Millennials, or those born between 1981 and 1996, are a generation that brands simply cannot afford to ignore. They are the largest living generation, representing 2 BILLION consumers – almost 30% of the global population, they possess immense spending power, projected to reach a staggering €8.3 trillion by 2025. Understanding the Millennial Mindset is crucial for effective marketing strategies catering to their unique values, preferences, and buying behaviours. This article delves into the Millennial psyche, explores their defining characteristics, and provides brands with actionable insights to connect on a deeper level with this incredibly influential demographic.
Understanding the Millennial Mindset.
Millennials grew up in a time of great technological change – think Playstation, Meta and Nintendo. They were the first generation to truly grow up with the internet and as a result they are the first generation referred to as ‘digital natives’. Millennials were also shaped by political events which happened in their lifetime, with the 2008 financial crisis and recession which followed impacting many, just as they were about to enter the workforce.
What are the key characteristics of Millennials?
-
They’re more educated than previous generations
Globally, around 40% of Millennials have a university degree, this represents substantial growth when compared to 29% of Generation X and 25% of Baby Boomers. Looking specifically at Ireland though, this number grows exponentially – with 60% of Millennials having a third level education – WOW!
-
They take their health seriously.
Millennials tend to do more exercise and eat more nutritious foods, and they’re less likely to drink alcohol or smoke than previous generations. Millennials, especially older ones are much more inclined to leverage the power of technology to track their fitness through wearables.
-
They value experiences over things.
Now well-established members of the workforce, Millennials have a lot of purchasing power. But, they don’t tend to spend their money on physical goods, in the way that previous generations did. Once their bills have been paid, Millennials prefer to save their money for memorable experiences like travel – and prioritise creating ‘insta-worthy’ memories over purchasing physical products.
-
They live through their smartphones.
Globally, 89% of Millennials say that use social media regularly, compared to 82% of Gen X and 49% of Boomers. With the average Millennial user spending 211 minutes per day on their smartphones.
-
They are conscious consumers.
We see an increasing number of Millennials, 83% reporting to care about brand alignment with their personal values. With 60% stating that they prioritise ethics over cost savings when purchasing goods and services.
How to create a true Customer Connection with Millennials.
This diverse and influential generation exhibits unique characteristics that businesses must understand to effectively win their target consumers hearts, minds and wallets! Here are four marketing approaches for your brand to consider:
1. Digital-First-Thinking
Millennials spend a significant portion of their time online, making digital platforms a primary channel for marketing efforts. A powerful Social Media & Content Strategy, in particular, is pivotal to effectively reach this audience.
Social Media Engagement
82% of Millennials say that they use Social Media to interact and connect with brands. Effective use of social media goes beyond brands having a mere presence across every single new platform; it requires active and meaningful engagement embedded in true customer understanding. Brands must create content that is visually appealing, relevant, and shareable. Moreover, social media platforms provide an opportunity for brands to showcase their personality and build a real community of highly engaged Millennial consumers that interact with your products and services.
Influencer Marketing
Influencer marketing has emerged over the last number of years as a powerful strategy for reaching Millennials. These individuals often serve as tastemakers and can help amplify brand messages to a wider, yet targeted, audience. However, we believe that influencer marketing it is one which is close to wear out & presents quite the brand risk if not done properly. Collaborating with appropriate influencers who align with your brand values can absolutely enhance authenticity and trust, but it is a territory which brands must truly explore with care and meticulous attention.
Emphasising Experiences over Products
Experiential marketing involves creating events and interactive experiences that allow your target customers to engage with your brand in a memorable way. These experiences can range from pop-up events and immersive exhibits to virtual reality experiences. The goal is to foster a deeper emotional connection that traditional marketing methods may not achieve. Over the last number of years, we see this as an increasingly popular avenue by brands – they key is to ensure an authentic link between the event, your business and your core consumer.
An incredible example of this was seen last year by Warner Brothers Pictures, who ahead of the much-anticipated Barbie movie launch released an immersive generative ai tool which allowed you to become your very own Barbie (or Ken!) doll cover.
Transparency and Authenticity
Loyalty is built on trust, and for Millennials, transparency and authenticity are non-negotiable. Brands must be genuine in their communications and follow them up with action. Authenticity isn’t just about being honest but also involves showing vulnerability and admitting to mistakes when they happen. This approach can humanise a brand and strengthen the customer relationship, fostering a sense of community and loyalty.
2. Hyper-Personalisation
We know that Millennials respond positively to personalised experiences and brands have been leveraging this for some time. However, in today’s world, brands can utilise their data analytics to understand individual consumer behaviour and purchasing patterns to drive hyper-personalised communications that truly WOW customers.
Content Personalisation
Personalised content that speaks directly to the individual’s interests and preferences can significantly increase brand engagement. This might include customised email marketing, tailored product recommendations based on previous purchases, and personalised social media ads – making your consumers truly feel ‘seen’. Effective content personalisation requires leveraging data insights to curate messages that feel unique and relevant to each consumer.
Interactive and User-Generated Content
Encouraging Millennials to participate in creating content for your brand can also boost engagement. User-generated content (UGC) harnesses the power of social proof and provides authentic testimonials from your actual customers. Brands can encourage UGC by running competitions, featuring customer stories, and incentivising reviews and testimonials.
A master of USC is Sephora, who describe it’s Beauty Insider Community as a one-stop destination for their community of beauty-lovers to share advice & recommendations with each other in real-time. The Community Gallery, features UGC from real customers alongside their most recent purchases.
3. Prioritising Social Responsibility
Social responsibility is a significant driver of Millennial purchasing decisions. Brands that demonstrate a commitment to social, environmental, and ethical causes often find favour with this key consumer group.
An incredible 4 in 5 Millennials believe that businesses need to do more to enable consumers to make more sustainable actions. In other words, the expectation is for the brands of today to do the heavy lifting towards a more sustainable world.
Aligning with social causes and demonstrating a genuine, sustained commitment to making a positive impact can resonate strongly with Millennials. This may involve partnerships with non-profits, sustainable business practices, and activism. Any CSR initiative must be well-integrated into the brand’s mission and operations, avoiding any semblance of insincerity or “greenwashing.”
An Post
One organisation that we believe continuously finds ways to support a more sustainable world is our very own An Post. Their latest initiative, #SendPreLoved, is one that we believe is insight-led and truly embodies the Millennial Mindset. #SendPreLoved draws attention to pre-paid parcels, available across the Post Office network, which can be used to send your pre-loved items across the country.
This initiative has been further amplified by Re-sculpted by another incredible Irish Brand Sculpted by Aimee – whereby you can send your cosmetic ‘empties’ back to the brand using an An Post pre-paid parcel and receive Sculpted Points which can be used against future purchases.
Watch the ad here.
By launching these kind of initiatives and putting them front & centre in their marketing communications, and directly tapping in to the Millennial Mindset, An Post have catapulted a brand which may have had a more traditional and dated perception to the most reputable brand in Ireland.
Millennials have an interesting push and pull when it comes to their values – on one hand, they truly want companies to lead the way for a more sustainable future, for our communities, our societies and our planet but they also value convenience and need any small effort on their part to deliver a tangible impact. This is what we believe is so fantastic about the An Post examples above.
Final Thoughts.
Mastering the Millennial mindset requires a blend of authenticity, hyper-personalisation, and innovation. It is crucial for businesses to stay attuned to the evolving preferences and values of Millennials. As this generation continues to shape consumer trends and market dynamics, companies must adapt their marketing strategies, accordingly, embracing transparency, sustainability, and a genuine commitment to aligning with Millennial values.
By doing so, brands can position themselves as industry leaders, fostering trust and loyalty among this influential demographic, and ultimately driving long-term business success.