First, I must disclose that I am not a Millennial. I like to think I’ve helped shape them but they are neither me nor I them. If you are going to successfully build a brand relationship with the next biggest consumer group, you’d better start orchestrating your brand today to fit their needs, wants and desires.
Collectively, they spend about $300 billion annually on consumer discretionary goods. And in five years, they will make up 50% of the workforce. In 15 years, they take over at 75%. The Center for Generational Kinetics defines Generation Y–a.k.a. Millennials – as those born between 1977 and 1995, so today they’re 20- 38 years old.
Millennials are a technologically connected, diverse and tolerant generation. They have witnessed and experienced countless world-changing events that have shaped their lives, from acts of terrorism, catastrophic weather and environmental disasters, financial crashes, to international political upheavals – all brought to them in a media-saturated environment.
So what does this all mean? I went online to find out what research had been done on the next wave of globally-dominant consumers. I discovered this group has been researched to death. Everyone is trying to figure them out from every possible business and marketing angle.
After muddling through all the information and misinformation, and Wikipedia was no help, I came up with five traits or trends that brands need to be aware of if they want to build a relationship with Millennials. Here’s what I have discovered:
They have lived most (or at least half) of their life with a cell/smartphone around them, staying connected 24/7 with friends and family. Their ability to consume digital content (emails, texts, tweets, video chats, websites, apps, videos and images) while at the same time producing their own digital content is admirable; but what is truly amazing is they do this sitting in meetings, visiting with friends, eating, running, walking and driving a car. They sleep with their cell phone on and ready. Three-quarters of Millennials are signed up to a social network site like Facebook, Twitter, Pinterest, Snapchat, YouTube or Instagram, compared to only half of Generation Xers and less than a third of Boomers (Pew Research Center). They also account for about four in 10 digital video viewers. The Wall Street Journal reported that this is the first generation to also have tech savvy parents, who were always in contact with them via texting and online chat throughout the day. That’s me.
As they consume services, products, food, beverages and entertainment, they are sharing their experiences, good and bad, via social media as photojournalists, comedians, critics and just plain participants. Boston Consulting Group reports, “The vast majority of millennials report taking action on behalf of brands and sharing brand preferences in their social groups.”
Social and online reviews have supercharged traditional word-of-mouth and some brands live and die from these reviews. Not only do they like to share but they like to feel informed and involved not just marketed to.
A great example is the fatal Kryptonite bike lock that was shown on YouTube being opened with a simple Bic pen. According to hotel booking Getaroom.com and ReviewPro, Millennials rely on user-generated peer reviews to help make their travel bookings. A survey by the market research firm Dimensional Research showed 90% of respondents said that positive online reviews influenced their buying decision. On the other hand, 86% said that negative reviews have a direct impact on shifting their purchase choices. One of Amazon’s cornerstones to its brand identity is its customer’s reviews. They even have a collection of the Funniest Reviews.
Alex Castellarnau at Dropbox, the popular file transfer service says “Millennials are a generation that wants to co-create the product, the brand, with you. Companies that understand this and figure out ways to engage in this co-creation relationship with millennials will have an edge.” Some brands that have figured this out is Uber, Airbnb, VICE, Red Bull Entertainment.
Me to We
Brother’s Craig and Marc Kielburger, both Millennials, made the “Me to We” famous with their international charity and youth movement called Free the Children. Their website describe their goal “to empower a generation to shift the world from me to we – through how we act, how we give, the choices we make on what to buy and what to wear, the media we consume and the experiences with which we choose to engage.”
In a survey done by the Intelligence Group, 44% of Millennials try to practice being green in their daily lives. “Millennials view social activism much more as it relates to their overall persona than the generations before them,” says Joe Kessler. “Our research indicates they are significantly engaged, but are less active in [individual] actions. [Their social activism] is insinuated in every aspect of their lives.”
Millennials have high expectations for brands to make the world a better place, like Toms shoes and Soapbox Soaps who have one-to-one giving models, or Starbucks with their C.A.F.E. sustainable coffee production practices, and even Ben & Jerry’s fair trade ingredients and farm sustainability program.
To read more about Millennials and social responsibility check out my article Six Reasons Why Brands Should Care.
This is the generation that didn’t (or isn’t!) leave home soon. I should know. According to Pew Research (2014), hours spent parenting have increased for both fathers and mothers, tripling for fathers by 180% since 1985 and increasing by 60% for mothers. What this means is parents are spending more time with their kids because they want to and their kids reciprocate that feeling. But there is also an economic reality that they can’t afford to live on their own because of the high cost of living and the lack of affordable jobs. For some, it could be that leaving home means leaving the comforts they can’t afford today – a harsh reality.
Joeri Van den Bergh and Mattias Behrer authors of the book How Cool Brands Stay Hot: Branding to Generation Y, says that 85% of teens name one of their parents as their best friend, rather than naming a peer. And more than a third of millennials of all ages say they influence what products their parents buy, what shops and restaurants they visit, and what trips they take.
While they love to share they also trust the social online environment to show the world (quite literal) who they are – the good, the bad and the drunken. They share intimate details and show off where they are and where they are going. They see themselves as friends and pride themselves when they have thousands of Facebook friends or Twitter followers – or better yet, when they get hundreds of “likes” on one of their posts. They want to surround themselves with brands they believe are friends, like Nike, Apple, Samsung, Sony and Walmart (based of the 2015 study conducted by Moosylvania agency). This is a group that will adopt brands,” says Norty Cohen, founder and CEO of Moosylvania. “If you can create a friendship with these consumers, you really take it to the next level. They will go to great lengths to support you.”
It is no surprising that Nike is a top brand for Millennials. This is a brand that has embraced technology and done a great job utilizing social across all touch points and engagements with its Nike+ ecosystem. The Nike+ Running app allows users to sync and share their fitness goals and achievements with their social communities, but also helps to keep them motivated. Nike+ FuelBand’s integration with the Path social network takes things a step further by allowing Path users to map their progress against their daily activity goals.
Millennials want to be loved and appreciated as an individual customer and if they have a problem they want the brand to fix it. In a study conducted by Edelman over 70% of Millennials said they would come back to brands they love.
This is a generation that is entering the workforce during the most pronounced downturn since the Great Recession. At the darkest period unemployment rate for youth in USA was 13%. Other regions are still battling unseen rates of over 65% in Greece, 57% in Spain and 44% in Italy and 14.5% in Canada (with Ontario reaching 17%). Generally, they are more educated with over 60% of Millennials attending college compared to 46% of Boomers (1946 – 1964).
Millennials have been labeled “the cheapest generation” for their propensity to avoid large-scale purchases such as cars and houses. While this generation might be a price-conscious shopper, technology has allowed them to research every purchase, and has more options and pricing-models than ever before. Before they book a hotel online they generally check out at least 10 sites before booking, reading reviews on sites like TripAdvisor and Yelp, gauging price predictions on bing travel and Airwatchdog, then cross-referencing hotels between myriad online travel aggregators like Travelocity and Expedia.
In a survey conducted by Harris Interactive (2011) of Millennials over 77% participated in loyalty reward programs and 44% were willing to promote products or services through social media in exchange for rewards. Ipsos reported in a survey that 92% of Millennials said they use coupons either digital or paper ones. One of the favorite coupon websites for the latest deals is Groupon.
They can also see value in non-traditional business models such as Uber connecting riders to drivers replacing taxicab or Airbnb providing travelers with unique accommodations around the world replacing hotel chains. Other examples of disruptive marketing is the very popular Dollar Shave Club, a monthly subscription service for razors that rocketed to success with its “Our Blades Are F***ing Great” viral ad campaign starring 33-year-old founder Michael Dubin. Netflix has also changed the way movies and TV series are consumed. I spent five months consuming five years of Breaking Bad.
I read an interesting posting on LinkedIn recently that stated: “In 2015 Uber, the world’s largest taxi company owns no vehicles, Facebook the world’s most popular media owner creates no content, Alibaba, the most valuable retailer has no inventory, and Airbnb the world’s largest accommodation provider owns no real estate.” Scary times for some brands.
Millennials grew up on entertainment starting from the early days of VCRs watching the full library of Walt Disney movies over and over, and sneaking in the odd National Lampoons reel. Then there were the endless Jim Carrey movies and video games. They had instant access to be amazed and distracted. World-renowned game designer Jane McGonigal estimates that a 21-year-old has spent 10,000 hours gaming — about the same amount of time they spent in school from 5th to 12th grade.
Tanya Giles, the executive vice president of Strategic Insights and Research at Viacom Media Networks says comedy is intrinsically intertwined with Millennials identities. A study of 4,000 Millennials by Edelman research confirms that 80 percent of Millennials like to be entertained by advertising – that is, as long as the brand is current and the offering is appealing or relevant.
Procter & Gamble’s Old Spice has been around for 70 years. I remember buying the stuff for my dad for Christmas. I have always thought of the brand as an old man’s product. But that all changed when they launched one of the most successful rebrands to young men in 2010 with the “Old Spice Guy”. Their video “Mom Song” has had over 3 million views on YouTube.
No generation is a homogeneous group and like any customer we are all different in some way. The purpose for this article is to identify some key macro trends that have shaped the lives of Millennials, but you must not forget to serve the individual tree from the proverbial forest. That is what each Millennial wants is to be treated like: “me” – not a group we call Millennials!