Millennials tend to get a bad rap, especially from older folks. The term conjures up mental images of lazy, entitled kids permanently glued to mobile devices, but did you know the leading edge of this generation is now 38 years old? The term technically encompasses people born from 1981 ‘til the late 1990s (some institutions stretch the birth dates to as late as 2004), making Millennials the largest and most influential generation to date, with substantial buying power.
The term was coined to apply to individuals who mostly reached adulthood around the turn of the 21st century. This coming-of-age was marked by the global effects of 9/11, economic recession and heightened competition in the job market. In South Africa in particular, Millennials had to find their way through the housing market bubble and the start of load shedding early in their careers.
They had access to the Internet from at least high school age, so grew up much more informed than previous generations, and are resistant to marketing tactics that worked effectively on their parents.
So, how do you reach this often-misunderstood group? You’ll need to keep their consumer psychographics in mind:
Ethics:
Millennials are more concerned with environmental and social justice issues than any generation before them and are likely to research the impact of your manufacturing processes and product lifecycle on people and the environment before they purchase. This demographic understands the power of their buying decisions and will support companies they feel aligned with. Let’s take the example of a commissioned jewellery piece that a Millennial client has already half-designed herself. An alignment with your values and beliefs is likely to convince her to choose you over any other manufacturing jeweller producing the same quality workmanship.
Tips:
- Guarantee that your metals and stones are ethically sourced and conflict free, and highlight any recycled materials, sustainable products or renewable energy sources you’re making use of
- Instead of a sale consider running campaigns where a portion of the proceeds are donated to a worthy cause
- Clearly communicate your company values in your marketing channels
Media:
Millennials are much more engaged with digital video and online platforms such as blogs rather than traditional advertising channels like TV or print media.
Having grown up with the Internet and mobile phones, they spend a lot of time online and are used to being hyper-connected. They easily transitioned to browsing the web on smartphones and do most of their digital interaction on this platform. The cost of this is that they (like all of us in this digital age) can suffer from information overload and distraction. They know what it’s like to be constantly bombarded with adverts and content, and also remember a time when they weren’t.
Tips:
- Incentivise your audience to subscribe to an email list where they’re more likely to be focussed on consuming that content, rather than while they’re scrolling through social media
- Consider SMS and WhatsApp as further promotional channels
- Ensure that your website functions smoothly on a range of devices
The buying experience:
Almost half of millennials see shopping as more of a social activity than an errand, and expect great service both online and offline. If your service doesn’t live up to your marketing promises or your physical store’s atmosphere and decor is inconsistent with your online presence, they will lose confidence in your brand. As digital natives, they expect your platforms to work seamlessly and load quickly. It goes without saying that in 2019, if your website is not mobile responsive, you’re losing out on customers and Google search result rankings.
Tips:
- Create exclusive events for your most loyal customers
- Position your ads and online content to focus more on the experience of wearing your jewellery rather than the products themselves.
- In-store and on your website, focus on crafting a memorable user experience and an atmosphere consistent with the rest of your branding
Social Proof:
Reviews and testimonials are very important to Millennials. They are much more likely to research a company or product before making a purchase, and are especially responsive to recommendations by friends. They tend not to be impulse-buyers and will spend the time to make sure they’re getting value for money. At a global average, millennials earn 20% less than their parents did at the same point in their lives, own less property and save more money.
Tips:
- Make sure your marketing communicates the quality of your product
- Figure out who your most loyal fans are and give them special offers to share with their loved ones, and coupons or discounts in exchange for recruiting new buyers. Research shows that referrals are 4X more likely to generate sales, so carefully consider what type of offer is most relevant to your audience
- Find out what other brands or social influencers your ideal audience follows and partner with them
In summary – “If you don’t capture the millennial customer, you put your business model at extreme risk for the future,” according to analyst Oliver Chen. Read the CNN Business article here outlining how Tiffany & Co. increased sales with its Millennial-centric campaign.
