For those in previous generations, getting a handle on understanding the purchasing behaviors of the Millennial Generation can be somewhat vexing. At no point in recent generations has there been a more stark generational difference. This is largely due to changes in technology, a tough job market when entering the workforce and an increasingly global culture of inclusion and acceptance.
“Millennials believe in fairness, inclusivity, access, and discovery. I define ‘Millennial’ based on mindset. You can look at a millennial by birth based on birth year — born in the late 70s to the late 90s — or you can look at it based upon behavior,” said Jeff Fromm, president of Future Cast and co-author of multiple books about marketing to Millennials. “You can find Millennials in their 50s who share those values, use mobile technology and are consumers of content. They are just as likely to pay for that coffee at Starbucks with their mobile phone as a Millennial-aged consumer is today.”
While these generational differences may be of little consequence to some in the big scheme of things, people trying to directly market products are finding out how important these differences can be. The purchasing power of the Millennial Generation has quickly become noteworthy to savvy marketers. This has significant agricultural implications.
“Millennials have a big interest in food, food culture and where their food comes from. They want access to information and that creates a lot of opportunities for smaller brands that are a lot of times more agile and nimble to create innovative products, provide more access to the sourcing of their products and get a small premium for those unique products,” Fromm said. “It’s a new day where small brands can compete more effectively than the big brands. Brands that get it right create huge sales volume potential around appealing to what Millennials value.”
This trend can have tremendous implications for agriculture, particularly for small direct marketers who can sell products that provide the stories, information and experience millennial shoppers are seeking.”
While these factors matter more to Millennials than previous generations, price is still important.
“Price is hugely important, but Millennials are the ultimate day traders. They will pay a small premium for brands they love and then they will trade down to private label when they don’t see the value. Brands that do it right are able to get that small premium for their products,” he said. “Price is important, but there are ways to compete for Millennial affinity and earn it by using content, technology and other factors that would cause them to love your brand.”
One way to appeal to Millennials is to provide an experience that they value.
“Experience can mean access to being able to visit my favorite farm where I get my favorite products or it can mean inspired content from small brands that understand the best way to use their products,” Fromm said. “Experience is a way to create affinity and it is certainly important for the Millennial culture that has a desire to discover and learn and is collecting experiential currency along the way.”
To find more from Fromm, visit Millenialmarketing.com.
