We love millennials! Millennials are different; they are sharp, open-minded, techy, digital, and the perfect fit for our brand, whatever brand we might own. In digital apps, books, consumer package goods, or alcoholic drinks, millennials are the magic solution to our marketing segmentation. Is this the myth of the last decade in Marketing? One that we fell so quickly into its trap. Because if you work in Marketing, there is a high chance that you are a millennial. Just remember, you are not the consumer.
The next two simple graphs should create an A-HA moment and convince you that the millennial opportunity is not that big. Two significant insights spring to mind: millennials are not the majority (duh), and second, they have the least disposable income to spend.
By targeting millennials, you are consciously deciding to ignore 80% of the population, maybe because you are a Pareto fan. Do you know accurately that 20% of your customers represent 80% of your revenue? Recheck your data. Unless you are active in the business of graduate recruitment or student debt repayment options, I would doubt it.
Second, irrespective of the year, unemployment among millennials was higher than any other age group (that’s in the US, in Europe is even worse). Add to this the limited purchasing power of millennials, and your story starts to have legs. Don’t you think you should broaden your target?
3 simple insights to start your recovery journey:
- Understand who buys your category – not just your brand.
- Learn about your customers; know the revenue each age-group segment generates.
- Study demographic trends for your market; in an aging population world, don’t be blind to your most valuable target group.