Building Loyalty in Younger Customers

Something interesting is happening the customer relations game... historically winning strategies and services are not working on the youngest customers in the marketplace. Companies that have maintained a positive public image and strong consumer loyalty for decades are faltering in their ability to connect with the thirty and under crowd.

Why? There are typically a few key factors contributing to the lack of appeal to young customers:

The dominant sales model is oriented toward the company and not the consumer. Take, for example, buying automobile insurance the traditional way. You have to deal with an agent in person. This individual holds all the cards. They take your information, assess your situation, and make recommendations. You never see all your options, competitors rates, outside reviews, or anything else to reinforce the validity of the deal you're offered. You're expected to trust.

The younger generation isn't so big on blind trust. Wise beyond their years, they want to see the complete picture, take an active role in determining what is best for them and drive the decision to buy. The traditional sales model is not set up for that dynamic. In fact, many companies consciously try to hide negative reviews, competitors pricing and lower cost alternatives from their customers. This attitude will not fly with twenty-somethings!  If they perceive the sales process to be focused on maximizing corporate sales and not acting in their best interest they will view it as untrustworthy and shop elsewhere.

You have to communicate in the manner your customers prefer.  Twenty-somethings don't connect very often in person - especially for business.  They don't like to talk on the phone.  They live in a world of text messages, Facebook, Twitter, chat rooms and YouTube.  Forcing them to engage in meetings, endure multiple phone calls, read reams of impenetrable documents in small print or navigate a clunky website is sure to make them hate you.  My daughter recently informed me that email is 'old-school' and she doesn't check hers very often anymore. 

For most large organizations human interactions are based on a model from the 50's and even their online tools and resources are more in tune with 90's technology than 2011.  In order to build real relationships with younger customers you have to join the 21st century!  Otherwise they will do business with you only grudgingly and run to a competitor the first chance they get.  Going back to our auto insurance example, Progressive is stealing young customers left and right from players dominant in the industry for decades.  They show competitors rates side-by-side with their own, allow customers to easily shop online, never force interaction with an agent,  share testimonials, and offer a plethora of policy options.

Alignment of quality and care claims has to match your customers' reality.  Every company says they care about meeting their customers unique needs... every company claims to have an appealing and intuitive website... every company says the sale will be quick and simple.  We've all heard the claims, but they seldom match what happens in real life.  Baby boomers and middle-age professionals are likely to sigh and buy from you anyway.  Twenty-somethings are disgusted and they leave.

Rethink your website.  Openly share information and elicit feedback.  Make as many transactions as possible online.  Introduce apps.  Provide multiple signals of quality.  Use email, text and social media to offer updates, discounts and reminders.  And when someone does have to deal with a human being - you had better make it an efficient and positive experience.  If you don't, eventually a competitor will come along who realizes that it is 2011 and they will decimate your market share.