3 Things Marketers Get Wrong About Millennials
A 2017 census report showed millennials are struggling with the traditional indicators of adulthood: home ownership, parenthood and financial stability. These struggles have been perceived as a rejection of societal norms around adulthood, but data from a recent study conducted by Alter Agents and BuzzFeed shows that millennials perceive adulthood in much the same way as their predecessors, and like their parents, they are interested in buying homes, parenting products and financial guidance — but with an eye toward their unique needs.
Most brands are still communicating with millennials as if they’re capricious college students who don’t have a care in the world. While many millennials have yet to reach the milestones that are indicative of adulthood, the delay isn’t a rejection of societal norms, but indicative of the intense opposition they face to reaching these desired goals.
Marketers who consider these needs can find compelling and personal ways to appeal to millennial consumers. There are three contextual elements of millennial life that impact their buying behaviors.
1. Debt
We must acknowledge that the financial burden on this generation is unlike any seen before. College, now a requirement for most jobs, can leave students in six-figure debt by the time they complete an undergraduate degree. While some members of Generation X payed off college debt in their 40s, it wasn’t crippling. The debt today’s new adults deal with is astronomical. According to a recent article on collegeinvestor.com, “When it comes to money, millennials do have some of the highest student loan debt rates of any generation in history.” This same article also points out that many millennials exited college during the recession, which resulted in a terrible job market affected their earnings
Marketers must recognize that millennials are sensitive to value. While they tend to hold progressive views on the environmental and social impacts made by brands, they often sacrifice what they want to afford what they need. Be conscious of their financial straitjackets, and don’t be afraid to talk value.
Last year, Eagle Home Mortgage, a mortgage lender and a subsidiary of Lennar, addressed this issue by offering a mortgage program that was designed to help homebuyers pay off their student debt. The plan is a good example of companies that are addressing millennial-specific challenges head on.
2. Inflation and Income Inequality
According to a 2017 study by Credit Suisse, millennials will end up having the most severe income inequality we’ve seen. Couple their debt with rising rent and homeownership costs and the costs of starting a family, and it becomes very clear that economics plays a major factor in millennials’ decision to delay adulthood.
Gen X is often given credit as the most cynical generation, but as millennials bump into financial obstacles that prevent them from pursuing their goals, they are becoming increasingly frustrated. Millennials are looking for brands that understand them and are on their side. With lower incomes than their Gen X and baby boomer counterparts, they are looking for deals. Growth in off-price retailers such as TJ Maxx, Ross Stores and Burlington Coat Factory show this trend in the search for discounts.
3. Technology Culture
Millennials may need more help navigating their way to adulthood than their predecessors whose career paths were more certain. In the past, working your way up within one organization was the path to a rewarding career. Now, millennials can pursue entrepreneurship funded by participating in the gig economy.
While the path may be different, the goals are still the same. The study found that most generations have similar goals: family, financial stability, home ownership, etc. LinkedIn is an example of a brand whose messaging speaks to millennials by striking the right balance of acknowledging their career ambitions with a need to sustain their passion and curiosity.
About the Author | Rebecca Brooks
With more than twenty years experience, Rebecca Brooks believes traditional market research is failing the brands they support by relying on outdated models. She is an advocate for redefining research in the age of the promiscuous shopper and is a proud partner and co-founder of Alter Agents (www.alteragents.com), a full service market research company.
