Direct Line Blog

Consumer commitment-phobes force companies to change strategies

Share this article:

According to a new report by IBISWorld, Gen Y's fear of commitment is forcing companies to reevaluate their strategies, there are about 65 million tech-savvy, twenty-something year-old idealistic, hipster-yogis drinking Starbucks and watching Netflix on laptops that are changing jobs more frequently compared to previous generations, and postponing marriage until their late 20s/early 30s—who have consumer commitment issues.

IBISWorld called this group Generation Y, but they're also referred to as Millennials, Echo Boomers, Generation Next and the Net Generation.  

Regardless of what they're called, IBISWorld said they have significant buying power and industries that require long-term contracts and commitments need to adapt their business models in order to retain Gen Y customers.   

The industries that are most affected by this trend are fitness-type clubs, cable providers, new car dealers, wireless providers, furniture stores and wedding services, according to the report. That sounds about right. Those are the exact products and services I don't want long-term relationships with for interrelated reasons.

If Echo Boomers are switching jobs every few years, it may mean they're also switching apartments, maybe cities—even countries. They don't want to commit to moving heavy furniture every few years either. Car parking is expensive and cars are practically pointless in urban cities (except on shopping or moving days). If they can't commit to yoga once a week, forget weddings.

However, companies are learning to adapt. Gyms are beginning to provide monthly contracts. Cable companies are offering discounts and mobile viewing. Low-budget furniture offered by the likes of Ikea and Target are thriving, as are car-sharing companies like ZipCar.

And although mobile companies are in a good position because the Gen Yers can't live without smartphones, there are new players entering the space, like MetroPCS, offering short term or pay-as-you-go contracts.

How are you tailoring your messages to target these fickle consumers?    

Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Direct Line Blog

Sign up to our newsletters

Latest Jobs:


Company of the week

Data Services, Inc. meets the needs of today's data-driven marketer by providing front-end database management and data analytics platforms alongside our expertise in global contact data quality, database building and ongoing maintenance that comes with our 45+ years in business.


Find out more here »

More in Direct Line Blog

The USTA's Strategy to Ace the Customer Experience

The USTA's Strategy to Ace the Customer Experience

The US Open may be the organization's centerpiece, but its CX strategy is a year-round endeavor.

One Town That Will Track You Down

One Town That Will Track You Down

Chicago is outfitting its streets with censors that track traffic patterns and cell phone usage. Hey, can you get Wi-Fi widdat?

Gaming Companies Excel at Engaging GenY

Gaming Companies Excel at Engaging GenY

Connecting with millennials isn't as hard as marketers think, and these companies are proving it.