These global trends could impact your business in 2023 - Part Three

In the final installment of our?series?on emerging business trends for 2023, Apis Creative takes a closer look at America’s largest demographic: Millennials.

Meet the millennials

Millennials, also known as Generation Y, were born between the early 1980s and the mid-1990s, although there is some variation in exact dates. Key traits of the millennial demographic include:

1. Digital natives: Millennials grew up with technology and are comfortable using it in their daily lives. They are often early adopters of new technologies and use social media and other digital channels to communicate and connect with others.
2. Diversity and inclusivity: Millennials are one of the most diverse generations in history, and they tend to be more accepting of different races, religions, sexual orientations, and gender identities. They value inclusivity and are often passionate about social justice issues.
3. Work-life balance: Unlike previous generations, millennials place a high value on work-life balance and are often willing to prioritize their personal lives over their careers. They seek out jobs that offer flexibility and are open to remote work and other non-traditional work arrangements.
4. Entrepreneurial spirit: Millennials are more likely to start their own businesses than previous generations. They value creativity, innovation, and independence, and are often drawn to entrepreneurship as a way to pursue their passions and make a positive impact.
5. Environmental and social responsibility: Millennials tend to be more environmentally and socially conscious than previous generations, and they often make purchasing decisions based on their values. They are more likely to support companies that are transparent about their environmental and social impact and prioritize sustainability and social responsibility.

Millennial values and priorities

Overall, millennials are a diverse and complex demographic with unique values and priorities. As the largest generation in the workforce, millennials have significant buying power. Understanding these millennial traits is essential for businesses and organizations seeking to effectively engage and communicate with this demographic. To capture the purchase power of millennials, companies should be aware of millennial purchase preferences. Examples include:

1. Plant-based foods: Millennials are increasingly concerned about their health and the environment, leading to a rise in demand for plant-based foods. Startups in this space are creating new products and innovative ways to make plant-based diets more accessible and affordable.
2. Health and wellness: With an emphasis on physical and mental well-being, millennials are interested in fitness, mindfulness, and self-care. This has led to a boom in the wellness industry, with new businesses offering everything from yoga classes to meditation apps.
3. Sustainable fashion: Many millennials are conscious of the environmental and social impacts of fast fashion. As a result, they are seeking out sustainable and ethical clothing options. Startups in this space are working to create eco-friendly materials and production methods, as well as offering rental and resale options.
4. Technology and innovation: Millennials are often early adopters of new technologies, and startups are targeting this demographic with innovative products and services. This includes everything from new apps and social media platforms to virtual reality experiences and smart home devices.
5. Experience-based businesses: Millennials value experiences over material possessions, and are willing to spend money on travel, entertainment, and dining out. Startups in this space are creating unique and immersive experiences, such as pop-up museums, food halls, and adventure travel companies.

Gathering data from digital natives

Businesses seeking to attract millennials should prioritize authenticity, sustainability, and social responsibility. However, because they value authenticity, millennials also present unique challenges. Their mastery of technology can make gathering data about millennials difficult, since they do not use the same apps, websites, or digital products as previous generations. Many have learned to protect their data, even when it might add to their user experience. Companies can address data gaps for personalization of the shopping experience and other key marketing tools in several ways:

1. Loyalty programs and subscription models: One of the most obvious ways to address data gaps is to keep the customers you’ve already attracted. To do so requires establishing a high level of trust by being transparent, easy to use, and responsive to customer needs. Once a customer trusts a company, it’s easier to collect data through various channels, including online purchases, surveys, social media interactions, ongoing subscriptions, and loyalty programs.
2. Data enrichment: Another approach is to enhance existing data by appending additional data sets to it. Companies can purchase third-party data, such as demographic or behavioral data, to enrich their customer data and fill in any gaps.
3. Predictive modeling: Companies can also use predictive modeling to fill in data gaps. This involves analyzing existing data to identify patterns and then using those patterns to make predictions about missing data. For example, if a customer's age is missing, a company might use predictive modeling to estimate their age based on other data points such as purchase history or website behavior.
4. Collaborations: Collaboration with other companies can help fill data gaps. By partnering with other businesses or organizations that have access to data that they don't, companies can fill in gaps in their own data sets. This can also lead to cross-promotion and collaboration opportunities.
5. Machine learning and AI: Machine learning and AI can help companies fill data gaps by analyzing vast amounts of data and identifying patterns that humans might miss. This can help companies better understand their customers and personalize their marketing and shopping experiences.

Retention, loyalty, and opportunity

In conclusion, there are several reasons why a company would want to engage millennials, including their massive buying power and their loyalty to brands that share their values and provide a positive customer experience. Engaging millennials can help companies build brand loyalty and increase customer retention. Because they are often early adopters of new technologies and trends, engaging millennials can help companies stay on the cutting edge of innovation. And if they do capture this demographic, they may save some money on traditional advertising. After all, these digital natives are active on social media and have the power to influence the purchasing decisions of their peers. Engaging millennials can help companies leverage this influence and reach a wider audience with little added cost.

Lastly, companies that engage with this demographic are more likely to attract top talent, build a positive reputation as an employer, and increase their ability to recruit and retain talented employees.

Overall, engaging millennials can help companies tap into a lucrative market, build brand loyalty, stay innovative, and attract top talent. By understanding the unique values and priorities of this demographic, companies can effectively drive business growth in these changing times.