The Millennial March into Retail

I recently took my daughter and nine of her friends to an Italian restaurant for her 14th birthday. Throughout dinner, the girls were texting feverishly on their cell phones.

Perplexed since all the friends were together, I asked whom they were texting: their response astonished me. It seems these “Millennials” were texting each other, preferring to communicate via some strange encrypted language rather than a real-live conversation.

Born between 1982 and 2000, Millennials are a generation raised on high-speed Internet, cell phones, digital music and instant messaging. They’re massive multi-taskers who simultaneously use web-based search, social networking and gaming sites, wikis and personal blogs.

Microsoft research indicates that 52 percent of surveyed Millennials use two or more social networking sites like MySpace and Facebook. And while most of us still grapple with our daily e-mail volume, our most connected generation considers e-mail “legacy” technology, instead preferring the immediacy of text messaging and micro-blogging.

Millennials’ need to be heard, combined with their natural affinity for technology, is having far-reaching implications. As both their employers and their favorite places to spend, retailers must prepare for the impact.

Keeping Millennial associates engaged
With 75 million to 80 million Millennials in or entering the workforce, most retail segments count on these workers as their face to the customer. Characterized as having a self-focused work ethic with a strong desire to efficiently complete tasks, Millennials’ biggest productivity killer is often the technology in their store environments.

The tools that Baby Boomers and Gen Xers have endured fall short when compared with how this generation engages while off the clock. And they’re not keeping their dissatisfaction a secret. Just venture onto Facebook and search for your favorite retailer: You’re likely to find an employee group sharing everything from store promotion tips to gripes about company policy – all in the public domain.

How can retailers harness this wave? Leverage Millennials’ affinity for networking and technology by exploring social networks inside your organization. Millennials’ opinions are a corporate asset and may surprise you.

Solicit and share best practices or create a corporate encyclopedia. Best Buy, for example, created an internal corporate social networking site that’s grown to 25,000 associates. It has, among other things, helped to reduce turnover, encouraged suggestions for marketing and store best practices and increased 401(k) participation.

Next, provide productivity-enhancing gadgets that appeal to Millennials’ need for speedy access to information. Information portals and other “cool” tools enable them to better assist customers, build confidence and enjoy the experience.

Connecting with Millennials as consumers
Fueled by a craving for instant information, Millennials often struggle with the disparity between the online and in-store experience. Most enjoy online browsing and comparison-shopping before completing the transaction in the store. Given their short attention spans, out-of-stocks or product location issues are huge areas of frustration. And once again, they’re not keeping quiet.

Microsoft’s research shows that 48 percent of Millennials will blog about their experiences in chat rooms or social networking sites, which can quickly spread virally to an infinite audience. On the flip side, a hot product or new clothing style can take off in a flash via the same mechanism.

To bring them on board:
Tap into the items they can’t live without. Find ways to interact with Millennials using their prized possessions — cell phones — in non-obtrusive ways. Microsoft Tag, for example, is an emerging technology that enables consumers to obtain instant access to product and promotional information from their mobile devices.

Mine social networks for information diamonds. Monitor online social landscapes like Facebook, Twitter and YouTube, and even join the conversation for invaluable customer exchanges.

Become a social network destination. Create an interactive environment through online forums where customers can build a community, sharing ideas, reviews and stories built around your brands.

While every generation has its nuisances (my parents, for instance, still don’t understand how Led Zeppelin changed the world), Millennials are setting the stage for a major shift in the world as we know it. The sooner we all catch up to them, the better.