I am often challenged to justify my opinion that Millennials need to be addressed as a unique target.
My first response is to point out just how many of them there are. As a result of an 'echo boom' in births that began in the late 70's, by 2008 there were over 58 million young adults 21+. (see chart). Fast forward five years and there will be 3.5 million more, a 6% increase. That's 61.5 million consumers in their prime earning and spending years. At the same time, the number of people 35-54 is projected to decline by 2 million.
Many industries -- technology, education, food, wine, beer and spirits -- have felt the impact of Millennials for several years. Looking ahead, we anticipate financial services, travel, and home goods/fashions to be next. Marketers in these categories often doubt whether Millennials are really all that different, or will require significant adjustments in their value proposition or marketing approach. Perhaps they are right. But what is the basis for thinking that the status quo will remain either status or quo? Better to expect a "Black Swan" than to be surprised.
As you consider whether your brand is "Gen Y-Ready", here are five questions to consider:
1. Impact: How important are 21-34 year olds to my category now? Five years from now?
2. Wants & Needs: What is different about this generation's values or upbringing that could impact their decisions about my category? About brands?
3. Influencers: Who are the individuals or communities that influence millennial opinions in my category? Do we have ways to monitor their opinions?
4. Internal Audience: What do Millennials in our organization say about our value proposition? About the best way to reach people like them?
5. Benchmarks: Which brands in other categories are succeeding with Millennials? What can we learn from them?
If you find it difficult to answer these questions, I strongly urge you to get prepared. The Millennials Are Coming!
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Hi Carol,
ReplyDeleteExcellent article, Being in the apartment business, we have seen and felt first hand the difference in how this group behaves, acts and reacts.
I believe they are and will forever change how goods and services are sold.
Carol are their any statistics regarding brand turnover? For example how long will a Gen Y stick with a brand if their needs are not being met compared to other generations? It would be interesting to see if along with their increased numbers, Gen Y is willing to search for better products as well.
ReplyDeleteSome people argue that boomers, with their size, will still be the driving force and are who should be focused on. From what I've seen, Boomers hate being targeted by marketing, probably even more so than Millennials, especially since many of the ads talk to "special needs" which = "old", and more than anyone, boomers do not want be old. They want to be with it and young at heart. I think the best way to target Boomers is through Millennials. Who else would they trust to make decisions on new tech, food (healthy or exotic), responsible companies, etc, than their own children? Do you see any evidence in your work of Millennials playing the role of choice editor for their Boomer parents?
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