How Are Millennials Impacting The Marketplace?

by Debi Enders

The Millennial generation – whose oldest members are now entering their late 30s – now make up more than 30% of the population. They are exceeded in numbers only by Generation Z.

This under-40 crowd is fast-becoming today’s key segment of buyers and decision makers. And good news: they love small businesses.

To get their attention and thus, a bigger share of their wallets, it’s important to understand what appeals to them. Then you can reflect these qualities in your products, services, marketing, and culture. Some tips:

Millennials are attracted to “cause marketing.” Millennials like working with socially responsible companies. Companies that align themselves with environmental, human rights, or other humanitarian causes can create competitive advantages over companies that don’t.

The key is to find a cause that aligns with your business and your customers’ passions. It’s okay to think small. An Indiana coffee shop owner gained national attention – and a devoted clientele – simply by putting uplifting messages on her coffee cup sleeves.

Millennials like “quirky.” They tend to be drawn to well-designed or handmade products as well as unique, niche businesses. Millennials also enjoy learning the stories of the people behind your products. Even your business’s location can make a difference – especially if it reflects your desire to invest in the local community. The message here: tell your customers your story. It may entice them to tell their friends and come back for more.

Millennials prefer experiences over products. Millennials attend more concerts, festivals, and other events than older generations. They say they want to spend more on experiences and less on material things. With these facts in mind, consider ways to develop experiences related to your products and services to support your customer community.

The bottom line: Millennials want to feel good about being associated with your company. Give them a reason to choose you.

Debi Enders (debi.enders@commercebank.com) is vice president, small business banking at Commerce Bank.