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Much has been said about Millennials, their character traits, work ethic, shopping habits, methods of communication and just about any other imaginable fundamental behavior, and not all the comments have been positive or flattering. The millennial generation usually identifies those born between 1981 and 1996. Arriving in the era of massive technological advances, they have come of age being familiar with the internet, smart digital devices, social media platforms, and all the other technology that often baffles former generations.
Millennials are extremely tech savvy, highly educated and are on the verge of becoming the largest living generation. Learning how to market effectively to them is not an option for marketers and absolutely essential to surviving in the coming decade. “We don’t think of them as special or different any more. They are the core of our business,” says Alan Jope, president of beauty and personal care at Unilever. While some marketers can at least claim a little success in cracking the millennial code, others have just given up and returned to re-focus on what worked to attract consumers in the past. Customer behavior is changing almost daily as technology advances its influence over how consumers make buying decisions.
Grouping an entire generation of people into a single marketing demographic will not work. Like all market segments, not all Millennials will respond to the same messaging and most are fed up with traditional methods of advertising. According to a study from the Center for Marketing Research at the University of Massachusetts Dartmouth, millennials have filtered out advertising on social media and turned to other reference points. Titled, “Born and Raised in the Age of Technology,” the study states, “Millennials consume information when and how they want to.” A campaign of one size fits all is a likely pathway to failure. Erik Huberman, Founder & CEO of Hawke Media says, “Certainly, you’ll want to target age demographics to a certain extent, but your targeting should also be more granular. Instead, go right to the actual attributes of the real customer.”
Quality content across multiple mobile devices is essential to attracting members of this new power generation. An Animoto study has found that 80 percent of surveyed Millennials use videos to conduct research before making a purchase. Video is no longer an option for marketers looking to attract these consumers’ interest. Some 39% of Millennials post reviews of products or brands on social media outlets, and this generation is more likely to listen to and connect with people like them rather than celebrities. Over 60% of millennials would try a product suggested by a YouTuber. Social media reigns supreme.
A select group of analysts was recently impaneled by NPD, in an effort to find out what’s going on inside the minds and households of consumers born between 1981 and 1996. Their insights revealed a group of consumers markedly different from their parents. Millennials tend to be retail explorers, more interested in making memories than acquiring things. They tend to appreciate function over price and often feel less is more. They enjoy experiencing activities more then owning stuff and are inclined to be more focused on home activities. Arguably the group is recognized as being a bit more self-centered then previous generations of consumers. Matt Powell, Vice President, Senior Industry Advisor, Sports, says: “Millennials are constantly interviewing brands, meaning that a brand has to prove itself, every day. For Boomers, there were fewer shopping choices, shopping outlets, and sources of product information. For Millennials, those elements are infinite. On top of that, these elements are always available on their smartphones.”
Fully understanding these shifts in consumer behaviors and beliefs will help unlock fresh insights to drive a business forward. The traditional marketing and sales approach used to create “target audiences” based on a profile of gender, age, demographic, or geographic data alone is an approach that will cripple a business’s ability to successfully reach target audiences in an effective way.