Marketing to Millennials For Dummies. Padveen Corey

      ❯❯ Money is coming in, but it isn’t necessarily going out. Mean income for young Millennials has gone down over the last decade. Millennials are working, but the cost of living has significantly increased. Income indicators like average national minimum wage have gone down. So, while Millennials are currently a significant portion of the national population, their disposable income isn’t significant. This may have a big impact on buying behaviors, even after the transfer of wealth.

      ❯❯ Millennials carry a huge amount of debt. The cost of education is a big one for Millennials and has a major impact on what they are willing to spend. In the last decade, according to the Federal Reserve, mean student loan balance has more than doubled for young Millennials. This counts as a form of long-term debt. (That is, debt that is not set to be repaid over the next five years.) This has a significant impact on Millennials’ decision-making processes. Because of this debt, buying decisions are methodical and based largely on utility. A significant part of that utility is rooted in the extraneous benefits of a purchase. For example, on top of the usefulness of a product or service, is there more to be gained from the brand or ownership in the long-run? This is one of the reasons why creating relationships with Millennials and establishing yourself as a trusted brand are so important to both acquiring new customers from this market and keeping them committed over the course of their consumption lifetime.

      ❯❯ Ownership is not a priority. Major, long-term financial commitments are not as important to Millennials as they were to previous generations. In a world where the share economy and on-demand services have exploded, ownership is less important than access. The sharing economy (see Chapter 12) plays a major role in the Millennial consumer cycle.

      The sharing economy, which is covered in detail in Chapter 12, is the market for shared goods and services, giving participants in the economy access over ownership. Millennials have gone through the stages of consumer maturation during a recession era, which has led to significant financial conservatism. Companies or products that fall into the share economy, such as Uber or Airbnb, allow Millennials to access the goods and services they need, when they need them, without requiring them to pay the price of ownership.

      ❯❯ Millennials are willing to play the waiting game. Just because ownership is not as important to Millennials doesn’t mean that it isn’t on their radar screen. Millennials are more patient and willing to wait for the right time to buy. This, once again, is because of the accessibility granted by both the sharing economy and on-demand services. Almost everything is accessible at the touch of a virtual button, so the necessity to own isn’t quite what it used to be.

      ❯❯ Brand loyalty goes deep. Previously, when making a sale, recognition and a strong brand were all that mattered. Now, it’s the relationship between the Millennial and the brand. Also, referrals matter more than ever. Millennials care what their friends and family say. Customers trust referrals more than traditional advertising.

      ❯❯ Quality matters more than price. Millennials are a particularly price-sensitive bunch primarily because they became consumers during the Great Recession of 2008. Price sensitivity combined with a heavy education debt load means that they are cautious spenders. When they do decide to make a purchase, the focus is much less on price than it is on quality. Millennials want a product that lasts as well as a long-term relationship with the brand in question.

      ❯❯ Millennials are over-sharers. Millennials share everything they do, want, or think, which is great for marketers. It provides a wealth of data and information that you can use to construct highly targeted, personalized marketing messages and campaigns.

      ❯❯ You learn more by studying Millennials than you do from asking them. Thanks to the over-sharing nature of Millennial consumers, you can find answers to any questions you have or didn’t know you had by analyzing your data. (For information on effectively analyzing your data, see Chapter 4.)

      ❯❯ They trust each other more than they trust you. Every year, worldwide public relations and consulting firm Edelman releases the Trust Barometer, indicating consumer trust levels in different groups. For the past several years (after the Great Recession), the highest level of trust is placed in peers, friends and family, and industry experts. That means that brand is not on top of the list of resources consumers look to when they need a trustworthy answer. This statement is particularly true of Millennials. They want to hear unbiased, honest opinions from people in their inner circles, likely on social media.

      ❯❯ The buying cycle is not linear. The buying cycle has an endless number of touchpoints. You have control over some of them while the audience creates others. The key is to note where your prospects connect with your brand so that you can plan to be there. (Chapter 9 covers a complete omni-channel marketing strategy.)

      Touchpoints refer to the various interactions that a consumer has with a brand throughout the buying cycle. Touchpoints can vary by medium, creative design, and content type, such as images or video. In traditional media, such as television or print, far fewer touchpoints are in the buyer’s journey. When you consider new media, like social networks, mobile, and other digital platforms, the number of touchpoints can skyrocket over the course of the buyer journey.

      ❯❯ Mobile matters most. Mobile is where Millennials spend the majority of their time. They connect with each other and connect with brands. If you don’t have a mobile strategy, you’ll lose out on the tremendous potential it provides and likely face extinction in the near future. The generation that dictates how markets operate is telling you to think mobile first, and you need to listen. (I cover the details of creating an effective mobile strategy in Chapter 10.)