4 Reasons You Should be Marketing to Millennials

“Statistically, you almost definitely have millennials as clients or customers.”

Let’s face it, it’s likely that you either work with, or employ a few millennials. As a business owner, it’s even quite possible that you are a millennial yourself! Statistically, you almost definitely have millennials as clients or customers. But are you intentionally marketing to millennials? If so, do your efforts actually resonate with them? With such a wide range of demographics, hobbies, and values, they’re one of the hardest groups to market to. Ignoring them as customers, or assuming your current marketing efforts will work for everyone is a recipe for lost revenue. Now don’t hit the panic button yet! In this four-part blog series, we’ll first show you why you should be marketing to millennials. We’ll also cover the best ways to reach them, get them engaged with your brand, and keep them as loyal customers.

1. The Largest Generation

Three times the size of generation X, and larger in numbers than even the baby boomers, millennials (now aged 20-36) are the largest generation. Making up one quarter of the U.S. population[1], they are 83.1 million strong. Because their population is so vast, they carry a lot of social and economic influence. It’s safe to assume that even if millennials aren’t your current clientele, they soon will be.

2. Movers and Shakers

Millennials are the best-educated group of young adults in US history. They have the largest percentage of college graduates[2]. Right as this ambitious group was entering the workforce, the economy crashed, causing a severe lack of jobs.

 “Millennials have yet to hit their peak purchasing power…”

As a result, there are more millennial entrepreneurs than any other age group. In fact, millennials launched almost 160,000 startup companies in 2014 alone. They now make up one-third of all entrepreneurs in the U.S.[3] When it comes to long-term potential, millennials have yet to hit their peak purchasing power. It’s important to get in front of them early and build brand loyalty now.

3. $3.39 Trillion in Spending (Yes, that’s ‘trillion’. With a ‘T’.)

If you’re not already working to appeal to Millennials, you’re missing out. You could be building valuable brand loyalty with a generation that is poised to dominate the spending market in the near future. Though their median income only currently averages about $33,000[4], their spending power tops any other age group[v]. Millennials held $1.3 trillion in buying power in 2017[6], and that power is estimated to reach $3.39 trillion in 2018[5]. An astounding $1.4 trillion of that is expected to become disposable income by the year 2020.[8]

4. Experiences Over Possessions

More and more, Millennials are choosing to spend their money on personal experiences over buying ‘stuff’. In fact, a study by the Harris group showed that 72% of Millennials prefer experiences over material things[9]. For this generation, happiness isn’t found in material possessions like cars, home ownership, or career status. Millennials want to create, share, and capture memories through experiences. The good news here is that the “Experience Economy” is ideal for companies that provide services. Millennials are the powerhouse behind this economy, and appealing to them is a surefire way to position yourself for growth.

But how can you make your brand appeal to Millennials?

In the next three parts of this series, we’ll cover the best ways to market to this massive generation. Follow along to learn the importance of getting outside of your marketing comfort zone. We’ll cover brand authenticity – why being real and standing for something is becoming more important than maintaining an air of professionalism. We’ll also cover the most trusted, effective, and affordable form of marketing: word of mouth. Make sure you’ve subscribed to our blog updates to have the full series delivered right to your inbox, so you don’t miss out!

[1] Millennials make up ¼ of the US population with a total of 77 million. (Nielsen)

[2] Millennials are the best-educated group of young adults in US history, with ⅓ of older millennials (ages 26-33) having earned at least a four year college degree. (Pew Research Center)

[3] In 2014, Millennials launched almost 160,000 startups and made up nearly one-third of all entrepreneurs in the U.S. (Huffington Post)

[4] Millennials’ median income (year-round, full-time) is $33,883. (US Census Bureau)

[5] They will have the most spending power of any generation by 2018. (Bazaarvoice)

[6] In the US, millennials wield about $1.3 trillion in annual buying power. (Boston Consulting Group)

[7] Millennials’ spending power is estimated to reach $3.39 trillion by 2018. (Oracle)

[8] There are also more Millennials in the workforce than other generations, with an expected $1.4 trillion in disposable income by the year 2020. (Social Media Today)

[9] 72 percent of millennials prefer to spend more money on experiences than on material things. (Harris Group)