It is a wrong strategy to sell everything to everybody. Our products and services have to be customized to the needs of specific customer segments. Each customer segment has different needs, different pains, different jobs that need to be done, and different aspirations.
They are NOT SAME, hence what they need is NOT SAME.
So what happens when you sell the same to all customer segments? They will buy from you as long as they don’t have an option. And switch to a competitor the moment the competitor arrives with customized service or products. That’s the story of “successful” businesses having sudden death.
A study by McKinsey found some interesting insights about what drives consumption among each generation. And it’s worth knowing.
Consumption is viewed differently by each generation. For example, Generation Baby Boomers (born between 1940-59, those aged now at 60 to 79) viewed consumption as an expression of ideology (influenced by the global political turmoil of those times).
Generation X (born between 1960-79, aged now between 40 to 59), views consumption as a symbol of status.
While Generation Y or more popularly known as Millennials (born between 1980-94, now aged between 25 to 39), views consumption as an experience.
The youngest generation, Gen Z (born after 1995, that is aged below 25), views consumption as a search for truth. Their search for authenticity generates greater freedom of expression and greater openness to understanding different kinds of people and views.
So What Does It Mean To Your Business?
As an entrepreneur, you need to know who your customer should be. Which generation they belong to. And what prompts them to like your business and why they will buy from you.
Avoid targeting everybody. It doesn’t work long-term.
Now you know why they buy. Customize your business accordingly. The drive ahead is profitable but never easy.
