Big Brands & NGOs Are Listening to Millennial ‘Likes’
There’s a new, dynamic world outside and savvy business leaders and marketers – as well as civil society – are deliberately paying attention to what the new generation likes and how it behaves.
Specifically, the focus is on millennials, who at 18-31 years of age realistically can’t be considered the next generation of consumers and civil activists but rather they are today.
This age cohort is dictating how all segments of the society must change its outreach and go-to-market strategy to capture its attention, activism and disposable dollars.
Millennials have surpassed baby boomers – the post-World War II generation – to become the largest generation in US history. According to the Mintel report “Marketing to Millennials,” some 79 million or nearly 25% of the U.S. population fall into this category. As a result, the millennial generation, America’s most racially diverse group, has a significant influence on the decisions made by consumer goods manufacturers and mission-driven NGOs.
“If you look at the millennials, they are the first generation now who are willing consciously to spend more for better quality, for sustainability, for traceability. I think there is a change,” Peter Brabeck-Letmathe, chairman of Nestlé told CNBC. “I think that if you’re looking at the success stories in the food industry lately you will see that those successes are normally in products which have a relatively high price and it’s basically a [success] coming from the new generation. So I would say from this respect there is a change.”
Millennials feel a personal connection to their ideals and preferred brands. According to Boston Consulting Group (BCG), half of millennials said brands “say something about who I am, my values and where I fit in.”
Millennials are constantly seeking the latest and greatest products and civil projects that strike a chord with them, create a connection, and make them feel exclusive whether it is a passion for a hobby, a commitment to wellness or a sustainability promise.
These young adults are a rapidly growing consumer market and source of dedicated talent for companies. If brands want this influential demographic on board, they will have to be more sustainable and communicate a strong social purpose, experts advise.
In a Forbes interview, Rob Candelino, vice-president and general manager of Unilever Hair Care U.S., said, “More than 80% of millennials rank making the world a better place as a priority in their life, and they’re gravitating toward brands that live this vision.”
Faced with this new reality, businesses and markets can’t hide behind clever marketing campaigns that made them seem like they stood for something important. Today they must stand for higher values. The current younger generation is smarter and takes pride in knowing which brands are backing up their talk and campaigns with demonstrable actions.
This revelation is forcing companies to become credible and change their approach when it comes to marketing to millennials. The studies also indicate that this age group is far more likely than older generations to support strict environmental or sustainable policies. In fact, 80% of the group studied preferred to work for employers with sustainability practices and mission in place. According to Corporate Citizenship (PDF), 81% of millennials expect businesses to act on the UN’s 17 Sustainable Development Goals (SDGs).
Millennials’ preferences toward sustainable concepts transcend mere ecologically based principles. For them, sustainability is a lifestyle that encompasses green principles, environment, health, human rights, justice, diversity, clean energy, no hunger, climate control and other topics. Nielsen confirmed that when purchasing a product, millennials first consider if it is inherently sustainable or manufactured in a sustainable manner and the manufacturer is socially responsible.
They will also gravitate to civic organizations that promote these causes. This age group also tends to seek employment with and purchase goods and services from businesses that share their values. Studies have shown that they will quit a company that does not support their issues.
Business and civic leaders understand that appealing to this young generation’s interests will benefit their causes and bottom lines. As the most sustainability-conscious generation, a recent study from Nielsen and Deloitte showed that millennials are most willing to pay more for products and services seen as sustainable or coming from socially and environmentally responsible companies. Furthermore, millennials will seek employment with sustainable companies and remain with them even if their salaries do not increase.
“Brands that establish a reputation for environmental stewardship among today’s youngest consumers have an opportunity to not only grow market share but build loyalty among the power-spending millennials of tomorrow, too,” opined Grace Farraj, senior vice-president of public development & Sustainability at Nielsen.
Millennials have also taken the lead in seizing on the new platforms of the digital era—the internet, mobile technology, social media—to construct personalized networks of friends, colleagues and affinity groups. Small businesses and non-profit organizations would do well to use these platforms to boost outreach to this age group.
Dubbed “digital natives” by the Pew Research Center, this is the first generation for which these new technologies are not something they’ve had to adapt to. Not surprisingly, they are the most avid users. For example, 81% of millennials are on Facebook, where their generation’s median friend count is 250, far higher than that of older age groups
Social media proficiency is essential when attempting to capture a millennial audience. For brand owners, social media tools provide avenues to connect conveniently with and engage these consumers — even when the engagement is in response to negative feedback on products and services.
Unilever’s CEO Paul Polman, a well-known global sustainability leader whose diversified multinational has integrated pursuit of the SDGs throughout its business operations and is co-founder of the Global Commission on Sustainable Development, summarized the bottom-line benefits of addressing this trend and audience: “Every business will benefit from operating in a more equitable, resilient world if we achieve the SDGs. We have an opportunity to unlock trillions of dollars through new markets, investments and innovation.”
If you have examples of how you’ve reached out to millennials, let me know about it and I’ll help you spread the word about your success.
I’d also like to invite you to visit my Thought Leadership website:
If you’re looking for advice on recruiting, company handbooks, immigration policies and other human resources topics, I’d like to suggest to you this interesting website:
