5: Selling to Millennials
While Millennials do not have as much wealth as Boomers or as much earning power as Generation X, they still have spending power that rivals both groups, by virtue of their access to the wealth and income of their parents' assets. As such, they remain an attractive market, especially for discretionary purchases.
Millennials are avid customers, but not very sophisticated ones. They are easily influenced by the media and buy their peer groups, and have an odd similarity to the Matures in that their goal in making purchases is simply to fit in with everybody else. The majority of them (75%) consult online ratings and reviews for guidance on which products to buy: one-third of them remarked that they would not buy a brand that their peers disapproved of, and a similar number also seek the approval of their parents in making purchasing decisions.
At the same time, many believe that they are individuals. They have always been told that they are "special, unique, and different from everybody else" and they want to retain a sense of individuality, even though they want to be accepted by others. This results in a customer who wants to own a product that is the same as everyone else, with some minor touch that makes it seem uniquely their own (perhaps a personalized case for their standard-issue cell phone).
It also gives considerable power to the few "true" individuals who makes a decision for himself, as there is the potential for leading the herd in a different direction - but also the risk of being ridiculed if his choice does not catch on with others. The Millennial market is often led by individuals who have amassed popularity over time and then use their power of influence: a blogger with a large audience has considerable influence over the herd.
Millennials also have not had much practice in being decisive. Their parents have made most of the important choices in their lives, and they have learned to accept the guidance of others - though their subservience is not automatic: they are mindless in their obedience, but careful about whom they obey - but even this is more of a popularity contest than a rational assessment.
As such, they will first seek to follow the advice of their peers, then of their parents. If they do not get much guidance from either, they will put themselves in the hands of a salesman and trust his advice and information. That's not to say they are entirely malleable - they will not follow a salesmen against the opinion of friends or the advice of parents, even if there is a strong logical support for doing so, and they have a "gut feel" of what they like for superficial reasons. But when they have to think independently, they are utterly lost and will follow anyone who gives them direction.
Millennials are accustomed to making choices and have a great deal of support when it comes to discretionary purchases, but are much less sophisticated at choosing necessities. Since their parents provided them with the essentials of life, they have never had to choose for themselves, and when they are in a position to do so, they will be much less experienced than other generations at the same age. When (and if) they buy their first home, and all the major purchases that follow such as appliances, they will likely be in their mid-thirties.
Millennials are also highly dependent on the media to teach them what to buy and what they ought to like. While they are influenced by social media, it is a collective voice - and often finds a collective reason to start talking about something: a television commercial or product placement in a popular movie will start "buzz" that will spread far and wide in a short amount of time.
In terms of media consumption, they are not only digital natives, but digital dependents. In a recent survey, 75% of Millennials indicated they would sooner give up coffee than their mobile phone, 87% say that they "need" their mobile phone at school or work; 66% spend more time on their mobile phone than any other medium (television of the Internet); 66% indicate they would be cut off from relationships with friends and family without it. They expect to be constantly connected to others, are very uncomfortable when the connection is unavailable, and they are unable to fathom why anyone would not be.
Identifying Millennial Consumers
Traditional market research can discover basic information about the Millennial generation, but they also are avid participants in social media and put every detail about their lives "out there," including a great many that previous generations would think better of sharing. It is perhaps the best way to gauge what is on their minds at any given moment.
It's generally simple to identify a Millennial who is right in front of you: they are between the ages of ten and thirty, and will generally look their age. Some of the older Millennials might be mistaken for the younger members of Generation X, but they will exhibit markedly different behaviors and characteristics.
Millennials are ultra-casual and dress for comfort: the will wear loose t-shirts, sandals, and loose-fitting pants or shorts to almost any occasion: to church, a formal dinner, a first date, or a job interview. They prefer to buy items that are "distressed" - an article of clothing looks like it has been heavily used when it's on the rack, and they are fond of "vintage" styles, a brand-new tee shirt that looks like one that was manufactured twenty or thirty years ago.
Their ultra-casual approach carries over to communication, both verbally and in writing, and eve with strangers. They will use the same kind of language in a cover letter for a job application as they would if sending a text to a casual acquaintance, peppering their short sentences with acronyms and exclamation points.
They are also fond of body modifications - tattoos and piercing (other than the ear) are common among all social classes. These small badges are generally not hidden, but worn conspicuously, and may be tokens of individuality or membership in a group.
Millennials carry with them one or more electronic devices, and use them at their convenience in any situation. The see no reason to remove their headphones or earpieces when speaking to another person, even a teacher, parent, or a boss, and do not mean it as a sign of disrespect. They are likewise constantly using text messaging and will break off in a conversation with a person in real life to read or respond to a quick text. This is also merely self-indulgent behavior rather than a sign of disinterest or disrespect.
In particular, look to them to turn to their electronic devices when face with a decision. Millennials rely on their peers and friends to confirm their choices, or to make choices for them. They often shop in packs, and when they must shop alone, they use their mobile phones to check their decisions with others.
They also depend heavily upon their parents, and will often take them shopping. Depending on the item in question, it may be the child looking for their parent's approval, or the parent seeking a child's opinion (especially of fashion items and consumer electronics). If they are making an adult purchase - such as a car, real estate, insurance, or financial services - they will generally defer to an adult and may even step back from the discussion and negotiation of the purchase.
Millennials are also impatient. It's not that they have anything they need to be doing, just that they do not wish to spend time on things that they do not find pleasant. They find a lengthy presentations to be annoying - just give them the bullet items that describe what's in it for them - and they will do research and consult their friends for advice online. If something takes more than a few minutes of focused attention, they will be annoyed.
Millennials are accustomed to getting things for nothing, or for very cheap. What is not given to them by their parents is often provided for free, or very cheaply, by companies that want their attention. Most Web sites provide services at no charge, and they will download free movies and music - or begrudgingly pay as much as 99 cents to get a legal copy. Many of them got a credit card in college not because the interest rate was a good deal, but because they got a free t-shirt for applying. When dining out, they eat from the dollar menu; and when buying clothing, they go straight for the bargain rack.
They are superficially interested in social responsibility, as it is a trait taught them by their parents. They identify with causes, provide a great deal of vocal support, and even identify themselves as being in line with certain causes - but only the ones that are popular with their peers, and only in a superficial way. They cannot be expected to give much time or financial support, though they will buy a brand of bottled water that is "organic" or claims to donate to popular causes.
Their main interest in technology, fashion, music, social causes, and just about anything is based on popularity: they will do what others do. Even when they do things that seem at first to be unusual and quirky, it is because it is popular with others.
Engaging Millennial Consumers
It may seem difficult to gain the attention of a generation so marked by a short attention span, self-centeredness, and bordering on complete blindness to the word that exists outside their cell p[hone screens, but there are a number of tips for doing so.
Primarily, be concise. Millennials are impatient and uncomfortable with face-to-face encounters and will give you little attention before returning to their cell phones. They cannot follow long conversations, and are best engaged in "sound bites."
Be up-front about sales. Millennials do not take time to mull over their options, but make a purchase quickly depending on whether they like what they see. Likely, they will check the Internet to see if their friends think of an item, and verify that some of the things you have told them are actually true (if it can't be corroborated by the Internet, it likely is not).
Be genuine and casual. Millennials do not respect people who are "trying to hard" to make a positive impression, and older people who attempt to pass themselves as young and "with it" are transparent, pathetic, and untrustworthy.
Offer instant gratification for little effort. There shouldn't be a lengthy sales process, or a wait to take delivery. One of the best examples of a campaign that speaks to Millennials is Volkswagen's "Sign and Drive" program: show up, sign your name, and drive off in a new car.
Give them something for free, or as close to free as possible. A free sample or a free session will get them to try almost anything, and a "gift" will get their attention. Many of them chose credit cards not for the rates or terms, but because they got a free t-shirt just for applying.
Go high-tech. You must ensure that information about your company or products is online, or else it isn't "real" to them. Set up a Facebook page and a Twitter feed, offering coupons, promotions, and other bonuses for "friends" and "followers" online. If possible, sell directly online, or at least enable them to make an appointment or complete a (short) application to get the process started and minimize face-time.
Offer free wireless access in your place of business, especially if you want them to visit and congregate or spend much time on your premises. A restaurant where they will hangout must offer it, or if your business involves waiting for service to be performed (such as an oil-change service), having free connectivity will make being there more appealing, or at least less unappealing.
Building Sales Relationships with Millennials
Solidifying your relationship with a Millennial is fairly simple, but will likely challenge your perception of what constitutes a "solid relationship." Millennials are extremely self-centered and their relationships are superficial: except for their parents, they have spent very little face-time with other people. If you consider face-time to be the basis of a relationship, many of them are socially isolated, but they have many online friends with whom they intermittently communicate. The notion of a "Facebook friend" is the same as a real friend to them, as that's as deep as their relationships go.
Of primary importance, you must feed their self-esteem. Millennials have been praised all their lives, and expect to be treated as "special" by anyone they encounter. Flattery will be rewarded, as the "like" people who "like" themselves. However, be cautious about any comment about physical appearance, as it is often taken as "creepy." It is relatively safe to admire their possessions, and commenting on a unique app they are using or their cell phone "skin" is welcome, so long as it is complementary.
They also desire validation for their posturing. They want to be seen as accomplished, even though they have done very little. They want to be seen as individuals, even though they follow the crowd. They want to be seen as socially responsible, even though they have little actual commitment to the causes they claim to espouse. Compliments and flattery of the outward signs and badges of these postures will resound with them.
Millennials will take guidance, but on their own terms and to their own benefit. Being pushy may work, but it offends their sense of individuality, and they are motivated by information, but not in the form of a presentation. The position to take is "If you're interested, I will he happy to help you learn more" - and to respect them to check the internet to validate any facts and their online friends to validate opinions. Position yourself as a resource, who's available any time to answer a question or if they feel they are not getting accurate or sufficient information.
Be aware of your own online reputations. Millennials are acutely aware of what other people are saying, and are very loquacious themselves. They love to brag about a good sales experience and revel in the drama of a bad one. It's largely about creating drama: there are few product ratings that are anything but five stars (the absolute best) or one star (the absolute worst). A little special attention can get you rave reviews, and a small mistake can get harsh criticism, even if everything else went well. You can leverage the social network to your benefit: see what people are saying about you online and be prepared to deal with a customer who read these comments immediately before walking into your shop, or even while on site.
Also, be aware that Millenials are influenced mostly by what their (online) friends and parents think of you. Don't try to avoid or marginalize the opinions of others, but leverage them. Ask if any of their friends have used the service, ask what they think about it. Suggest that you want to make sure that you get everything right and that they are completely satisfied. However, do not ask them to post a review, and especially do not offer then anything in exchange for a positive review - you will likely get one anyway, and any hint that a company is pressuring people to get buzz detracts from any positive comments and harms the reputation of your supporters.
Also, helping to connect your customers to one another is a valuable service to the social network - it helps them to build their personal networks (more Facebook friends), helps you to keep tabs on your most active customers, and gives you an online "gang" who will come to your rescue against critics. Millennials identify with the products they own, so any criticism of the product is a criticism of their decision to buy it - next of kin to a personal attack, and they will take to your defense.
Millennials like to act is if they are socially responsible. While they do not give money or time to causes, they give their vocal support and identify with the causes they "support." Consumerism is another form of advocacy for the Millennials: given a choice between two products, they will choose one from the more socially responsible company, provided it is not much more expensive or inconvenient. For that reason, positioning yourself as being allied with causes or supportive of the local community is important - it's as valuable as an added product feature for them to be able to brag about giving their dollars to a responsible provider. It is also cheaper, as Millenials generally do not research such claims. It's inadvisable to tell an outright lie, but even if your company makes a small donation to charity or merely recycles the paper products in its corporate office, you can claim social responsibility.
You should also be prepared to communicate through their preferred channels, primarily text-based messaging on a cellular phone, to provide information when they ask for it. It is best to ask their preference of communications, and be prepared to support any channel they choose. Do not merely offer an e-mail newsletter - if they prefer to subscribe to your twitter feed or become a "fan" on Facebook to get announcements, be prepared to communicate with them that way.
You must manage social networking carefully. Companies that beg for attention, push out too great a volume of messages, beg or bribe people to pass along information, are unresponsive inbound questions, are too brutal to their critics, etc. harm their own reputation and lose their friends and followers.
Pander to their sense of individualism, even though they are not terribly individualistic. They generally follow others, but still want to be seen as special and different. The ability to customize or accessorize a standard product in some trifling way is highly appealing - they want to own the same cell phone as everyone else, because to choose otherwise would make them unpopular, but if they can get it in their choice of colors or get their name engraved on it, that makes the product "unique" and makes them "different" from everyone else.
Pander to their sense of belonging. While individualism is superficially important to them, Millennials at heart want to fit in with the crowd and do what everyone else is doing. Having a product that is popular with their friends is critical - if their friends already own it, or expressed they might like to own it, a Millennial will buy it. The jaded marketing phrase "be the first on your block to own our product and be the envy of your friends" has been given new life for the Millennial generation.
(EN: Another source has suggested that marketing efforts can focus on identifying the trend-setters in any pack, and you can expect the rest to follow like lemmings. However, yet another source suggested targeting the "first follower." That is, the very first person to do something takes the risk of being considered a weirdo, but the second person to do something validates that what the first person does is right, and makes it OK for others to copy as well.)
Leverage the online media. The Millennials use Web sites, blogs, Facebook, twitter feeds, and other online media to gather information anywhere and any time. Your company should feed this desire by having a Web site, Facebook page, twitter account, etc. to make sure that they can get the information they want. It's also worth noting that it enables you to join and, to some degree, control the conversation: when people say things about you online, others will use your Web site to research whether they are valid, and they revel in "proving" someone else's opinion is wrong by citing the "official" source (your Web site).
Closing the Deal with Millennials
Millennials do not respond well to pressure, pushiness, or hard selling and will react poorly to an abrupt change in tactics and the end of the sales process. While most are not experienced or sophisticated enough to recognize such tactics, they are attuned to "being sold" and do not respond well when the focus shifts from themselves to another person: they want to believe that they are responsible for making the decision to buy.
Also, be aware that the Millennials are almost entirely digital: they do not handle cash or checks, but will seek to make payment by credit or (more often) debit cards, electronic cash transfers, and the like. Your should support a wide array of cashless payment systems to accommodate their shifting preferences.
Millennials are also cheap: they will expect a coupon or discount at the time of sale. They react well to a free sample or a free trial period, and expect to be able to return a product they don't like at the seller's expense and for a full refund. (EN: I understand that product returns are quite rare for Millennials - even if they don't like something and have a pre-paid shipping label to return it, most won't get around to it ... but they still consider having the option to do so to be very important.)
Millennials also expect immediate delivery of any product they buy, or as close to immediate as possible. If they cannot have immediate possession, overnight shipping is necessary ... so long as they don't have to pay for it. If shipping charges are needed, expect they will choose the least expensive option - or abandon if it takes too long.
Millennials are also highly dependent on post-sale support. They expect to be able to get in touch with you for additional information and advice about the product for as long as they own it.
The payoff for their neediness is that, compared to generations, their potential for referrals is amazing. Remember that Millennials are avid communicators and enthusiastic conformists: it's not enough that they own your product, they want others to recognize that they own it, praise them for owning it, and want to own it as well. For Millennials, seeing that other people buy the same products they use is extremely satisfying, and gives them a sense of social esteem.
For Further Thought on Your Millennial Customers
Doing market research on the Millennial generation is exceedingly easy: they live in full public view, and put a load of information about themselves online, even details that other generations would consider too private to share. This makes them highly observable.
They also do not object to being observed: to them, your company's interest in monitoring their activity is not a threat to their privacy, but a validation of their importance. If they can get something "for free" in exchange for being observed, all the better.
As employees, hiring millennial is very challenging. They are neither productive nor loyal workers, but can be highly effective in sales because they know how to network and communicate with one another, and like to do business with one another. Finding an influential millennial and getting tem on your staff will give you a lot of leverage with their peers and followers.
A final note is that Millennials are attuned to abrupt changes: if your company is looking to break ground with this market, do it slowly and incrementally to ensure your firm retains credibility - a fast change in direction will spook them.