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Why Are Marketers So Obsessed with Millennials?

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Arguably one of the most used (probably overused) words in a marketer’s vocabulary has to be “millennial”, a term that represents society’s young adults and is often associated with words like “tech-savvy,” “self-absorbed,” and “free spirited.” And while these adjectives may apply to some members of this group, one could easily argue that other generations possess these same qualities – after all, I’m sure most of us could think of several baby boomers that not only own the latest tech, but are well-versed in its features.

It certainly begs the question of how different Millennials are from their parents and grandparents, and there’s been no shortage of research to try and find out.

From understanding their purchasing habits to how brand loyal they are, many companies have hired consulting firms just to try and figure out this group.

But why are marketers so captivated by the millennial generation? And is this fixation on them worth it?

The Importance of Millennials to Brands

In the U.S. alone there are about 80 million millennials, making them larger than any other demographic in the country. There are also more Millennials in the workforce than other generations, with an expected $1.4 trillion in disposable income by the year 2020.

There hasn’t been such a fixation on marketing to a specific generation since the baby boomers, and so many consumers outside of this demographic are left wondering why they’re being ignored. Older generations are currently in their prime when it comes to spending ability, so why is their money not seen as valuable as Millennials’?

It’s all about the long-term potential.

While many Millennials haven’t hit their peak purchasing power due to student loans and starting a family, they are certainly heading that way, and brands realize the importance of getting in front of them early. But marketers should take care in making sure that they aren’t alienating other groups of consumers in the process.

Focusing too much on a mobile-first mentality, over-appealing to Millennials’ tech-driven nature, and straying completely away from traditional marketing mediums could indicate that you are solely focused on targeting younger generations, which might make perceived outsiders rethink their brand loyalty.

It’s also important to remember that Millennials have grown up surrounded by advertising anywhere and everywhere they go, so they’re not going to be easily fooled by marketing messages. They know how important their demographic is to company sales, and they aren’t going to play into advertising schemes or games unless they have some real substance.

In fact, they’ll likely get a bad taste in their mouth and seek out an alternative option.

Understanding This Diverse Generation

At the surface, it’s easy to think that the Millennial generation can be generalized into simple categories. They don’t go anywhere without their smart phones, they’re obsessed with social platforms like Snapchat and Instagram, and they’re more open-minded when it comes to social issues like climate change. So why are brands spending valuable marketing dollars to study their psychographics and behaviors so meticulously?

It’s because the “Millennial way” of thinking varies quite significantly from traditional corporate views. A Millennial’s mindset is typically considered to be decentralized, meaning they don’t automatically follow societal norms and instead conduct research to develop their own opinions. Corporate structures, on the other hand, generally lend themselves to a more centralized view – one that’s less personalized and focuses on a mass-market approach.

Marketing is certainly beginning to adopt more of a personal, engaging stance, especially with the prominence of social media in most company marketing strategies. But while a brand might do a great job of interacting with its social media followers or email subscribers, do consumers feel that personalization once they get down to purchasing a particular product or service? Generally not.

With the wide range of options available to consumers and a strong awareness of pushy marketing tactics, the challenge is on to cut through the clutter in a non-interruptive way.

This is why mediums like social media and less traditional marketing efforts are now playing such a strong role. You have to find a healthy balance between brand awareness and product promotion to ensure Millennials don’t feel manipulated and are encouraged to take action.

Long-Term Brand Loyalty

The most significant benefit to attracting a Millennial audience is their potential long-term value to a brand. However, a common misconception is that they aren’t brand loyal because there are always new and improved products entering the market.

In reality, 1 in 5 Millennials say that they would willingly choose the same brand as their parents, just for different reasons (e.g. social media, mobile presence). So maybe this group isn’t as disloyal as marketers think.

It’s easy to focus so much on grabbing attention that you forget about the fact that you want these individuals to keep coming back to your brand. Price is certainly an important factor to Millennials, with 56% switching brandsbecause of price or a change in their financial situation.

Another factor that impacts brand loyalty is how modern a brand is perceived to be. Companies that don’t have a mobile-friendly website, don’t utilize social media, or focus too much on product promotion could be perceived as outdated and undesirable to this generation. And Millennials place a strong emphasis on brands that “get them.”

When it comes to reasons why they might switch brands, the availability of something new and peer recommendations are the biggest influencers. So while it’s true that Millennials are always looking to check out the latest and greatest, they’re still influenced by more traditional marketing, like recommendations and word of mouth. To best capitalize on this group both now and down the line, it’s important to listen and respond to them like you would any other generation. Listening to customer questions, feedback, and complaints is essential to creating and maintaining a positive reputation with consumers.

At the end of the day, the authentic brand will be the successful one.

Not Everyone is Convinced

Even though it seems like most brands have jumped on the Millennial bandwagon, some are holding out – there’s still some skepticism as to why marketers are focusing so heavily on this group and seemingly forgetting about the others. And rightfully so.

The baby boomer generation currently possesses 80% of the developed world’s wealth, so why would you want to ignore them? Even if they don’t have as much long-term value as Millennials, there’s money in their pockets right now that they are looking to spend. Brands should never focus their marketing on just one generation unless their products and services are only applicable to that group.

For instance, while a selfie stick manufacturer probably won’t be making a lot of sales to baby boomers, Apple is selling iPads to a wide range of consumers.

It’s also hard to figure out the best way to target the Millennial generation because there is so much diversityamong them. Millennials pushing 30 years old don’t typically have the same purchasing power or interests as those who are just entering college, even though they fall into the same generation. On one hand, recent graduates might have more disposable income because they’re entering full-time jobs for the first time in their lives, while others may be paying back loans and starting a family.

You can’t make simple generalizations for this group – or any demographic for that matter.

How Should Marketers Manage Millennials?

There’s no arguing that the Millennial generation possesses a lot of potential purchasing power and brand loyalty, so it’s important to develop a marketing strategy to cater to their highly digital nature. However, it’s also important to never alienate customers to target a specific demographic, so campaigns should include a variety of elements to appeal to all of these groups.

No matter what, there will always be brands trying to capitalize on the “it” generation of the moment. Right now, it’s Millennials as they enter adulthood and their peak spending years. In a decade, Generation Z will likely become the focal point as Millennials become older and more established. It’s a cycle that will repeat itself over and over again.

And, ultimately, it’s the brands that can find a way to cater to each of these groups simultaneously that will see the most brand loyalty and long-term success.

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About the Author

This article was written by Kim Speier of Social Media Today. Social Media Today is an online community and resource for professionals in marketing, social business, communication, customer experience, content marketing and digital strategy, or any other discipline where a thorough understanding of social media is mission-critical.Kim is currently an Inbound Marketing Specialist at Mainstreethost, a digital marketing agency in Buffalo, NY. As a regular contributor to the Mainstreethost blog, she enjoys writing about social media, SEO, content marketing, web design, and mobile technology. In her free time she enjoys watching the Bills and Sabres, skiing during the long Buffalo winters, and keeping up with the latest trends on Twitter.

Callum Connects

Agnes Yee, Legal & Compliance Recruiter of Space Executive

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Agnes Yee started Space Executive in Singapore, which is a hub for businesses in some of the world’s fastest growing economies.

What’s your story?
After graduation, I joined a design media company as a Business Development Executive, during the era when ‘reading a magazine online’ was unheard of. I believe that laid the foundation for being unfazed by rejections.

I fell into recruitment pre-GFC and rode the highs and lows in the early years. A decade later, I decided to set up my own recruitment company, partly because I could. I’m acutely aware of the face that being an Asian female in Singapore is sometimes a privilege, and that many women in the world are living a very different existence.
Thereafter, we joined Space Executive as part of a merger. I am currently the Partner of Space Executive, a recruitment company focused specialist disciplines, including Legal, Finance, Digital, Sales and Marketing and Change. We also run Space Ventures, a venture capital business, which invests in seed and pre-series A businesses.

What excites you most about your industry?
On a daily basis, we’re influencing how one spends a third of their day. It is interesting how the Internet has transformed the industry, and I’m excited to see how we can harness technology to bring us to the next phase of this business.

The VC is an extension of applying our skills and experience in reading people. We very much invest in the people as much as the idea. Being a native Singaporean, it’s been exhilarating watching Southeast Asia becoming a hotbed of ideas; and young entrepreneurs simply daring to dream.

What’s your connection to Asia?
I’m a born and bred Singaporean. I love that I speak both English and Mandarin, grew up playing with Indian friends and eating Malay food.

Favourite city in Asia for business and why?
Singapore for the low barriers of entry to set up a business, but has to be China (and Hong Kong) for their hunger and constant innovation.

What’s the best piece of advice you ever received?
青春不要留白 which translates to ‘Don’t waste your youth.’

Who inspires you?
Anyone who has gone against the grain.

What have you just learnt recently that blew you away?
It wasn’t recent but reading the article on https://waitbutwhy.com/2015/12/the-tail-end.html never fails to blow my mind how little time we have left. Charting our lives in weeks, and realising I only have enough time left to enjoy 60 Christmas turkeys, read 300 books (all if I’m lucky); and mostly, I’m left with the last 5% of the time that I spend in-person with my parents.

If you had your time again, what would you do differently?
I’m cognisant that every decision I made in life has brought me to where I am today, and I wouldn’t change one thing. But I’d really like to have had more time to travel.

How do you unwind?
Exercise and wine.

Favourite Asian destination for relaxation? Why?
Trekking any mountain in Asia. It brings us back to the most basic. To overcome elements of nature and our own mind.

Everyone in business should read this book:
Start with Why, Simon Sinek

Shameless plug for your business:
Space Executive started in Singapore, a hub for businesses in some of the world’s fastest growing economies. We assist organisations in accessing a targeted and specialised, and often times transient talent pool.

Out of Singapore, we have recruited across 14 countries; and have embarked on our global expansion plans with offices in Hong Kong and London this year, and US, Japan and Europe in the following years.

Space Ventures provides funding, management and financial guidance to young businesses with original ideas. We have invested in peer to peer lending platforms, credit scoring, social media education, and other start-ups spanning diverse industries. We are always interested in hearing more about new ideas.

How can people connect with you?
https://www.linkedin.com/in/agnesyee/

This interview is part of the ‘Callum Connect’ series of more than 500 interviews

Callum Laing is an entrepreneur and investor based in Singapore. He has previously started, built and sold half a dozen businesses and is now a Partner at Unity-Group Private Equity and Co-Founder of The Marketing Group PLC. He is the author two best selling books ‘Progressive Partnerships’ and ‘Agglomerate’.

Connect with Callum here:
twitter.com/laingcallum
linkedin.com/in/callumlaing
Download free copies of his books here: www.callumlaing.com

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Chrystie Dao-Szabo, Founder of iPayMy

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Chrystie Dao-Szabo founded iPaymy for Business – a secure and easy to use
platform enabling SMEs to pay rent, salaries, invoices, and even corporate tax using the credit cards they already have in their wallet today.

What’s your story?
I’m Chrystie Dao-Szabo, and I’ve worked as an international banker for over 22 years. During that time, I travelled through Asia, Australia and Europe, and everywhere I saw how my clients struggled with managing their finances and keeping cash around.

I wanted to use my experience to help them, but I also knew the solution they needed didn’t exist yet. This pushed me to give up on my secure career, and instead look into the innovative world of FinTech for an answer.

This is how I founded iPaymy – at its launch, a platform to help consumers pay their monthly expenses using their credit cards. We’ve grown a lot since, and today, iPaymy for Business is a platform that allows business owners to use their credit cards to pay for rent, salaries, invoices and taxes, freeing up their cash for business-critical operations.

What excites you most about your industry?
What excites me most about FinTech is it’s culture of constant disruption, thanks to cool and innovative products and services coming out every day.

What’s your connection to Asia?
I was born in Vietnam, grew up in Australia and worked in Asia, Europe and Australia. Being raised by traditional Vietnamese parents meant that deep down I was still an Asian at heart, so I have a strong connection with the region.

Favourite city in Asia for business and why?
Singapore of course. It’s easy to do business, English is the main language, and the infrastructures like public transportation are great. Also, the government supports local innovation in multiple ways, like giving grants for SMEs and FinTechs.

What’s the best piece of advice you ever received?
Keep giving, and one day you will receive.

Who inspires you?
My parents. My father had a successful business in Vietnam just before the fall of Saigon in 1975. After the war, my father was sent to a re-education camp for three years, which meant my mum had to bring up two young kids – a 3-year-old, me and my 4-year old brother on her own.

In 1980, we all fled Vietnam on a boat and arrived in Sydney, Australia via refugee camps in Indonesia and Singapore. There, my parents had to start over with nothing to their names and only AUD 50 given to them by the Australian government.
They went on to build several businesses in Australia!

What have you just learnt recently that blew you away?
The number of young and smart people who have carved out successful careers by founding their own startups (or joining really cool ones). When I was starting out my career, doing any of these was not a viable option; it was either working for an accounting firm, an insurance company or a bank.

If you had your time again, what would you do differently?
If I were starting out my career now, I would choose the path of joining a startup as you get to learn so much about running a business and how to assemble a winning team.

How do you unwind?
I like travelling to a beach or a resort destination and just relaxing by the pool or beach. I also like to unwind after work with a glass of champagne or wine, and a bowl of truffle fries.

Favourite Asian destination for relaxation? Why?
Thailand. I love the people and the spicy Thai food.

Everyone in business should read this book:
The E-Myth. It’s a book series that dismantles common myths about entrepreneurship in different industries.

Shameless plug for your business:
With iPaymy for Business, SMEs can pay rent, salaries, invoices, and even corporate tax using the credit cards they already have in their wallet today. SMEs love iPaymy because it works like a credit card, but pays like cash.

iPaymy’s secure and easy to use platform reliably delivers payments to vendors while freeing up cash and providing access to interest free credit. Forget the delays and aggravations that come with traditional SME financing options. Schedule recurring payments, manage invoices, set payment reminders, and monitor payment status all from one dashboard.

It’s never been easier for SMEs to meet monthly payment obligations while keeping cash available to fuel growth, bridge receivable gaps, and make immediate investment in the supplies, services, and expertise needed to drive a growing business forward.

How can people connect with you?
You can find me on LinkedIn or contact me by email.
My LinkedIn: https://www.linkedin.com/in/chrystiedaoszabo/
My email: [email protected]

Twitter handle?
https://twitter.com/ceedeees

This interview is part of the ‘Callum Connect’ series of more than 500 interviews

Callum Laing is an entrepreneur and investor based in Singapore. He has previously started, built and sold half a dozen businesses and is now a Partner at Unity-Group Private Equity and Co-Founder of The Marketing Group PLC. He is the author two best selling books ‘Progressive Partnerships’ and ‘Agglomerate’.

Connect with Callum here:
twitter.com/laingcallum
linkedin.com/in/callumlaing
Download free copies of his books here: www.callumlaing.com

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