Marketers put a lot of focus on connecting with Gen Z—who are sometimes called Zoomers—but older generations still drive much of our economy. This is the final installment of a three-part Generations series that explores how to cultivate the loyalty of baby boomers, members of Gen X, and millennials. Now we turn our focus to millennials.
Millennials—who’ve been labeled the participation-trophy generation and accused of being industry killers, and who seem to be chronically online—are now in their prime working and child-rearing years. They’re moving up the corporate ladder, connecting in their communities, and seeking meaningful experiences. But coming of age in the financial and housing crisis of 2008 made millennials financially conservative. Compared with preceding generations, they’re later to establish their own households, purchase property, and start families. In fact, 33% report prioritizing financial stability before children.
Millennials’ purchasing behaviors and preferences are characterized by their digital savvy, value-driven decisions, and preference for authentic, personalized experiences—a shift from previous generations.
The second-largest generation after the baby boomers, millennials were born between 1981 and 1996, and they represent 23% of the U.S. population. Millennials have a yearly buying power of more than a trillion dollars. In part because they’re juggling student debt and housing loans, they haven’t yet reached their peak buying power.
Accused in the media of killing products and industries ranging from napkins to diamond engagement rings, millennials have exacting expectations for the brands and products they purchase. If brands want to earn their loyalty, they must deliver personalized experiences and authentic messaging.
Let’s explore the best ways to connect with millennials and offer the experiences, products, and messaging they value.
Millennials are the most educated generation—with nearly 40% holding a bachelor’s degree. But at $58,000, their median wealth lags compared with previous generations. That gives them, as a group, a lesser financial foothold and an accompanying wariness to spend.
Student loans, continuing changes in technology, and geopolitical issues have especially affected millennials. They’re seeking peace of mind, both financially and in a literal sense; 35% of millennials report they prioritize their mental health. Messaging, products, and experiences that support this desire for stability resonate with millennial consumers.
On the forefront of multiculturalism and acceptance of LGBTQIA+ rights, millennials are racially, culturally, and financially diverse, reflective of the U.S. population overall.
Millennials expect businesses to support stances and issues that are important to them, exemplified by the 33% who strongly believe brands should be inclusive in their representation.
Having grown up in a connected world, millennials value inclusion over exclusion and prioritize teamwork and collaboration, but they still value individuality. In fact, 42% of millennials describe themselves as unique. They embrace messaging and offers built around the ideals of shared principles and individualism.
Brands can make meaningful connections and build lasting loyalty with millennials by using data, messaging, and channels that resonate with their lifestyle and values.
Millennials regularly engage in a variety of channels, consuming more digital content than older generations and more traditional media than Gen Z. Marketers can reach them with an omnichannel approach that balances new and traditional media.
Brands that craft authentic messaging that appeals to millennials’ particular expectations and preferences––and use a strategic blend of media to engage them––will earn lasting devotion from this pivotal generation.
Barb Olson is vice president, Strategic Services. For more than 30 years, The Lacek Group has been perfecting the art and algorithms of brand devotion. We help world-class brands identify their highest-potential customers, engage them across channels throughout their life cycles, personalize each relationship for optimal long-term results, and measure the true effectiveness of those efforts.