|By Marketwired .||
|January 15, 2014 12:01 AM EST||
DALLAS, TX -- (Marketwired) -- 01/15/14 -- The Millennial generation not only represents the consumer market of the future. It is also transforming the way in which companies must market their products both online and offline in order to be successful, according to a report released today by The Boston Consulting Group (BCG).
The report, titled The Reciprocity Principle: How Millennials Are Changing the Face of Marketing Forever, says that U.S. Millennials -- the generation of people now 18 to 34 years old -- engage with brands far more extensively and personally than do older generations, and they expect their values to be reflected in the brands they purchase. Because Millennials are heavy users of social media and mobile devices, the impact of their brand choices and feedback is greatly amplified and accelerated. BCG's global research suggests that the findings about U.S. Millennials and their impact on marketing reflect similar trends among Millennials in other developed countries.
"The conventional linear and rational approach to marketing has been a process in which companies defined their brands and pushed brand and marketing messages at consumers. But this doesn't work well with Millennials," said Christine Barton, a BCG partner and the lead author of the report. "Millennials want and expect a two-way, reciprocal relationship with companies and their brands. As a result, modern marketing has become an ecosystem driven by interactions among marketers, customers, and potential customers, who help define brands and influence their success."
The report is based on findings from surveys in 2013 conducted by BCG's Center for Consumer and Customer Insight involving nearly 4,000 U.S. Millennials and non-Millennials. The surveys covered behavior, values, brand engagement, marketing tactics, and other topics. U.S. Millennials already account for an estimated $1.3 trillion in direct annual spending, of which at least $430 billion is estimated to be discretionary, nonessential spending. These estimates do not include substantial Millennial-influenced spending, such as by parents and grandparents. And this sum will grow dramatically as more Millennials reach peak earning and buying power. By 2030, the projected 78 million Millennials in the U.S. will outnumber the projected 56 million baby boomers (ages 50 to 69).
Millennials are driving a transformation of consumer marketing across five elements: reach, relevance, reputation, relation, and referral. Several findings from the BCG surveys illustrate these points:
- Reach. Millennials engage much more extensively with brands through social media and mobile devices than do older generations. Fifty-two percent of Millennials surveyed said they use social media to "like" a brand -- compared with 33 percent of boomers surveyed -- while 39 percent post product reviews. Twice as many Millennials as boomers check prices, look up product information, or search for promotions on their mobile devices while in a store.
- Relevance. The purchasing decisions of U.S. Millennials are influenced by more people -- and different types of people -- than are the choices of older generations. Less than half of Millennials said that they trust expert advisors such as doctors or financial advisors, for example, compared with 61 percent of non-Millennials. Instead, Millennials reported that they are most influenced by family, friends, and strangers. Millennials were also twice as likely as Gen-Xers (ages 35 to 49) to say that they were influenced by celebrities and four times more likely than boomers.
- Reputation. Millennials identify with brands more personally. Fifty percent of U.S. Millennials ages 18 to 24 and 38 percent of those ages 25 to 34 agreed that brands "say something about who I am, my values, and where I fit in." Forty-eight percent of young Millennials reported that they "try to use brands of companies that are active in supporting social causes."
- Relation. To cultivate a relationship with Millennials and sustain brand loyalty, companies must establish a dialogue with them individually and in small groups. Nearly twice as many Millennials as boomers cited "availability 24-7" as the most important thing that brands can do to engage them.
- Referral. Engaging with Millennials is also important because they are more eager than other generations to share their opinions with friends and on social networks. More than half of U.S. Millennials said that they are willing to share their brand preferences on social media, for example, compared with 31 percent of baby boomers. More than half also said that people seek them out for their knowledge and opinions of brands, compared with only 35 percent of boomers.
The report advises companies to make marketing to Millennials a strategic priority and master reciprocal marketing. "This is important not only because Millennials represent the market of the future over the medium term in developed economies," said Barton, who is global leader of BCG's consumer sentiment and generational research topics. "It is also critical because Millennials are the vanguard of large-scale changes in marketing behavior and media habits among older consumers and future consumers."
The report suggests several actions companies should take if they haven't done so already. First, they should set clear, measurable goals for marketing to Millennials. Companies must also transform their organizations by breaking down silos that separate different marketing and media functions, building the new capabilities required to compete in a reciprocal ecosystem, and devoting greater investment to more innovative media and tools that can measure short- and long-term returns from marketing.
"The imperative to engage and win over the Millennial generation represents an entirely new set of challenges and tactics for marketers in developed economies," said Lara Koslow, a BCG partner who is global coleader of the firm's marketing topic area. "This generation is ushering in the end of consumer marketing as companies have long known it."
The report advises that companies reach out to Millennials wherever they are with a cross-media, cross-channel, cross-device brand presence. Brands should reinforce their authentic reputations and brand soul with the relevant values, personality traits, and communications. They should relate to Millennials by moving from push communications to two-way, open dialogue. And they should cultivate referrals among Millennial customers and employees.
To arrange an interview with one of the authors, please contact Alexandra Corriveau at +1 212 446 3261 or [email protected].
About The Boston Consulting Group
The Boston Consulting Group (BCG) is a global management consulting firm and the world's leading advisor on business strategy. We partner with clients from the private, public, and not-for-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 81 offices in 45 countries. For more information, please visit bcg.com.
Bcgperspectives.com features the latest thinking from BCG experts as well as from CEOs, academics, and other leaders. It covers issues at the top of senior management's agenda. It also provides unprecedented access to BCG's extensive archive of thought leadership stretching back 50 years to the days of Bruce Henderson, the firm's founder and one of the architects of modern management consulting. All of our content -- including videos, podcasts, commentaries, and reports -- can be accessed by PC, mobile, iPad, Facebook, Twitter and LinkedIn.
The Boston Consulting Group
Media Relations Manager
Tel +1 212 446 3261
Fax + 1 212 446 2801
SYS-CON Events announced today that Akana, formerly SOA Software, has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Akana’s comprehensive suite of API Management, API Security, Integrated SOA Governance, and Cloud Integration solutions helps businesses accelerate digital transformation by securely extending their reach across multiple channels – mobile, cloud and Internet of Thi...
Apr. 27, 2015 05:00 AM EDT Reads: 2,050
SOASTA, the leader in performance analytics, today reported record growth of the CloudTest community, exceeding 30,000 registered users of the CloudTest platform in Q1 2015. SOASTA also announced widespread adoption of its Web and mobile testing solutions, with more than 1,600 customers completing more than 285,000 tests using CloudTest during the quarter. This rapid growth shows that DevOps-driven digital businesses are embracing a more continuous approach to testing, and CloudTest is meeting t...
Apr. 27, 2015 05:00 AM EDT Reads: 1,578
SYS-CON Events announced today that CommVault has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. A singular vision – a belief in a better way to address current and future data management needs – guides CommVault in the development of Singular In...
Apr. 27, 2015 04:45 AM EDT Reads: 2,068
Apr. 27, 2015 04:45 AM EDT Reads: 1,390
SYS-CON Events announced today that SafeLogic has been named “Bag Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. SafeLogic provides security products for applications in mobile and server/appliance environments. SafeLogic’s flagship product CryptoComply is a FIPS 140-2 validated cryptographic engine designed to secure data on servers, workstations, appliances, mobile devices, and in the Cloud....
Apr. 27, 2015 04:30 AM EDT Reads: 2,125
SYS-CON Events announced today that FierceDevOps will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. FierceDevOps keeps software developers and IT operations personnel updated on the latest news and trends around the rapidly evolving role of the traditional IT worker.
Apr. 27, 2015 04:15 AM EDT Reads: 2,139
SYS-CON Events announced today that StorPool Storage will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. StorPool is distributed storage software that allows service providers, enterprises and other cloud builders to run data storage on standard x86 servers, instead of using expensive and inefficient storage arrays (SAN).
Apr. 27, 2015 04:00 AM EDT Reads: 2,249
SYS-CON Events announced today that QTS Realty Trust, one of the nation’s largest and fastest-growing providers of data center facilities and cloud services and a leader in security and compliance, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. QTS Realty Trust, Inc. (NYSE: QTS) is a leading national provider of data center solutions and fully managed services, and a leader in security and compliance...
Apr. 27, 2015 03:45 AM EDT Reads: 1,944
GENBAND has announced that SageNet is leveraging the Nuvia platform to deliver Unified Communications as a Service (UCaaS) to its large base of retail and enterprise customers. Nuvia’s cloud-based solution provides SageNet’s customers with a full suite of business communications and collaboration tools. Two large national SageNet retail customers have recently signed up to deploy the Nuvia platform and the company will continue to sell the service to new and existing customers. Nuvia’s capabili...
Apr. 27, 2015 03:45 AM EDT Reads: 1,923
SYS-CON Events announced today that IndependenceIT, a leading software provider of simplified IT management solutions for workspaces, applications and desktops-as-a-service, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IndependenceIT's Cloud Workspace® Suite combines application, end-user and infrastructure management into a seamless, easy-to-manage platform, with a unified management interface an...
Apr. 27, 2015 03:15 AM EDT Reads: 2,879
SYS-CON Events announced today that that Innodisk, the service-driven provider of industrial embedded flash and DRAM storage products and technologies, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Innodisk is a service-driven provider of industrial embedded flash and DRAM storage products and technologies. With satisfied customers across the embedded, aerospace and defense, cloud storage markets an...
Apr. 27, 2015 03:00 AM EDT Reads: 2,945
SYS-CON Events announced today that WSM International (WSM), the world’s leading cloud and server migration services provider, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. WSM is a solutions integrator with a core focus on cloud and server migration, transformation and DevOps services.
Apr. 27, 2015 02:45 AM EDT Reads: 2,007
Sonus Networks introduced the Sonus WebRTC Services Solution, a virtualized Web Real-Time Communications (WebRTC) offer, purpose-built for the Cloud. The WebRTC Services Solution provides signaling from WebRTC-to-WebRTC applications and interworking from WebRTC-to-Session Initiation Protocol (SIP), delivering advanced real-time communications capabilities on mobile applications and on websites, which are accessible via a browser.
Apr. 27, 2015 02:30 AM EDT Reads: 2,004
SYS-CON Events announced today that Site24x7, the cloud infrastructure monitoring service, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Site24x7 is a cloud infrastructure monitoring service that helps monitor the uptime and performance of websites, online applications, servers, mobile websites and custom APIs. The monitoring is done from 50+ locations across the world and from various wireless carr...
Apr. 27, 2015 02:30 AM EDT Reads: 2,091
SYS-CON Events announced today that Intelligent Systems Services will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Established in 1994, Intelligent Systems Services Inc. is located near Washington, DC, with representatives and partners nationwide. ISS’s well-established track record is based on the continuous pursuit of excellence in designing, implementing and supporting nationwide clients’ mission-cri...
Apr. 27, 2015 02:15 AM EDT Reads: 2,819