Seek To Understand Part IV: Generation Y

Understanding the differences between our generations is a core building block to a successful multigenerational workplace. Each generation has unique life and socioeconomic experiences that have molded their values, beliefs, preferences, and expectations and impacted who they are as a group.

Generation Y: Born 1978-1995

Generation Y, also referred to as Millenials, has been dubbed by some as the ‘Echo Boomers’, due to the significant increase in birth rates through the 1980s and 1990s, and because many of them are children of Baby Boomers. Gen Y numbers around 80 million members. They are often more loyal to their peers than to their employer. Teamwork is important to them. They work because they want to make a contribution. When it comes to rules, they create their own. If you thought Generation X pushed the envelope of tradition, you haven’t seen anything yet! Growing up parcel to a “no-one-left-behind” generation, Gen Y is loyal, committed and wants to be included and involved.

Common Characteristics

Socially engaged

Technologically savvy

Creative

Achievement-oriented

Collaborative

Attention-seeker

Family-centric

Respectful

Multi-tasking

Generation Y grew up in a media-obsessed and technology-frenzied environment.  Their parents were optimistic Baby Boomers, who built an idealistic, empowering, and positive culture surrounding them as youths. They grew up in diversity and think of it as a natural occurrence, and their cell phones, laptops, and iPods are an extension of their being.  Classified as a “hero” type generation, Gen Y’ers are heavily dependent on team work, but as adults will emerge as compelling, resolute leaders. Often chided as narcissistic or self-entitled, Generation Y is civic- and socially- minded and many volunteer where they see a need and where they feel they can make a worthy contribution. Generation Y, never really “rebelled” against their parents, unlike previous generations, often enjoying the same movies and music, and holding their parents up as their very real and highly respected heroes.

Notable Generation Y Members

Chelsea Clinton

Britney Spears

LeBron James

Lindsey Lohan

Macaulay Culkin

Prince William

Christina Aguilera

Elijah Wood

We don’t have much historical evidence on Generation Y in the workplace, as their presence is only now burgeoning on the scene. Having grown up in an environment of multi-tasking, Gen Y doesn’t think twice about holding down multiple jobs at once, even in diverse fields.  Generation Y have been referred to as “Trophy Kids”, reflecting the trend in team sports during their youth where participation was rewarded in lieu of actual achievement. “Everyone is a winner!” This is not, however, the current corporate mentality. Studies predict Gen Y will switch jobs frequently and expect benefits immediately from new employers that historically are tenure-based. This generation prefers to communicate through email and text messaging rather than face-to-face which has weakened their interpersonal skill set to an extent.

Gen Y, unlike earlier generations entering the workforce, is being met with three older generations of workers as well, creating quite a conundrum for managers. In the coming years, however, the majority of the workforce will be comprised of Generation Y – we can only imagine what they will ultimately expect and come to command as part of such an influential conglomerate.

Seek To Understand Part II: The Baby Boomer Generation

Understanding the differences between our generations is a core building block to a successful multigenerational workplace. Each generation has unique life and socioeconomic experiences that have molded their values, beliefs, preferences, and expectations and impacted who they are as a group.

Baby Boomers: Born 1946-1964

This generation was born during the post-World War II baby boom and numbers about 78 million strong. While their parents unwaveringly adhered to rules, Baby Boomers are not afraid to challenge rules when necessary. Work is their life, however, and they are willing to keep the same job for many years.

Common Characteristics

Optimistic

Systems-oriented

Independent

Work-centric

Question Authority

Competitive

Socially Conscious

Idealistic

Resourceful

The Baby Boomer generation has had a tremendous impact on our social, cultural and economic scene. They are right now the largest economic group in the US. Baby Boomers are very well educated and quite affluent as a group. Not surprisingly, they are the generation who is reading our newspapers, keeping up with current affairs socially, politically, and economically, but believe it or not are also the generation who is watching more TV than any other. Boomers have money and they like to spend it!

Although the Baby Boomer generation name was derived from the overwhelming number of births during the timeframe attributed to their generation, they also grew up when the US economy was ‘booming’ right along with them and their collective voice ‘boomed’ as they rallied in support of social change and the human rights movement. This generation grew up wealthier and had an abundance of opportunities. They lived in a world distanced from financial worry. Growing up in an era of reform, Boomers tend to believe they can “change the world”, and they often try.

Notable Baby Boomer Generation Members

Ronald Reagan

David Letterman

Madonna

Tom Hanks

Arnold Schwarzenegger

Bill Gates

Bill Clinton

Bruce Springsteen

In the workplace Baby Boomers desire to have a worthwhile career and are defined by their job. They are many times said to “live to work” in contrast to the generation who followed them (Gen X) who is said to “work to live”. They use their resourcefulness and individualistic natures to pull ahead of the pack and strive for the “win”. They believe in a system of hierarchy at the office, and they don’t adapt well to current trends like the flexibility of working from home. This often leads to discord between Boomers and younger generations in the same office. Boomers are at the point now where they are done with the corporate “ladder climbing” and are happily running many of your companies. Most are set to retire soon. However, a number of the Baby Boomer generation are business owners, their personal identities tied so closely to their life’s work, that they may in fact never truly retire.

Seek To Understand Part I: The Traditionalist Generation

Understanding the differences between our generations is a core building block to a successful multigenerational workplace. Each generation has unique life and socioeconomic experiences that have molded their values, beliefs, preferences, and expectations and impacted who they are as a group.

Traditionalists: Born before 1946

Generally recognized as the children of the Great Depression, Traditionalists have great respect for authority, they strictly abide by the rules, and they want to be respected for their historical knowledge of their chosen industry. They are civic-duty minded and committed to hard work; over 50% of the men in this generation served in the military. This generation was comprise of about 50 million members, fewer in number than their predecessor and the aptly named successive generation of Baby Boomers.

Common Characteristics

Loyal

Respect Authority

Dedicated

Obedient

Take Direction

Leadership

Rule-follower

Respect Seniority

Team Player

The Traditionalist generation has also been labeled the “Silent Generation”. This generation was obedient; they grew up in with the ideology that children should be seen but not heard. They did not question authority, as it was a seen as a sign of disrespect. However, this label is seen as a misnomer by many, as the Traditionalist generation brought us leaders in civil and women’s rights, and many artists and writers who have changed the face of the arts.  Many great inventions and innovation came about, as this generation took advantage of more higher education available to them than the prior generation.

Notable Traditionalist Generation Members

Marilyn Monroe

Martin Luther King Jr.

Elvis Presley

John Lennon

Gloria Steinem

Clint Eastwood

Robert F Kennedy

Quincy Jones

In the workplace Traditionalists often built a lifetime career with one employer. They wanted to make their mark, build a lasting contribution, feel like what they accomplished had a lasting impact. As technology became prevalent over the years, it was this generation who took it the hardest – being less adept at technology, it was difficult for them to change their work habits. That being said, teamwork was a strong point for the Traditionalist, and they did not promote conflict in the workplace. Over 90% of Traditionalists are retired today.

The Evolution of the Customer: Today & in the Future

We survived the first decade of the new millenium. Today is a whole new world in comparison to life 20 or 30 years ago. We’ve examined the evolution of the customer from the 1980s, through the 90s, and into the 2000s… but what about today’s customer?

With the new era still in its infancy, it will be another decade or longer before we can even begin to encapsulate it with a name that bears meaning, but if you fall into the Baby Boomer or Gen Xer category, you better hold on to your seat!

Things are about to change pretty significantly and quickly as the Gen Ys (aka Millennials) – the largest age group ever – enter the workplace. They are only a marginally smaller percentage of the workforce than Baby Boomers today, but in 10 years they are projected to make up 50% as Boomers drop to a mere 20%.

There’s no way to know what events will transpire, what we will accomplish or how our needs as customers will change over this period and the in the coming years. But let’s take a look at what we know… and a few predictions (using the term loosely) for the 2010s and beyond!

Technology and Science

The iPad has become the best selling tech gadget in history. By March 2011, more than 2 billion people had used the Internet. Mobile phone apps have exploded in popularity; people in the United States now spend more time using apps than they use the web. Officially past the PC era, Android devices, iPads, and others rule the consumer electronics market. Ross Dawson, in “The top 10 trends for the 2010s: the most exciting decade in human history” puts forth some interesting points of consideration. Dawson highlights information overload, a shift to even deeper globalization of culture, the domestic implementation of robots, and a larger gap between those who embrace technology and those who do not. Peter Norvig of Google, says search engines will continue to advance in technology, resulting a world with even less digital privacy than today’s, offering voice-entry and the capability of reading your brain waves!

Music

The early 2010s have musically been dominated by a variety of styles and artists, as fewer artists become big enough to be internationally famous due to the decline of the music industry. In terms of popular music, the heavy use of Auto-Tune – a device that corrects pitch and disguises off-key inaccuracies and mistakes – has dramatically changed the landscape of the Top 40 charts.

The elephant in the room?

Anybody – talented or not – will be recording and producing their own music by the end of this decade

… and we will find them all over sites like YouTube. Will we even still be buying music in 2020?

Fashion & Style

The early 2010s, so far, have seen recycled fashions including – skinny jeans, leggings, legwarmers, western shirts, ‘nerdy’ glasses, and hi-top sneakers. Neon colors and military-look apparel have also been popular.

Film & Television

In 2010, Avatar became the first film to gross more than $2 billion in box office receipts worldwide, and Toy Story 3 became the first animated film to gross more than $1 billion worldwide. 3D technology is moving into our homes, and 4D is moving right into the theatres in its place!

Lifestyle

In 2010, Apple launched its first tablet computer, the iPad, and already multiple competing tablet computers are on the market. Mobile phone apps, introduced in the later 2000s, have exploded in popularity; people in the US now spend more time using apps than they use the web. Environmentalism continues to gain mainstream interest. Baby Boomers are reaching the age of retirement, which has resulted in debate over the Medicare and Social Security programs in the US. ‘Fast casual’ restaurants, such as Five Guys and Chipotle, continue to see an uptick in popularity as Americans stray further from the traditional fast food conglomerates.

Apartment Industry

Research, communication and paperwork related to leasing apartments continue to transition online, and many prospects will want to use a mobile device for all of these by the end of the decade. The first time a client will see a community in person will likely be on their move-in day! Even now, some communities are utilizing iPads when conducting tours. Marketing and customer service backgrounds are becoming increasingly important, as the leasing professional takes on the role of a concierge in many ways. Residents are more accepting of smaller spaces but are seeking out urban properties with access to public transportation and high-end amenities. They are increasingly environmentally conscious. Their time is limited and they expect you to be considerate of that. Ramping up services that are geared to saving time, such as door to door dry cleaning pick-up and valet trash service will prove vital.

Leasing of the future is going to be all about engaging the customer!

Online leasing videos will move from a “sales” video to a “lifestyle” video that is more about the experience and style of living your community affords. Thanks to our industry friends, we took a little look into our crystal ball to see what the apartment resident of the future might be like.

 

 “I do not want to talk to anyone. I have been conditioned to transact solely online. You will need to create an entire new experience in order to get me to come visit you, including video tours.

I do not want to create user names and passwords or fill out forms just to find out if I am prequalified – frankly, I do not trust you! I like self-service, and I do not want you involved in the transaction until I am ready. I want lots of choices! Oh, and before I forget, please do not ask me to call for pricing when I am viewing your website; I will not call. I may text you or email you at some point – but I will choose when and why! Finally, why is your office only open from 9:00am to 5:00pm Monday through Friday? This is when I am at work. What if I have a question about your community? Is there someone available after hours for me to connect with – someone who truly understands your community?

 P.S. Please stop asking me to be your friend on Facebook. You are a building, not a person! I might be a fan but not a friend.”

In the future, apartment communities may start their own private social networks which will only be open to those who live there. If a resident wants to locate a babysitter, they can post it out on the social network and locate someone a few doors down. The future resident may bypass traditional apartment advertising sites and go directly to Facebook to see where their friends currently live!  Apartment websites of the future will give up the fluff, reduce clicks, and include a lot of video. In fact, YouTube might be the ideal place to get your leases. Imagine creating a resident contest where they make a video on their iPhone about what they like best about their apartment and community and post it to YouTube. User generated content by your residents is believable and comes at no cost to you!

Customer Service

Now and as we enter the future, it is critical to touch the customer at their most sensitive points and to earn their loyalty. ‘Likelihood to recommend’ is a powerful predictor of customer loyalty and is the basis for calculating the ‘Net Promoter Score’ (NPS). The greater a customer is inclined to recommend a brand – the easier it will be to retain them. Social media has become so important in communication and word-of-mouth recommendations play a vital role in the acquisition of new customers. Keep in mind, there is a direct correlation between customer satisfaction and trust, understanding your performance at specific ‘touch points’ in the relationship is critical.

• Seek knowledge about your customers, their needs and their wants.
• Be clear and keep things simple to help build trust and confidence.
• Provide ease of access to information, to services and to people.
• Make the most of every interaction and make each customer’s experience MATTER.

Brent Leary, partner at CRM Essentials, noted: “The customer has changed in a lot of different ways. But philosophy hasn’t changed a bit. Customers have always wanted to be valued beyond transaction. They also want to be listened to, and they always wanted you to act upon what they told you.”

Tomorrow’s technically savvy customers will be armed with instant, comprehensive information from the Internet to bolster their decision-making process! Social media will continue to constantly inform and influence their behavior. This new era of “experts” will become a permanent fix. The generations of customers who follow will have even more effective technology and they will be more adept at using it.

By the end of this decade, Gen Ys will be working at and even running your company and will be living in your apartments. Understanding their wants, needs, desires and what makes them “tick” will be critical to success.

Are you ready?

The Evolution of the Customer: The 2000s

The 2000s marked not only the start of the 21^st Century but also the onset of the 3^rd Millennium. Yes, in many ways this decade was about new beginnings and the race to make a new way and stand out from the decades, and the century and millennium, of the past. The 2000s perhaps are still too young to be named. But we’ve read everything from:

The “Haughty Noughties”

to

The “Decade of Hope and Change”, and

The “Oh-Ohs!”

However you view that era philosophically, we can all agree that it was a time of both progress and stagnation – advances and setbacks.

Technology and Science

In the 2000s the Internet grew to reach 70% of the population, and Google became its most visited website. Wireless Internet became prominent and could be accessed on mobile phones and video game consoles. Email became a standard form of interpersonal written communication. There was a boom in music downloading and the use of portable digital audio players: MP3s and iPods. The USB flash drive replaced the floppy disk. Blogs became a common method for disseminating information, and the online (user-generated-content) encyclopedia Wikipedia was launched and grew to be the largest and most popular general reference body of work on the Internet. GPS navigation devices became widely popular, After years of work, the human genome was sequenced to 99.99% accuracy. The world’s first self-contained artificial heart was implanted. DVR devices such as TiVo became popular, making it possible to record television broadcasts. DVDs replaced VCRs as the common standard in homes and at video rental locations.

Music

Popular music for teens in the 2000s was dominated by “dirty south’/crunk rap and emo music. Late 1980s boy band New Kids on the Block did make a successful comeback in 2008. But the best-selling artist of the decade was rapper Eminem, who sold 32 million albums. The best-selling female artist of the decade was Britney Spears. Nickelback, Pink, Akon, and Rihanna were popular new artists of the decade as well.

Fashion & Style

Fashion in the 2000s differed in many ways from fashion in the 1990s. The slacker fashion of the 1990s, with its understated look, was looked down upon by the early 2000s and replaced with more showy clothes. The body modification trend of the 1990s became far more popular still in the 2000s, with even cheerleaders and preppies adopting tattoos and non-traditional body piercings. Slim-fitting jeans remained popular through the decade, especially on women.  Crocs and Ugg boots were popular, and sneakers were still prominent – from Nike to Sketchers, Converse and Vans brands. Hair styles included a wing style for boys and semi-long straight hair for girls. Shirts that exposed the belly button and low rise baggy cargo pants were mainstream.

Body modification—augmentation, reduction, smoothing, straightening, whitening, tanning,

not to mention tattooing—became normative.

Choppy hair, heavily layered, either dyed pitch black, blonde, or in vibrant colors became popular with teenagers, while those in their twenties and above chose typically to keep a more natural look. The closing years of the decade gave us the word “manscaping” – enough said!

Film & Television

Websites like YouTube and Hulu became alternatives to TV broadcasts. By the late 2000s, many networks streamed their shows on the Internet. Documentary and ‘mockumentary’ films, such as March of the Penguins and Super Size Me, were popular. The highest-grossing film of the decade was Avatar. Oscar winners of the era included Gladiator, A Beautiful Mind, Million Dollar Baby, and The Hurt Locker. We enjoyed film series like Harry Potter, Transformers, Xmen, and Lord of the Rings. Reality TV, with shows such as Dancing with the Stars, Survivor and Big Brother overtook popularity that once belonged to sitcoms and crime/medical shows. The 2000s even saw premium cable channels, devoted historically to movies and sporting events, delve into the business of serial dramas; The Sopranos and Deadwood being two prime examples.

Lifestyle

The economic growth of the 2000s, lifted millions out of poverty, but also raised demand for diminishing energy resources. The US recognized civil unions and partnerships for the first time. We had brushes with mad cow disease, bird flu, and swine flu.  World population reached 6.8 billion – 300 million in the US. Global warming became a household word.  The popularity of mobile phones and text messaging surged, as traffic collisions increased due to distracted drivers. More listeners started using MP3 players in their cars, satellite radio was on the rise, and many radio stations began streaming their content over the Internet. The PS2 was released in 2000 and became the best-selling gaming console of all time. The decade saw the rise of digital media and the steady decline of printed books in areas where e-readers such as Amazon’s Kindle had become available. Dan Brown’s “Robert Langdon” book series (consisting of The Da Vinci Code, Angels and Demons, and The Lost Symbol) was a popular read. Social Media gained popularity and strength, and by the end of 2009, there were 350 million active users on Facebook; rather than replacing embodied connection as was once feared, our devices and technology only supplemented and extended it.

A larger percentage of older generations got “online” and LIKED it!

 There may never have been a society in history that was as culturally, religiously, and politically diverse as the US became in the 2000s. Men untucked their shirts; billionaires wore jeans; and the most powerful CEO in America was universally known as “Steve”. Indeed, informality was rampant… and accepted!

Apartment Industry

From the way a community was designed and marketed, to the leasing process, resident service and retention, it all changed.  Savvy was the best word to describe the renter of the 2000s. What were they looking for in their apartment in comparison with the renter of the 90s? They wanted the same and MORE! They still wanted the traditional amenities that made apartment life convenient for decades past. However, they also wanted to bring their large dogs and live in an apartment that was eco-friendly and compatible with all their modern technology. They needed more wall space for that large flat screen television and a solution for hiding those wires and cables.

Highlights from the 2000s

• Hurricane Katrina struck Louisiana, devastating New Orleans and the Mississippi coast
• The September 11 Attack resulted in the “War on Terror”
• A 9.3 Richter scale earthquake resulted in the Indian Ocean Tsunami killed 290,000
• Anthrax virus was distributed via US Mail against prominent or government targets
• Space Shuttle Columbia exploded upon reentry over Texas
• Pluto was demoted to a “dwarf planet” after being considered a planet for 76 years
• Saddam Hussein, former leader of Iraq, is captured
• The identity of Deep Throat, Watergate scandal informant, was revealed after 30 years
• Michael Jackson’s death transcended geography, culture and age in emotional impact

The 2000s was a time of ups and downs; as we exited that era, gloom and disappointment still largely dominated economic headlines with words such as “high unemployment” and “home foreclosures”.

But time as always continues to march forward!

As we come full circle in our examination of the last 30 years let us take a moment to reminisce about what life was like way back then!

• Before the Internet…we conducted research at libraries
• Before instant messaging…we spoke to friends on a phone with a cord
• Before blogging…we handwrote letters, passed, notes, and kept diaries
• Before search engines…we paused the tape repeatedly to write down lyrics to a song
• Before Facebook…kids hung out at arcades, malls, and roller rinks

The Evolution of the Customer: The 1990s

As we left the “awesome” 80s, we jumped in with both feet to the new decade. The 1990s were about growth and change, and we persevered some hefty bumps along the way.

The 1990s: The Decade of “Discovery”

Technology

The 90s saw the growth of the World Wide Web, which grew dramatically from its inception in 1992. The 90s truly were the electronic age.  The Internet was changing the way we communicated, conducted business, and how we were entertained. Only 15% of American households had a computer in 1989, but this more than doubled in the 90s. Terms like SPAM and ISP found their way into our vocabulary, and we said things like “See you online”.  We often signed off with a 🙂  (smile), a 😉  (wink), or a :-* (kiss).

And everyone had a cell phone!

Scientists discovered how to clone animals, and we released the Hubble Telescope.

Music

There were more music choices available than ever. Latino music grew in popularity, Country became more mainstream, and Grunge appeared.  Mariah Carey and Boyz II Men led the charts, and  Selena was the top Latin singer until her untimely death in 1995.  Other popular artists included Hootie & the Blowfish, Alanis Morissette, Nirvana, Garth Brooks, and The Backstreet Boys. CD burners became commonplace and threatened the music industry, as did free online file sharing services like Napster. Of course, we can’t talk about music in the 90s without mentioning a published study of the decade that showed college students (and lab rats, no comparison intended) improved test scores by as much as 30% after listening to music.

Fashion & Style

For youth, the fashion began with either a grunge or preppie look. In true hip-hop style, boys’ jeans were much larger than what their bodies could hold up, worn low on the hips, and girls looked to have fallen out of the 70s in bellbottoms and peasant tops.  Designers included Liz Claiborne, DKNY, and Tommy Hilfiger.  Casual Fridays became commonplace at the office, and then gradually developed into a more casual work dress code altogether.

53% of companies allowed casual dress by 1998

This was up from 7% in 1992.  The wide-shouldered power suit fell out of fashion and women’s jewelry was much more minimalistic. With the end of the 80s came the end of crazy, pumped-up hair. 90s hair became more natural again: wash-and-wear, messy up-dos and basic ponytails were the order of the day. Although there was a big auburn-hair phase for a few years in the 1990s, and there was the “Rachel” – so named and styled after Jennifer Aniston’s character on the hit TV show FRIENDS.

Film & Television

Televisions were in 98% of the households in the US by 1998, with the average viewer spending seven hours a day watching ‘the tube’, and 3/4 of homes had cable TV.  News and news magazine shows like 60 Minutes, 20/20, and Dateline NBC were popular.

How many of us stayed up late to hear Letterman’s ‘Top 10’?

Home Improvement, Seinfeld, E.R., and yes, FRIENDS, took their fair market-share, too! Mega-movie houses sprouted up with up to 24 theaters in each.  Videos started releasing almost immediately when a move left the theatres. Films that won Academy Awards in the 90s included Dances with Wolves, Forrest Gump, Titanic, Schindler’s List, and Silence of the Lambs.

Lifestyle

After the excessive spending of the 1980s, we entered the new decade in a slight economic recession. Rates of alcoholism and drug abuse increased as did rates of depression. Oil prices were on the rise, and there was a sharp increase in interest rates and declining availability of credit. As the 90s progressed, the economic boom that followed led to record low unemployment and minimum wage being hiked to a whopping $5.15 per hour. We all learned to trade stocks on the Internet, and affluence in the US was on the steady uptick. The Dow Jones Industrial Average hit the 11,000 mark in 1999, adding substantially to the wealth of many Americans. The US experienced its longest period of economic expansion during this decade. We traveled 40% more. Interest in health and nutrition increased, but obesity was at a record high.

We just “had to have”

Beanie Babies, Furbies, and Tickle-Me Elmo!

‘Hot topics’ in education were distance learning, uniforms, year round school, and vouchers. An increasing trend in the 90s was for our film stars and successful entrepreneurs to try their hand at politics – including the likes of Jesse Ventura and Ross Perot. The number of multiple births increased five times between 1980 and 2000, and the 1990s saw the first set of surviving septuplets. Audio books became the rage and sales for online booksellers like amazon.com soared. We were reading Sue Grafton, John Grisham, and Michael Crighton. There was a noticeable “retro” trend in pop culture, which showed up in the rebirth of the Volkswagen Beetle (and other cars) and in movies, such as the release of the prequel Episode I: The Phantom Menace in the Star Wars series. Working from home became more popular towards the end of the 90s.

Apartment Industry

Property management in the 90s had to adapt to the growing number of affluent individuals and families who were choosing apartment living over ownership. These “lifestyle renters” made up a large segment of the market. In response to this burgeoning group of prospects, characteristics such as 9-foot ceilings, garages, upscale appliances, business centers, in-home offices and multiple phone lines came to be expected in new construction. Community amenities like resort style pools, organized social activities and elaborate athletic facilities were also commonplace. Larger apartments were built to meet the demands and needs of this new renter; two- and three-bedrooms gained popularity. Development locations were planned in proximity to major employers, shopping, schools, and major highways and public transportation. In the leasing office of the 1990s, many days were spent “outreach marketing” (i.e. visiting local business owners and major employers). The 90s was the decade of the REIT (Real Estate Investment Trust); by the end of the decade REITS passed Pension Funds as the largest single institutional owner of real estate.

Customer Service

CRM (Customer Relationship Management) history shows that the 90s witnessed great improvement in this area. Companies began to see the benefits of offering perks to customers and potential ones in exchange for relevant customer information or for repeat purchases.

“Can I get your email address, so we can send you coupons?”

Companies also began to regard customer service as a continuously evolving skill rather than a stagnant service to be picked up and used whenever necessary.

Highlights from the 1990s

• Saddam Hussein invaded Kuwait and the US was thrust into the Gulf War
• US President Clinton was accused of sexual misconduct
• “Don’t ask, don’t tell” directed the military enlisted to keep their sexuality a secret
• Major League Baseball players went on strike and the World Series was cancelled
• LA citizens rioted when 4 white policemen were acquitted of assault on Rodney King
• David Koresh’s Branch Davidian cult compound in Waco, TX was raided by the ATF
• Football hero O.J. Simpson was tried but not convicted for murder
• The US hosted the Summer Olympics in Atlanta
• The Federal Building in Oklahoma City was bombed
• 15 were killed  and 23 wounded by gun-toting teens at Columbine High School in CO

The 90s were both a turbulent and triumphant era – surely a decade we will not soon forget!

The Evolution of the Customer: The 1980s

Certainly, the future never arrives as planned but the wild innovations in our industry and changes in our world over the past 30 years have kept things very interesting. Let us take a ride in a time machine to explore the past!

The 1980s: The “Me” Decade

Housing a generation of status seekers, the 1980s was definitely a decade that embodied the ‘greed is good’ ideology. The ‘yuppie’ (Young Urban Professional) culture emerged. They were selfish and very materialistic. Corporate power was becoming more prevalent, and these up-and-comers wanted their piece of the action!

Technology

Technology had come a long way by the 1980s. Computers were becoming more common household items and not just business machines; they even started making an appearance in schools. In 1981, we launched the first space shuttle, Columbia. The cell phone came into being in the late 80s in big, bulky bags, and they were mostly relegated to business use.

Music

MTV revolutionized the world of music in the 80s. We saw the birth of the compact disc (CD). Pop, punk, new wave, rap, and hip-hop emerged or grew, in some cases exponentially, at various points. In 1985, Bruce Springsteen released his Born in the USA album. People were slam dancing and break dancing across floors everywhere. Milli Vanilli lip-synced their way to their 15 seconds of fame, and Michael Jackson’s Thriller became the best selling album of all time.

Fashion & Style

Teens were seen wearing tank tops, leg warmers, and tight fitting or torn jeans – thank you Flashdance! We loved everything big, bold, and brightly colored. Madonna’s leather and fishnet were as popular as Michael Jackson’s white glove and Donna Karan and Anne Klein designer attire.

Tennis shoes and shoulder pads – oh my!

Teased hair, two-toned eye shadow and glossy lipstick were the “it” look for women. Men pulled off a new business look with paisley or red power ties worn with fashionable suspenders or a silk vest.  And, yes, the 1980s saw the return of big hair – gels, waxes and mousses abounded – and people weren’t afraid to experiment. The net effect was a myriad of outrageous styles that were all about the VOLUME! There were headbands, ponytails, mohawks and crimping… and even the now-laughable mullet.

Film & Television

In the early 80s VCRs became a common household item. Popular movies included E.T. The Extra Terrestrial, Tootsie, Cocoon, Back to the Future, Fatal Attraction, and Driving Miss Daisy. Cable TV was invented, and the 80s quickly became known as the decade of the sitcom: The Cosby Show, Cheers, Roseanne, America’s Funniest Home Videos, Golden Girls, and The Wonder Years were favorites. Dallas, an evening serial drama, was one of the top television shows during the era.

Who shot J.R.?

Lifestyle

Consumers began their love affair with credit cards in the 80s; we borrowed and spent instead of saving for a rainy day. Aerobics, minivans, camcorders, and talk shows became a part of our lives! Popular phrases were:

If you’ve got it, flaunt it!  Shop ‘til you drop! and You can have it all!

The decade began with double-digit inflation, hospital costs rose, and we learned about and lost many to AIDS.  BUT, in the US we also saw the Constitution celebrate its 200th birthday, Gone with the Wind turn 50, and we gave $115,000,000,000 to charity in a single year (1989).

Apartment Industry

In 1980, apartments were a box with four walls and a small kitchen. A community laundry room was considered a great amenity. Communication between management and residents was verbal and most likely face to face. The apartment seeker of the 80s did not have a long list of requirements and amenities; even with many things becoming more sophisticated, for prospects it was simply, “Do you have a one bedroom on the second floor?” By the end of the 80s era, the Baby Boomer generation was moving out of the ‘singles and couples’ phase and into the parenting phase, while the smaller Generation X group was moving away from home for the first time.

Customer Service

In the 1980s we saw the development of database marketing, the precursor to CRM (Customer Relationship Management). Although helpful, information on existing databases tended to be unorganized, as well as hard to track, update and retrieve. But as our use of computer technology and email communication was on the rise, so was the incidence of computer-generated SPAM. No longer was it the simply the annoying call during dinner time, or stacks of junk clogging up our mail box, we began having to sift through undesired marketing materials in our email as well.

Highlights of the 1980s

• The US Hockey team defeated the Soviet Union in the Winter Olympics upset dubbed the “Miracle on Ice”
• Our country declared a “War on Drugs”
• Sandra Day O’Connor became the first woman appointed as a Supreme Court Justice
• The Vietnam Veterans Memorial was erected

And, as we came to the end of an era,

• US President Reagan demanded: “Mr. Gorbachev, tear down this wall!”

At the turn of the decade, many were happy to leave the 80s for the promise of a new way of life and ever-changing culture in the 1990s, but many truly thought (and some still believe):

The 80s were TOTALLY AWESOME!

The iMpact of Customer Loyalty

How Does Apple Do It?

 Now that you’ve discovered the sparkling gem known as customer loyalty and we have discussed asking the ‘Ultimate Question’ as a way to determine how loyal your customer base is currently, let’s look at how one company has put this concept into practice and wins over customer after customer – continuing to boost profits and market share year after year in the tight competitive market of consumer technology products.

 Yes, you guessed it! Whenever there is a new multimedia “anything” nowadays, it seems there is an iThing!

And consumers clamor for the brand and can’t stop talking about how much they love it!!  Isn’t that our dream?

Some think Apple has a “secret” – well, they do but it’s not like the recipe for the Colonel’s famous Kentucky Fried Chicken or anything. It’s spelled out in everything Apple does in their daily business practices.

Call them Mac Loyalists, MacHeads, or just plain zealots, Apple’s vocal customer following is one of the most loyal out there. Its customers will defend the company and its products tooth and nail every time.

Why are they so passionate?

The simple truth: Apple’s attention to detail, their commitment to giving customers the products they want, and their consummate, personal customer service all work together to create customers who are simply delighted with everything Apple.

In 2006, Satmetrix Systems ranked Apple as the computer company with the highest customer loyalty. Satmetrix sought to discover how likely customers were to recommend the company to a friend or colleague, comparing the likes of Compaq, Dell, Gateway, IBM and others with Apple. Said Dr. Laura Brooks, then vice president of research and business consulting at Satmetrix: “Apple, whose score far outranks its closest competitor, is well known for its passionate and dedicated customer base.”^† That same year, a Harris Poll of “best brands” put Apple in the top 10 for the first time. Apple’s successful branding finds it in the company of Coca-Cola, GE, and Kraft, among others.

In June 2011, The Wall Street Journal published “Secrets from Apple’s Genius Bar: Full Loyalty, No Negativity”.* WSJ investigates how Steve Jobs, CEO and co-founder of Apple in 1976, has revolutionized the world of consumer technology – and not just through its innovative product line. They interview current and former employees to learn some of Apple’s secrets to customer interaction that help foster the high level of customer enchantment and loyalty the company has achieved.

The article uncovered some basic guidelines Apple provides its employees for handling customer service interactions. Referred to as “steps of service”, they are spelled out in the acronym of the company’s name:

• Approach customers with a personalized warm welcome
• Probe politely to understand all the customer’s needs
• Present a solution for the customer to take home today
• Listen for and resolve any issues or concerns
• End with a fond farewell and an invitation to return

 PRODUCTS DON’T SELL. PEOPLE DO.

Think about it! Apple does not merely sell you an MP3 player – they invite you to experience the Apple lifestyle, which you see happy customers living in brilliant color in every commercial they produce. Product features don’t create enthusiastic and loyal customers — how people feel when they use your product or service is what drives them to action… whether that is to re-purchase or to recommend.

 Surprise and delight your customers!

One blog post about Apple by InsideCRM.com, a Customer Relationship Management (CRM) firm, elicited over 45 user-generated responses and 87% of those were overwhelmingly positive with regard to their perspective on the Apple brand.

Are your customers sleeping outside of stores just to be one of the first to buy your product? If so then you, much like Apple, must be doing something right! It’s obvious that Apple enjoys a fanatical customer following. This loyalty is not just a lucky coincidence; it is due to Apple’s long time commitment to deliver the best customer experience through its products and services alike.

According to several employees and [Apple, Inc.] training manuals, sales associates are taught an unusual sales philosophy: not to sell, but rather to help customers solve problems. “Your job is to understand all of your customers’ needs – some of which they may not even realize they have,” one training manual says. To that end, employees receive no sales commissions and have no sales quotas.^≠

In Marketing Apple: 5 secrets of the World’s Best Marketing Machine, Steve Chazin, former Apple marketing executive, addresses some principles that helped establish the company’s brand identity and loyalty and earn them such a huge market share.

So what are some practices you can embrace if you want to build that same kind of enthusiastic – overzealous even – customer base that is enjoyed by Apple today?

Be sincere – Every customer interaction is an opportunity. Make sure you are approachable, pleasant, and professional.

Ask, then Listen – Allow your customer to have a voice. This is a cornerstone of a trusting relationship. Lead with questions as needed, but allow the customer to fully express themselves.

Provide solutions – Remember you are the “fixer”! Once you have learned what the customer is really looking for you must convince them you have the answer.

Overcome obstacles – Be prepared when bumps arise along the path. Handle issues promptly, respectfully, and fully. Your customer will feel like they are important to you.

Show appreciation – Thank your customer for every opportunity, even if you do not make a sale. Demonstrate that you consider every moment of their time valuable and that you are available if they ever need anything.

Driving true customer loyalty must start with understanding your customer and must be maintained by providing a consistently sublime customer experience. Every interaction with a customer impacts their future buying decisions and a positive outcome is essential to creating customer evangelists, maximizing revenue, and growing your business.

The economic power of high-quality customer relationships is evident. Look at the correlation between the level of satisfaction your customers experience and your repeat sales performance and direct referrals from those customers who are in love with your product.

Continually meeting your customers’ needs – and making them feel good about their decision – creates a greater sense of value. They in turn are excited to share that feeling with others they know, which creates a “win-win” scenario for everyone involved and will help your business grow and your profits soar!

 
^† Arstechnica.com,“Apple shines at customer loyalty and branding”

* Full article viewable only to WSJ subscribers

^≠ Courtesy of Hi-TechAnalogy.com

What is Customer Loyalty?

We’re not talking about a traditional loyalty program that brings a customer back because they get the seventh sandwich free or they get frequent flyer points for future travel.

We are talking about the kind of loyalty derived from an overwhelming feeling of immense satisfaction with a product or service – a feeling that elicits an emotional reaction and drives a decision to recommend a particular service or product to a friend or colleague.

• Why does a fan of America’s Team, the Dallas Cowboys, paint their truck silver and blue with a star on the door?
• Why does an individual proudly wear a shirt emblazoned with the Coca Cola logo?

For the same reasons your loyal customer will recommend your product or service – it goes beyond mere customer satisfaction.

What we are referring to is sustained customer relationships based on utter enchantment with you and your product/service, which lead to not only repeat business but also to referrals for new business.

Wikipedia calls it the loyalty business model, but however you want to refer to it the simple idea is that building and maintaining a customer base who loves your product and will recommend it to people they know is the best way to achieve long-term growth and profitability.

The concept of customer loyalty is long-standing, though the term itself only dates back a few decades. In The Loyalty Effect (1996), field expert Fred Reichheld lays out the basic economics behind developing a loyal following of customers. The principles in the book not only have remained applicable over the years, they are magnified by the impact of the Internet on today’s business practices.

Still think a customer only tells 10 friends about a bad experience? Think again!

• Two thirds of the world’s Internet population now visit a social network or blog site weekly
• The average American has over 634 social connections on the Internet^†
• 52% of people forward information through social networks, email, and online forums

Ready or not, your company’s profitability is linked directly to the word of mouth advertising that is drawn from the experiences of customers who have been exposed to your products and services. Their ratings, reviews, and testimonials are communicated like a viral marketing campaign to everyone they know and thousands of individuals surfing the Internet – good or bad! Creating loyal customers who will share positive experiences is vital to your organization.

Harnessing the power of loyal customers allows you to grow almost effortlessly while increasing your overall margins.

But developing real customer loyalty is a process – it requires buy-in from all levels of your organization and is geared toward keeping customers truly enchanted so they not only remain loyal but also will share their excitement with others resulting in new business for you.

Providing top-notch customer service is a primary element in gaining customer loyalty, but do not mistake it is the only consideration.  Today’s customers already expect excellent service as a basic principle – meaning to be treated in a friendly, polite and professional manner along with responding timely to their needs is a given.

Customer loyalty we can say is derived from three main components:

1) The customer’s perceived value of the product/service

2) How well that product/service meets their needs

3) Exceptional customer service you provide

These three components cannot be weighted equally from one customer to the next. They are variable in importance depending on the customer – because no two customers are exactly alike!  For this reason, you must seek to understand your customer and what drives their decision process in order to find the ultimate key to unlocking the door to greater customer loyalty.

If your customer has a problem, you should do whatever it takes to make things right and just as importantly to resolve the concern in a timely manner. Hint! Customers know you are not perfect – but letting them witness how earnestly you strive for perfection can be a powerful customer service weapon! Social media interconnectivity and blogging present opportunities not only for unsolicited accolades but also for you to address issues in a forum where potential customers can gauge your responses even in the least tenable situations.

In our previous blog, we discussed The Ultimate Question and how it relates to customer loyalty. The first step for any organization in developing a program to establish and improve customer loyalty is to understand where you are now. Only then can you define ways to improve and focus on efforts to maximize results. The responses you receive when you ask your customers the Ultimate Question can give you an idea of where you are succeeding as well as areas where you can improve.

ASK for feedback. LISTEN to what your customers say. ACT accordingly.

Consider this. A mere 5% improvement in customer retention rates will yield between a 25% to 100% increase in profits across a wide range of industries.^≠ To sum it up – Happy customers spend more money more often! 

Simple satisfaction does not equal customer loyalty. Customers need to find value in your product, receive remarkable customer service every time, and feel like any complaints are dealt with professionally, fairly and promptly. To build customer loyalty you must focus on clearly defined goals derived from analyzing feedback from your customers to improve their overall experience.

The fast-track to increasing customer loyalty – retention and referrals – is to determine and put into effect changes in your organization that will elevate your customer experience to the level where they will shout your name from a mountaintop!

Walt Disney once said, “Do what you do so well that they will want to see it again and bring their friends.” These words have become a well-known maxim for pursuing excellence in customer service, but they are also the foundation of understanding what customer loyalty is all about. When we’re excited about something we can’t wait to tell someone… or even everyone!

When you are ready to develop and implement a program to help you gauge and improve your customer loyalty, Ellis, Partners in Management Solutions is proud to share our exciting product, the Customer Intelligence Application, with you. Contact us for more information.

^{† Pew Research, 2011}

^{≠The Loyalty Effect, F. Reichheld}

What is ‘The Ultimate Question’?

In The Ultimate Question: Driving Good Profits and True Growth, customer loyalty pioneer and expert Fred Reichheld proposes there is a single question you should be asking your customers that will provide you with a clear and easily understandable measure of your company’s performance as perceived by the most important person to your business – your customer!

Without understanding what exactly your customer needs and wants and what value they find in your product or service, how can you ensure repeat business and true customer enchantment?

Being satisfied is not enough. Satisfied customers are sitting ducks – waiting for the newest, cheapest thing to come along. They have no loyalty to your company or brand because you are not exceeding their expectations. They continue to use your services or buy your product because they do not have another or a more appealing alternative currently, but they are not excited enough to be “evangelists” for you, thus creating referrals and new business.

That is why the feedback you receive from asking The Ultimate Question is so vital. You will be able to identify how your customer base is divided between Promoters (people who absolutely love your product), Detractors (those who do not like your product) and Passives (ones who are indifferent).  As you come to understand these customers and implement practices to build greater satisfaction and ultimately increase your overall customer loyalty, you will find the percentage of Promoters will grow – right along with your company and its profits. Promoters are in essence a whole new, motivated, and enthusiastic sales team that doesn’t cost you a dime!

So what exactly is ‘The Ultimate Question’?  Simply put:

“How likely is it that you would recommend this company to a friend or colleague?”

In principle, it’s a simple concept. But it packs a lot of punch! Ask yourself – If I am completely thrilled with a service I receive or a product I purchase, what is the first thing I do? I tell my friends!  And not just one friend – I tell everyone I know, which in today’s booming social media environment could be hundreds or even thousands of contacts instantaneously.

Why is it important to have customers who are so enchanted with your product or service that they tell their friends, family, co-workers, and maybe even people they meet in the check-out line?  Because research shows that today’s consumer will take the recommendation of a peer (another customer or potential customer) – even someone they do not know personally – 78%^† of the time before they will trust the hype created by advertisements and promotions your own company generates. In fact, companies with a higher NPS Score (i.e. a greater percentage of Promoters) actually grow 2.5 times faster than their competitors!

Once you have made the decision to ask your customers The Ultimate Question, you must determine the best approach to asking it and then, further, learn how to process the feedback you receive in order to most effectively increase your number of Promoters and the resulting profitability of your organization. You must LISTEN to what your customers say and follow through with ACTION.

We recommend you check out the book, which is based on extensive research in conjunction with Satmetrix (a recognized provider in customer experience management) and Bain & Company (an established management consulting firm) and contains real stories of success through utilizing The Ultimate Question and Net Promoter Score to enrich the customer experience. Reichhold clearly correlates the conversion of customers into Promoters with generating ‘good’ profits and true and enduring growth for your organization.  Remember – customers won’t brag about you when you merely satisfy their needs – you have to truly exceed their expectations.

If you are interested in learning more about how Ellis, Partners in Management Solutions can play a part in this process and in helping you increase customer loyalty and overall profitability, contact us for more information about our exciting new product, the Customer Intelligence Application.

^†Socialnomics.net