When it comes to marketing to millennial consumers, do you find yourself scratching your head?
You’re not alone. Winning the loyalty of Millennials can seem hard—if not impossible—for many brands these days. But can you really blame them? After all, this generation has been dealt a difficult hand with the recent economic downturn forcing many to get real about their consumption habits. Indeed, a SymphonyIRI report found that while 43 percent of Millennials prefer to shop the brands they grew up with, 56 percent are willing to switch brands in favor of a good deal, even in the form of a cents-off coupon. On top of that, 63 percent have purchased non-favorite brands to take advantage of a sale or promotion.
So is brand loyalty a thing of the past? It doesn’t have to be with these following three tips:
The price has to be right
Given their affinity for a good bargain, Millennials say price is the most important factor when it comes to making a purchase decision. As a result, brands need to emphasize value. Put into practice, private-label programs are one effective way to build loyalty among members of this consumer segment because, as the SymphonyIRI report points out, “These types of programs elevate the value profile of the retailer.” Companies like Whole Foods Market with their 365 Everyday Value and 365 Organic Everyday Value brands appeal to price-conscious Millennial shoppers who are also on the hunt for healthier food and organic options. Target and Walmart have also scored points with Millennials for their budget-friendly consumer brands.
Reward them
Studies have found that Millennials place a high degree of importance on being a success in life, so achieving status in a rewards program is also extremely desirable for them. In fact, they tend to align their shopping loyalty with brands that offer rewards programs.
According to Aimia’s “Born This Way: The U.S. Millennial Loyalty Survey,” Millennials are more likely than other generations to take part in customer loyalty programs, especially when there is a giveaway involved. Indeed, Millennials rate loyalty rewards as the top incentive they look for in exchange for sharing personal information with marketers.
And that’s not all. The same survey found they are much more likely to tell their peers about the program, with Millennials being 50 percent more likely than other generations to say they would use social media like Facebook and Twitter to promote the programs they participated in. That’s huge for brands looking to create marketing campaigns with scale.
Support a good cause
When it comes to building loyalty among Millennial consumers, tap into their desire to make a difference in the world.
You don’t have to look far to find a study that highlights just how much this generation wants to make a positive impact. Indeed, Millennials express an overwhelming interest in making a difference and supporting companies that do the same, with almost half of Millennial respondents in one survey saying they’re more likely to buy a brand they know supports a cause.
In light of the Millennials’ growing interest in supporting brands that give back, it’s no surprise that a company like TOMS Shoes with its “buy one, give one” (BOGO) business model, which generates a free pair of shoes for a child in need for every pair sold, is thriving among Millennial consumers.
To tap into this insight, it’s critical to show that you are a brand that cares, but do so authentically. Millennials are also known for their ability to sniff out a gimmick.
The bottom line when it comes to marketing to Millennials? They don’t have to be an enigma. Millennials are not a homogenous group. Spend time getting to know them, understand which segments are most important to your brand and then go out and start to engage with them on their terms.
For more information on this topic, please visit: http://www.marketingtomillennialsbook.com/ or http://www.amazon.com/Marketing-Millennials-Influential-Generation-Consumers/dp/0814433227