Understand Millennials and Why They Are Important to Your Business
To understand your customers, it might be important for your business to understand the generation of millennials. They have a different mindset in terms of consumption compared to previous consumer generations. They are the ‘social generation’ being more connected, more mobile and in general more active online when researching, buying and communicating. This behaviour can affect your business, which is why we’ve gathered a few insights for you to explore the relevance of millennials as a target group.
Millennials, Generation X, Y, Z and Other Consumer Generations
It’s important to understand your customers’ needs and behaviour. A fact that has gained ground amongst marketers and customer centric companies the past couple of years – using research, data analytics and customer insights to uncover the customer journey of their users. Before we dive deeper into the millennial generation, here’s an overview of other consumer generations as according to Nielsen:
- Baby Boomers (1946-1964)
- Generation X (1965-1976)
- Millennials/Generation Y (1977-1995)
- Younger Millennials
- Older Millennials
- Generation Z (1995-Present)
Some marketers divide millennials into younger and older groupings due to the fact that they are often living different lifestyles: the younger millennials are more likely students or newly graduates and may be living at home, whereas the older group is more established in their careers and starting families. However, we will not differentiate between the groups in this article.
Why Millennials Are Interesting
Millennials are often referred to as a key user group for marketers since they are the fastest moving consumer group online which is why they are on every innovative online company’s lips.
For most online businesses today, understanding your customers’ needs and behaviour also means understanding Millennials since they’ve often been announced as savvy online customers demanding more from your online presence than previous generations.
What Should We Expect From Millennials?
It’s no wonder that marketers are hooked on targeting Millennials as one specific consumer group, as they are trendsetters across various industries from fashion to food. But companies have struggled to connect with this generation since traditional methods of advertising have proven ineffective at capturing their attention.
So why and how are millennials’ needs and behaviour different from previous generations’? From the model below we can see that they are characterised by:
Valuing experiences instead of owning material things
Millennials are also known as ‘nowners’. This is, among other reasons, happening due to the possibilities offered by the sharing economy today. It’s cheaper to rent a car or housing and easier to access music, movies and games online. However, they still value owning some items such as gadgets, clothing and accessories.
Being interactive as an important part of their ‘digital native’ lifestyle
Growing up with the Internet and being highly attached to their smartphones has made this generation very interactive. But this doesn’t mean that smartphones are their only touchpoint. They actively use desktops when purchasing or filling out long form information as they are also concerned about security issues and want a big screen.
Expressing themselves and expect brands to listen to their needs
They’re raised in an ever changing world – moving from a collective society towards an individualistic society. They want to take part in shaping products and interacting with brands via social media.
Having social justice as a focal interest
This reflects in their choices of food, attaching importance to ethically sourced food e.g. organic vegetables or free-range poultry.
Demanding authenticity from brands
Millennials has been exposed to commercials all the time, all their lives which has taught them to ignore Facebook ads and skip or block commercials whenever possible on the computer or TV. Instead, millennials value great content, appealing testimonials and user reviews very highly.
Know Your Target Group and Their Customer Journey
Not knowing your target group in detail can leave you somewhat clueless when it comes to optimising your business, e.g. optimising your website or targeting the right people in marketing. No matter what you need to know about them – whether they are millennials or not, their behavior is a crucial part of their customer journey. And you need to understand the customer journey to fully support your customers whether it is online or offline.
Atcore can help you with the essential data insights for you to uncover your customers’ behaviour and needs, ending up with a full image of their online and/or offline patterns. By doing this you will be able to act on the basis of their actual behaviour and needs instead of pre-understandings and guesses.
Contact us via firstname.lastname@example.org or call us on +45 6060 4444 if you’d like the insights that can make a difference on your business.