Being part of the generation myself, I’m a big fan of companies that market their products and services effectively to Millennials.
While many businesses are busy marketing to Generation X and the Baby Boomers (which is certainly OK, depending on your business model) millennials should be a big focus now and in the future for companies looking to grow and diversify their customer base.
For one thing, Millennials are currently the largest generation in the U.S. (ages 19-36). With a market size of 75.7 million and an estimated purchasing power of 1.68 trillion, the sheer size of this generation it too large for marketers to ignore.
In addition to that purchasing power, average household income ($60,000), and market size, Millennials are a lot more flexible in how they spend. While the infographic below put together by CEB Iconoculture illustrates that Millennials are, contrary to popular belief, actually less interested in amassing tangible objects, and more interested in amassing life experiences, paying down debt and increasing savings, they’re also not set in their spending ways like many in Generation X and the Baby Boomers.
Take my mother and father for example. They’re Baby Boomers, and while they do buy new things from time to time, they like to stick with what they know. They’ve been on this earth for long enough, purchasing what they like, so why change now? For example, they have both gone to the same hairdresser for the past 17 years. Have any Millennials (even the 36-year-olds) done anything for 17 years straight? I’m sure there are a few outliers, but generally, Millennials like to buy and experience new things all the time. This makes Millennials’ purchasing decisions a lot more flexible, empowering companies to gain new customers at any moment.
This flexibility and outlook is also differentiating millennials from other generations in how they view the world. Millennials rank inward-focused values such as happiness, passion, diversity, sharing, and discovery higher than collective-focused values such as justice, integrity, family, practicality, and duty that Baby Boomers place a higher rank on.
So what strategy should marketers adopt when targeting Millennials? The report/infographic suggests that marketing strategies “should be geared to where Millennials’ values lie, instead of where the status quo expects them to be.”
Check out the infographic below, as well as the CEB Iconoculture report for more info on Millennials.
Written by Luke Severn
Luke is a marketing coordinator at Kaufer DMC. He loves the Arctic Monkeys, David Fincher movies, and the Portland Trail Blazers.