10 trends for startups to watch in 2022 and beyond (Trend 7)

Generation Y is the first transformational generation. They grew up in a radically different world from that of their parents, surrounded by modern technologies and a society of consumerism – and it shows in the way they live, work, use, and consume. While some of Generation Y vaguely remember a world with only limited technology, Generation Z (born from 1995 on), have never experienced a world without it. Technology is in their DNA.

Being constantly connected has helped drive a different mindset among younger generations. They are globally focused, multicultural, socially and environmentally active, compulsive multitaskers, live in a customized world, have short attention spans, and view ownership as less important than experiences. The climate protests led by environmental activist Greta Thunberg and supported by young people globally also demonstrate that younger generations are increasingly activist.

It is not only in developed countries that younger generations want influence, change, and a different lifestyle. These needs were a factor in the Arab Spring and other popular uprisings. Young people don’t want the life of their parent or grandparent. They are a part of the “I want more generation” and number in the millions around the world. They are optimistic, hyperconnected, educated, and have disposable income to spend. They are also demanding, wanting Western staples, luxuries, and the opportunity to travel.

One common denominator amongst these new generations is the desire for freedom: to choose not only products and experiences but also how to live their lives. This desire is another important influence on younger generations’ mindsets and applies to work too. It also influences who they listen to – people are turning to peers and communities for direction on norms and behaviours, and for action on critical issues, accelerating a shift of power away from traditional institutions towards society. The shapers and influencers landscape has expanded exponentially as the number of channels through which influence can be purveyed has exploded with continuing advances in communications technology – the metaverse trend will have a significant impact here in future.

All organizations will need to adapt to the shift in mindsets of the next generations as employees, consumers, advocates, and activists. The first step is to start to understand their traits, desires, and styles. Managing the balance in serving and employing different generations will not be easy, but will become increasingly important.

What does this mean for startups?

• Understand your target segment customers deeply: In addition to an end user profile, build a persona so your team can understand the end customer’s needs, desires, behaviours, pain points, values and lifestyle. For slightly shy founders, yes, it does mean you have to get out there and talk to people! And don’t do it just once – every time you have a conversation with a potential customer, you are learning and have the opportunity to improve your value proposition.

• Understand the journey your customers make: Delve into how they learn about your product/service, how and where they buy it and use it, then decide to repurchase if it creates value for them. Along this journey, identify pain points and gain creators – and which are most important – so that as you create your product/service you can alleviate pains and create real value.

• Identify influencers and key routes to market: Influencers are very important in today’s world, where peer advice and word-of-mouth are among customers’ most trusted sources of information about potential purchases. Understanding who your customers listen to and where they hang out online and offline will allow you to identify important routes to market. It will also help you identify potential partners and brand ambassadors to amplify the messages around your solutions.

• Consider new business models: As younger generations increasingly value experiences more than ownership, think about whether your solution could be rented or shared rather than bought. Is there an opportunity to build in circular economy principles? Can you barter with partners? Can you provide opportunities for customers to co-create the solution with you and personalise it? Do you need a freemium approach? Your business model will determine how viable your business can be so spend time exploring different options – then test them rapidly – before settling on your launch model.