So-called ‘millennials’ – those aged 35 and under – are predicted to spend around US$200 billion a year by 2017, creating a massive opportunity for marketers.* However, marketing to millennials is not the same as marketing to other generations; they have a different set of requirements for evaluating potential purchases.
As one of the largest groups of consumers it is essential to understand the millennial demographic. They have grown up as ‘digital natives’ and many don’t even remember a time before smartphones, wireless connectivity, and broadband internet.
Here are five key strategies to consider when marketing to millennials:
- Deliver value through relationships and stories
Millennials prefer to interact with a company’s website, check with their friends, and review social-media information before making purchasing decisions. It is therefore essential to:
- start with the relationship, not sales
- create engaging content that will attract their attention and make them want to share
- listen more than you talk
- tell your stories and make it personal.
- Let millennials be collaborators
This generation responds well to being asked about products and services companies offer. They like to be included in business decisions. Asking them how you could improve current offerings results in increased loyalty and, therefore, more sales. To successfully obtain millennials’ feedback, use the channels they prefer, such as social media or SMS. Any mechanism you use for surveys must be mobile-responsive.
- Be high-tech and fast
Millennials use tablets and phones, not PCs or laptops. Therefore, it’s essential to make sure company websites are mobile-optimised. Your website, and every page on it, must load within three seconds or you risk abandonment.
It’s also critical to understand how people are using your website and offer them a frictionless experience. Using an intercept tool, for example, lets marketers interrupt users if they sit on a page longer than normal or appear to be having difficulty. This may take the form of a pop-up screen that offers to help the user find what they’re looking for. Or, if they abandon their shopping cart, marketers can offer a discount for shoppers who use a specific code within a specific timeframe, potentially saving the sale.
- Look for long-term relationships that will spread your brand
By taking a long-term view of relationships, and putting the instant sale second, companies can generate loyalty. This means creating engaging experiences for millennial customers, rather than hard-sell communications. Get their feedback, or give them content that they will share with their peers. Once the relationship is initiated, millennials are more likely to come to you when they’re ready to purchase.
- Implement millennial-appropriate technology
To truly understand the millennial market ask them what they want and then act on that feedback. This is now easier than ever before with tools that enables marketers to build agile advanced-flow surveys, send them, and roll out results in the same week.
Marketers can also implement programs that let them respond to customer needs, analyse trends, and make changes in real-time. An exceptional customer experience is a true differentiator for brands but is not easy to achieve. Organisations should embrace customer-centricity through efforts such as a Voice-of-Customer – VoC – program.
The digital age has transformed marketing forever. Millennials are the first, but won’t be the last, generation whose consumption behaviours are firmly tied to online relationships. Smart marketers will embrace this consumer-driven economy and find ways to engage on many levels.
*http://www.comscore.com/Request/Presentations/2012/Millenials-Report-Download-January-2012?c=1
Bill McMurray, APAC Managing Director, Qualtrics
