Las Vegas is Quick to Identify Opportunity
With 83 million of them coming of age, Las Vegas is betting on the Millennial generation’s business. The big red flag is that they don’t seem to like games of chance. Why? Because they were raised using the latest gaming technology and are used to games of skill, not chance.
Millennials, born between 1980 and 2000 have been called the first truly digital generation. Their development has been confluent with the major advances in technology. It is interesting to also note that over these two decades the environment also changed from a production-based economy to a knowledge economy.
In Las Vegas, slot machines had been generating roughly 60% profit. It appears Millennials by-pass these chance based games altogether. In fact, only 63% of this generation actually gambles when they visit Las Vegas. Instead they opt for clubs, dancing, shows and partying.
Conversely 87% of their grandparents (age 70 to 90), and 78% of their parents (age 51 to 69) gamble when they visit Las Vegas.
To accommodate this shift Casino’s are introducing games of skill. It is anticipated that the casino floor of the future may very well look like an arcade vs. a nightclub.
Games of skill, competing against your previous skill level, and the scores achieved by friends, are being introduced to accommodate this shift in engagement.
Las Vegas has begun to figure out how to adapt and maximize fun, engagement and profit. They identified a shift in consumer thinking and are adapting quickly to maximize revenue.
Retailers can learn from this study. Are you offering a consistent, knowledge based cross-channel experience that incorporates the shift in behavior and buying processes?
A Shift Toward Integrated Platforms for Smart Shoppers
As digital savvy consumers, millennials are keenly aware of prices and promotions. According to research done by Accenture, ‘Seventy percent of millennials scour the internet for promo codes prior to buying anything online, compared to only 59% of total adults that do so.’
The Accunture research also indicates that ‘68% of all millennials demand an integrated, seamless experience regardless of the channel.’
‘Being able to transition effortlessly from smart phone to personal computer, to physical store’ is expected. Failing to do so creates frustration and loss of this segment’s trust and future business.
This seamless experience also includes integrating merchandising, flexible fulfillment options, and enriched services that help make the shopping experience better across all channels.
Millennials Are In Fact Very Loyal Customers
With all their skill at shopping for prices, promos and offers 40% of retailers believe that millennials lack loyalty.
The reality is that this demographic is in fact very loyal. Quality product, price, personalized promotional offers and the customer experience all contribute to millennial loyalty.
Look at Starbucks that has gone digital, offering relevant rewards and creating an environment where Milenials want to be. Whole Foods, is creating a “hip, cool, technology orientated store” specifically for the millennial demographic.
To understand the Millennial relationship mindset, focus on the fact that they gravitate towards a customer-centric shopping experience tailored to their wants and needs as valued customers.
Change Your Promotional Mindset
This generation expects the same in-store as they experience online. To cash-in on in-store retail promotions, Millennials also want mobile coupon scanning capabilities. Having to printout coupons prior to shopping could be a deal-breaker.
The Accenture study found that ‘95% or more of Millennials say that they want their brands to court them actively.’ Many seek targeted promotions and discounts as the price for their loyalty.
The study indicates that ‘coupons sent via email or mailed to their homes currently have the most influence.’
They recommend that you Integrate the company’s marketing and merchandising departments with a unified message, making the customer as important as product and price considerations within the company.”
When it comes to the consumer experience specifically, millennials tend to return to retailers and other brands that show appreciation through special offers for repeat purchases and other brand advocacy. Convenience is also important.
Don’t Gamble With Your Success
Millennials have a growth-based mindset. They constantly monitor everything and they are continually integrating new technology into their shopping, and other, experiences.
For Las Vegas to consider shifting away from slot machines, which had generated 60% profit, to skill-based games is a truly eye-opening situation.
Many complain about the loss of production based manufacturing jobs in the US and want things to go back to the way things were. That’s never going to happen! The world has changed over the past 20 years and the Millennials experience is totally different than their parents. They have a love of learning, they embrace new technology and they are resilient.
If you want to grow along with them it’s time we all embrace a new, and continually changing mindset. Understand that unlimited knowledge is available to them online. Creating seamless personal relationships using analytics, customized services, and adapting to this segments wants and needs will reduce gambling for their dollar to insure measurable results.