Incentives

There is a huge difference between the expectations of the Millennial vs the baby boomer: the Millennial is looking for the satisfaction of intrinsic motivation first and for extrinsic motivation second (if at all). In terms of incentives, or 'what's in it for the Millennial,' there are three different levels of incentives that you can employ either implicitly, by simply showing their role in action, or explicitly, by promoting them aloud:

Intrinsic incentives play on the value participants receive from simply participating in the engagement. These incentives include enjoyment from executing the activity itself, the challenge of the task, learning from doing, the possibility of mastery, etc. Intrinsic motivations are very strong, but over time they need to be rekindled. Intrinsic motivation is derived from rewards inherent in the task or activity itself—the enjoyment of a challenging crossword, or the love of engaging in physical activity, such as team sports. A person is intrinsically motivated when engaging in an activity with no apparent reward, except for the activity itself.

Extrinsic incentives refer to those incentives that the product claims as benefits. These incentives worked well for the baby boomer, which needs a reasoned approach to the consumption of goods and services, and reason is outlined by the benefits a particular product or service will bring about in daily life. A more effective way to deal with dirty laundry, a closer shave, a more spreadable margarine, a stronger tissue paper, are all physical benefits that are extrinsic in nature. These incentives do not hold any value for the Millennial; the Millennial has no concept of 'household chores,' performing appliances or underperforming fabric softener. For the Millennial, security in any life domain equals social capital: how big is their audience, how do they rank within their social group, what recognition markers can the game provide.

Money is an instrument for the Millennial, and not a marker of social recognition. So money—as in spend less money by buying a more efficient product—cannot be used as the primary extrinsic motivation that attracts a Millennial to a product or service.

Explicit incentives are concrete incentives that can be assigned direct monetary value. These include cash, but can also mean products, gift cards, paid memberships, etc. The Millennial is not interested in winning direct advantage as the prime motivator for engaging with a brand. They are looking for social participation and long-term social purpose. They are looking for a connection between purpose and pleasure. Any engagement tactic needs to be designed to give the Millennial the same pleasure and play value as his/her actions on Facebook, YouTube, and Twitter etc. And this can come only with their emotional and intellectual engagement. Engagement for the Millennial needs purpose, an immediate and tangible Social Object. Another score for the Stratos Jump.

 
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