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 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, 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.