IBM’s CMO Study calls shifting consumer demographics a “pervasive, universal game-changer” for marketers. The Millennial Consumer is intimidating; they demand interaction that is based on the relationship rather than the transaction, and they expect it to be delivered with new technologies that in many cases, they use more effectively than the generations before them. Above all else, they want to find value in their interaction with a brand.
Millennials are approaching their peak earning and spending years, and companies need to be prepared. To create lasting relationships and keep their companies relevant, CMOs in every arena are asking what Millennial Consumers really want. Some of the answers may surprise you.
The Boston Consulting Group study, “The Millennial Consumer: Debunking Stereotypes,” refers to Millennials as optimistic, unpredictable, and technologically comfortable. It’s important for CMOs to understand that this generation looks for instant gratification in everything, which is an important factor in their consumer style. They expect quick, efficient interactions at every turn, and they are willing to hold businesses to these standards.
Another important trait to note is the Millennial preference for peer-to-peer recommendations. Millennials consider their peers to be the most trustworthy source of information, rather than trained academics or professionals. For this reason, cultivating brand advocates out of customers is becoming increasingly important.
The overwhelming – and perhaps unexpected – theme among Millennials is their belief that they can make the world a better place. As Forbes noted last year, this generation is seeking careers that matter. Likewise, they want their purchases and investments to matter. Highly responsive to cause campaigns, the Millennial is most interested in companies they believe make an authentic, positive contribution to society. As consumers, they are more likely to purchase products that integrate social impact into their mission, be it fair trade or environmental friendliness. Perhaps most importantly, Millennials are more likely than non-Millennials to actively engage in such campaigns by urging others to support them, thus becoming the peer advocates they choose to trust in the first place.
Many studies suggest that understanding the Millennial Consumer is essential to business growth. This generation’s needs and expectations differ from any generation before them. Millennials require varied, dynamic communication strategies, but the overwhelming consensus is that engaging Millennials in trusting, value-based relationships will be well worth the investment.
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