Presenter

Kent Mihlbauer Director of Strategy & Business Development Roster Marketing, LLC 714-747-3850 kent@Rostermarketing.com

Millennials?Who are they?

• Born between @1978-1995 (currently 18-36 years-old) • 80 Million people in USA

• largest segment since Baby Boomers • 4-5 million bigger than Baby Boomers • 22-year-olds is the #1 age in USA, #2 = 23 years old, #3 = 21

• Will be 50% of workforce by 2020

• First digital generation

• Best educated generation - ever!!

• On pace for 35+% with college degrees or above

Millennials created by Boomer ParentsDeveloping the Millennial mindset

• Focus on experiences • Bigger & better birthday parties • More sports - start them young & do it year-around • Attend concerts with parents

• Drive for education • Better grades & higher college entrance exam score very important

• Hire a tutor • Get a coach for college entrance exam • Lot’s of HS school involvement & visits to colleges

• Help them stay ahead of the pack with digital access • From digital hand me downs to buying them the latest technology • From library/encyclopedia to Google & 24/7/365 mobile access

Millennials created by Life Events

Millennial World View v. Boomers

BOOMERS MILLENNIALS

Events Civil Rights Act, Vietnam War, Arab Oil Embargo, Kennedy, Apollo Missions

9/11, Great Recession, Clinton Impeachment, War in the Middle East, President Obama

Technology Teflon, Tang, Calculators, Color TV

Internet, smartphones, video games, tablets

Global Powers Soviet Union China

Entertainment TV(network), Film TV (network, cable, paid cable), Film, Internet, Videogames

Jobs One career throughout adult life

Several careers, typically moving every few years

Noteworthy Millennial Characteristics• Diversity

• 43% of Millennial adults are non-white • @50% of 2014 newborns are non-white • Attend concerts with parents

• Debt • Better educated but carrying largest school debt in history

• Unemployed & Underemployed • Yet overall they are very positive about a brighter future!

• Marriage & child-bearing delayed • In 2012 47% of births to Millennial women were non-marital • Limited economy/job market & heavy debt delaying this stage of life • 36% live with parents, 56% of 18-24 & 16% of 25-31

Millennial LifestyleWired in - 18 hours of media usage per day

Millennials Attitudes• “I want it fast, and I want it now”

• “I trust my friends more than ‘corporate mouthpieces’.”

• “I am a social creature - both online and offline.”

• “I can make the world a better place”

“I want it fast, and I want it now.“• Instant gratification • Premium on speed, ease, efficiency & convenience

“I trust my friends more than ‘corporate mouthpieces.’”

• The definition of “expert has shifted to people with first-hand experiences, even if they’re strangers

• Millennials see multiple sources of information, most likely from non-corporate channels

• Highly likely to consult user-generated content, friends & strangers before making purchase decisions ( including Yelp & other rating sites)

• “Crowd-sourcing” for opinions and ideas before making purchase decisions

Millennials Purchase ProcessTrying to plan a date…

Text someone Ask Google Use an app Look at reviews

Millennials Purchase ProcessLooking for new sneakers…

Look for deals Find options See how others have styled it

Check out reviews

Millennials dislike the car buying process

It’s all about the dealership experience • Nine out of 10 say they’d be more excited about the car-buying process if it

meant a haggle-free experience • 91% of Millennials prefer to avoid car buying

• Some even skip the test drive to avoid dealership time & sales employees

• Millennials visit an average of 25 websites before interring a dealership! • 50+% of Millennials are strongly influenced by what FaceBook friends say

about vehicles • Haggling is perceived as a charade & waist of time when all the information

has already been researched & reviewed by them • The traditional process isn’t fast, efficient, & fair which stresses Millennials

out

Communicating with Millennials

So much information!!!! • Yet they rarely interact directly with the brand, a brand channel, or a piece

of advertising. • When they do engage…

• Make it for them by personalizing the communication • Talk directly to them thru their personal social media channel of

engagement • Human to human engagement - not bullhorn shouting thru social

media • Have a conversation - can’t be scripted which makes it unpredictable

with limited control by the corporation • CUSTOMIZE their experience

Communicating with Millennials cont.

It’s not just about the brand

• What is your brand doing to make the world a better place? • Receptive to cause marketing and will engage your social networks to

support your efforts in the cause • “Slacktivism” - keep effort simple, online petitions, monthly donations,

recycling, carbon footprint improvement, and they will engage • Networked & collective action can make a difference is what they

believe • Give them something more to believe in

Communicating with Millennials cont.

Don’t fake it!

“You see many brands doing good with cause-related marketing, but honestly, if the cause they are involved in is not fundamental to their brand, what good does it do?

Brands are like humans. You can see quickly if they're faking it.”

Alfredo Gangotena Chief marketing officer of MasterCard World Wide

Implications for marketers, Excepts from:

The Boston Consulting Group, “The Reciprocity Principle: How Millennials are Changing the Face of Marketing Forever”, January 2014

Millennials expect a

TWO-WAY, MUTUAL RELATIONSHIP

with companies and their brands.

THE RECIPROCITY PRINCIPLE

HELP DEFINE THE BRAND ITSELF

FEEDBACK expressed on & offline

INFLUENCE THE PURCHASES OF OTHER CUSTOMERS

1

2

THE INTERNET

SOCIAL MEDIA

MOBILE DEVICES

AM

PLIF

Y

MILLENIALS’

OPINIONS

AC

CEL

ERA

TE

THEIR

IMPACT

andTHE INTERNET

SOCIAL MEDIA

MOBILE DEVICES

Marketing is an ecosystem of

MULTIDIRECTIONAL ENGAGEMENT

rather than a process that is controlled and pushed by the company.

5 Key Elements to Remember

Reach

Relevance

ReputationRelation

Referral

Be MORE…• More Transparent

• Millennials do their research and find out information on their own • They will see through marketing BS

• More accountable • Create great products for customers that organically create positive

reviews & experiences • More authentic

• Project an easily understood and clear brand identity

Brand reality• The power has shifted away from the brands and towards the individuals,

but brands are still part of the cultural landscape

• Brands don’t control the message, but they can have a dialogue

• Take advantage of the modern forces of innovation and be very nimble to stay involved in the dialogue

• And most importantly, stand for something

How do you Millennialize product?• Start a conversation with Millennials

• Continue with meaningful technology innovation

• Personalization and accessories

How do you Millennialize retail?• Honesty & integrity

• Create experiences

• Talk, chat, be open

• Respect their time and be efficient

How do you Millennialize communications?• Remove internal silos, be collaborative & creative

• Open your mental thought process - be quick & nimble

• Use a “social team” with company wide representation

• Utilize a smart database, respect their intelligence, provide signals that you “get it”

Presenter

Kent Mihlbauer Director of Strategy & Business Development Roster Marketing, LLC 714-747-3850 kent@Rostermarketing.com