Millennials and the new value of shopper marketing

The Coca-Cola Company sponsors this blog post and leverages proprietary insights to create world-class shopper marketing activities designed to help retailers convert more shoppers into buyers.  Visit www.cokesolutions.com to learn more.

Digital media has changed the way and the speed in which people shop. Marketers must now provide consumers with a full buying experience both online and in-store, adding a new dimension to their jobs. In particular, understanding the purchasing habits of millennials, who were raised with online shopping as a part of daily life, can be a challenge since many younger consumers have different expectations and approaches to buying.

“They are omni-channel shoppers,” said Daren Sorenson, Director of Retail and Shopper Insights for the Coca-Cola Company’s North America Group. “Millennials enjoy shopping much more than previous generations and take joy out of simply browsing.”

In spite of the huge increase in choice brought by digital retail, the economic downturn has affected how millennials spend and what they buy. Value remains a major consideration for Millennials when deciding where to shop, according to Sorenson. They want an engaging in-store experience and diversified options, but also want retailers to keep them informed in an interesting and personal manner.

As more people share information, comments and reviews online, brands are more exposed than before the advent of the Internet. Companies need to engage with consumers, particularly those who are younger, across channels and in a way that resonates with them. But implementing a sound strategy can be tricky, particularly with so many different platforms that can share a brand’s information.

“Millennials are the most highly educated and social generation in history,” Sorenson said. “They are clever and know what they want. As a brand, you need to be authentic and transparent when communicating with this younger generation.”

Sorenson notes that one brand that got it right is the Dollar Shave Club,  a Web-based e-commerce site for men founded in 2011 (Whose site is worth a trip to for the "Our Blades are F***ing Great" video alone - http://www.dollarshaveclub.com) Definitely worth . In 2012, the company announced itself to the world in a non-traditional manner via a funny, well-targeted YouTube video. In this clip, Dollar Shave Club showed that they do not take itself too seriously, and is a brand that firmly understands the highly visual, digital-based world. The clip has since gone viral, approaching 12 million views.

“Dollar Shave Club has gained an impressive following by telling a brand story that is authentic, entertaining and very shareable,” Sorenson said. While not every brand is in a position to mimic the Dollar Shave Club, their success is a lesson in what can be achieved when millennials become brand advocates.

For brands, having a sound omni-channel marketing strategy is key to connecting with millennials. As “digital natives”, millennials are fully comfortable operating on multiple screens and on multiple devices like laptops, smartphones or tablets. They enjoy interacting with new people and ideas via different social channels and will listen to companies that speak their language.

However, it’s not just about social media and flashy videos. The value of in-store experiences should be considered when thinking about marketing and branding. Millennials may spend a lot of time online but they have not fallen out of love with the bricks-and-mortar stores.

“As shoppers, they are less prepared than their predecessors and more reliant on in-store cues. Retailers that offer engaging store environments, and well-merchandised solutions, are the ones winning with Millennials,” Sorenson said.

Gone are the days of broadcast marketing: brands need to engage with consumers directly on an emotional level and establish a relationship.

“Digital allows for a two-way conversation between brands and consumers,” Sorenson said. “And when you understand consumers as people, you can create content that is share-worthy and engaging, rather than simply informative.”

The Coca-Cola Company speaks directly to millenials and many others via a new interactive magazine format website called Journey.

By Megan Conniff on November 12th, 2013 for Smartblogs.com 
Original posting can be located here: http://smartblogs.com/leadership/2013/11/12/millennials-and-the-new-value-of-shopper-marketing/

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The New Consumer: Millennials to Outspend Boomers Within 5 Years

It seems that retailers continue to underestimate the size and purchasing power of millennials, despite forecasts that this most important generation will outspend baby boomers by 2017.

According to a new study, “What Happens When Millennials Get the Wallet,” retailers do not fully understand the needs of millennials, and are employing marketing strategies that do not apply to them.

“Millennials have different motivations, attitudes and behaviors than previous generations, and retailers need to adjust their business strategies accordingly in order to thrive,” said Les Berglass, CEO of Berglass + Associates, the research firm that conducted the survey along with media brand Women’s Wear Daily.

Berglass believes that for the first time in decades, “we will see a new member of the C-suite, who will be responsible for driving two-way communication between the Millennial customer and the brand and for developing initiatives that will deliver long-term growth.”

Additional key findings unveiled in the survey include:

• Approximately half of respondents are unaware that millennials are expected to outspend baby boomers annually within five years.
• Millennials rely most on their friends to make buying decisions, yet more than a quarter of respondents mistakenly believe that online advertising is the number one influencer of millennials' purchasing activity.
• Of the executives that were surveyed, more than 30 percent are CEO’s or presidents, who plan to significantly increase their digital leadership over the next three years.
• 60 percent of respondents are not conducting any research or analysis of the millennial customer.
• Only 36 percent of respondents from companies with both physical stores and e-commerce sites offer a seamless customer experience, yet millennials expect the channels to be integrated

Some of the commonly held beliefs about millennials’ brand attitudes, shopping habits and preferences are, as it turns out, not as true as once thought, according to a recent study by CPG research firm Concentric Marketing.

“As marketers, we must find a reasonable level to cluster diverse populations like these into meaningful groups,” said Bob Shaw, president of Concentric Marketing. “We must recognize true differences and nod to the nuances to find the right balance of segmentation and generalization.”

Key insights include:

• Although this generation is digitally adept and shows a bias for convenience, millennials still prefer a traditional brick and mortar shopping experience over e-commerce for the majority of their regular purchases. When asked for the type of store they prefer to shop the most, nearly 60 percent cited the traditional grocery store and mass merchants such as Target and Walmart.
• The health-consciousness and pragmatism of the college millennial is evident in the categories they shop most often in the grocery store. Dairy, produce, meat and frozen topped the list.
• While over 96 percent of college-age millennials have a Facebook account, nearly half of them stated they didn't believe brands should be on social media. Nearly 70 percent report following three or fewer brands across all social media channels.
• In the face of being dubbed a “brand agnostic” generation by former studies, 17-32-year-old millennials are surprisingly pragmatic in forming their perceptions around brands and are heavily influenced and loyal to brands introduced to them by their parents.
• Despite studies showing that more than one-third of this generation is considered obese, millennials in the study were very nutritionally knowledgeable. Nearly 60 percent cited the importance of monitoring caloric intake, protein, fat grams and sugar grams in their diets. They are also eating out less and cooking at home five or more times per week.

“This study opened our eyes to some remarkable insights that provide a foundation for smart segmentation of Millennials,” Shaw added. “These insights lead to micro targeting, improved messaging and efficiencies in reaching this coveted consumer.”

The study was completed on behalf of hago, an experiential and sampling firm with a specialization in reaching college students across the U.S. It was conducted through an online panel format and included nearly 900 respondents representing 54 college campuses.