Almost two decades ago, if you asked a marketer to explain what defines his target audience, it would be an equation consisting of simple terms..
Almost two decades ago, if you asked a marketer to explain what defines his target audience, it would be an equation consisting of :
- Demographics (gender, race, religion, marital status, geographic location)
- Income Bracket
- Education (Qualifications, Technology literacy)
However times have changed. And the biggest driver of this change are the millennials.
(*Millennials, also called gen Y, were born between 1981 and 1997 and are typically driven by value, quality, or image when making purchases.)
Target audience has evolved > Change in consumption behavior > Evolution of Startup ecosystem
Millennials’ passion for embracing new things is referred to as their tendency to be All In. Likewise, their tendency to get on board with the next big thing is deemed as their being All Out.
Though they are always ready to try new things, they also get burnt-out very quickly…!!
The factors that would affect their buying decisions, is not a simplistic equation anymore.As, this is the generation whose brand loyalty is not just focused on products, but also keys in
- Organization goals
- Sustainability of products
- Environmental impact
If a brand is selling an “economical product built on the back of harsh and harmful chemicals” , it won’t sit well with the millennial crowd. While, they do look out for cost benefits but are also fully aware of their socio-economic and environmental responsibility.
As a brand, be ready to give answers. Due to the mass social media presence, brands have now become more vulnerable to scrutinizes. Further, as more socially aware citizens, the millennials exercise their right to ask questions, very responsibly.
So how can a brand approach and associate with millennials..?
Highlight environmental impact ~ Have a Purpose
- Fair wages
- Eco-friendly production
- Workforce welfare
- Sustainable and environment friendly products
Create an easy return policy
- Caters to impulsive buying behavior of millennials
- Gives them flexibility to switch
- Clearly define return/exchange policy
Use a Subscription-based model
- Millennials prefer access rather than ownership
- Cost benefit for a continued service
- Opportunity to to cross and up-sell
Conclusion : As we can see, millennials’ preferences have changed the entire ecosystem . But change means evolution. As the customers evolve, the ecosystem absorbs and changes. The idea is how are you (as an entrepreneur/ company/ brand) scrutinizing these changes that can be leveraged on..!!
Author(s):
Swadha Agarwal
Kavya Sehgal
