The Key to Millennial Consumers: Community and Brand Identification

For businesses offering VoIP and other IP-based services, the rise of Internet culture and the millennial generation is a double-edged sword.

The bad news is that younger consumers now universally have easy alternatives to using products and services from your business, and they are picky. The good news is that they like to be a part of a community, and your business can use that to build loyalty and enable customers to be your best salesmen among their friends.

What we know about millennial consumers, those currently between the ages of 20 and 34, is that above all else they value community and peer recognition. They want to be a part of a tribe, so they value identity such as being an Apple evangelist or having a personal relationship with the businesses they frequent. Ads don’t work so well, but recommendations from peers are gold. Price points matter, but connections with the products they use matter more.

Businesses can use this understanding to attract and retain millennials.

One approach that businesses are finding successful is the use of loyalty programs. It turns out that Millennials respond quite well to them, and are more likely than any other age group to participate in them, according to a recent study by Bond Brand Loyalty.

Roughly 60 percent of millennials would switch brands and two-thirds would change where they buy in order to get more loyalty rewards, according to the study. Further, 67 percent reported they wouldn’t be loyal to a company without a good loyalty program.

What seems to work is offering discounts based on prior purchasing behavior, inviting customers to special events, customizing offers for them and inviting them to online communities for loyalty program members are all effective ways to get users to share their personal data. According to the survey, the key is making Millennials feel valued and important—a part of something larger.

As a recent Nextiva blog post points out, however, it also is important that companies think mobile and social media when trying to attract and retain younger consumers.

“There are some important differences in what works for millennials as opposed to other age groups,” noted the Nextiva blog post. “Millennials are more likely to want to interact with your business on a mobile device. They’re also more likely to care about non-monetary rewards, such as getting recognized by their peers or being able to share their experiences with others.”

Identification and community with a company is not the only thing that is important—it also is important that these consumers can share their identity with their other communities. This leads through mobile platforms and social networks, since mobile is now how many consumers, especially millennials, interact with each other.

For businesses that take the time to understand the millennial demographic, there is lots of good news. For those that fail to adapt, however, the road looks to be a lot harder.

Edited by Alisen Downey