Engaging with Millennials is a common rally cry of the marketing world as of late. There is good reason to take note of this group and learn what makes them unique. As a market segment, Millennials have the potential to force organizations to change the way they interact with their customers or be left behind.
Millennials trust their network for advice on purchases and strongly dislike advertising. This means that firms cannot and should not rely on traditional advertising methods to market to this new generation of consumers.
Millennials are an “always on” group, with two-thirds of them touching at least two devices daily and averaging forty-five touches of their smartphones alone.
Numbering roughly 77 million, Millennials make up about one-fourth of the US population (Nielsen).
Millennials in the US wield about $1.3 trillion in annual buying power (Boston Consulting Group).
More than 85% of Millennials in the US own smartphones (Nielsen).
For 95% of Millennials in the US, friends are the most credible source of product information (SocialChorus).
Five out of six Millennials in the US connect with companies on social media (SDL).
The good news is that many Millennials are willing to engage with brands via social media channels. However, they expect something in return, usually a discount or an offer that is targeted to their specific interests. They also require candor, openness and transparency like never before.
As Millennials age and have more disposable income, they will become a highly valuable market segment. Corporations will have to ask themselves if they are going to cross the chasm and reinvent their engagement model, or if this new audience will render them obsolete.
Millennials will be your primary target audience by 2025.
Both your internal and external customers will require a change in communication by your organization.
Organizations must prepare for Baby Boomers to be replaced as the most valuable market segment.