The millennial generation is all about instant moments and instant happiness. They don’t believe in waiting. They live their lives like an open book and seek constant approvals and appreciations from their immediate circles. They are constantly on WhatsApp circles and Instagram stories express their emotions through emojis and conversations through gifs.
The marketing and communications which are relevant for their consideration are becoming more and more personalized, with individualized targeting and influenced by word of mouth. They believe in proof, relent to experiences and seek additional value beyond the immediate pay off from all their purchase and investments.
So where are spendthrift Millennials splurging?
A part of “living in the moment” lifestyle is associated with spending a huge chunk of income on materialistic pleasures.
- Food and restaurants
From eggs benedict with avocado topping, gluten-free cakes, gourmet cuisine, craft beer, and Starbucks Vento Frappuccino, more than 90% millennials spend a hefty part of their income on eating out. Eating exotic dishes and growing an acquired taste from sushi to caviar, makes millennials feel more accomplished and successful. It is an emotion far away from reality.
- Saving schemes
It would be incorrect to say that millennials are not saving for their future. More than 50% millennials between the age of 25 to 35 are saving in bonds and equity. They are saving for both their long-term and short-term plans be it their retirement or vacations.
- Streaming services
Streaming services like Amazon Prime and Netflix, music services like Spotify have gained immense popularity and are the top pics of the millennial youth. They spend almost $1o to $30 a month to rent out these services. Games of Thrones, Suits, Breaking Bad are series which have been able to gain a cult status among others.
Apart from food, groceries, and entertainment, wardrobe maintenance is one of the key areas where millennials spend almost 30% of their income. Millennials are all about trends. They set trends, break trends and follow trends.
Online shopping is the answer to all their needs. Comparison of discounts, easy availability of brands at the touch of a button has made the fashion industry create a humungous pull among these millennial youths. Clothes are being shipped right across the globe to cater to these huge demands. China has gained a huge boom, due to the growth of the internet and global evolution of shopping online.
Key factors to consider when marketing to millennials
- Be relatable
Relatability across formats is the secret to success. Communication should be simple, relevant, relatable and easily connect with them.
- Provide Convenience
Millennials like things easy. They do not like to waste time, the key to win with them is by providing solutions which are easy and fast. They have a lot to achieve in a day. 8 to 10-hours of work schedule, transit, time for entertainment and family. Their shopping experiences must be made simpler. Invest in technology, which brings familiarity between the brand and the user. Connect, resolve and evolve. These 3 steps will help in retention and build loyalty for the brand.
- Be relevant
If you are not relevant you would not be required, relevance bridges the gap between possibilities and realities. Getting a breakthrough in terms of product uniqueness helps in creating the attention needed to generate trials for a new product.
- Be youthful
Being youthful is a part of being relevant. Innovation is the key. Connection with solutions which understand the problems and requirements is a major factor to build empathy among users. You need to speak the language they understand, solve the current problem in hand or a probability which might arise in the future. Old and traditional values often falter in building context with the millennials. They believe in their mind that their scenario is different from the predecessors. The problems are more complex, while the solutions required need to be simpler and to the point.
- Product superiority
At the end of the day, what stands the test of time is a superior product which delivers and solve the problem through and throughout. Marketing and communications can push and create leverage, but the product needs to deliver its claims. The strategy should be simple and not multi-layered. Focus on the problem and how best can it be solved.
- Be authentic
Authenticity goes a long way to create consideration and generate trial. If the brand remains genuine and spends money to build transparency among customers, it can generate goodwill, which can be beneficial for the brand in the long run.
- Build value through greater good
Not only selfish means but also satiate a greater cause. Brands like Louis Vuitton has collaborated with projects of Unicef to sell their bracelets. It makes a buyer not only feel proud to own the most sought-after brand but also feel good to have contributed a part in the greater good for the society.
- Go social
Being socially active is perhaps the most important criteria to be relevant for the youth. They live, eat and breathe through online channels. From information to booking flights and hotels, shopping to groceries, booking a cab or doing laundry, life is social. This is a reason why influencer marketing has suddenly gained huge momentum and the Kardashians have become self-made billionaires. If you are not seen online, you are not believed to be authentic. So not just relevance, but social media also builds trust for the brands.
- Use digital marketing
Targeted marketing through geotargeting, SEO, Google ad, display banners, ads through social media channels, YouTube marketing plays an important role in driving the message home. Make content relevant, interesting and enhance the user experience through a medium like artificial reality and virtual reality. The better the experience, the more the response!
However tricky the millennials might seem; it is important to strike the right balance to convert potential buyers into actual users. Adapt and evolves the strategies in phases. Plan, implement and evaluate, are the 3 steps to success.