Conquering the Millennials, the Most Potential Target Market

Millennials or Gen Y start to hold sway in Indonesia. Members of this generation, who are currently 18-35 years old, are the main players and at the same
Millennials
or Gen Y start to hold sway in Indonesia. Members of this generation, who are
currently 18-35 years old, are the main players and at the same time the most
potential target market. However, conquering Gen Y is no easy task.
They
are a generation that dominates the Internet. About 49.52% of Internet users in
Indonesia are 19—34 years old, according to a 2017 survey by the Indonesian
Internet Service Providers Association (APJII). The level
of Internet penetration among this age group is as high as 74.23%.
Another
survey, held by Google Consumer Barometer, listed the activities of Gen Y while
surfing the Internet. As many as 86% said that they looked for entertainment,
while 68% claimed that they used the Internet as an information source.
It
is no wonder that Gen Y is more Internet savvy and records higher digital
consumption. However, this insight is not enough to conquer Gen Y. Brands have
to take a deeper look at Gen Y’s lifestyle, consumption pattern, and financial
priorities.
A Kompas survey titled “Indonesian Millennials: We Want to Own a House” revealed that
Gen Y is actually still fond of saving. As many as 68% of them put aside part
of their income for savings.
While
in terms of expenses, it turns out that 66% of Gen Y preferred to spend their
money and time for vacation. About 30% said that they preferred fashion, while
25% chose to hang out.
Persuading Gen Y
The
question now is how to win the hearts of Gen Y? Even though they are a
potential market, Gen Y is considered less loyal to brands compared to their
predecessors.
A
2017 research by Bridge.over focusing on hotel preference confirmed the
statement. Up to 70.2% respondents said that millennials have low brand loyalty.
However,
we can take the news as a positive message. It means that all brands have the
same chance to persuade Gen Y to try using their products. They might later
turn into loyal customers that will recommend the products to friends and
relatives.
That’s
why brands have to reorganize their strategy to coax Gen Y. According to
Prasetiya Mulya University lecturer Suherman Widjaja, the most important thing
when entering e-commerce is observing the process of online product purchase by
consumers. The process begins with the desire or intention of buying.
As
cited from Marketing magazine
February 2018 edition, he elaborated the three factors that give rise to desire;
they are the value of perception gained from trust, perceived risks, and
valence of experience.
Trust
can be gained when consumers have previous experience of using e-commerce
websites or platforms, while perceived risks comprises various risks that might
arise due to product purchase, for instance time risk, financial risk, and security
risk.
Meanwhile,
valence of experience is made up of three important elements. First, the convenience of accessing
service any time without having to leave the house. Second, the quality of the website that is easy to understand,
offers relevant information, and is relevant to one’s needs. Lastly, the ease of access when
consumers are choosing products or services.
By
refining the touch points in each purchasing process, brands can gain added
value to make Gen Y consumers do repeat purchase. For instance, to sell travel
products or services, the brand must provide easy access to online booking.
The
same principle is applied by TRAC, a subsidiary of PT Serasi Autoraya (SERA) that
offers trusted vehicle rental service. TRAC provides a website for online
booking that also displays various interesting information about travel.
Through
the website www.trac.astra.co.id, consumers can
find information about unique tourism destinations and useful travel tips. Not
only that, TRAC also offers tour packages to explore favorite destinations. Thus,
consumers do not need to bother looking for transportation or arranging holiday
itinerary.
It
is expected that the ease and the various services offered can fulfill the needs
of all consumers, including Gen Y. The services and products are especially
designed with Gen Y in mind as a potential market.
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