BarnRaisers



5 ways for marketers to win with Millennials (Infographic) 0

Posted on May 24, 2015 by Rob Petersen

 

 

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by Richard Kao and COS, (BarnRaisers Community Builders)

1. Make Your Products & Services Useful & Affordable

Millennial consumers had to absorb the impact of the 2008 financial crisis characterized by massive student loan burdens and recession. The generation is hopeful, yet they remain cautious of their spending.

57% of the Millennials surveyed said their spending habits won’t change even with the $30 billion inheritance money that will come from Baby Boomers.

If you want to earn this generation’s support, making your products and services as useful as they can be while staying within reach of budgets is the way to go.

And for good measure, revamp your return policy as 55% of Millennials are always on the lookout for the most affordable return option when shopping.

Just take Zappos.com who built a business around shoes AND their easy, efficient return policy. If you’re not 100% satisfied with your purchase, just return the merchandise (within 1 year of purchase) and that’s it. There are no shipping fees to deal with, and there’s no need for receipts as you shopped online and orders are tracked.

Lesson learned: keep your products high-quality and affordable and your return policy easy and clutter-free like Zappos’ – your business could take off because of it.

win with millennials #2

2. Focus On An Integrated Customer Experience

An integrated customer experience is about providing products and services to customers in the smoothest way possible by adopting a multichannel approach. And when you live up to your business’ promises while delivering such a seamless service, it leads to conversions.

Let’s put the spotlight to Grainger, which has sold industrial supplies, equipment, and power tools for contractors and building professionals since 1927.

Their almost-century long presence and experience in the industry shows, especially in the way they use technology (their app especially) for providing an integrated customer experience.

Their app lets you find highly specific products by typing them or speaking to the search box. Products purchased can also be shipped to your chosen location or a nearby store – while even tracking your order’s progress real-time.

Consumers’ shopping cart data is also synced across their PCs and other devices, making it easy to access Grainger and their selection of industrial products while on the job site.

Also, Grainger features a “click-to-call” for help feature which lets you find the nearest Grainger location and share must-buy lists with co-workers. The company knows exactly what their consumers need and has built a smooth service framework from there.

The business and IT world are starting to explore the concept of omni-channel shopping – the next step from multi-channel retailing.

This provides consumers with an across-channel experience. It’s the inter-linking of multiple marketing and sales channels that makes this approach to customer experience truly seamless, benefiting both the consumer and retailer.

For example: a customer can check a product’s availabilityvia his desktop (using the merchant’s website); reserve the item and purchase it 2 days later using his smartphone; and pick up the item at his chosen location.

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3. Build Brand Loyalty Through Rewards & Product Quality

In a world where many products and services are alike, Millennial consumers seek to be rewarded for their buying choices. After all, they could’ve bought from someone else instead of your company – and they’d still get what they want or need.

Research carried out by Thrive Analytics and Local Search Association in 2014 revealed that 71% of US smartphone users (aged 18 to 29) shared their location with businesses to get personalized offers and deals, while 67% said the prospect of gaining loyalty points convinced them to do so.

So set yourself apart from the competition by rewarding your customers for choosing you over other product / service providers.

Follow the example set by Starbucks. Their My Starbucks Reward program makes it easy for users to be rewarded.

They can earn points by paying with their registered cards,completing incentivized actions, participating in product promotions, engaging with Starbuck’s mobile app and social channels,buying in grocery stores and more.

The Stars earned are saved in the customer’s profile and can be used for redeeming drinks, food items, etc.But that’s not all: the program also has Green and Gold levels that members can move up to once they reach a certain number of points, giving the most loyal of customers and avid fans the opportunity to get more out of their membership.

win with millennials #4

4. Use Social Media To Engage & Get Millennials Involved

The phrases of note here are “engage” and “get them involved.”

Millennial consumers do “Like” and “Follow” retailers on Facebook, Twitter, and other social networks. They may find the brand cool but research has shown that their social media relationships with brands and retailers are mostly transactional.

In simpler words: to find good deals, coupons, and the latest promos.

One Millennial consumer noted:

“I would have to be pretty emotionally moved to just ‘Like’ a retailer for no reason.”

And that should be the plan! Businesses shouldn’t be on social media just to establish presence. The goal instead should be to generate positive buzz and to get talked about by Millennial consumers. Be the topic of social conversations for the right reasons and your brand and sales will enjoy a significant boost.

Consider this too: Millennials broke the record for volunteering hours, and the number of non-profit organizations and socially-focused businesses founded by the generation is just as astounding.

With that in mind, perhaps it’s a good idea to combine social media engagement with campaigns that address the social and economic issues this generation faces.

5. Create More Apps To Inform, Engage, & Educate

Tech manufacturers (especially those in the mobile industry) can look forward to sunny days ahead with 40% of Millennials gearing up to purchase a tablet in the next 5 years. Those ahead of the tech curve (38%), so to speak, are prepping to buy a wearable device like Apple’s new iWatch.

So what does that mean for business OUTSIDE the smartphone and tablet industry?

The statistics above means businesses should create better apps to inform, engage, and educate Millennial consumers…or risk losing brand exposure and even sales.

One fine example is CVS Pharmacy app which enjoys a 4.5 star rating and over 16,000 reviews on iTunes: it lets you easily find a store nearby,save money with digital coupons, and even collect points without leaving the app. The app also lets consumers scan prescription barcodes with their phone’s camera to refill their medications.

win with millennial #5

5. Create More Apps To Inform, Engage, & Educate

Tech manufacturers (especially those in the mobile industry) can look forward to sunny days ahead with 40% of Millennials gearing up to purchase a tablet in the next 5 years. Those ahead of the tech curve (38%), so to speak, are prepping to buy a wearable device like Apple’s new iWatch.

So what does that mean for business OUTSIDE the smartphone and tablet industry?

The statistics above means businesses should create better apps to inform, engage, and educate Millennial consumers…or risk losing brand exposure and even sales.

One fine example is CVS Pharmacy app which enjoys a 4.5 star rating and over 16,000 reviews on iTunes: it lets you easily find a store nearby,save money with digital coupons, and even collect points without leaving the app. The app also lets consumers scan prescription barcodes with their phone’s camera to refill their medications.

Below is the infographic. We appreciate this work from Richard and COS. Did it teach you something new about how to win with Millennials?

5 ways marketers win with Millenials

 

 

10 bad reasons to jump on the Millennials bandwagon 0

Posted on May 03, 2015 by Rob Petersen

 

Have you noticed more and more businesses are jumping on the Millennials bandwagon?

Companies seem to have concluded by targeting Millennials, the generation born from the early 1980’s to the early 2000’s, this solves any business shortcomings now and ensures success for the future.

In many cases, companies, without research run by people much older, are pinning hopes, plans and resources behind those who are much younger.

Are they doing it for the right reasons?

To help separate right from wrong, here are 10 bad reasons to jump on the Millennials bandwagon.

  1. MILLENNIALS ARE THE BIGGEST GENERATION EVER. At 75.3 million in 2015, Millennial are the largest generation in U.S. history. They are also the most diverse. Share of Millennials born in foreign counties is the highest since 1910. There has been a 20% rise in the Hispanic population in the Millennial generation (source: White House). Millennials are a melting pot. Before concluding bigger is better, a little market segmentation is likely to go a long way.
  2. MILLENNIALS HAVE THE MOST SPENDING POWER: Millennials spend $200 billion dollars, annually, the most of any generation. But they make less money and actually have less spending power than older generations. On a per person basis, they are the smallest age group in spending today and won’t be the largest for another five years (source: Goldman Sachs). Student loan debt is also at a record high. It jumped from over $12,000 for the class of 1993 to nearly $27,000 for the class of 2012 (source: NPR.) If you’re going after the disposable income of Millennials, you’re chasing a small amount.
  3. MILLENNIALS ARE SHAPED BY TECHNOLOGY: Although Millennials can figure out how to use an app or site that is a clunker, they probably won’t take the time to do so. They are experts at finding alternatives. This means technology from smartphones to websites to mobile apps need to provide the most usable, self-guided, hiccup-free, efficient user experiences in history. Don’t think your online  experience is going to win favor with Millennials unless it’s great.
  4. MILLENNIALS ARE REACHABLE THROUGH DIGITAL MEDIA: 3 out of 4 Millennials own a smartphone. They are inseparable from their smartphones — and Facebook specifically, followed by YouTube and Pandora. Snapchat is the other notable mobile platform among Millennials and has grown 102 percent over the past year (source: Neilsen). If mobile isn’t central to your business strategy for Millennials, you’re not going to reach them.
  5. MILLENNIALS SEARCH ALL OVER THE INTERNET: 40% of Milleninals use product review websites before they shop (source: Edelman). 33% of Millennials rely mostly on blogs before they make a purchase, compared to fewer than 3% for TV news, magazines and books (source: Forbes). If you’re business doesn’t have a presence in these channels, Millennials are not going to find you.
  6. MILLENNIALS ARE BRAND LOYAL: 67% of Millennials believe it’s their responsibility to provide brand feedback (source: Edelman). A good customer experience and a “quality product” are the two most cited reasons for what influences Millennials to share information about a brand online. 62% expect a brand to engage with them on social networks to become a loyal customer. 43% say Facebook is the social network with the most influence on their spending habits, followed by Instagram at 22%.  (source: Millennial Branding) If you want to connect with Millennials, you’re going to have to rethink the way you market your product.
  7. MILLENNIALS ARE INFLUENCED BY THEIR PEERS: 68% of Millennials agree their peers’ social posts are ‘somewhat likely’ (or better) to influence them into making a purchase. 25% share online shopping content to their social networks; a rate of 4X that of the average user. They also share 2X more content than the average user (source: Adweek). These facts say Millennials trust people over brands and trust is likely to be built on their social networks then your brand’s website.
  8. MILLENNIALS ARE CAUSE CONSCIOUS: 80% said they’d be more likely to purchase from a company that supports a cause they care about (if price and quality were equal); 75% would think more highly of a company that supports a social cause (source: TBWA) ; yet, they check prices twice as often as Boomers, 83% budget a specific amount each month to pay off debt; if given money, 42% would use it to pay off debt (UBS)
  9. MILLENNIALS VALUE COMMUNITY AND FAMILY: Millennials may be connected but they delaying marriage and babies and taking time to “find themselves” in their 20s. The average age of first marriage is 27 for women and 29 for men, up from 20 for women and 23 for men in 1960, according to a recent Pew Research. Some millennials — 34 percent of 25- to 34-year-olds — are waiting longer to get married for financial reasons.
  10. LET’S HIRE MILLENNIALS TO LEARN ABOUT MILLENNIALS: They are very hard workers; but they’re different from previous generations. 56% would take a pay cut to work somewhere that is changing the world for the better; yet, 71% don’t always obey social media policies at work and 56% won’t work at a company if they ban social media access (source: BarnRaaisers). Millennials work hard, maybe even harder, than the rest of us, but they work differently and have different expectations of the workplace.

Are these bad reasons to market to Millennials to you? Does your business need help marketing to Millennials for the right reasons?

46 facts to know about Millennials before marketing to them 2

Posted on May 03, 2014 by Rob Petersen

 

 

Millennial Age Pyramid

Millennials describes the segment of the population born between 1980 and 2000 (approximately). Sometimes referred to in the media as “Generation Y,” Millennials are the children of the post-WWII baby boomer generation.

They are the 1st generation to come out of the new milllennian and the largest generation ever at 83 million; the 1st generation to be raised with technology and are on track to be the most educated.

The numbers make them an obvious target for marketers – from new technology offerings looking for early adopters to brands used by an older population trying to revive growth as their audience sunsets.

Maybe too obvious.  To connect with any audience, marketers not only have to know them but prove their brands share their values. With any audience, there is the good, bad and ugly to consider.

How does your brand connect with Millennials? Here 46 facts to know about Millennials before marketing to them.

THE GOOD

  • Annual spending is expected to be $2.45 trillion this year and by 2018, they will eclipse boomers in spending power at $3.39 trillion, (source: Oracle)
  • Most ethnically and racially diverse generation in the nation’s history. 18.5% are Hispanic; 14.2% are black; 4.3% are Asian; 3.2% are mixed race or other; and 59.8%, a record low, are white. (source: Pew Research)
  • 90% view entrepreneurship as a mindset today instead of the role of a business owner. (source: Millennial Branding/O Desk)
  • 88% of millennials are optimistic about finding a job. (source: Time)
  • 84% say that knowing they are helping make a positive difference in the world is more important to me than professional recognition. (source: Bentley University)
  • 84% report that user generated content on company websites somewhat influences what they buy. (source: Bazaarvoice)
  • 84% are seeking advice about finance. (source: Merrill Lynch)
  • 81% have donated money, goods or services. (source: Walden University and Harris Interactive)
  • 63% stay updated on brands through social networks. (source: Ipsos)
  • 61% are worried about the state of the world and feel personally responsible to make a difference. (source: Huffington Post)
  • 56% would take a pay cut to work somewhere that is changing the world for the better. (source: Brand Channel)
  • 54% either want to start a business or already have started one. (source: CNN Money)
  • More tolerant of races and groups than older generations (47% vs. 19%), with 45% agreeing with preferential treatment to improve the position of minorities. (source: US Chamber of Commerce)
  • 46% want to start a business in the next 5 years. (source: CNN)
  • 43% have liked more than 20 brands on Facebook. (source: Mr. Youth)
  • 40% visit Facebook more than 10 times per day. (source: Mr. Youth)
  • Millennials will be 40% of the electorate by 2020. (source: The Center for American Progress)
  • 35% of employed Millennials have started their own business on the side to supplement their income. (source: Edelman)
  • 15% are already managers. (source: Millennial Branding/PayScale)

THE BAD

  • 73% say consumers care more about their opinions than companies do – and that’s why they continue to share their opinions online (source: Bazaarvoice).
  • 71% don’t always obey social media policies at work (source: Cisco)
  • 69% believe office attendance is unnecessary on a regular basis. (source: Cisco).
  • 68% of corporate recruiters say that it is difficult for their organizations to manage Millennials. (source: Bentley University)
  • 67% say “you can’t be too careful” when dealing with people. (s0urce: Pew Research)
  • 65% say losing their phone or computer would have a greater negative impact on their daily routine than losing their car. (source: Zipcar)
  • 59% visit Facebook during class. (source: Mr. Youth)
  • 59% of business decision makers and 62% of higher education influentials give recent college graduates a C grade or lower for preparedness in their first jobs. (source: Bentley University)
  • 57% will change financial advisors for a tech setting. (source: WealthManagement.com)
  • 56% won’t work at a company if they ban social media access (source: Cisco)
  • 48% say word-of-mouth influences their product purchases more than TV ads. Only 17% said a TV ad prompted them to buy (source: Edelman)
  • 46% count on social media when buying online, but 55% of Gen Y share bad experiences. (source: YouGov)
  • 41% of Millennials do what their managers tell them to do, which is greater than older generations. (source: Pew Research)
  • 41% of Millennials have no landline at home and rely on their cellphones for communication. (source: Pew Research)
  • 41% of Millennials have made a purchase using their smartphone. (source: Edelman)
  • 40% think that blogging about workplace issues is acceptable. Compared to 28% of Boomers. (source: Edelman)
  • 39% have a tattoo. (source: Pew Research)
  • 33% have put off marriage or having a baby due to the recession. (source: Pew Research)
  • 25% re unaffiliated with any religion, far more than any American generation in modern times. (source: Pew Research)
  • It costs an average of $24,000 to replace each Millennial employee. (source: Microsoft/Experience, Inc.)

THE UGLY

  • $1 Trillion in debt. (source: Bloomberg)
  • Average Millennial carries $45,000 in debt. (source: Huffington Post)
  • Average student carries $12,700 in credit-card and other kinds of debt. (source: Newsweek)
  • 48% of employed college graduates work in jobs that don’t require a four-year degree. (source: McKinsey/Bureau of Labor Statistics)
  • 40% of Millennials said their stress had increased last year. (source: American Psychological Association)
  • 38% recommend pursuing a “promising start-up opportunity” versus completing a “traditional college degree.” (source: Millennial Branding/O Desk)
  • 37% are unemployed or out of the workforce, the highest share among this age group in more than three decades. (source: Pew Research)

If these facts peak your interest and you want know more about Millennials, below is an infographic from Badgeville.

Is your brand ready to connect with Millennials? Do these facts help you with marketing to them?

The-Rise-of-the-Millennials-infographic_1

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