HOW TO REACH THIS ELUSIVE BUT LUCRATIVE MARKET
Are you one of those marketers who still think that Millennials are just teenagers glued to their smart phones? Think again. Millennials have come of age, and with a spending power hitting trillions of dollars, Millennials are fast becoming one of the most sought-after demographics.
Now ranging in age from 20 to 36, Millennials not only act differently than older generations, they’re also one of the largest generations. According to the US Census, Millennials represent more than one quarter of the nation’s population. While this large group is linked by social media, they’re also racially diverse. They’re burdened by debt, but also financially conservative. While they are more distrustful of people than older generations, they remain optimistic about the future. They care deeply about business ethics, and are more likely to use their wallet to express their conscience. Finally, this generation’s shopping behavior is driving the nation-wide resurgence in small and locally owned businesses.
Millennials are estimated to have a combined global spending power of $2.45 trillion in 2015, according to research by Youbrand. However, this generation has grown up in difficult financial times and has experienced a relatively austere childhood. These young people carefully weigh the urges of consumption and aspiration against their desire to play it safe. Overall, this generation is fiscally conservative, an unusual trait for the youth of previous generations. That’s good news for banking, insurance and investing businesses. It also means that this group is going to be especially interested in preferential pricing, low-interest loans and short-term deals on bigger purchases like auto and home.
According to Pew Research, Millennials have rather low levels of social trust. When asked a long-standing social science survey question, “Generally speaking, would you say that most people can be trusted or that you can’t be too careful in dealing with people,” only 19% of Millennials say most people can be trusted, compared with 31% of Gen Xers, 37% of Silents and 40% of Boomers. That means that promoting your certifications, qualifications and good standing in the business community will resonate with this group. Millennials will be especially receptive to businesses that provide extra security, like anti-theft devices, home security, renters and home insurance.
You may know that Cause Marketing is becoming more important to all age groups, but it’s especially important to Millennials. According to a recent Neilsen survey, more than half of Millennials will pay extra for sustainable products. About half of that group will go even further and check packaging for sustainable labeling before purchasing.
90% of Millennials will switch brands to one associated with a cause.
In fact, The 2015 Cone Communications Millennial CSR Study reported that 90% of Millennials will switch brands to one associated with a cause. That means that Cause Marketing should be a part of your Millennial marketing efforts.
It also means that highlighting your commitment to causes will be an important part of getting and retaining Millennial customers, clients, patients and employees.
Even after growing up in one of the worst recessions in memory, Millennials still retain the optimism of youth and believe that the United States is improving. In fact, 49% of Millennials say America’s best years are still ahead, a view held by 42% of Gen Xers, 44% of Boomers and only 39% of Silents. That’s good news if you want Millennials to invest in their future. Organizations like colleges, technical schools or training programs are well positioned to recruit Millennials into programs with long-term benefits.
Millennials love their community and love supporting the businesses and services that also contribute to the local economy. They especially like knowing that they are spending their cash on the community instead of greedy corporations. Shopping locally is a big part of this mindset. In fact, 40% of Millennials prefer to shop locally, even when it means they have to pay a little more. The individualized experience that locally-owned shops offer reinforces Millennials’ ideals and values.
49% of Millennials say America’s best years are still ahead.
HOW CAN YOU REACH MILLENNIALS?
Now that you know more about Millennials, there are a few key things to remember when marketing to them.
- Don’t be afraid to do the math. Because Millennials are more concerned about finances and more financially aware than previous generations, they want to see the value you’re providing. Be clear about offers in your ads and messages.
- Reassure. Be transparent about who you are and what you do. Being open and honest in marketing communications will build trust and address low trust levels.
- Don’t be modest. In the past, talking about causes has been considered “bad taste.” In today’s marketing world, talking about the causes you support is not only appreciated, it’s expected.
- Stay upbeat. Even though Millennials grew up in austere conditions, they look forward to the future. They are upbeat and gravitate towards brands that mirror their enthusiasm.
- Promote your role in the community. Even if you’re not a locally-owned business, you can still tap into the local mindset. Talk about the number of local people you employ, the local causes you support and the ways your business works to improve the community. After all, social responsibility is one of the key drivers behind the local movement.
Wondering which media tools to use to reach Millennial audiences? LNP Media Group can help you reach Millennials with a wide range of media options including mobile marketing, web services, events, search marketing, online marketing, magazine and print. Contact us today and we’ll help you evaluate the mix of media that will ensure you reach your Millennial marketing goals.