Many people view millennials as a challenging audience to understand. They value independence but need regular feedback. They enjoy brands but are not fans of traditional advertising. They are careful with their money but will spend it under the right circumstances. So, how should one approach marketing to such a seemingly contradictory group?
It turns out millennials aren’t so complicated once you start to understand their behaviors. Looking beyond the stereotypes reveals a generation with a clear and unique way of communicating. There is a learning curve, but once you navigate it, you’ll reach the largest and most connected generation in history.
Who Are Millennials?
Born between 1980 and 2000, millennials have spent much of their working lives during the ‘Great Recession,’ making them generally frugal. Car and home ownership rates are lower among them – only 23% are married and living in their own homes. However, many still have long-term goals like home ownership, with 93% of millennial renters planning to buy a home someday. Their immediate priorities include paying off student debt.
Having been the target of constant advertising, millennials are often skeptical of marketing pitches. They prefer to do their own research or rely on friends’ recommendations. This skepticism is particularly strong regarding financial investments, with 81% being cautious or risk-averse. Nearly half (49%) prefer to handle financial matters independently, while 91% would seek opinions or commentary on social networks.
Despite their skepticism, millennials are very brand-loyal, with 70% identifying as such. An impressive 80% take action – purchase, share, or engage – on behalf of brands they trust. While 81% trust their banks, 53% don’t trust their bank more than others. Trusting yet skeptical might seem contradictory, but it makes sense in context.
Closing this trust gap is essential as half of this generation is entering their prime saving years with doubts about banks and financial services. The good news is that winning their trust is possible – you just need to connect with them on their level and meet them where they are.
Millennials, often called digital natives, have grown up with the internet. They spend more time online than any other generation, with smartphones keeping them nearly constantly connected. They respond well to a strong online presence: 66% of those who trust their bank would trust it more if it offered helpful and useful online content.
How to Market Financial Services to Millennials:
Millennials are generally frugal, skeptical, brand-loyal, and highly connected online. Here’s how to market to them effectively:
Being Online Is Good, But Being on Social Media Is Even Better
Millennials use a variety of social media platforms, with Facebook being the most popular, followed by Instagram, Twitter, Tumblr, Pinterest, LinkedIn, and Snapchat. These platforms are where they joke, share links, form opinions, and interact with brands. Most importantly, social media is often their first stop when researching a potential purchase or decision.
Online Interaction Is the Premier Way to Reach Millennials
Websites, videos, apps, articles, and an active social media presence are great ways to interact with millennials daily, building trust and brand loyalty over time. Although they may claim to dislike advertisements, they love brands – 34% of millennials like brands more when they use social media, compared to 16% for those aged 26 and up. Brands that use social media effectively often speak in a friendly, personal way, rather than as a large institution.
When Building a Site to Be Shared, Make Sure It’s Mobile-First
In 2015, 21% of millennials accessed the internet exclusively through mobile devices, up from 18% in 2014. A poor mobile experience can drive away a significant portion of this generation. Ensure a seamless experience from desktop to mobile, and take advantage of mobile features. Make the site rich but simple, engaging but not distracting. Leave an impression that your brand “gets us.”
Provide Them the Tools They Need to Do Their Own Research and Share Their Findings
Millennials are accustomed to finding things online for free. Encourage their curiosity with quizzes, calculators, and other informational web apps. Like every generation, they want enough knowledge to make informed decisions. Once they understand financial planning, they recognize the value of an advisor.
Enrich Their Experience
Informational videos are a growing force in marketing, with online video consumption increasing yearly, especially among millennials. Gamification can also help – making quiz results or calculator outputs shareable, rankable, or awards-based increases the likelihood of sharing within social circles. Millennials are not only more likely to share things online but also to pay attention to what is shared.
Millennials aren’t a mystery – they’re rational, social individuals like every generation before them. They just have their own ways and venues for communication. Learn to speak their language and engage with them, and you’ll earn their trust, loyalty, and future business.
