Change is Permanent

Implications to New Marketing Strategies Courtesy of the Millennial Generation

While providing extensive opportunities for brand builders, the Millennial generation has cumulatively inflicted massive and permanent changes on the way the marketing function now operates. So much is written about them: they are numerous (perhaps 87 million in the US alone); and, they are racially, ethnically and culturally diverse in comparison to the homogenous make-up of US Baby Boomers. An exceptional target for marketers, it could be argued that Millennials are responsible for the current disintegration of mass marketing. This new and very militant consumer group is a symptom of the larger technology upheaval in society.

The New Consumer Contract

With a nod to their discriminating Boomer parents, Millennials know quality and will pay a premium while simultaneously demanding affordability and convenience. Millennials represent US $155B in untapped spending potential when comparing their current incomes with pre-recession (2007) spending levels.  Unlike their parents, they are not content to wear a logo or drink a particular beverage simply because it has been advertised at them. Millennials are unique in that they expect a voice in their brands’ lives. Why does this generation make demands upon products and brands to integrate into their personal lives and ethos? I’ve heard this group referred to as the “Like Generation” and maybe, as a whole, this group has an innate sense of self-worth and belief. This is new, uncharted territory for brand managers as they grapple with interpreting a new consumer demand, because Millennials seem only to commit to those brands that commit to them.

Social and Digital media, as the new consumer currencies, have a direct impact on brand loyalty. Brand builders must integrate how consumers utilize technology options, especially the multiple screens that are available, rather than trying to appropriate a technology because it may seem to make competitive or budgetary sense. The brand-building imperative is to utilize these screens in ways Millennials can relate to and trust. What is required, now more than ever for marketers, is precision messaging. With so many platforms available to expand brand presence, the potential for any brand message to veer off course is very real.

New Brand Principles

So, what is the key to success with Millennials, this most diverse group of consumers ever? The answer is surprisingly clear and straight-forward—honesty, integrity and openness from brand builders.

Millennials demand several important traits in brands before buying-in and committing: Technological Savvy.

Millennials are cutting the cord with television screens. Instead their mobile phones, computers and tablets dominate as the relevant sources of information. Lowe’s Home Improvement Stores’ Vine campaign #fixinsix is powerful six second branding with concise messaging. Engaging videos focus on tips and ideas about the application of Lowe’s products while avoiding a direct sell. Millennials want to know upfront what is in it for them as consumers.

The game of golf struggles to pitch its relevance to Millennials. It takes too long to play a round, can be cost-prohibitive and is perceived as exclusive.  Jason Wessely, Executive Producer of Golf for Sky Television UK, says the game still relies almost solely on the medium of television. Since the end of the Tiger Woods effect, the PGA tour has been slow to engage new viewers, fans and club members. Sky Sport has all but axed the long presentations, interviews and lead-ups to televised tournaments. In their place, will be the introduction of a new interactive television program, Golf Juice, to entice new fans and viewers to the game.

Technology also allows a brand to respond to consumers in real-time on social media through their phones and computers. Sarah Hofstetter, President of digital marketing at agency 360i notes, “the world order of communications today incorporates the whole of the way people are interacting with brands right now”. She should know best as her team responded within minutes to the 2013 Superbowl Blackout by creating the ‘You Can Still Dunk in the Dark’ Oreo cookie ad.

Honesty & Trust

The story a brand tells better be truthful. It should be based in honesty and exhibit some amount of humility. Provenance is important to Millennials and they have little patience for insincerity. It’s not the perfection of the brand or its story that’s important, but rather that there actually is a story to tell.

Storytelling is a powerful tool of engagement. As marketers target segmented social groups instead of life stages, it becomes apparent that social culture is different from social media. Story Coach Lianne Picot says, “It is crucial that you focus on what will be impactful for your audience. What do they want to hear from you? And find the story to match this expectation. Always”.

A corollary to honesty is trust. The work of Dr. Holly Brower at Wake Forest University raises serious questions as to the fundamental nature of brand loyalty by looking at the components of trust. The synthesis of Dr. Brower’s research focuses on the key components of Dyadic Trust (the relationship between a pair): ability, benevolence and integrity.

In order for someone to trust, there needs to be ability (do I think that this person or brand can perform the functions for which I might trust them?); benevolence (does this person or brand act in a manner that will earn or that deserves my trust?); and finally, integrity (does this person or brand consistently adhere to standards that support and encourage my trust?). Dr. Brower’s research and thesis aligns closely to what many Millennial consumers demand out of their brands if those brands are to be rewarded with consumer loyalty.

Integrity & Openness

Millennials are consumer activists in their own way, but not necessarily altruistic. They expect brands to be transparent, giving brand owners an opportunity to set themselves apart. Interpret this as an invitation to share your thoughts, aspirations and frustrations with your consumers. It’s an opportunity for a conversation that may potentially deepen business transactions and relationships. Look to the empowering environment Amex Open Forum has created by giving small business owners and entrepreneurs access to business content and expertise.

Does your Brand have Substance?

Millennials may align more readily with brands that have a mission that is greater than themselves. And interestingly, those who identify with their brands’ missions will act as an accelerator in supporting them and getting those messages and values elevated.

So, in a way, today’s Millennial consumers have forced an alliance that brands may have been seeking: doing things about, for and with the brand that benefits the entire brand ecosystem. Millennial consumers have created permanent change, maybe even a quid pro quo in brand building. Now, how is your brand going to be relevant to Millennials?