what-every-business-must-know-about-marketing-to-millennials-ebook

WHAT EVERY
BUSINESS MUST
KNOW ABOUT
MARKETING TO
MILLENNIALS
© 2014 Web.com Group, Inc. All rights reserved.

WHY SHOULD YOU
CARE ABOUT MILLENNIAL
CONSUMERS?
According to The Boston Consulting Group, Millennials
(defined in this study, as those born between
1980 and 1996) spend a whopping $1.3 trillion a
year—and most of them aren’t yet at the peak of
their purchasing power!
By 2030, BCG predicts, U.S. Millennials will
outnumber Baby Boomers (78 million to 56 million).
Considering how influential (and profitable) the Baby
Boomers have been for businesses, the idea of
an even bigger consumer market should have you
rubbing your hands together in glee.
In this ebook, we’ll give you insights, tips and ideas
for capturing these key consumers as they form
the shopping habits that will shape their lifetime
purchasing behavior.

Contents
1
Who Are the Millennials?
2
Get Inside the Millennial Mind-Set
3
What Do Millennials Do Online?
4 Social Spurs Millennial Purchasing
5 How to Reach Millennials With Email Marketing
6 Who Do Millennials Trust?
7 Want to Attract Millennials? Start Being Real
8
What’s the Deal?

1 Who Are the Millennials?
To understand Millennial consumers, let’s start by taking a closer look at some basic
demographics. According to Nielsen, which defines Millennials as those born from
1977 to 1995, Millennials:
1977 1995
Make up 24 percent of
the U.S. population
24%
1 2 3 4
Are the most educated
generation in the history of
the U.S.:
nearly one-fourth (23
percent) have a Bachelor’s
degree or higher
Are less likely to be
married (21 percent are
married, compared to 42
percent of Boomers)
21%
Prefer to live in urban
areas with plenty of
social interaction and
dense population
23%
married
5 6 7 8
Care about authenticity
and philanthropic causes
Are diverse in terms of
income. Millennials aged
18 to 27 have an average
income of $25,000; for
those aged 28 to 36, the
average is $48,000
Value and rely on their
families, communities
and social networks to
survive in the aftermath
of the Great Recession
Are the most racially
and ethnically diverse
generation (19 percent
are Hispanic, 14 are
African American and 5
percent are Asian)
income
5%
14%
19%
Clearly, while they rival the Baby Boomer Generation in size, Millennials are different
from them in many ways.

2
Getting Inside the
Millennial Mind-Set?
To ensure your marketing messages resonate with Millennials, it’s important to
understand how they think. A study by The Buntin Group offers some insights that can
help your marketing hit home.
They’re Sheltered
Millennials grew up with “helicopter parents” who got involved with every
aspect of their children’s lives. As a result, many of this generation may come
off as entitled and pampered. Millennials expect to be treated as “special”
because that’s how their parents treated them. They also tend to be very
positive because they’ve had such sheltered childhoods.
To market to them: Treat Millennials as specially as their moms and dads
did by offering them special, exclusive products or services, loyalty rewards
and limited-edition items. They respond well to positive marketing messages;
fear-based approaches or negativity don’t work with this age group.
They Care About Community
Happy Birthday
Being part of a group is just natural for Millennials; they’ve been working
collaboratively since kindergarten and expect to be part of teams. They
care about others, their community and the world at large. They also expect
companies to be “transparent” about their actions and how they affect the
global community.
To market to them: Appeal to Millennials by getting involved in the
organizations and causes they care about. Also get them involved in your
business. Millennials want to have a say, so ask them to name your next
product or vote on what services you should provide.

They Live in a Digital World
Millennials grew up with technology and consider it a natural part of their lives. They use their smartphones to do, well,
just about everything. They’re used to instant responsiveness from websites and businesses.
To market to them: Make sure your customer experience works in all channels—from brick-and-mortar to online,
from desktop to mobile. Reach out to Millennials online, on their mobile devices and on social media with digital and
mobile marketing campaigns and an active, engaged social media presence.
They’re Fiscally Conservative
Millennials’ happy childhoods were interrupted by the Great Recession, which has hampered their entry into adulthood.
They struggle to find jobs and pay off student loans. At the same time, they don’t want to give up the little luxuries (or
necessities) they deem worthwhile. No wonder they love bargains and deals.
To market to them: Millennials do a lot of research before making a purchase, so make sure your business has a
presence on online review and rating sites, local search directories and anywhere else they’re likely to look. Encourage
satisfied customers to review you and share their experiences and purchases on social media. Offer deals and discounts,
but make it fun—Millennials enjoy the “game” of finding discounts on social media or on daily deal sites like Groupon
and LivingSocial.
YOUR BUSINESS
YOUR BUSINESS
YOUR BUSINESS

3
What Do Millennials
Do Online?
It’s no surprise that Millennials spend tons of time online. But what do they do, how are
they doing it and what devices are they using? A comScore report has some insights
that can shape your marketing.
85%
Devices
/ Millennials spend an average of 96 hours a month online on both desktops
and mobile devices. That’s equal to four full days a month!
/ Almost 20 percent of Millennials are mobile-only, while two-thirds use both
computers and mobile devices to go online.
/ Overall, 85 percent use mobile devices to go online.
/ Nearly all (81 percent) have smartphones, compared to just 40 percent
of adults 55 and up.
What It Means to Your Marketing: Mobile use among Millennials is only
going to grow, so make sure your business website and marketing emails are
mobile-friendly. Consider using text message marketing as well as mobile adds to
reach this demographic. Finally, think mobile when posting social media content—
make sure it’s easily consumable and sharable from a mobile device.

Social Media
Millennials spend most of their social media time on Facebook—91 percent have accounts on the site. However,
almost half of them (46 percent) use Instagram, 39% use Twitter, 30% use Tumbler, and 27% are on Pinterest and
LinkedIn. Facebook still dominates social media use; 76 percent of Millennials’ total social media time is spent there.
Ten percent of social time is spent on Instagram and 6 percent is spent on Twitter.
What It Means to Your Marketing: Focus on Facebook—not only is it the most popular social media
network, but it takes up most of their time. However, don’t ignore the rapid growth of other social networks. In
addition to Instagram and Twitter, Snapchat and Tumblr are also gaining importance, the report notes.
Vid Kids
Traditional TV ads may not work as well for Millennials because they tend to watch TV on demand, skip ads when
they record programs and watch TV online instead of on television.
What It Means to Your Marketing: Good news for small business owners, since digital advertising is
generally cheaper than even cable TV commercials. Take advantage of Millennials’ comfort with online video viewing
to place ads on video channels, either pre-roll or pay-per-click. Also create some online videos for your business you
can host on your website, your YouTube channel and your social media accounts. Make them fun and interesting,
and you just might go viral.
76% 46% 30% 27%

4
Social Spurs Millennial
Purchasing
Social media has greater influence on Millennials’ purchasing habits than on other age groups. According to eMarketer,
70 percent of Millennials who use social media report their purchases are at least somewhat influenced by friends’
posts. And a study this year from the University of Massachusetts Dartmouth Center for Marketing Research found
different social media networks influence Millennial internet users differently.
Beauty and apparel products crossed all social networks, with between 45 and 50 percent of respondents saying
they’ve purchased this type of product after being influenced by posts on Twitter, Pinterest and Facebook.
Those seeking to buy food or beverages were most influenced by posts on Twitter (20 percent of Millennials), while
those buying technology products were most influenced by posts on Facebook (18 percent). Finally, art, design and
gardening purchases were most influenced by Pinterest.
Depending on what you’re selling, you may want to tailor your social media presence to the social media sites that most
influence Millennials making that type of purchase. For instance, if you sell art prints, focus on Pinterest.
However, if you’re looking to influence Millennials’ purchases both online and in-store, Facebook is the place to be.
Almost 80 percent of Millennial Internet users who bought something after seeing a post on Facebook report they
shopped both online and in a brick-and-mortar store.

5
How to Reach Millennials
With Email Marketing
Have you heard that Millennials consider email old-fashioned? That conventional
wisdom isn’t so wise. Millennials do use email, but there are some important things
you need to know to reach them with an email marketing campaign.
Here are some insights from a Campaigner study of Millennials’ email usage and what
they mean to your marketing:
Think Mobile
Nearly nine in 10 (85.7 percent) of Millennials who
have mobile phones use their phones to read emails.
What’s more, Millennials are more likely than any other
demographic to actually make a purchase directly from
a mobile marketing email. Be sure to optimize your
marketing emails for mobile with readable fonts, easyto-use
buttons and fast load times. Also make sure that
links in the emails go to mobile-friendly landing pages
so Millennial customers can act on your call to action!
Make It Personal
Millennials are rarely motivated by a subject line. Instead,
you need to offer some thing that’s of interest to them.
Use your customer data such as their browsing history or
past purchases to target and segment your emails. Your
email marketing service provider should be able to help
you target your emails more effectively. When emails
are more personalized, you can send them less often and
get better results.
Don’t Overdo It
Millennials are more likely than other generations to
say they get too many marketing emails, and they get
especially annoyed when the emails aren’t relevant to
their interests, shopping habits or needs. Keep an eye
on unsubscribe rates and try sending emails less often if
you spot a trend of Millennial shoppers opting out.
Get Social
Surprisingly, Millennials overwhelmingly say they don’t
share mobile marketing emails. Make it simpler to do
so by adding sharing buttons to your mobile-friendly
emails, and offering rewards (like discount codes) for
sharing them.
9 in 10

6 Who Do Millennials Trust?
52%
cited partners
52%
cited spouses
59%
cited friends
51%
cited parents
When it comes to marketing to Millennials, traditional
advertising media may be less than effective. According
to BCG, Millennials are markedly less likely than
other generations to trust advertising, experts or
public relations.
So who do they trust? Family, friends and—
suprisingly—strangers (such as reviewers on social
media) have the most influence over Millennials. Asked
who most influences their purchasing decisions, 59
percent of Millennials cited friends, 52 percent cited
spouses and partners, and 51 percent cited parents.
Millennials were twice as likely as non-Millennials to
be influenced by strangers and four times as likely as
Boomers to be influenced by celebrities. Celebrities
were especially effective in marketing lifestyle, apparel
and luxury products to Millennials. While you may not be
able to land a celebrity spokesperson who’s nationally
known, tapping into a local celebrity’s power can be a
great way to attract Millennials to your business.
Outside of friends, family and stars, who do Millennials
trust? Surprisingly, they’re more likely than older
generations to trust businesses’ websites, social media
accounts and online advertising.
What does this mean to your marketing? If you’re
targeting Millennials, make sure your business website
has the type of information that matters to them,
including social media links, customer ratings and
reviews (or links to rating and review websites), lots of
information about and photographs of your products,
and a wide range of media, including online video.

7
Want to Attract Millennials?
Start Being Real
Authenticity is a key value for Millennials, who love locally-sourced foods, artisanal
crafts and handmade products. In the BCG study, Millennials overwhelmingly said the
most common marketing mistake they see is a marketing campaign that sounds fake,
condescending or forced. How can you express your small business’s authenticity in
your marketing without striking the wrong note? Here are five tips for “being real.”
1
Put yourself into your marketing
As a small business owner, you can be the “face” of your
business in a way that rings true to Millennials. Write
a regular contribution to your email newsletter, feature
yourself on social media and respond personally to Twitter
followers. If you’re older or believe you can’t relate to
Millennials, try featuring your Millennial employees or even
customers in your marketing and on your social media
accounts. Testimonials, online reviews and social media
posts from other Millennials will have a positive effect on
Millennial prospects.
2
Be consistent
Make sure your marketing aligns with your brand. Don’t try
to fake something that doesn’t exist or pretend to be “hip” if
you’re not. Millennials can spot fakery a mile away. If you’re
a 65-year-old, non-tech-savvy grandpa, playing that up will
appeal to Millennials far more than trying to fit in with them
by sporting an iPhone and skinny jeans.

3
I just got a great
deal at the shoebox.
Get involved
Is your business involved in causes that matter to Millennials,
whether globally, locally or nationally? Find out what matters
to your Millennial customers and take an active role in socially
responsible organizations that work to support the causes they
care about. Environmental responsibility is especially important
to Millennials, so this can be a good area to get involved with.
Use your business website, email marketing and social media
outreach to share information about what you’re doing for the
cause—and to get your customers involved, too.
4
Create community
Millennials value one-to-one relationships with brands. If your
business caters to a local clientele, you can build relationships
by hosting or sponsoring events, doing public relations to spread
the word about your business in the local community, speaking at
local organizations that attract Millennials and just talking to your
customers on a personal level. Whether your customer base is
local, national or global, online outreach such as email marketing,
social media and blogging are key ways to create an online
community of customers and prospects.
5
Let them brag
For Millennials, status is tied up with purchasing products
and services that allow them to tout their social responsibility,
whether that’s a tote bag made in a village in Ghana or a summer
vacation to work rebuilding a hurricane-stricken Third World
nation. Encourage your customers to share images, reviews and
thoughts about their purchases on your website, online review
sites and social media. This not only makes them feel good, but
spreads the word about your business.

8 What’s the Deal?
Millennials came of age in an era of LivingSocial and Groupon, as well as a time
of economic crisis, so perhaps it’s no surprise they’re highly deal-oriented. In fact,
Millennials seem to consider shopping a competitive sport in which seeking out the
best deal is part of the thrill.
Nielsen reports that many of Millennials’ favorite apps are focused on retailing or
finding discounts. According to BCG, in 2013 a whopping 43 percent of Millennials
regularly checked their smartphones while in a store to look for coupons or promotions
(nearly double the 24 percent who did so in 2012).
How can you cater to Millennials’ thirst for deals? Here are five ideas to try.
1
Use text message marketing to reach
them in-store
Geofencing capabilities can enable you to send targeted
texts to customers when they’re in or near your location (or
even your competition’s). Lure indecisive customers with
special offers if they act now.
2
Make them feel special
Millennials love to feel part of the “in crowd.” Use social
media to reach out with exclusive or limited-time offers,
discount codes and sale events.
Use text message
marketing

3
Get the data
Millennials are more willing than other age groups to give
their personal data to businesses—but they do expect to
get something in return. Ask for extra information in return
for special discounts and deals. Having the additional
data (such as birth date or interests) will enable you to
further personalize your marketing emails, texts and other
messages for even better results.
4
Try deal-of-the-day sites
If you haven’t already used Groupon, LivingSocial or similar
site, give it a try. This is a great way to reach out to Millennial
customers and get them to check out your business.
5
Balance out deals with impulse buys
Studies show Millennials are more likely than other
demographics to make impulse purchases. Balance out
discounts and boost your profits by putting high-margin
impulse items at the point of purchase or suggesting them
at checkout in your online store.

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