Millennials, known for their participation trophies and tech obsession, are often labeled as entitled narcissists. However, this generation presents a major marketing opportunity. Defined by Dictionary.com as those born between the 1980s and early 1990s (Generation Y), millennials are entering the workforce with significant purchasing power, injecting $200 billion annually into the U.S. economy. Understanding their behavior is crucial for marketers aiming to engage these new consumers. Whether loved or criticized, millennials are a force that can’t be ignored. Let’s explore ten statistics that highlight how to effectively market to this generation. (Don’t miss our strategies for targeting Baby Boomers and Gen X too!)

Stat #1: 89% of millennials trust recommendations from friends and family more than brand claims. –Kissmetrics

A couple of my all-time favorite classic celebrity endorsements. Celebrity endorsements are no longer the marketing gold standard they once were. Millennials are less likely to be swayed by a famous face promoting a product. Instead, they trust recommendations from their inner circle. This presents an advantage for small and medium businesses. Cultivating customer loyalty and encouraging positive word-of-mouth promotion is more cost-effective than celebrity endorsements. But how do you create these brand ambassadors? It begins with providing exceptional customer experiences. In an age of instant online feedback, every interaction matters. Analyze customer journeys and identify opportunities to enhance their experiences. Sometimes, even minor adjustments can yield significant results. Consider implementing a “secret shopper” program to gain firsthand insights into the customer experience. This exercise led to positive changes at our company last year. Remember, a single negative encounter can quickly escalate into public criticism on social media, potentially damaging your brand reputation. While such situations are inevitable, proactively addressing customer concerns with transparency and timeliness can transform a dissatisfied customer into a brand advocate.

Stat #2: Nearly half (44%) of millennials are willing to promote products or services through social media in exchange for rewards. –Aimia

Millennials are happy to share positive product experiences, especially when incentives are involved. Businesses are increasingly capitalizing on this trend. A prime example is Uber, the company that popularized ridesharing. When Uber launched in San Francisco in 2010, early adopters praised its convenient and efficient service. Word-of-mouth marketing fueled its rapid growth. Recognizing the power of customer advocacy, Uber incentivized users to promote the service to their network in exchange for free rides.

This strategic move proved highly effective. Users were already recommending Uber based on their positive experiences, and the financial incentive amplified their enthusiasm. The combination of positive recommendations and a low barrier to entry (a free first ride) attracted numerous new users.

Since then, many companies, including Uber’s competitor Lyft, have adopted similar referral programs. When Lyft entered the market, Uber already had a strong user base. To attract customers, Lyft offered a more enticing incentive program, leading to steady growth in its market share.

Stat #3: 84% of millennials report that user-generated content on company websites at least somewhat influences their buying decisions. – Bazaarvoice

Millennials value authentic customer feedback over brand-generated marketing messages. If user reviews aren’t readily available on your website, they’ll likely search for them elsewhere, potentially leading them away from your site. Empower customers to share their experiences directly on your product pages. Rent the Runway exemplifies this strategy. For millennials attending numerous formal events, renting designer dresses instead of buying them is a financially appealing option. However, the lack of a physical try-on experience can be a deterrent.

That’s where user-generated content proves invaluable. Rent the Runway features comprehensive customer reviews for each garment, including photos, body type descriptions, fit details, and overall feedback. These reviews provide valuable insights into the dress’s quality, suitability for different body types, and appropriate sizing. These reviews are invaluable for consumers like myself. Seeing how dresses fit on real people with diverse body types provides a more relatable and trustworthy perspective compared to retailer-provided images. While some reviews might discourage a purchase, they ultimately contribute to a more positive overall experience, fostering customer loyalty and advocacy.

Stat #4: More than 90% of millennials own smartphones. –Pew Research

Millennials are undeniably attached to their smartphones, checking them an average of 43 times per day. This underscores the need for brands to establish a strong mobile presence. Mobile advertising is essential, but it’s equally crucial to direct users to a high-quality mobile site. Outdated and poorly designed mobile landing pages are a major turn-off. If your mobile site isn’t user-friendly, it’s time for a revamp. Optimizing mobile landing pages for seamless transactions is key. Millennials are comfortable making purchases on their phones. A 2014 Annalect survey revealed that 40% of smartphone users aged 19 to 33 had made purchases using their devices. This trend is expected to continue as retailers enhance their mobile sites and apps.

Stat #5: 77% of millennials participate in loyalty reward programs. –Aimia

While millennials have increasing buying power, they are still budget-conscious. Loyalty programs are a great way to attract and retain them. I, for one, am a loyal member of various reward programs. When I need to buy something, I often choose brands that offer rewards or discounts.

Even though it’s only $1.50, it feels incredibly satisfying to receive these rewards. Setting up these programs might require some effort, but the return on investment is significant. Millennials are more likely to become repeat customers to accumulate rewards and often end up spending more. According to e-Marketer, a third of millennials have purchased unnecessary items solely to earn points or elevate their membership status.

Stat #6: 61% of millennials are worried about the state of the world and feel personally responsible to make a difference. –Huffington Post

Millennials are driven by a sense of social responsibility and want their purchases to reflect their values. Aligning your brand with social causes can be a powerful way to attract this demographic.

Remember the TOMS shoes phenomenon? These simple canvas shoes became wildly popular, despite their unremarkable design and hefty price tag. Even cheaper imitations couldn’t compete. Millennials, myself included, were drawn to the brand’s ethical commitment.

TOMS’ success stemmed from its powerful social mission: for every pair of shoes purchased, the company donated a pair to a child in need. This resonated deeply with millennials who felt good about contributing to a worthy cause through their purchase.

While replicating TOMS’ model might not be feasible for every business, incorporating social responsibility into marketing campaigns can still be impactful. Consider Dove’s Campaign for Real Beauty, which promotes body positivity and self-esteem. Despite offering standard beauty products, Dove’s commitment to social causes resonated with consumers, leading to increased sales. Highlighting your company’s charitable endeavors can foster a positive brand image and appeal to millennial consumers’ desire to support ethical businesses.

Stat #7: 84% of millennials don’t trust traditional advertising. –Hubspot

Traditional marketing tactics like radio and magazine ads, pop-ups, cold calling, and direct mail campaigns are ineffective with millennials. They prefer genuine content and engagement over intrusive advertising.

On social media platforms like Twitter, Instagram, and Facebook, create content that seamlessly integrates with the platform’s aesthetic and feels native to the user experience. The aim is to showcase products naturally without overt advertising. Sauza Tequila’s Day of the Dead Instagram campaign exemplifies this approach. Instead of a blatant product placement, they shared an aesthetically pleasing image that resonated with the platform’s users, garnering engagement and positive feedback.

Stat #8: Millennials account for more than seven in ten Snapchat users. –eMarketer

Despite its challenges, Snapchat’s popularity among millennials makes it a platform worth considering. Brands have explored innovative ways to engage with this demographic on Snapchat. GrubHub’s “SnapHunt” scavenger hunt generated buzz and rewarded participants with credits, while clothing retailer Everlane uses the platform to offer transparency into its company culture and manufacturing processes, sharing behind-the-scenes glimpses of their operations and events.

Stat #9: 90% of millennials can be found on Facebook. –Hubspot

With millennials spending significant time on Facebook, it remains a prime platform for reaching this demographic.

Facebook’s extensive user data, including demographics, interests, and behaviors, allows advertisers to target specific segments effectively.

The days of “creepy” personalized ads are gone. Millennials are accustomed to and prefer tailored advertising. This data enables the creation of highly personalized ads that resonate with millennials. Unlike older generations, millennials are comfortable with data-driven personalization and appreciate ads tailored to their preferences.

Stat #10: Millennials are 44% more likely to trust experts, even strangers, than advertisements and 247% more likely to be influenced by blogs or social networking sites. –Hubspot

Millennials trust experts and rely heavily on online research before making purchases. To leverage this, make sure your products are endorsed by influential voices. There are two approaches to achieving this.

A recent post from Cupcakes and Cashmere, a lifestyle blog that fuels my online shopping addiction, showcases outfits from various designers, providing links to their product pages. Collaborate with influencers, such as bloggers and Instagrammers, whose audience aligns with your target market. Providing them with product samples and encouraging reviews can generate valuable exposure. If they decline, request feedback to refine your approach. Alternatively, establish your brand as a thought leader by creating high-quality content that addresses your target audience’s interests and pain points. Conduct keyword research to identify relevant topics and create informative blog posts that attract potential customers. By becoming a trusted source of information, you build brand loyalty and attract potential customers through valuable content marketing.

Winning over millennial consumers

To stay ahead in marketing, it’s essential to understand the evolving preferences of millennials, the generation poised to become the dominant consumer force. By embracing creative strategies that resonate with their values and online behaviors, you can effectively connect with this influential demographic and reap the rewards for years to come!