain)
87 PERCENT OF MILLENNIALS SAY THEIR SMARTPHONE NEVER LEAVES
THEIR SIDE (source Mobile Marketer)
80 PERCENT SAY THAT THE FIRST THING THEY DO IN THE MORNING IS
CHECK THEIR SMARTPHONE (source Mobile Marketer)
1 IN 3 MILLENNIALS WISH THAT NEARLY EVERY INDUSTRY WOULD
ADOPT MORE MOBILE IMAGING FUNCTIONALITY, SO THEY WOULD BE
ABLE TO ENTER INFORMATION BY SNAPPING A PICTURE (source Mobile Marketer)
27. 27
Fun Facts about Generation Z
Source: Marketo infographic, Generation Z Marketing’s Next Big Audience
52% USE YOUTUBE OR SOCIAL MEDIA FOR TYPICAL RESEARCH
ASSIGNMENTS
60% WANT THEIR JOBS TO IMPACT THE WORLD
25% OF 13- TO 17-YEAR OLDS LEFT FACEBOOK IN 2014
41% SPENDS 3+ HOURS PER DAY ON COMPUTERS
(NON-SCHOOL RELATED)
28. 28
Print and Digital Preferences
60 PERCENT OF MILLENNIALS SAY THE TYPE OF INFORMATION BEING
CONSUMED IS IMPORTANT WHEN CHOOSING PRINT OR DIGITAL (source
Omnipress)
86 PERCENT OF MILLENNIALS AGREE THAT THE WORLD IS MORE
CONNECTED THAN EVER, BUT STILL THINK THERE IS A PLACE FOR
PRINTED MATERIALS (source Omnipress)
MILLENNIALS WANT TRANSACTIONS AND ENROLLMENT PROCEDURES
TO BE FAST AND EASY (source Mobile Marketer)
29. 29
Interruption
Reaction
Heavy Users
Big Promises
Passive Consumers
OLD MODEL
Engagement
Interaction
Engaged Participants
Personal Gestures
Active Co-creators
NEW MODEL
Paradigm Shift for Engagement
Source: American Millennials, FutureCast
