Accenture estimates that, globally, the younger generations hold $600bn in spending power. Young people, then, are quite necessarily a major focus for brands. Digitally active, always connected and quicker to buy than any generation before them, the latest generation represents a rich hunting ground for the brands of today, and many have prospered.
You may have noticed I didn’t use the word ‘millennial’ in the previous paragraph. The reason for this is simple: in a world of the data-driven personalisation of marketing communications, the concept of the millennial no longer holds any value.
As far as segments go, this one is pretty big. Some say millennials are 18-30 year olds, some say its 16-24 year olds. Perhaps those born in this millennium. Wait, aren’t they called Generation Z?
There’s a reason there are so many names for the segment. The fact is, marketing to ‘millennials’ is about as useful as marketing to ‘over 35s’; the buying power, lifestyle and attitude of a 35 year old is so different to that of a teenager that it is impossible to avoid further segmentation.
The good news is that younger generations are making this challenge easier than ever before. According to a recent study on younger consumers by Adjust Your Set, 91% said that they were willing to allow access to their data, but wanted something in return. 46% of those wanted a more personalised experience.
The idea of value exchange through a more personalised experience is nothing new. The retail sector in particular has been pioneering in this respect, and one brand delving deeper into the millennial segment is Topman. The retailer has an almost entirely millennial customer base, and its ‘Your style: sorted’ campaign is designed to personalise interaction with the brand based on customer purchase history and online behaviour.
A recent campaign involved shots of 5 different models in styles representing their main customer segments. These were then pushed via email and programmatic display, optimising the creative for each website visitor.
Such levels of profiling are only made possible by the enormous amount of data available on the younger consumer. From sentiment analysis derived from social feeds to full purchasing histories recorded on apps, in-store and online, the ammunition required for personalisation is readily available to those brands willing to invest.
The ‘M’ word may be a useful term for describing a younger generation of consumers, but a diversity of values and interests coupled with an increasing desire for personalised experiences means lumping them together is no longer a viable strategy. Brands wanting a piece of this particular pie need to ensure they are doing all they can to provide relevant, personalised customer experiences to acknowledge the millennial's precious individuality. How does one do this? By having the right technology to provide the right message to the right individuals.
New Business & Marketing Manager