Mountains of research can attest to what experts say Gen Y has in common, from passion for the environment to tech love. But new research from the Boston Consulting Group breaks this massive block of humanity, some 79 million strong in the U.S., into six distinct groups. And about 50% defy the stereotypes most marketers live by.
Christine Barton, a partner at the Boston Consulting Group in Dallas and an author of its report on Millennial Consumers, tells Marketing Daily in an email.
“Our research reaffirmed the historic optimism of Millennials.”
But it would be a mistake to take that generalization too far. She says.
“If there is an average media image of U.S. Millennials as sheltered, civic-minded, team-oriented, less consumptive, and socially conscious, that describes at most three of our segments, or about 50% of our Millennial respondents. Not all offerings and marketing images and messages will universally appeal to Millennials.”
The Boston Consulting Group survey classifies Millennials into six distinct groups:
- Hip-ennials - The largest group, at 29%, are the Hip-ennials, and are sheltered under the umbrella statement of “I can make the world a better place.” Despite that optimism, they are cautious consumers, hungry for information, and female-dominated, including many students and homemakers.
- Millennial Moms - The next-largest group is Millennial Moms, accounting for 22%. This segment is both the oldest and the most affluent, with a high online intensity, and commitment to working out, traveling, and pampering their children.
- Anti-Millennials - About 16% fall into Anti-Millennials, the third-largest group and one that runs counter to many of the generation’s stereotypes: They’re conservative, for example, won’t spend more for green products, and are best typified by the statement: “I’m too busy taking care of my business and my family to worry about much else."
- Gadget Gurus - And despite that the cell phone commercials would have you believe, just 13% can be classed as true Gadget Gurus. Characterized by “It’s a great day to be me,” this group is affluent, well-wired, and most likely to be male. They are also likely to be single, and to believe this is his best decade.
- Clean and Green Millennials - The most environmentally concerned are classed as Clean and Green Millennials, who account for just 10% of Gen Y. Cause-driven, green, and positive, they are also the most likely to contribute content, the youngest, and more likely to be male or Hispanic.
- Old School Millennials - And finally, the consulting company discerns a group it calls Old School Millennials, also about 10% of the Gen Y population, that is far less tech-involved than others. They read the most, are older, and while they are also cautious in purchases, are confident, optimistic and self-directed, and would rather meet friends for coffee than over Facebook.
Overall, Barton says,
“The good news for companies is we didn't find a generation fundamentally less interested in consuming. In fact, we found a generation vocal in its self-perceived knowledge of categories and brands, of its enjoyment of spending, and of its influence on the spending of parents, siblings and friends.”
There is bad news, however, in that the research -- which included 4,000 people between 16 and 34 as well as 1,000 non-Millennials, ages 35 to 74 -- found that those in the 35-plus segment don’t like Gen Y all that much. Barton says.
“We saw much more negative and dismissive impressions of the generation by those over 35 years old, raising the question: If executives feel as negatively about Millennials as their counterparts, how will they bring authentic, relevant and resonant products that understand and meet Millennials' needs?”
Barton says she was also surprised by how strongly Gen Y is influenced by its generation, as opposed to lifestage. She says.
“When we looked at the attitudes of Millennials with more discretionary income, or that were older, or that were in structured jobs, or that were married, or that had children, they had more in common with Millennials than with non-Millennials sharing their life stage.”
COMMENTARY: I love Millennials, because they are an illusive target to market to, and very suspicious of advertising. Many of them are in debt up to their ears from student loans, but they are our future, whether we like it or not. After the Baby Boomers, the Millennials are the second largest demographic. If you want to reach the Millennials, forget just about everything you've read about marketing to Millennials, but read my blog post dated September 30, 2011. You see folks, it takes more than just marketing. You need to get inside their heads.
According to the Boston Consulting Group survey, " The Millennial Consumer: Debunking Stereotypes," when making purchases, 33% of millennials favor brands that have Facebook pages and mobile websites, as compared to 17% of non-Millennials. Similarly, nearly half of Millennials (47%) agree that their lives "feel richer" when they’re connected to people through social media; just over one in four of non-Millennials (28%) express this sentiment.
The report finds that Millennials and Non-Millennials spend roughly the same amount of time online, but Millennials are more likely to use the Internet as a platform to broadcast their thoughts and experiences and to contribute user-generated content. Millennials are also more engaged in activities such as rating products and services (60% versus 46% of non-Millennials); and uploading videos, images, and blog entries to the Web (60% versus 29%).
Millennials put a premium on speed, ease, efficiency, and convenience in all their transactions. For example, the survey notes, they shop for groceries at convenience stores twice as do often as non-Millennials. Millennials are also receptive to "cause marketing" and are more likely to choose products whose purchase supports a cause (37% versus 30%).
Of Millennials who make direct donations (34%), almost half donate through their mobile devices (15%), compared with only 5% of non-Millennials. More Millennials than non-Millennials report using a mobile device to read user reviews and to research products while shopping (50% versus 21%), the survey says.
More U.S. Millennials than non-Millennials report using MP3 players (72% versus 44%), gaming platforms (67% versus 41%), and smartphones (59% versus 33%). Non-Millennials reported using desktop computers at home (80% versus 63%) and basic cellphones (66% versus 46%).
Millennials are also more likely than non-Millennials to explore brands on social networks (53% versus 37%).
For those of you conducting research on the Millennials, click HERE.
Courtesy of an article dated April 15, 2012 appearing in MediaPost Publications Marketing Daily and an article dated April 12, 2012 appearing in LifeHealthPro
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