There’s a new buyer in town, officially labeled by demographers and marketers as a “Millennial” from “Generation Y.”

So who is this buyer, and what does it mean to us, as brokers, owners, and managers?

He or she is 32 or younger, grew up around technology (playing video games, watching 250 cable TV channels, talking on his cell phone, text messaging, and using the Internet). He or she becomes bored and frustrated with just about everything that doesn’t move at lightning speed; a demanding consumer who needs lots of information, always on the spur of the moment.

Communication is 24/7 and expects response to e-mails within 60 minutes, if not instantly. He or she has information from online sources you’ve never seen or heard of as well as the ability to do research on the Internet at work while he does his other tasks. Due to the high price of homes in relationship to his earnings, he or she may buy something with a partner or two, or may have mom and dad help him with a down payment and take in one or two roommates to help subsidize the monthly cost of the property.

Let’s face it: As brokers, owners, and managers, even though we’ve had to change and learn a lot over the last 15 years in the realm of technology, the greatest chunk of our clients have been from the same demographic group — our own. Therefore, many of us have survived 25 or more years in the business without having to change much in the way we conduct ourselves with clients.

Most of us know, at least intuitively, that Generation Y cannot be served the same way we have served their parents and grandparents (Baby Boomers and Veterans). If we insist on using outdated communication methods, selling techniques and business models with this new powerful group of consumers, they will pass us by, leaving all but a few real estate companies to fade away like the dying embers of a once magnificent bonfire.

The fact is that Generation Y will either be our clients, or they will be our competition. The truth is, if they can get what they want without us, they will. Here’s what we need to know and remember about this consumer group:

• They account for around 28% of the U.S. population. They are about 78 million strong, rivaling the Baby Boomer segment in size and spending power. One third of adult Gen-Ys in the workforce have a household income of $75,000 or more. This group is ethnically and racially diverse (one in four is non-Caucasian), multicultural, brand and style-conscious. They are purchasing their first homes at an average age of 26. Many live with parents or in-laws prior to buying their first home.
• “Price” is king. Even great customer service will lose to saving money. “Safe investment” is queen. They tend to purchase a home based on its appreciation value, not for family reasons.
• High tech is assumed without question by this generation, who grew up with the Internet. They rarely read the newspaper in print perceiving as “yesterday’s news.” They read online versions to get the latest up-to-date news and info. Even when they see a television ad, they will go online to check it out.
• They get bored and frustrated with slow-paced environments. They like to multi-task and expect lots of stimulus. These guys can send text messages, watch TV, listen to their iPod and write a report simultaneously. They are creative, fast thinkers. They expect their REALTOR® to be nimble, available and responsive.
• This generation is group-oriented.
  Their friends are family to them. They often make buying decisions in groups. Their rapid communication with each other via the Internet can either bring your business quickly to the “tipping point” with them, or can blacklist you in a heartbeat.

Eight Ways to Make Sure Your Agents Reach and Sell to Generation Y

1. Recruit young agents to increase your capture rate in the Gen-Y market. It’s good customer service to have a diverse agent population available in your company or branch, ultimately creating openarms and comfort for consumers of all cultures.
2. Make sure your company and your agents are super technologically savvy. On a scale of 1-10, you need to be at 10 to serve Gen-Y. The Internet is the way to develop and maintain a relationship with this huge group of consumers. Be everywhere on the Internet that they go. Learn their habits. Make sure your company provides top technology training to your agents. Encourage agents to think out of the box to reach Gen-Y.
3. Gen-Y likes a direct, but consultative approach. Teach agents dialogue that makes it simple for Gen-Y consumers to do business with them. Remember this group is also called “Generation Why?” Agents will need good, strong data to prove their value. Help your agents learn the market “cold.”
4. Address fees right up front. The Gen-Y seller has already done massive research on the Internet (accurate or not). The agent’s role is to interpret the data and to create an aggressive sales strategy that saves the client money. If the REALTOR can’t prove how agent services will ultimately put more money in the client’s pocket, the Gen-Y client will not sign. Make sure the agent shows the client what’s in it for them. Have them show exactly how they earn their fee.
5. Put your money where your mouth is: Guaranteed good faith estimates that pin down buyers’ closing costs to the penny, guaranteed timelinesfor closing with penalties paid to the parties in the event of a delay, and concierge service that makes the whole process smooth and simple for them will win the business. Gen-Y is unforgiving when it comes to unfulfilled promises.
6. Use multiple, targeted media and channels to reach Gen-Y. Do more of your classified advertising on Internet sites, and less in print media. Make targeted Web sites geared specifically to them. The message needs to be clear. Material needs to be colorful and have graphics, audio and video. Gen-Y buyers like to race through Web sites, jumping from place to place to get the information they want. If things take too long, they’ll go somewhere else.
7. You, your company, and your agents must be enthusiastic and energetic! Use Gen-Y language, sophistication, humor, and honesty. Be willing to brainstorm with these clients and be creative. Don’t tell … listen and come to consensus. Recognize and respect the power and authority of Gen-Y. The mayor of Pittsburgh is 27 years old. “Twenty-somethings” are entering decision-making positions in companies at an unprecedented rate.
8. Make sure any materials produced and distributed to Gen-Ys have substantial content and value. Anything pushing a slogan or appearing too traditional will send them running. So will over-hype, fl uff, and anything vague or nonspecific. Agent-centric brochures and “our company is number one” style marketing will cross you off the Gen-Y map. Make materials about them, not about you.

See published article at:
http://www.colescreative.com/dev/crb/spring07/crb001.html