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Thursday, March 10, 2016

Is it really worth the effort to target Millennials?

The simple answer to that question is YES. But, make sure you are doing it for the right reasons and that your expectations are conditioned by reality not stereotypes. Of course that should be how we work with all types of consumers.

Mediapost contained an article making some good points about the mismatch between the theory of Millennials and their true economic worth (in the short term). The sentiment is about the US but it applies even more so to Europe.

I quote:

The number of Millennials entering the work force certainly looks appealing on the surface, but marketers need to take a deeper dive into the data. One thing they need to understand is the difference between a generation and an age group. Millennials are entering the work force in droves, but many are still young, and are therefore still in entry-level jobs, or just above that level. A large percentage of the generation is entering the workforce with student loan debt that reduces their discretionary spending.

To put it very simply, constituting the largest workforce demographic does not mean Millennials have reached their peak financial earning power. They simply don’t have the same discretionary spending power that older consumers have, period.

A common Millennial strategy today is to get ahead of the curve by targeting the generation with offers on entry-level products and services. But marketers have to ask about the immediate ROI on lower-revenue generating products and loyalty.

I think that about says it all. Millennials are important but don't expect them to be the saviour of your sales numbers. Dick Stroud

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