Marketing to Millennials: 5 Things You Need to Know
The Millennial generation is reshaping the economy, and businesses must adapt to this generation’s unique spending culture, affinity to technology and diversity.
Millennials are the young adults born between 1982 and 2000. According to the US Census Bureau, millennials represent over a quarter of the US population and are estimated to number 83.1 million – far more the 75.4 million baby boomers. These young adults wield $1.3 trillion in annual purchasing power – enough reason for businesses to look at them more seriously.
Here are six important things businesses must know about millennials:
1. Millennials are very diverse.
There is a common misconception that millennials are a single, narcissistic entity, but they are actually very diverse. Almost half of this generation is composed of non-white persons and about a quarter speaks a second language. This diversity poses a challenge to marketers and businesses but also opens up many opportunities to reach out their target market with unique messaging. Extra effort should be put on digital marketing for your business to stay relevant and engaging.
2. Millennials are digital natives.
9 out of 10 millennials use between two and three tech devices, and these devices are very influential in their shopping behaviors. Quite evidently, a huge percentage of holiday sales occurred through mobile marketing and the trend is more likely to continue. As such, it is important for businesses to capitalize on shifting trend by being more prepared to conduct business in the digital sphere. Providing an excellent digital shopping experience can be a great way to bring your business into the twenty first century.
3. Millennials trust brands
With a deluge of information at their fingertips, businesses must strive to build a brand. According to a Forbes report, only 1% of millennials are likely to believe advertisements. This is the reason why they sift out commercials and avoid banner ads. Product reviews, blogs and word-of-mouth are considered authentic sources of information, and thus are more influential.
4. Millennials are not into traditional media.
The era of books, magazines, newspapers, and TV news is slowly going to obsolescence. Blogs and social media are slowly seen as replacements. Millennials tend to trust people more than logos, and blogs and social media tend to be trustworthy. Traditional advertising and marketing that are dependent on traditional media may not be as effective. However, this does not mean that you can just publish content and hope that millennials will believe in it. These new breed of consumers are more discerning and want only authentic content.
5. Millennials are smart consumers.
Contrary to common preconceptions, millennials are not just a bunch of narcissistic, impulsive buyers but rather they are well-informed digital natives who seriously value personal finance.In this infographic by Goldman Sachs, millennials can be seen as smart consumers: putting off significant economic milestones like moving out and purchasing their house, marriage, and owning a car. Moreover, they are used to instant access to peer reviews, price comparisons and product information.
Marketing to millennials requires businesses to understand this unique population. And as the economy shifts towards this new cohort, businesses must now start re-examining how they do business and with whom.