Millennials, also known as Generation Y, refers to the generation born between 1980 and 2000. This group of young consumers totals approximately 2.5 billion people across the globe, accounting for roughly one third of the world’s population. Because of their sheer numbers With an annual spending power of $600 billion millennials hold a lot of power as consumers and appealing to them is integral to the long term success of any business. Especially in North America millennials are a highly diverse group socially, racially, ethnically and religiously that is slowly but surely changing the cultural and political expectations of Canada and the United States. Millennials and their influence are only set to grow, and this generation alone is projected to wield $1.4 trillion in spending power by 2020.
Tapping into this market is essential to the long term survival of any company. However many well established brands are struggling to connect with this group. In order to reach millennials brands need to adapt to suit their needs and tastes and find new ways to connect with this group and foster long term customer relationships.
Look at the data
The first step to building these relationships is finding out what millennials want. Market research, such as focus groups, offers valuable insight into the values, desires and spending habits of this generation. However, many market research companies have not modernized their recruitment process. Millennials conduct a large number of interactions online, with the majority of individuals between the ages of 18 and 34 owning smart phones. To help appeal to millennials StyleLabs created our proprietary focus group recruitment portal Canada Survey.
Social media
Another key way to attract millennial customers is through social media. 75 percent of millennials maintain a profile on at least one social media site. Millennials expect brands to have a social presence, but actively shun brands that use unengaging, self-centred social media marketing. Instead, brands should determine which group or groups of millennials they are specifically trying to target and then branch out from there.
Corporate philanthropy
Millennials are also very concerned about corporate philanthropy because it appeals to their core beliefs related to community, social responsibility and environmental stewardship. When millennials consider purchasing a product or service, or accepting a job at a company, they want to know that by supporting a brand they are making a socially and environmentally conscious decision.
Focus on the long term
Building a consumer base in the millennial generation is not going to happen overnight. Though many millennials are saddled with student debt and have reduced spending power now they won’t always be this way. If you start making a connection with the millennial generation today you are set to capitalize on their increased spending power in the future. Focus on building your audience and fostering brand loyalty so that you can easily access this group in the future when they have more disposable income.
StyleLabs is a Calgary based Market Research company with offices in Calgary, Edmonton, Vancouver, Toronto and Winnipeg. For more information on how you could use market research to help you better connect with millennials, call us at 587-880-3358 or use our contact form below.
