Celeste Hilling, CEO of Skin Authority, and a media expert on consumer trends and technology, reported on millennials, on everything from their demographic makeup in the US to their business potential.

Do we really need to care about millennials? They are the largest customer and employee segment, and soon to be the largest segment of business owners.1 Millennials are likely your current or desired customer, your team members, and there’s a good chance you soon could be partnering with or competing against them.

Those in their 20’s make up over 25 percent of the U.S. population and account for 20 percent of consumer discretionary purchases.2 Millennials have surpassed Baby Boomers, which were the largest segment of the population from 1947 to 2010. We know millennials drove the mobile shopping success of the holiday shopping season. But, what’s the bigger impact millennials are having on overall retail and the labor pool?

A December article on Forbes.com3 cited “embracing millennials” as one of the Top 10 business trends that will drive success this year. Author and generational leadership development expert, Brad Szollose, is quoted in the article as saying companies must start embracing millennials instead of rejecting them, “Boomers will be forced to retire soon. This exodus will leave a leadership gap like we’ve never seen before. Since Generation X is much smaller demographically than Millennials, who do you think will be the dominant force competing for those positions?”

HIRING MILLENNIALS

Millennials are projected to make up 50 percent of the workforce by 2020.4 Brad adds that millennials want to work for companies for which they can be proud and buy products from brands that care about the things that matter most to them, including technology, personalization and the “I Want It Now” Mentality” which was included in the first story of this series.

Experience managing this group shows how, to them, work focuses on happiness, as well as feeling comfortable, challenged and informed. They want to know the big picture, why and how to get there. Millennials are also charitable and enjoy the camaraderie that comes from giving back as part of a team.

Hiring and retaining millennials may require a big change in management approach urges Kim Cole. Kim is the co-founder of TheSalesZone.com. “Millennials need to see a clear vision of their growth and future role in the organization. They might have aspirations that go beyond their current skills. If you share how you help your employees develop skills to advance in their careers, you might attract quality talent,” she said. Evolving your firm’s interview questions for millennials to be forward-thinking, such as asking how they solve challenges and what type of impact they would plan to make within your company, could yield insights.


APPEALING TO MILLENNIALS

A company that’s a stand out in targeting to the millennial consumer is Uber. The brand capitalizes on smartphones that are always in millennial’s hands, as well as their desire to go somewhere quickly and cheaply. Uber’s quick path to success is having such a service changing impact that two recent trend reports cited the uber-ization of spa, beauty and wellness as a key trend for 2016. The reports from Spafinder and Well+Good support a trend mentioned in the first story of this series: apps and technology put customer service, coaching and customization at consumers’ fingertips. This consumer demand for on-demand wellness and personalized connection is a key reason why companies should develop an app.

Considering their love of technology, it’s no surprise that millennials review blogs before making a purchase. Forbes.com reports 33 percent of millennials rely mostly on blogs before they make a purchase, compared to fewer than 3 percent for TV news, magazines and books. They also are not influenced by advertising. The same article says only 1 percent of millennials surveyed said a compelling advertisement would make them trust a brand more.

The biggest benefit to gaining their trust? Millennials are brand loyal. Sixty percent said they are loyal to brands that they currently purchase.6 For a look at how one beauty brand – Ulta Beauty – is building long-term relationships, Ulta’s Chief Merchandising and Marketing Officer, Dave Kimbell, weighed in. “We are working to form a more emotional connection with our guests and use our loyalty program and CRM platform to capture their preferences. For example, we create personalized e-mails based on members’ preferences and previous shopping behavior. So, skin-involved members, for example, will get more content and offers related to skin. We currently have more than 17 million Ultamate Rewards loyalty members that drive more than 80 percent of sales.”

When it comes to millennials, being engaging and inclusive is critical to success. They want to be more involved with how products are created and they support brands that support their local communities. It’s suggested that you make 2016 the year to be transparent, authentic and charitable in order to capture the hearts of millennials.


Sources:

1) http://www.forbes.com/sites/ianaltman/2015/12/01/top-10-business-trends-that-will-drive-success-in-2016/3/

2) http://www.inc.com/aj-agrawal/what-millennials-care-about-and-why-it-matters.html
3) Same source as #1
4) http://www.huffingtonpost.com/young-entrepreneur-council/millennials-care-about-gi_b_8482008.html.

5) http://www.forbes.com/sites/danschawbel/2015/01/20/10-new-findings-about-the-millennial-consumer/2/#2715e4857a0b61541dc42b82

6) Same source as #5