Companies’ revenues at risk through not understanding Gen Y

Companies are having trouble keeping up with Generation Y consumers, according to a recent article on Silicon.com.

This is a worrying fact for some companies as it is these Gen Y consumers that are increasingly setting the technology agenda and becoming a vital audience to reach in determining which products and services will succeed in the tech space.

Gen Y consists of 18- to 28-year-olds who are leading the way in technology adoption and are the most internet-savvy group, spending more time online than they do watching television.

Charles Golvin, principal analyst at Forrester Research said Generation Y is the audience companies are most struggling to understand - a key issue due to their importance for future revenue growth.

Gen Xers (aged 29 to 42) also use technology extensively but more when it intersects with a personal need or fulfils a desire. “Generation X uses technology when it supports a lifestyle need whereas tech is embedded into everything Gen Yers do making them the first "native online population.”

These “digital natives” often haven’t experienced life without the internet, mobile phones and other relatively new technologies and therefore need to be addressed as such. For example, they will be comfortable with a variety of technological terms and won’t need a new concept to be explained in as much details as Gen Xers would.

Another example comes from a client event that we recently attended. The room was a mix of Gen Y and Gen X media commentators and there was big difference in how they both subscribe to the media. Broadly, Gen Y graze and read whatever grabs their attention. Gen X subscribes to chosen feeds which they go back to over and over. What does that spell for PR and how it needs to feed this grazing and this subscription habit? I think we’re all still learning.

With this in mind, it is important that companies get advice on how to understand this new breed of tech-savvy consumers. Otherwise, it will be the Gen Yers revenue that grows while companies that fail to address this issue will see their own revenues drop.

Cross-posted to the Hotwire Interactive blog.

Also posted on puddingrelations.blogspot.com