Are the Millennials loyal to any brand? On the surface it
looks as though they are not. They are wirelessly connected and not afraid to
use their mobile devices to find the very best price regardless of the brand.
They are wary of any advertising claims and seem to change their minds based on
the latest trending tweet. However, studies have found them to be extremely
brand loyal - even more so than their parents’
or grandparents’ generations. However, they prefer to engage with that brand
much differently and be marketed to in an entirely different way than previous
generations.
Two studies came out in the past year which focused on the
brand loyalty of Millennials. One was published in Forbes1 and the other in Inc. Magazine2. They both hone in on the importance of
marketing that is acceptable to Millennials. Here are a few of the components
that drive brand loyalty in the latest generation to capture the attention of
corporate marketing.
The social connection
is paramount
Marketing to this generation needs a social media component
to it where real people can let their likes and hates be heard. There can be no
hint of corporate finagling that would put a positive twist on a product or
service – that would be seen as disingenuous pandering by the Millennials. They
seek out consumer information from blog sites and look for brands that give the
consumer a voice on their social media sites. That is not unlike what happened
during the Baby Boomers generation with watchdog publications like Consumer Reports. The difference is now
there is no middle man/watchdog. The consumer is the watchdog and social media
is his publication.
They want to engage
beyond a simple purchase
It is not enough for a company to market their wares on
social media. Millennials want to engage beyond the purchase. Here are three
things that the Forbes study brought out regarding engagement. First, they want
corporations to be active on social media and to reach out to them via the new
media. According to the Forbes report, 62% of Millennials said they are brand
loyal to companies that engage them in this way. That is a bit tricky, because
Millennials do not trust advertising. So what kind of engagement do they
expect? Special offers and discounts on products? Yes, but it is more than
that. The second point that this report made was Millennials want a say so in
how you make your products. They want to know where you are purchasing your raw
materials, whether or not they were extracted in a way that is in line with
their beliefs (non GMO, made from recycled waste, etc.), where your workforce
is located, if you are in compliance with child labor laws, etc. But beyond
this, Millennials also want a say in making your products better. If it feels
like they want to come into the kitchen to cook with you, you are not too far
off. If you are making salsa, they want to make suggestions on the latest
flavors of your salsa. This needs to be considered when engaging them on social
media. It is their expectation. The third part of engagement has to do with
corporate giving. Millennials engaged with brands that told about their
philanthropic endeavors and beyond. Companies that not only give a portion of
their profits to help others, but also allow their employees to give back in
hands-on experiences are looked on favorably.
Are the Millennials
that much different than other generations?
I am a late Baby Boomer. Being born in the early sixties, I
grew up being mentored and taught about life from my parents’ generation, many
times referred to as the Silent Generation. Our next-door neighbor was a
veteran of WWII. He was fiercely loyal to any brand that was American made and
had nothing to do with that which was imported. He was not alone. His generation
had made huge sacrifices and bore the scars of turning back tyranny and
defending the American way of life. He loved motorcycles. I remember when
Japanese made motorcycles – particularly Kawasaki cycles - began to gain a
foothold on the American market in the 1970s. He would turn his back whenever
he heard one coming down the road, but looked on in fascination when he heard a
Harley-Davidson approaching. He worked as a design engineer at a major truck
and farm implement manufacturer. When the company was sold to an international
conglomerate, he cut the company’s logo off of his hats. Is this really any
different than the attitudes expressed by Millennials? They want their say so
in who, where, and why a corporation is going about business. They demand
certain things from a company before they will purchase anything from them.
They are loyal to the brands that play within their parameters. If you step
outside their lines, they will cut you off of their hat, too.
_________________
1.10 New Findings
About the Millennial Consumer, by Dan Schawbel, Forbes, January 10, 2015, http://www.forbes.com/sites/danschawbel/2015/01/20/10-new-findings-about-the-millennial-consumer/#3c0d3e3e28a8
2. Study: Millennials Are the Most Brand-Loyal Generation by
Geoff Smith, Inc. September 30, 2015 http://www.inc.com/geoff-smith/millennials-becoming-more-loyal-in-era-of-consumer-choice.html