[ GENERATION NOW ] when new digital technologies and business models affect the value proposition of existing goods and services”. Digital disruption influences the way consumers respond to products and services. It impacts, among other things, their attention and engagement with content, and how they make decisions, which, for millennials, relies largely on what their friends and peers think.
However, it’ s not that millennials’ attention cannot be held long enough to respond to clever, relevant campaigns. Studies have determined that – digitally disrupted or not – they do respond to loyalty and reward programmes. Research by Bond Brand Loyalty found that 68 % of 20- to 34-year-olds would be willing to change shops or brands if the move meant receiving better rewards. A third admitted to buying unnecessary and undesired items in order to earn points or other rewards. Clearly, loyalty and rewards programmes should target the new generation.
SOCIAL AUTHENTICITY
Unsurprisingly, one of the most effective ways of promoting loyalty among millennials is by engaging them on social media. Companies cannot rely on websites to reach and inform this group: millennials expect brands to initiate engagement with them. However, they have grown up with the internet, and are accustomed to researching everything online and checking what they find against social networks. They want authentic communication, and as a largely media-savvy bunch, they can spot a press release or advertisement dressed up as objective content from across the room.
What is particularly useful to marketers is that millennials don’ t have the preceding generations’ paranoia regarding internet security. A study by Bovitz Inc. revealed that a high proportion of the group – more than half of those surveyed, in fact – are willing to share their locations in exchange for rewards. This willingness to communicate their whereabouts in real time influences the movement of their peers, due to the generation’ s social nature, thereby offering businesses opportunities for geographical targeting.
Our contemporary enthusiasm for sharing information has made peer opinion important to millennials’ buying decisions. A survey on consumer-engagement platform ShareThis, says millennials are twice as likely to purchase an item if they have shared it on social media, which also increases the chances of their contemporaries purchasing the same item.
MILLENNIALS ARE CONSIDERED MUCH MORE SOCIALLY CONSCIOUS THAN THE PREVIOUS GENERATION.
It’ s not only what their peers think that counts, though. According the Pew Research Centre’ s extensive study of millennials, most members of this generation have loving relationships with their parents. Teens of today have far fewer disputes with their mothers and fathers than the teens of days gone by. In fact, when Pew asked millennial participants to name their best friends, 85 % cited a parent. Healthy family communication means millennials may be more influenced by their parents’ purchasing decisions and brand choice than was the case for previous generations.
SOCIALLY CONSCIOUS CONSUMERS
Millennials, who make up the bulk of the hipster scene, have also been found to be less brandconscious and more adventurous than previous generations. They are more motivated by rewards involving experiences as opposed to products.
For example, companies have found millennials respond far more positively to the possibility of a trip to Thailand( where exotic, profile-picture selfies can be taken) than a shiny pair of shoes.
Be it for ethical or environmental reasons, millennials are considered much more socially conscious than the previous generation. In a paper entitled“ American Millennials: Deciphering the Enigma Generation”, business strategist Barkley found that 50 % of this generation prefer purchasing products from companies that support meaningful causes than from those who don’ t.
Pieter Twine, general manager of Loyalty at Woolworths, puts it this way:“ Today’ s younger generation of customers demand that retailers and brands show how they can make a difference.”
Woolworths taps into this thinking through its partnership with MySchool MyVillage MyPlanet, which not only rewards users with in-store discounts, but also raises funds for educational and environmental causes, including rhino conservation. The retailer drew further attention with its‘ Are You With Us’ campaign with US musician, producer and philanthropist Pharrell Williams last year. The idea, says Twine, was to better relate to younger customers and continue“ the Woolworths journey to make sustainability‘ cool’ and matter more to the broader South African public”.
Among the events to take place during the campaign was an exclusive Williams concert for WRewards members, which fed into millennials’ desire to feel special. They want to know that businesses are paying attention to their interests and to feel that their opinions matter.
A WORD OF CAUTION
Research and studies notwithstanding, it is important to remember that these characteristics of millennials are extreme generalisations.
While statistics demonstrate clear contrasts between millennials and other generations – mostly due to the rapidly evolving digital nature of their world – it would be a mistake to imagine we can precisely define and categorise a huge portion( nearly 30 %) of all humans, particularly since there is a 20-year age gap between some members of the group.
Another caveat is that most studies about millennials have been conducted in the USA. As pointed out in a Forbes article entitled“ Millennials Across The Globe”, grouping South African millennials is particularly problematic due to the high degree of inequality in our country. As ever, it is vital that socioeconomic categories be carefully considered when marketing strategies are drawn. As if these provisos are not enough, marketers are also cautioned by a statement from Dion Change, South African trends analyst and founder of Flux Trends:“ When it comes to millennials, individualism is a megatrend.” ■
IMAGE: RAWPIXEL. COM / SHUTTERSTOCK. COM
TOP TIPS FOR MARKETING TO MILLENNIALS
• Make use of online videos. Millennials spend almost 50 % more time watching videos than other internet users.
• Offer experiences rather than product as rewards. Millennials want to have fun.
• Extend your ideas beyond traditional advertising and marketing.
• Make smart use of social media and go where millennials are.
• Communicate authentically and get to the point quickly.
• Show them you care about their values and causes.
• Offer discounts.
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