Millennials: The new business segment in market.
But this problem is not the only one that marketing and sales people have to address in our days.
Brands have to face another major challenge in order to attract and keep their customers satisfied. There is a new powerful business segment around here…
Millennials: The new business segment in market.
Millennials poised to be the biggest spenders, as they move into their prime earning and spending years, so millennials dominate conversations around product strategy, marketing, sales channels. The economy in one word. This generation is so different, so all brands must see and interact with them as a unique consumer in order to draw their attention and business.
Let’s take a look at who Millennials are, what are their purchasing habits and why they buy.
They were born sometime between 1982 and 1996, so they’re around 25 – 39 years old. Only in the U.S. there are more than 80 million millennials, making them the largest generation in the country’s history. On the same time, more than 100 million millennials are living in the EU, making them the 20% of the total EU population. Impressive isn’t it?
Most of these young people have less than $1,000 in their savings accounts, and a significant number have no savings at all. They have less credit card debt and car purchases than previous generations, most likely because lenders have tightened the requirements for granting credit and loans. More than 65% of millennials don’t have a credit card at all. Impressive isn’t it?
Millennials consider two things when considering their purchases, social responsibility and environmental friendliness. Terms that brands haven’t consider, until now, as a decision factor for their customers. So brands face Millennials significant expectations in terms of shopping and investment money. They typically choose to either follow their own instincts or go along with their peers but have become rather wary of financial advice given by parents and professionals in the field. Millennials also prefer personal connections with those who manage their money, who reflect their highly held values of trust, authenticity, and choice.
Discounts, fair offers and loyalty are key factors for them.
Millennials focus on discounts when it’s time for shopping. Three major factors drive their decision. They value price over recommendations, the brand’s reputation, and even product quality. They sure follow brands online just for discount opportunities after all they spend so much time on line. More than 65% of millennials would switch brands if offered at least a 30% discount, and only a third see a brand to consider trends or product updates.
But, they are loyal. 60% of millennials state loyalty to brands they currently purchase from if treated well through customer-centric experience. If treated well. To ensure allegiance, companies include loyalty programs with custom discounts as well as active courtship. Millennials are savvy consumers, they can sniff out the best deals and they recognize dishonest marketing very easily. They are experts on e-shops and e-commerce in general so marketers have to be honest and fair to them. Building brand loyalty can be challenging, but by understanding the millennial mind and by focusing on the things that Millennials value, you can earn their loyalty and develop brand advocates for your products.
Brands should center upon are authenticity, local sourcing, ethical production, a great shopping experience, and giving back to society. These values are important for millennials, after all 75% of Millennials consider it fairly or very important that brands give back to society instead of just making a profit.
So after all these the question is where do they spend?
Millennials spend more on comforts and conveniences:
o 60% of millennials spend more than $4 on a single coffee
o 70% of millennials will spend a little extra to eat at the hip restaurants in town
o 69% of millennials buy clothes for reasons beyond basic necessity while almost 40% like to shop on line
o Over 50% of millennials spend money on taxis and Ubers while only 29% of Gen X and 15% of Boomers do the same.
o Groceries as a result of healthy eating habits
o Their smartphone, their laptop or tablet and comprise the highest usage as well
o Hobbies, electronics, and clothing
At the same time, millennials spend less than older generations on:
o Television, as streaming and OTT services have come online, cable and antenna are becoming a service of the past
o Travel, because they’re unable to afford regular vacations and struggle to save for them
o Furniture and building materials as they don’t own a house (yet)
Passion is the new “Go” for Millennials.
As Millennials place a high value on both authenticity and transparency we must keep in mind then when reaching out to Millennials, it’s important to find their passion points and values. Make no mistake, Millennials love personalized digital marketing above all means of communications. Over 60% of Millennials are loyal to brands that engage with them individually on social media. Instagram, Facebook, Twitter, Snapchat even Tik-Tok. They stay loyal to brands that make them feel appreciated and unique.
Millennials also prize their individuality– but it’s not about segmenting them into specific groups. Instead, your brand should offer things that interest them in particular. The Millennial generation is one of the most diverse in history. Brands that rely on a “one-size fits all” model tend to alienate Millennials rather than seduce them. Millennials know what to look for in a brand, and they are acutely aware of how purchasing from that brand represents who they are as individuals.Millennials use social media to interact with brands and peers. Technology has bridged the gap between people and made communication easier. Millennials are using technology to connect with others around the world, so it’s important for brands to connect with consumers in a genuine manner. Millennials have embraced online sharing, and if they have an overwhelmingly positive or negative experience, they are very likely to share that online. Statistics reveal that over 40% of Millennials spread the word about brands on social media. They can easily be brand’s advocate through their social network. But don’t try to buy them do it. They won’t.
Millennials like simple things, so they prize convenience, and if you are trying to get them to engage in a brand loyalty program, it’s very important to make rewards easy to earn and easy to redeem. Remember, they don’t like to fill out forms or sign up with physical cards. They also tend to ignore emails since they receive so much content from online retailers. The best way to attract their interest is by integrating a mobile element with eye-catching push notifications or asking for simple feedback such as a star rating is much more likely to gain a response.
We need a fresh, new marketing strategy.
Millennials are the new financial powerhouse generation, worldwide, so it’s important for brands to understand what makes them to buy and spend their money.
Brands, have to change their marketing strategy so they can meet millennials expectations.