Reaching millennials is a major strategic focus of most companies. By 2030, millennials will outnumber non-millennials by 22 million. This independant generation is often viewed as “lazy” or “entitled” but smart organizations are learning not to dismiss them but rather to recognize this generation’s affitnity for technology and learn how to best represent their brands. A recent study by a Boston Consulting Group, show millennials are not only cutting the cord to cable but resisting the status quo in many other industries. They tend to trust their friends rather than “corporate mouthpieces,” which really dictate how brands now reach out to potential customers. Plus, they are very social both online and offline. Taking in all these factors, below are four segments to note if your business is trying to market to millienials.
1. Restaurants. The millianials are making wiser choices in their food purchases from those of a generation ago and it’s interesting how they are rewarding who gets their dollars. According to research, this young health conscious generation is more likely to spend money on fruits, organic food and natural products. They are less like to spend money on luxury goods, sodas, apps and handbags. They are also patronizing restaurants that are purpose oriented like Chipotle or Panera. So if you want to attract this younger target demographic, you’ll need to use great natural ingriedients and team up with a great charity.
2. Big Banks. It’s no wonder with the high unemployment rate among millennials that they would be wary of the big banking industry whom they believe caused the great recession. A recent study shows that millienials would rather visit their dentist than listen to what the big banks have to say. In fact, 1 in 3 millennials would change banks in the next 90 days because they see no difference between them. This is a huge target demo opening for community banks who would like to capitalize on this distrust. Savvy community banks are beefing up their technology, taking to social media, implementing mobile options and perfecting their customer service to attract this market that is heavily invested in the buy local trend.
3. Retail. Millennials are careful, frugal shoppers who want quality and durabilty over luxury labels. They also prioritize access over ownership, which means they prefer Spotify, Nexflix and Pandora over CDs and DVDs. They are more specific and intentioned with what they buy and are not as interested in shopping in big, brick and mortor malls. In fact, many prefer to browze online and withhold purchases until they find the right referrals and pricing to ensure that they will love their purchases. With this trend, how to do local, small businesses compete? Build a great digital presence and build up a solid social media plan that includes sharing options on your site along with great referral programs.
4. Real estate. The housing marketing is still in a slow recovery around most of the U.S. mainly because young, first time home buyers are staying out of the market. With lending still tight and career instability weighing on the minds of millennials, most are still opting to live at home with their parents until they save money and pay off student debt. Again, millennials are very frugal and careful with their money, which is good and when they return to the housing market should make great demographics for lending. What can real estate marketers do to gain the trust of millennials? Team up with great mortgage companies with strong social media presences, develop their own digital marketing plan and work hard to gain the trust of young people. Publicize and educate young consumers on non-traditional ways of owning a home and also give options on homes that are green and sustainable, further reducing ultility costs down the road.
Remember, millennials expect a two-way mutual relationship with companies and brands. Gone are the days of traditional vertical marketing where you can blast a message and your work is done. Because of the internet, social media and mobile devices, this generation expects multi-directional engagement that is open 24-7. If your company or oganization needs assistance in developing a plan to market to millennials and creating a digital presence, contact Bellagurl. Our employees are both millennials and non-millennials ensuring the right message and plan for your business. We make marketing that matters.
