You’re wrong if you don’t think you should target millennials

Millennials are far more engaged with the technology around them than their slightly older peers, almost to the point of dependency. Mobile devices, in particular, are essential to how millennials shop and buy, drawing a clear line in the sand between the generations. If you are on the fence about marketing to millennials, consider the following:

•    87% of millennials always have their smartphone at their side, day and night.
•   78% of millennials spend over 2 hours a day using their smartphones.
•   68% of millennials consider their smartphone to be a personal device.
•  56% of U.S. millennials say their phone is their most valuable shopping tool instore.
•  55% of millennials will switch brands for sales, and 63% will purchase brands that aren’t favorites if they’re on sale. 

These data points show that mobile experiences, if launched appropriately, are a critical part of the branding and marketing mix.

Make it relevant

Millennials have high expectations for your marketing message, whether it’s email, social, mobile, or more traditional means. They respond to personalized marketing that speaks to them, like cost savings, exclusivity and recommendations from family and friends. More than any other demographic, millennials are willing to dig for savings, coupons and other special offers and when they are offered deals, they act fast.

Impulse buys, as they are commonly known, have increased dramatically among Millennials, indicating that if relevant and timely offers align with their interests, the chance for converting that interest into a sale increases dramatically. Brands that leverage mobile will benefit from the impulse buy event.

A report summary from eMarketer shows that “42% of US Millennials had made an impulse purchase in the past four weeks. However, Generation Xers and baby boomers followed more closely behind: 40% of respondents in Gen X and 39% baby boomers reported making impulse purchases, too.”

Mobile and the path-to-purchase

Mobile is a dominant force during the millennial shopping experience. According to recent research it was determined that 86% of consumers in the U.S. say they value brands that are useful over brands that are interesting. So don’t push out a bunch of noise to your consumers that are neither personalized nor relevant to them. You run the risk of losing them if you aren’t offering them any value for participating and following your brand.

What brands might find interesting is that “nearly one-quarter of millennials say they are willing to pay a higher price to be the first to have a new product.” This shows that millennials want to be at the head of the curve, and they are willing to pay for the privilege. Marketing to them first is a smart business move.

No distinction between mobile and desktop

Millennials draw no practical distinction between online and offline. Millennials being constantly connected to their smartphones means they no longer see a difference between “online” and “offline.” Technology has become an integral part of their lives, and it is how they interact with and experience brands. They don’t use media in silos. Rather, they use all of the tools at their fingertips at any given time, regardless of the device or platform. Take that into consideration when planning your mobile marketing campaigns.

Data shows that millennials should always be the “first to know about a new product”. Mobile and social media marketing is important so that consumers can interact with brands, share information about products and services, and more.

Making Mobile Coupons Mainstream

Mobile commerce has exploded in recent years — and with mobile coupon users expected to surpass 1 billion by 2019 according to Juniper Research, brands need to consider how to integrate mobile coupons in to their marketing initiatives.

In fact, mobile coupons are redeemed 10 times more than print coupons and the number of mobile coupon users is expected to reach 53.2 million. It’s clear that mobile coupons are the perfect solution to help increase engagement and redemption by consumers.

It is expected that nearly 20 million US adults will redeem a mobile coupon this year, including coupons or codes received via SMS, apps and mobile web browsers. The mobile coupon audience will post double-digit growth rates annually through 2016, driven by continued smartphone and tablet adoption and the proliferation of digital channels offering coupons easily accessed by mobile, such as mobile apps, daily deal and group buying sites, email, and social networks. eMarketer expects that by 2016, mobile coupon users will represent nearly 83% of all digital coupon users. This is huge!

Consumer behavior is changing

Juniper forecasts that the number of mobile coupons redeemed will more than double over the next five years from 16 billion in 2014 to 31 billion in 2019. Which means that brands and retailers should be incorporating mobile coupons to proactively encourage their consumer’s behavior.

There are a number of different ways to engage consumers and drive revenue and redemption opportunities, including:

·      Coupons — Mobile coupon redemptions in the U.S. will exceed 53 million this year. The mobile coupon audience will post double-digit growth rates annually through 2016, driven by continued smartphone and tablet adoption. (Source: Business Insider 2014)

·      Geo-targeting – Geo-targeting has boosted the success of SMS-delivered coupons, with retailers seeing high redemption rates from coupons sent to consumers close to their stores.

·      Loyalty Programs — Consumers expect to be rewarded for brand loyalty, particularly millennial’s. A 2014 poll by Bond Brand Loyalty indicates that 6 in 10 Millennial respondents would switch from brands they buy and two-thirds would change when and where they shop if it meant getting a better loyalty program.

Coupons, geo-targeting, and loyalty programs can be offered, tracked, and monetized to ensure the campaign is successful or provide the right data points for marketers to continue to optimize their campaigns.

Despite the capability of mobile coupons to deliver targeted offers to consumers, to drive retail footfall, to enhance customer lifetime value, there is still only about 37% of brands and retailers using mobile coupons.

Making Mobile Coupons Mainstream

The speed with which the marketing landscape is changing is dizzying. One of the key challenges for marketers is to ensure their customers have a seamless brand experience, whether in-store or online, sitting at a desktop or engaging on a mobile devices or tablets. It’s important to note that 40% of the US smartphone audience will use a smartphone for in-store coupon redemption this year, while 53% of tablet users will redeem a coupon while researching or shopping online. How are you incorporating mobile coupons in to your marketing initiatives?

Good luck with your campaigns. If you have any questions please don’t hesitate to reach out to us at info@gravit8marketing.com or check out our website: http://www.gravit8marketing.com.

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