Millennials: The new retail standard bearer

A new wave of consumers is quickly becoming the most powerful economic force in retail, and it is causing retailers to refine plans on how to meet the needs of this new generation.

While some retailers may see Millennials as a unique group that forces massive change, GameStop sees them as well-informed, independent consumers who are causing us to rise to an even higher level of service.

As a family of specialty retail brands heavily staffed by Millennials and largely catering to Millennials, GameStop has grown up with this generation and has a strong understanding of what they want in a retail experience.

As we interact with Millennials in our stores and via our digital channels, we have learned that they crave engagement and interaction, have a voice to be heard and are more knowledgeable about brands or products than previous generations. At GameStop, we leverage these insights to attract these demanding consumers by addressing these characteristics and stimulating their interests.

Engagement and Interaction

Millennials are well-informed. Before they even come into a store, they’ve done their homework. They want to be “talked with” as opposed to being “talked at.” They want to share their enthusiasm with others. They want a shopping experience that is tailored to their unique needs. In response, GameStop associates engage with customers when, where and how they want to communicate, online or in-store. Our associates have hands-on experience with the products and “talk the talk” with fellow Millennials, providing relevant knowledge and information through the use of innovative technology and devices that can provide up-to-the-minute information and insight.

Voice to be Heard

Millennials want their opinions and points of view reflected in their favorite brands’ selection and purchasing processes. We consider this Millennial input vital to our success. In addition to feedback directly from our store associates, we also rely on our 40 million PowerUp Rewards loyalty members worldwide to provide valuable insights on virtually every aspect of our operations – from what products we’re selling to when, where and how we sell those products.

More Knowledgeable

Millennials are more knowledgeable and demand that brands be authentic. If a company says or writes about itself and its products, Millennials expect the company to deliver these standards. At GameStop, we looked in the mirror and challenged ourselves to provide a more authentic experience in our stores. We have lots of consumer information through our PowerUp Rewards program and we develop great personal relationships in our stores, but we were not translating this into broader customer engagement.

We challenged ourselves to discover innovative technologies that would allow us to adapt our stores to the customer. To accomplish this we partnered with more than 20 technology companies to create the GameStop Technology Institute (GTI). We use social media to build a network of associate advocates who are creating strong social communities with customers beyond the four walls of our stores and into our customers’ virtual world. We are utilizing geo-fencing and location technologies to provide customized offers and content based on personal interests to those PowerUp Rewards customers who opt-in. We continue this personal touch in our stores by using beacons to morph the store to the customer by sharing even more relevant offers and curated content based on where a customer is within our store. Finally, through the use of handheld tablets, we provide our associates with real data for those PowerUp Rewards customers who opt-in, allowing our associates to deliver a very personalized shopping experience for each customer.

When we raise our game to the high standards that Millennials expect, the results are astonishing. In 2014, GameStop once again outperformed the global video game retail category, achieving its highest market share in our history. And, during the recent launch of Xbox One and PlayStation 4, we achieved record share on all facets of the launch. This performance gives us the confidence to expand into other retail concepts, like our recent diversification into Technology Brands in partnership with AT&T and Apple. Like our core video game business, these new ventures require a high level of differentiated and engaged service. The high standards that the Millennials rightfully demand are causing us to raise our service to even higher levels as we seek to meet their needs for a customized, differentiated experience. And, as a result, our entire customer base benefits.

Tony Bartel is the chief operating officer for GameStop Corporation. In this role he is responsible for all aspects of the company’s performance and strategic operations, including the U.S. stores organization, Human Resources, Merchandising, Supply Chain, Real Estate and the company’s Pre-Owned and Technology Brands businesses.