The social predictions first identified when Generation X was young are now the norm for Generation Y or Millennials as they are known. Generation X assumed that their lives would be as solid and predictable as their parents’, the lucky baby boomers, but as they experienced one economic boom and bust cycle after another through the 1970s and 1980s, they quickly revised this perception.
Generation X might be managing in the face of this uncertainty but Generation Y take it for granted. For them, it is normal and, unlike their parents who had to learn how to adapt to the new realities of life, they grew up instinctively understanding how to survive. This is reflected in the fact that Millennials are more brand and media aware than any generation before them - and they aren’t passive; a recent survey (Initiative, Debunking the Millennial Myth, 2014) revealed how 40% have a negative opinion about how brands market to them and communicate, expecting innovation and creativity in any marketing they receive. So how do you market to these savvy millennials?
Traditionally, brands have targeted 25 to 34 year olds because they are likely to have a higher disposable income. But the survey found that money is a big source of worry for Millennials with 52% fearing getting into debt and 23% saying they had to take a second job to get by financially. However, this is a group that has grown up with social media and take it for granted that their opinions can be amplified across the globe. They might feel that they have less disposable income, but thanks to online reviews and commentary, they can be more discerning about where to spend their money. They make more informed decisions about their spending than any other generation before them and the social media ‘window’ into other people’s lives, which is always on, means Millennials live more in the moment than their forbears.
Similarly, Millennials own more devices than other generations and, wise to the massive uncertainty and fierce competition in a global marketplace, they use social media as a marketing tool – both for self-marketing and to find out about new products and offers available to them. They are more adaptable and creative than previous generations and they expect marketing to be the same.
When marketing to Millennials brands need to use the same tools as their target audience and build their strategy based around the smartphone - being more visual and sharing information perceived as useful or valuable. Most of all, they need to be where the consumers are – geographically as well as culturally – and this can be achieved through tools such as proximity engagement iBeacons or geo-fencing. The immediacy of proximity marketing means instant or short timescale offers can be implemented in real time and matching products can easily be cross promoted. Pre-registered visitors can be welcomed to a venue and rewards offered for being in a particular location or alternatively could be invited to an event as a VIP or to an exclusive preview.
At stations and airports, travellers can be directed to their departure point using indoor mapping and can even check-in along the way. Using Beacons and Bluetooth, retailers can precisely locate their customers and start communicating with them, even if they are not currently using the retailer’s installed app. Furthermore, shoppers like smartphone alerts and almost twice as many prefer to learn about products and promotions that way than to be approached by a sales assistant.
Technology means that Millennials have grown up in a global village, so they understand the difference between global brands and local ones. The survey found that they are likely to judge the customer service and experience of large brands with much less tolerance and, unsurprisingly, it revealed that they are perfectly aware of their consumer power. They appreciate and value brands that are useful to them and that build emotional connections and they don’t want to be spammed about discounts or coupon offers. Alerts need to be relevant, targeted and engaging.
Proximity engagement tools can also be an effective way for brands to understand the needs and wants of these Millennials. As well as monitoring how a user engages with the alerts, information can be gathered on behaviour as a consumer moves around a store, which can be analysed to understand their hotspots and dwell times. This data can be used by marketers to make improvements along every aspect of that customer’s journey and enhance their customer experience.
Millennials may be the most media and brand aware generation yet but the key to marketing successfully to them is not new - just stick to the age-old secret of successful selling: “know your customer” but make sure you update your tools.
By Ian Malone, MD of Geemo.
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