According to a Pew Research Center research, millennials have surpassed baby boomers as the largest generation in America. The same can be said on a more global scale. Today, there are about 1.8 billion millennials, accounting for about 23% of the world’s population. This number makes them the largest adult cohort worldwide.
When it comes to the workforce, millennials dominate in volume. In fact, they’re expected to represent 75% of the global workforce by 2025. That means millennials now have huge purchasing power and will continue to have it in the years to come. With this in mind, businesses should start catering their marketing message specifically to this generation or risk losing significant market share.
If you’re yet to revamp your marketing strategies to effectively cater to millennials, this guide will cover the basics to help you get started.
Who are the Millennials?
There have been constant debates about where the generation of millennials starts and ends. Per Pew Research Center, millennials are born from 1981 to 1996. They’re characterized by the significant events that define a period in history while they were growing up, including scientific and technological advances as well as economic crises. These affect the entire population but tend to leave a more significant mark on the millennials of today.
In terms of lifestyle, it’s said this generation is focused on making a difference on every level, whether professionally, politically, socially, or economically. Because of their more dynamic and revolutionary formative years, millennials are not easily keen to accept traditional methods. Instead, they’re committed to finding effective and efficient solutions that fit the present.
It’s this same “There’s a Better Way” thinking that has pushed millennials to be one of the most challenging markets to penetrate because they’re thrifty, informed, and not-easily-persuaded. However, their diversity and characteristics make them one of the most rewarding generations to reach.
Why Should You Market to Millennials?
Millennials represent a large chunk of the world’s population, and with the growth in their purchasing power, they’re now an important target market that brands should start tapping into. Here are other key reasons why you should market to millennials:
Millennials are in their prime spending years
Even if they haven’t reached their full purchasing power yet, millennials are one of the generations that make their own money. In YPulse’s 2020 calculations, this group has an estimated annual spending power of $2.5 trillion, making them the most lucrative market to do business with.
Millennials are on social media
Social media remains one of the most effective platforms for marketing. With nearly 100% of millennials using the internet, marketers can focus on catering to this audience through digital channels. Knowing the recent social media statistics can help improve your brand’s marketing efforts, gaining more traction and conversion from the millennial crowd.
Millennials are big brand advocates
Millennials are likely to align themselves with brands they can relate to, especially when it comes to something they advocate for. According to Forbes, around 60% of millennials stay loyal to businesses and are likely to make a repeat purchase if they agree with how the brand messaging went. In addition, most millennials show interest in companies supporting social causes.
Millennials trust friend and family recommendations
In a GlobalWebIndex survey, 48% of respondents said that a discount followed by family and friend recommendations made them purchase a product, while only 17% said they would buy because of an influencer or celebrity social media post.
With social media anchored on connections and relationships, businesses will have greater opportunities to increase brand awareness and conversions when more millennials advocate for their brand. Take note of different social media marketing tips you could leverage.
Millennials use multiscreens
Most people recognize millennials as tech-savvy, and it shows when many of them get by utilizing multiple screens daily. Records show that 68% of millennials between 20-36 years old use a second screen while having another one open. This is the case for 185.8 million adults in the US, where most are scrolling through online feeds while watching TV.
Developing second screen strategies would be good for those focusing heavily on traditional marketing. This becomes an excellent opportunity to widen the scope of your marketing efforts and tap channels where most millennials are present.
How are Millennials Transforming Marketing Today
Modern marketing is influenced by factors businesses can and can’t control. It’s become a system where marketers and customers can exchange emotions, reactions, experiences, and more. Today, one practical marketing approach is the reciprocity principle, driven by five key elements: reach, relevance, reputation, relation, and referral. Millennials are influencing these elements in profound ways.
Millennials are heavy technology users, growing up when computers and smartphones started emerging. Today, they’re more fond of using portable devices to access the internet than physically visiting stores. With this, brands can use the vast array of media to their advantage when reaching as many consumers as possible and building brand awareness, particularly this tech-savvy generation. Partnering with experts like a digital marketing agency could help you get started in the right direction.
Millennials have undergone different life stages. Some have started families, some continue with further studies, while some are just trying to stay afloat in their corporate careers. Their brand choices are affected by the different experiences and the various people they have encountered. Brands must be aware of all these to make their marketing relevant and appealing to the market.
Millennials identify with brands more personally and emotionally if the business strives to maintain a genuine reputation over the course of their daily operations. This generation is specifically drawn to companies whose beliefs, traits, advocacies, and values align with theirs.
One of the many golden rules when running a business is to listen to your customers. With the millennials’ “There’s a Better Way” mentality coupled with their constant visibility on the web, progressive marketing strategies have been formulated to become a two-way communication between the brand and target audience. Learning how to incorporate and respond to their feedback or sentiments makes them feel heard and cared for as customers, which is always an end goal for every enterprise.
To get millennials to advocate for your brand, you must first build a relationship with them through different means of communication. Whether at an individual or community level, online or in-person, working to tap into their loyalty can earn you great champions for your brand. After all, millennials are a generation that will go the extra mile when it comes to referrals and recommendations, especially with their friends and family.
How to Effectively Market to Millennials
One way or another, this generation is changing how marketing is done today. From the integration of social media and advocacies, millennials are raising the bar for brands to start delving into strategies that not just work but also matter. In case you’re on the lookout for tips, here’s how you can effectively market your brand to millennials.
Create a solid online presence
Millennials and Gen Z are on social media daily. Use this to your advantage. Millennials are known advocates for brands, and if your marketing is done right, they can be your biggest assets. Build a strong connection with the tech-savvy millennial generation via a solid online presence. Make it relevant and consistent with branding, updates, and communication. By doing this, you improve brand recall and retention because you’re consistently putting your brand out where they can see you.
Produce interactive content
Millennials are no longer interested in passive information distribution; they want to get involved with the actual brand. This generation has seen all the classic marketing tactics, so present them with fun content that will let them participate and come back for more. Create quizzes, polls, contests, and surveys that will make your customers feel engaged and valued by your brand.
Build customer loyalty programs
Millennials are a discount-loving generation. In fact, almost 80% of them are influenced by price when they shop. So, when marketing to them, come up with sales, promotions, and member-only gimmicks that will reward them for remaining loyal to your brand. Giving them exclusive perks will encourage them to stay with you, as your business continues to deliver good products or services without breaking the bank.
Engage in social causes
Millennials stick to community-conscious and compassionate brands. They’re more inclined to do business with companies who donate to charity or make a sale where proceeds go to a particular cause, as it ensures them that their money is being used for more meaningful things. A Kantar study says that 68% of US consumers expect brands to have and be clear with their values, with the millennials and Generation Z having the highest expectations among all age groups.
Be responsive and go mobile
With over 85% of millennials owning smartphones, they’re online nearly twice as much as any other generation. They use their smartphones to read reviews, compare prices, find coupons, and more as millennials have their eyes on their phone about 3.7 hours a day. As a company, that’s a huge incentive for you to get your brand integrated with mobile screens via social media platforms or have your website be mobile-responsive so you can optimize content across multiple devices.
Today, it isn’t easy to level the playing field if you’re still only offering your products in-store. According to UPS, millennials make approximately 54% of purchases online. You’re risking a lot of potential conversions if you’re not making your products available online, especially since COVID-19 catapulted the eCommerce industry’s share of global retail trade from 14% in 2019 to about 17% in 2020.
Make use of user-generated content
As its name suggests, user-generated content is a post created by a customer about your products or services. While not produced by your team, this type of content—that may come in the form of images, videos, or audio—can speak volumes about your brand’s story. As a show of appreciation, repost them to show your online community. By sharing content from your customers, you’re engaging with clients while building on your reputation as a brand.
Use Millennial Marketing to Your Advantage
Indeed, the millennial generation a lucrative market. With their increasing presence in the workforce comes their rising purchasing power. Now that you know how this generation is taking over how most businesses operate, it’s time to catch up and revamp your strategies to meet the ever-changing demands and more.
Marketing to millennials is a long-term play. So, if you need the right people to support you with the best advice and strategies to capture this audience, consult with an expert digital marketing agency like Spiralytics to stay on top of your marketing game. Contact us today to learn more!