Today’s market segment majorly comprises of Millennials, those born between 1981 to 1997. There are 80 Million millennials in the U.S. alone and they represent about a fourth of the entire population, with $200 billion in annual buying power. (https://www.bigcommerce.com/blog/bigcommerce-yotpo-the-bottom-line-benefits-of-customer-review-automation-as-explained-by-three-successful-retailers/)
They are technologically savvy and financially cautious population. They form the most powerful buying groups in today’s consumer market.
The traits of Millennials that make them a favourable target market segment include:
- Heavy social media users: Millennials spend a huge amount of time on social media which is a place where users are allowed to speak their minds and share their opinions on products and services
- More trust on people than brands: Millennials have been found to trust people more than the brands. Reviews by the first-hand users of brands work better on Millennials than the calculated ad techniques to promote the brand
- Millennials are frugal: Millennials provide $200 billion in annual buying power. However, they are fairly conscious about not wasting money. Before making purchase decisions, they go through online feedbacks to allow themselves to compare brands and choose the one that provides the best value
- Driven by rewards and incentives: Millennials are proactive people, who research, plan, self-educate, and are looking for entertainment. They are most often looking for ways to earn money or rewards for things they do daily or things they do on their leisure time
- Millennials love to share: Millennials are used to the practice of connecting and sharing their opinion about brands, products, breaking news and pretty much anything under the sun.
Millennials are tired of mundane and annoying advertisements. For an ad to be effective it must first engage the consumer in any given moment and not only when the consumer feels the need to make an impulsive decision on a product or service.
This segment of Customers can be divided into the following categories:
- Advocates of Brands: Passionate individuals who are excited about trying out new products and services and never hesitate in providing genuine feedback and reviews
- Brand Collaborators: Consumers who are excited about taking active part in co-creating new products and services
- Content Creators: Everyday consumers who are excited about sharing their experiences and feedback through social posts including video and photos
The statistics showing the heavy use of social media by Millennials include:
- 44% of Millennials use social media to spread word about products and services
- Only 1% of millennials are influenced in any way by traditional advertising
- 33% of millennials rely mostly on blogs before they make a purchase decision
- 43% of millennials rank authenticity over content
- 62% of millennials say that if a brand engages with them on social networks, they are more likely to become a loyal customer
- 60% are often or always loyal to brands that they currently purchase
Over 60% of millennials and more than 50% of Baby Boomers desire more ways to give feedback and opinions about the brands they’re familiar with. Likewise, studies have consistently proven that consumers trust the opinions of their peers and user-generated content significantly more than official brand messaging or any other type of media. (http://www.forbes.com/sites/sujanpatel/2016/07/22/the-power-of-user-generated-content-with-tomer-tagrin-of-yotpo/#553a8f16558b)