Chapter 2

Looking at the Influence of Millennials

IN THIS CHAPTER

Bullet Defining the Millennial consumer

Bullet Recognizing common errors marketers make with Millennials

Bullet Understanding the Millennial mindset and its implications

Building an effective strategy for Millennial consumers begins with a clear understanding of their unique characteristics. Some marketers miss the basics. Millennials, like any generation, are defined as a group of consumers that fall into a certain age bracket. But, in some cases marketing to Millennials requires you to look beyond age. For this reason, you need to develop a deep understanding of this market so that you don’t misunderstand its complex nature.

In this chapter, you start thinking about Millennials as prototypes for the next generation of consumers. They’re not simply soon-to-be-wealthy 20-somethings that are difficult to reach. They represent a seismic shift in the world of marketing.

Understanding the Marketer’s Perception of Millennials

If you ask the average marketer to define the term Millennial, he or she would almost certainly start by stating that Millennials are consumers born between the years 1980 and 2000. While, demographically this is a fact, the reality is that the term Millennial embodies so much more. That said, marketers still hold certain prevailing notions when it comes to defining this important group.

Examining standard definitions that marketers use

The date ranges vary from one demographer to the next, but for the sake of simplicity, the generally accepted starting point for the Millennial generation is 1980. While the latter point of the date range varies considerably, it’s safe to say that an accepted cutoff point would be 2000. Some demographers are interested in only designating those who reach the end of high school age by 2000 as Millennials. Others define the generation as reaching consumer maturity in the mid-2010s. Whichever range you choose to use, Millennials are the largest, most influential group of consumers in the world (see Book 4, Chapter 1).

To gain some insight about Millennials, the Pew Research Center asked Millennials to describe themselves, as shown in Figure 2-1. It shows that Millennials have a very particular perception of themselves that sometimes conflicts with other people’s perceptions. Forty-nine percent of respondents indicate that they feel Millennials are wasteful, while 40 percent believe that Millennials are environmentally conscious. You may also find it a little hard to imagine someone being both cynical and idealistic, yet 39 percent of the Millennials who answered this survey felt that the general demographic is idealistic, while 31 percent believe that the generation is cynical. Clearly, you need to understand your particular niche audience so that you target the right characteristics.

Millennials do have a few personality traits on which the majority of marketers agree. The following sections outline the assumptions that marketers most often make when it comes to Millennial consumers. Some of these are correct, and some are misguided, as discussed later in the chapter. A better understanding of them will help you develop content and advertising strategies that appeal to the true nature of Millennials.

Tech savvy

Millennials have been born into the digital age. They have grown up not knowing a world without extensive connectivity. Smartphones are standard equipment, and nearly the entire Millennial population of the United States has access to the web.

Millennials have been instrumental in the expansion of such services as social networking and helped simplify web and application development tools. If marketers can assign one characteristic to Millennials and be right, it’s that Millennials are the most technologically advanced demographic in the world.

Mobile

In addition to being the most populous generation in the United States, Millennials are also the most mobile. The number of connected mobile devices associated with Millennials almost exactly matches the size of the generation.

The way Millennials use mobile devices and their dependence on them tells a much more important story. Millennials don’t separate from their mobile devices. In fact, most Millennials admit to never allowing their smartphone to leave their side.

Self-absorbed

You may or may not have heard of Millennials referred to as the Selfie Generation. High definition, front-facing mobile phone cameras and mobile applications such as Snapchat (https://www.snapchat.com) have normalized the self-portraits known as selfies. Marketers associate this behavior with self-absorption.

Time author Joel Stein called Millennials the ‘The Me Me Me Generation.” But he clarified to say that while Millennials may be self-assured, determined, and, in some cases, even selfish, there is much more to them than that.

Lazy

Marketers have watched the rise of the on-demand economy and assumed that its success has come from the inherent laziness of the Millennial generation. The rationalization for that assumption is that Millennials would rather use a mobile application to order what they need than go out and run errands.

Antisocial

Millennials love using social media and sharing their thoughts with the world from behind a screen. Traditional marketers see Millennials walking down the street with their heads buried in a phone and assume that they’re antisocial.

Educated

Marketers know better than to try to dupe Millennials with dated, cunning advertising tactics. That is because they recognize that Millennials are smarter than that.

Entitled

Millennials are viewed as a group that demands a lot from previous generations without offering much in return. This perception is rooted largely in their experience that there is a vast online availability of content, resources, information, and necessities. Since the launch of social networking sites and share-based resources (see Book 4, Chapter 5), marketers assume that Millennials feel they deserve a lot because they have gotten so much free.

Informed

When it comes to making buying decisions, Millennials have access to a plethora of information that previous generations didn’t have. The buying process used to rely largely on the word of the brand via traditional advertising channels. Now Millennials talk to one another and receive honest reviews about a product, service, or brand before making a purchasing decision. Trust in brands, executives, and even government has significantly decreased in recent years, which has coincided with a rise in the trust consumers put in experts and peers. This increased reliance on others means that marketers need to recognize the importance of relationships and the brand experience.

Lacking in loyalty

At one time, the name of a brand would guarantee a certain amount of loyalty. Now, marketers see Millennials chasing something that can be difficult to pinpoint. Whatever it is, marketers assume that brand loyalty has gone out the window. They believe that Millennials prioritize budgets over brands.

Price sensitive

Marketers believe that the lack of loyalty Millennials display is due to price sensitivity. There is irony in the fact that Millennials seem to insist on getting what they want, when they want it, but are apparently willing to wait to make any purchase until a price is found that meets a certain criteria.

Private

With hacks, data breaches, and the fear of Big Brother monitoring their every move, Millennials want to keep their information private. Even with their high degree of oversharing on social media, marketers assume that Millennials don’t want to share with brands for fear of exploitation.

Reviewing what marketers get right

Some of the assumptions marketers make about Millennials are accurate, with the data and research to back them up:

  • Educated and informed consumers: The majority of Millennial consumers review blogs and review sites before making a purchase. According to a report by Medalia Institute (http://go.medallia.com/rs/669-VLQ-276/images/Medallia-Millennials-Your-Most-Powerful-Brand.pdf), Millennials say that user-generated content has an influence on what they buy. The brand experience is extremely important to Millennials. They believe that they can find good information in the unbiased accounts of other consumers. Tailoring the experience to the Millennial audience segment is crucial. This connected consumer base has more power than even the most rich and powerful brands.

  • Price sensitive, but will spend: Millennials became consumers during the greatest economic downfall that the United States experienced in nearly a century. Combine that with a high amount of student debt, and you have a generation of consumers that thinks before it buys.

    Remember The important thing to note is that Millennials will buy. Quality matters more than price, so if they find value in a product or service, they will spend more. Also, don’t be fooled by their cautious approach to spending; Millennials are impulsive. This impulsiveness may be attributable to the fast-paced nature of buying online.

  • Highly tech-savvy and living mobile-first: Millennials live online and, more importantly, on their mobile devices. They’re constantly connecting and communicating. Any brand that doesn’t take this particular trait into account and recognize that mobile is the new norm won’t survive in an increasingly competitive marketplace.

Looking at what marketers get wrong

When you make assumptions about an entire demographic, you risk getting some things wrong. Here are some of the false assumptions marketers make:

  • Millennials are not loyal. Millennials are, in fact, very loyal. The difference with Millennial loyalty is that it relies much more on the relationship rather than brand recognition. Identifying the traits of audience segments, developing content that caters specifically to those traits, and building lasting relationships are what drive Millennials to be loyal.
  • Millennials protect their privacy. In reality, millennials are willing to share more than any other generation. It may appear that they’re very private, but less than half of Millennials set strict online privacy settings.
  • The group is lazy and entitled. Millennials are quite the opposite of lazy. In fact, many Millennials work more than one job to pay bills and debts. What marketers miss is that on-demand services provide access and convenience, not laziness or self-entitlement. Millennials don’t want to interrupt their work to run errands; they can have things like food delivered to them. This change signals a shift in consumer norms rather than providing evidence of a negative trait.
  • Millennials are antisocial and self-absorbed. Self-absorption is actually a byproduct of shifting communications practices. Millennials receive a constant stream of personalized messages. Marketers know that personalized messages are more likely to catch a Millennial’s attention, so they become the norm. Therefore, Millennials aren’t so much self-absorbed as they’re used to responding to messages that specifically cater to their needs.

Recognizing common flaws in marketing campaigns

When you apply certain false assumptions to the strategy behind a campaign, the results can be underwhelming. To avoid getting disappointing results, don’t make these common marketing mistakes:

  • Provide generalized, umbrella content with no specific target audience. You need to analyze your audience segments and develop tailored, personalized content to deliver to specific targeted groups. Sending generic content without the customization that Millennials look for leads to failed campaigns.
  • Target Millennials by age and age alone. Millennials are more than an age range; they’re the new generation of consumers. When you think about Millennials as a mindset as opposed to a group of consumers restricted by an age range, you expand your potential audience and position yourself for long-term success.
  • Duplicate content across all media. All consumers vary their use of media, so you can’t apply the same strategy to each of them and hope to be successful. You need to understand your audience on each of the platforms you frequent. Then you can develop effective strategies for each audience and media type.
  • Make assumptions without analyzing data to back it up. Data needs to be at the core of everything you do. So much of it is readily available to fuel your success, so make sure that you use it. (For more about the analysis and applications of data, see Book 4, Chapter 3.)

Finding the roots of the most common mistakes

The mistakes listed in the previous section are common for one reason: They generally come from the same four roots. These roots are

  • Inattention to data: Data needs to be the driving force behind your decisions. If you’re developing strategies that don’t rely on data, you’ll likely be disappointed with the results. You have no reason to rely on gut instinct. Data insights are simply too accessible.
  • Broad generalizations applied to your audience: With so much information about Millennials, it doesn’t make sense to run on assumptions alone. Take some time to analyze and get to know your audience so that you can develop content and campaigns that really resonate with them.

  • A lack of testing: Everything you do should be tested. One of the greatest powers of new media is the ability to test, analyze, optimize, and implement all in a matter of hours. The ability to react in real time is powerful and should not be ignored.

    technicalstuff The term new media describes primarily digital, social, or mobile media. Traditional media, such as print, radio, and even television, have seen declines in consumer use, marketing value, and adoption.

  • Refusing to adapt to changing audiences: The audience you’ve cultivated and analyzed for today’s campaign may not be the same audience you’ll find when you’re ready to run your next initiative. Auditing and analyzing your audience can be a tedious process, but it’s an important one if you want to maintain relationships and find long-term success.

The Millennial Mindset

If you think about your Millennial audience without the constraints of age, you begin to understand that in some ways the term Millennial is becoming synonymous with consumer. The traits exhibited by Millennials, the largest and most influential demographic of consumers in the United States, are traits that marketers can apply to individuals across a multitude of demographics. Understanding and adapting to a new age of consumer habits and traits will set you up for long-term success.

Defining the Millennial

If you look beyond the scope of age, how would you define Millennial consumers? Giving them a singular definition would be dangerous because it significantly limits the audience. You need two definitions when discussing Millennials so that you can properly analyze them:

  • Age: The first definition of Millennial consumers has to do with age range. Use this definition when discussing data about the consumers. Demographers, sociologists, social anthropologists, and marketers use age to conduct studies and collect data. (Most hard data collected applies age restrictions to this group.)
  • Interests and behaviors: The second definition for the Millennial consumer is much more broad. Instead of focusing on age range data, you need to turn your attention to interests and behaviors. In these audience segments, the definition of Millennial extends far beyond age restrictions. Here, you look at like-minded consumers that fit a series of behavioral criteria. You can broadly define this category of Millennials as being tech-savvy, price-sensitive consumers who place their trust in peers and experts over brands. They digest information at a rapid rate and look for tailored, personalized brand experiences. Brand familiarity is less important to these consumers than relationships. When they form these relationships, they’re fiercely loyal.

Identifying preferred Millennial media

When compared to a generation ago, you can have a presence on an endless array of media. Ideally, having such a vast presence also means you have a strategy and a budget. To maximize your budget, you need to find and target the specific platforms your audience uses. Here are some points to keep in mind, when you begin to identify your audience’s preferred media:

  • Start with Facebook. The majority of online Millennials say they’re active on Facebook. This means that you’re almost certain to find some of your Millennial audience on Facebook. Despite what marketers and news outlets have said, Facebook is far from being irrelevant to Millennials. In fact, Facebook and its products have become so commonplace that Millennials don’t even realize how inextricably linked to it they are. Facebook is a great place to begin the process of analyzing your audience.

  • Match email lists before building strategies. Before you begin building a strategy for a particular channel, you should either run an email match audience analysis or extract data using an ad platform. This step will help you determine whether a channel is worth investing in for the purpose of acquiring and retaining Millennial consumers.

    technicalstuff Running an email match audience analysis is the process of uploading an owned email database to match emails with users on a given network and then analyzing aggregated data to identify marketing opportunities within a network or audience.

  • Identify top interests in your audience analysis. When conducting your audience analysis, you should pay close attention to topics of specific interest to Millennials. Certain content makes some media more attractive for investment than others.
  • Evaluate content requirements and access. If your brand isn’t built for specific channels like Instagram (https://instagram.com) or Snapchat (https://snapchat.com), which are predominantly visual and entirely mobile, then making the investment to use them may not be worth it.

Tip Finding a way to be relevant on these kinds of media is ideal, but if you don’t fit, your investment will go to waste. It makes more sense to focus on platforms that are ideally suited for your brand and content.

Grasping the importance of relationships

One of the overarching themes of Millennial engagement is the value placed on relationships. The importance of relationships is something that transcends media, brand recognition, and even quality of some products or services. Millennials engage primarily in impersonal spaces, so when a real, genuine connection is felt with an organization, it lasts a long time and can lead to loyalty and even brand advocacy.

One long-term goal of any organization should be to cultivate brand advocates from within their Millennial market. Brand advocates help promote your brand and expand your horizons. Advocates decrease marketing costs and open new doors for marketing and advertising.

To begin cultivating brand advocates, you need to find common ground and nurture these relationships. Over time, that common ground leads to personalized communications that ultimately lead to new customer acquisition.

The retention of these new Millennial customers, however, is where the real value lies. Retaining and reactivating existing customers is far less expensive than acquiring new ones. With the help of brand advocates or pseudo-sales agents, keeping and acquiring customers becomes much less burdensome and much more affordable.