Millennials are the most populous, educated and diverse generation in American history. Businesses aiming to target this demographic and try to sell them a product or service should leave behind all of the cliché stereotypes about this technology-heavy generation and focus on data and behaviors to truly understand what they want. Here are some facts and statistics every business should know about this coveted demographic:
- They have an incredible amount of spending power.
The projected purchasing power of millennials over the next five years is estimated to increase 133% from $600 billion to $1.4 trillion according to Fortune.com. However, this spending power is spread unequally and widely across the generation. Wealth inequality has increased rapidly over the past decade – the median worth of the top 20% of millennials is eight times the median net worth of the bottom 80%, which is twice the ratio from 2000. The income gap between millennials is increasing.
- Technology is a way of life.
Millennials adopt new technologies and will spend their money on companies that meet with their increasingly high standards for new and innovative products. Over half of millennials plan to buy or already have in home devices that connect to the Internet in the next five years and many prefer to manage their health using mobile apps such as Sleep Cycle or FitBit. Given their early exposure to technology, their expectations will continue to favor cross-platform experiences that are reliable, speedy and provide actionable data.
- They are skeptical consumers
Millennials are a value-driven generation that tends to gravitate towards brands that stand for something. 84% of millennials consider a brand’s values before making a purchase, according to Fortune.com. They also pay attention to a brand’s authenticity, and some initiatives that feel like a cynical attempt to win them over will backfire.
- They are leading the shift in media consumption habits.
Because they are able to access content anywhere and anytime on any device, they are leading the shift in media consumption habits away from traditional outlets such as TV and print. Additionally, they are receptive to new forms of brand advertising, such as content articles, social media advertising, and email marketing.