Marketing to Millennials: Something Old, Something New
The following is the first in a series of eight articles on Marketing to Millennials (aka, Digital Natives), and is an excerpt from a chapter in the book, Dancing with Digital Natives: Staying in Step with the Generation That's Transforming the Way Business is Done. The full chapter is titled: "Adapting Old-Fashioned Marketing Values to the Needs of the Digital Native" and is written by Michael P. Russell. The book is available through Amazon, Barnes & Noble, and other retailers in e-book and print format. See the end of this page for related articles.
In the information circulating about digital natives, there are many references to the idea that older generations always think the upcoming generation is different from previous ones, but that this generation of digital natives really is different. They have more communication devices at their disposal. They are much more comfortable with them and much more adept at using them. Having grown up in a tech-heavy environment, they are quick to pick up on new technology and expect improvements or new offerings to come rapidly.
Younger generations learn from previous generations and feel compelled to try to improve upon their achievements-and this holds true for marketing as well. However, while many companies are quick to abandon the old rules of marketing when dealing with this generation, some of the old rules may actually apply even more to digital natives. Yes, this is a generation that wants to "know" and "friend" companies. This actually makes it even more important for marketers to genuinely know this market and to help companies they represent deliver real, honest value to them.
In some cases, however, marketers will need to abandon old rules and techniques - particularly those that tried to convince the market that they needed something that they never wanted. Technology-in particular, real-time feedback-now allows for deep and detailed insight into customers. Companies should take advantage of this. Segment the Millennial market in a way that defines what they are doing and what benefit bundles they are seeking, and personalize your product and message just for them. Build genuine understanding into your product, into your market position, and into your message. Take advantage of the multiple channels out there. Listen and respond to the feedback you receive to improve the value of your product. Focusing on genuine benefits gives you a better chance of building a lasting brand, known for delivering on its promise. You may be surprised to find that this approach to marketing and selling to Millennials will attract Gen X and Baby Boomers as well.
Photo courtesy of r.f.m. II, Flickr Creative Commons.
With the emergence of digital natives, companies are questioning how best to gain brand awareness with this sizable new group. As Celia Goodnow of the Seattle PI noted in her article "Millennials Thrive on Choice, Instant Results," Millennials are the second-largest generation in U.S. history after the Baby Boomers. They are coming into their own and companies want to determine how best to market to them and generate sales from them.
There seems to be a great deal of uncertainty about how to tap into the digital native (the Millennial generation) market. Take a breath -- the task is not as difficult or as different as some would have you think. Digital natives may be a new crop of potential customers, but many of their core drivers of demand are similar to what motivated previous generations. It's important to remember that when establishing a marketing strategy, the first step remains the same: Start by understanding what it is that the market is looking for.
It is helpful to keep in mind a simple adage coined by Ray Krok, the founder of McDonald's: "Look after the customer and the business will take care of itself." This is true for any generation (or population for that matter). Understand your customers, what motivates their demand, and meet those needs. The fact that Millennials now use multiple means to obtain and share information creates both a challenge and an opportunity. For a long time, marketers took a broad approach, as the channels available to them were geared toward a mass market strategy. The message could be targeted, but the medium reached the masses. Contrary to some current beliefs, those avenues are still available.
A number of companies have taken the "we know our market" approach by using a simple demographic definition of the market, as opposed to defining the market based on an understanding of the drivers of demand. Knowing these drivers offers far more insight when establishing a market strategy.
A global study conducted by the Economist Intelligence Unit (EIU), titled "Maturing with the Millenials," claimed that more than half of the executives polled had not yet developed a way to target, attract, or retain Millennials as customers. This is a significant insight, since this generation is and will continue to be a formidable purchasing body. They are just beginning to graduate from college, enter the work force, and establish lives of their own. With those life steps comes the need to make purchases, including the most basic ones such as a car, furniture, and food. Digital natives didn't just appear on the horizon, and it is surprising to see that companies are, to a great extent, still up in the air about how to go after this audience.
Digital natives have a heightened expectation of immediacy in their desire to gain information and be able to react to it now. A key element in gaining and keeping the attention of this generation is to regularly modify and update your product and message. Don't be stagnant. Keep the message simple and to the point. Accustomed to the rapid evolution of the tools that they use, digital natives want something fresh from companies trying to market to them.
Millennials are a driving force for mobile services and will increasingly be so as they move into the world and take on more responsibility for their own lives. According to Nielsen's 2009 "How Teens Use Media" report, 77 percent of teens in the U.S. already have a mobile phone. Wireless communication, a constantly evolving space, presents a big opportunity for companies. Mobile marketing and its promise has been hyped for a number of years, but only recently has it shown signs of delivering on that promise. There have been a number of hurdles holding back mobile as an effective channel: privacy concerns, the expense of data plans, ease of use, speed, and consumers' not wanting spam on their mobile devices, to name but a few.