When established companies face trouble, it is frequently linked to not understanding future customer needs. Recent cases, such as the struggles of retail giants like Nike, highlight how shifting consumer preferences can disrupt long-standing business models. Companies that fail to adapt in time risk being overtaken by evolving demands, driven by a new generation that thinks, lives, and buys differently.
The foundation of any successful business lies in truly understanding its current customers. Are they satisfied with the existing offerings, or is change necessary? Tools like the Net Promoter Score (NPS) have become widely used to measure customer satisfaction. However, there is a risk in focusing solely on current customers: satisfaction today can create a false sense of stability. Companies that rely exclusively on their existing customer base may overlook signals from new generations who might find their products or services increasingly irrelevant.
That’s why businesses must also actively investigate the needs and expectations of future customers. Any company that aims to remain successful for the next ten to fifteen years must look beyond its present audience. Younger generations – the consumers and decision-makers of tomorrow – deserve just as much attention. The differences between generations are significant, influencing everything from how products are presented to how brands communicate and the values they uphold.
But are companies doing enough? Are they asking the right questions to both their current and future customers? One effective approach could be to establish a youth advisory board consisting of members from younger generations. This concept is not new – several global brands already use such boards to stay in touch with evolving consumer preferences. Additionally, businesses can create innovation-focused advisory panels, which do not necessarily need to be composed solely of young people but should include experts with a forward-looking perspective on technological and societal changes. These boards are not an extra layer of bureaucracy but a strategic tool to align business offerings with future customer expectations and industry trends.
This principle applies not only to consumer-focused companies but also to the B2B sector. In many industries, sales processes span several years, and relationships are built over multiple generations of entrepreneurs and managers. What happens when today’s decision-makers are succeeded by a younger generation with entirely different priorities and expectations?
Entrepreneurs must tailor their strategies not only to today’s customers but also to those of the future. This requires responding to evolving needs, adopting new technologies, and, most importantly, actively engaging with the next generation.
Yannick Dillen is Professor of Entrepreneurship at Vlerick Business School.