Keep millennials happy and your business will prosper.
This year, the millennial market is expected to surpass the number of baby boomers. According to the population projections released by the Bureau of Census in December 2014, the number of millennials (people who are between the ages 18 and 34 by 2015) will quickly surpass the 75 million mark and will replace the Baby Boomers as the country’s largest living population. The millennial population is expected to reach its peak in 2036 at 81 million.
While millennials have higher student loan debts and lower personal income compared to Baby Boomers and Gen X’ers, this group boosts an annual purchasing power of $1.3 trillion. Thus, it is easy to see why marketers and business owners are trying their best to capture this rapidly growing market.
The Challenges of Tapping into the Millennial Market
Tapping into the millennial market can be a challenge. This generation grew up amidst a constantly changing atmosphere and has come of age during a time of great economic uncertainty. This group is also considered as the most independent, educated, and racially diverse generation in U.S. history. In addition, they are the only ones who do not need to adapt to modern technology since they were born using it.
Keeping the Millennial Market Happy: Some Tips to Consider
Taking all of these things into consideration, what can you do to influence millennials to purchase your products? The answer is simple. You need to keep them satisfied. Here are some ideas that may be worth trying.
- Engage them in social media. Studies show that 68% of millennials are more likely to buy a product and become a loyal customer if a brand engages them in social media. Some of the most powerful networks that influence them to buy include Facebook, Pinterest, and Instagram.
- Appeal to their individuality. Take time to understand their individuality and create products that specifically address their needs. Do not fall into the mistake of stereotyping them. They will hate you for it.
- Offer useful and affordable products. Majority of millennials (77%) agree that the economy has significantly impacted their ability to spend and save money while 55% said that they are always on the lookout for the most affordable options. Keep these in mind as you develop your pricing strategy.
- Consider offering rewards, discounts and coupons. Millennials love getting rewards in exchange for their purchases. In fact, studies show that 68% would consider changing where they shopped if they would get more attractive rewards while about a third claim that they will buy products, even if they don’t actually need it, just to earn points. Coupons and discounts also appeal to their budget-conscious nature.
- Offer affordable payment options. In addition to accepting cash and credit transactions, offer payment options that align with their financial goals. Make them feel that they are in control of their financial well-being and you can surely win their favor.