Why Do Marketers Love Millennials?

Millennials are one of the most coveted demographics in marketing. These consumers number 92 million (nearly one-quarter of the U.S. population) and spend about $600 billion every year. Because Millennials tend to value experiences over material things, they also tend to have more disposable income than other generations. (According to Statista, Millennials have a mean disposable annual income of $70,000.) When treated right, Millennials also tend to be loyal to the brands they like. They are a valuable market!

Like any other demographic group, Millennials are not homogenous. Many sub-groups think and act differently. Even so, there are some overall qualities of this generation that you should pay attention to. Here are a few that you should keep in mind.

  • Millennials are experienced-focused and time-pressed. Millennials tend to value experiences over “things,” but they are also squeezed for time. Get to the point quickly. Make the shopping experience easy. Focus on convenience. Millennials tend to be willing to pay for convenience options.
  • Millennials spend more time researching their purchases. This group of shoppers grew up with online research. They spend 30 minutes more on research per purchase in certain categories than GenXers do and nearly an hour more than Baby Boomers. So get the information out there for them to find. Be intentional about creating a content marketing plan. Encourage online reviews.
  • They love direct mail but are more likely to buy online. Despite being the original digital generation, Millennials gravitate to direct mail, but they make most of their purchases online (particularly on their phones). Creative, engaging physical mail is highly effective in this demographic but ensure that their online purchase experience is positive, too. ICSC found that 74% of Millennials would switch to a different retailer or brand if they had a negative customer experience.
  • Personalize. Experience-driven and out to change the world, Millennials appreciate the extra effort put into personalized communications. Make them feel special, noticed, and appreciated.
  • Invest. Millennials can be fickle shoppers, and they love a deal. But give them what they want, and Forbes has found that 60% of Millennials are loyal to their favorite brands. According to Yes Lifestyle Marketing, rewards programs are critical to this loyalty.

Millennials are a powerhouse generation, but like any key customer group, they want to be catered to. Invest in them, and they will invest in you.

Personalized Marketing is the Key

It seems simple, personalizing your direct mail, email or other marketing campaigns. By simply going that extra mile, it can make a difference to your customers. And, just might be the key to grabbing the attention of potential new customers. I have found that there are 3 key reasons personalized marketing works.

1. Increased Response Rate
It’s time to put your clean database (or purchased database) to good use.  Using PURLS and QR Codes to drive customers to a personalized landing page has shown to improve click through rates by 14% and conversion rates by 10% (Source: Aberdeen Group). By personalizing your marketing efforts and using your customer data to its fullest, more relevant emails drive 18 times more revenue than broadcast emails (Source: Jupiter Research).

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Personalized campaigns can generate response rates of up to 20-40%. (DMA)

2. Allows for Tailored Marketing
It’s more than just a first name. You can version a piece based on gender, ethnicity, buying habits, and even job titles. Using personalization and variable data printing, allows for more target-specific marketing.

3. Relationship Building
Build your relationships by taking the time to know your customer. It’s the little things in your marketing and customer service that go a long way to building lasting relationships. Personalizing your direct mail, email and even your phone calls is the first step. Learning your customers likes, dislikes, buying habits and incorporating them into your marketing strategies. People who respond to personalized mailers tend to become loyal, long-term customers (Cap Ventures). Also, make sure your Customer Service Department is engaging with your customers in the same way. If you have a Customer Relationship Management tool, make sure Sales, Marketing and Customer Support all have access to the software.

Same Message, Multiple Channels

Weatherall LogoIn “SNAP Selling,” author Jill Konrath explains that “To get your customer to grant you access, it’s imperative that you convey all your information in a series of 20 to 30 second ‘touches’ (via direct mail, email, and phone).”

Inspired by this sentiment, Nosco (a health care packaging and solutions provider based in Gurnee, Ill.), decided to experiment with the concept of conveying the same message in different ways to keep it top of prospects’ minds.

Nosco has tested many types of marketing campaigns and found the most success from a combination of efforts that utilize different mediums. Depending on the featured product or service, the order of the channels may vary, but they all incorporate direct mail, email, and a call or voicemail.

The company also discovered it is not the size of the campaign that matters, but the consistent messaging and laser focus on the right audience. This requires upfront research and an alignment with your sales team to determine the best possible targets.

Ultimately, it is not about one channel working better than another – it is the combination of all channels with consistent messaging. With each campaign, you should consider prospects’ personas, regions and, if possible, their needs. Although direct mail, email, and voicemail are standard (and easy) ways to communicate, don’t be afraid to learn and try new technologies to get your message out as one of your campaign touch points – even if simply to test.

Plan, communicate, test, measure and repeat, integrating both online and offline marketing efforts to determine what works best in combination and in what order for your product or service. Nosco has found a formula that has worked best for it by doing just that. The company has also found that when its communications are personalized, the results are better.

Heather Hill works in Marketing and Communications at Nosco