Marketers have often made use of generations as a demographic and psychographic delineator for specifying and describing their target markets. But what exactly is a generation? And why is this understanding useful to marketers?
Talking to millennials are you speaking their language?
If youre a brand owner or retailer hoping to tap into the current go-to market young, influential and aspirational millennials you need to chuck almost everything you know about marketing out the window.
This open-minded, forward-thinking, highly connected generation with money to burn, thrives on personal interactions, customised retail engagement and participative marketing. It is transforming retail as we know it and forcing marketers to reconsider their strategies.
Thats the observation of leading retail research agency, BMi Research, which says the strength of marketers relationships with this sought-after sector comes down to one thing: communication.
How retailers and brand owners talk to millennials and engage them is critical. We are starting to see a number of definite trends in reaching this market: theyre driven by digital and are using mobile technology to inform their brand interactions; they love social media and want to personally engage with their preferred brands on these platforms; and they want to receive communications that are relevant, authentic, stimulating and offer added value, says BMi Research CEO, Gareth Pearson.
Millennials have significant buying power, and marketers who incorporate these approaches into their millennial communications are more likely to succeed in not only attracting these consumers, but stimulating purchases from them as well.
But even traditional purchase patterns are being given a millennial makeover. This generation shops completely differently to the consumers who went before them. With their flair for digital channels, millennials are staunch supporters of online shopping, drawn by the level of personal engagement this offers. Theyre selective in what they buy, preferring products that offer tangible value and benefits either to themselves (discounted prices) or to others (charitable donations on their behalf). Theyre not after big brand names or large superstore outlets, favouring smaller, homegrown brands and stores. Theyre biased towards handcrafted items, environmentally friendly products and purchases that are socially responsible, Pearson adds.
Over and above this, BMi Research believes millennials want a shopping experience they can easily share with others. So not only are they more discerning in what they buy, but how they buy it too, and they want to be able to share this experience through their social networks.
Pearson says key factors for millennial communications that hit the mark include maximising digital channels like online and mobile; amplifying brand presence and interaction on Twitter, Facebook and Instagram; using personalised communications that not only address customers by name, but that also promote products and specials aligned with their consumer profile based on previous transactions; providing offers that add tangible value; delivering relevant content that is shareable; and providing honest communications that are based more on cultivating and furthering relationships than just closing a sale.
One platform that allows marketers to successfully combine all these factors, and engages millennials interest in participative marketing, are loyalty and rewards-based programmes.
A defining quality about millennials is their brand loyalty. They enjoy being rewarded for their faithfulness so much so that, according to some surveys, they make their purchase decisions based on the rewards offered to them. Loyalty programmes also tick the boxes for positive brand engagement, personalised communication and value-added offerings, he says.
Although Pearson hastens to add that as much as millennials affinity for digital communications, social networks and shareable experience makes it easy for marketers to reach them, it also makes it easy for these consumers to turn the tables on previously much-loved brands.
Treat millennials well, and youll have a customer for life who will act as a positive brand ambassador, sharing their experience with all who will listen. Treat them badly, and the opposite is true, says Pearson. The guiding principle for all millennial marketing communication should revolve around the one quality this generation prizes most above all else: mutual respect.
Issued on behalf of
Protactic Strategic Communications
The youth of South Africa command billions of rands in spending power, directly and through their influence over household consumer decisions. Todayís young adults have more disposable income than the generations that have come before them.
n terms of segment size and buying power, the "Youth Market" are of great significance to marketers, with roughly half of South Africaís population being under the age of 24 and the most recent annual spend for consumers aged 8-23 being estimated at around R111 billion.
Young South Africans may account for less than 20% of marketing budgets, but they remain an important market bringing with them the power to dictate trends, parental purchases, fashion and the popular choice of technology.