Whether we call them GenY or Millennials, people born between 1980 and 2000 are about 92 million strong in the U.S. alone.
By 2017, their spending power will be greater than $200 billion annually. This translates to roughly $10 trillion throughout the lifetime of their generation. In fact, research predicts that by 2017 Millennials will eclipse Baby Boomers in spending influence. Not a surprise considering the U.S. Baby Boomer demographic is a mere 77 million. So how are brands winning over the hearts and minds of Millennial consumers?
Before we delve into success stories, let’s look at some insights from a Goldman Sachs study that connects the dots between Millennials and the companies that want to reach them. Over the next five years, Millennial spending should increase by 15% while Baby Boomer spending will decrease by 10%.
Millennials are the “connected generation” with 80% owning mobile phones and over 75% having social media profiles. Even the oldest Millennials–at 35–have had technology exposure since high school. Millennials are three times more likely to talk about a brand over social media than Baby Boomers or Gen Xers. They are 10 times more likely to blog about products they like and twice more likely than older consumers to post peer reviews on products. It is this tech overlay that is unique to the Millennial generation, causing older consumers to look to them for answers to questions like: What kind of device should I use? What kind of consumption behavior do I need to engage in?