Dive Brief:
- Millennials are by far the most brand-sensitive of current generations, according to a recent report, "Millennials and the Changing Consumer Landscape," from The Boston Consulting Group. Millennials were most likely to identify with statements suggesting that brands reflect their values or that they share their opinions about brands on social media.
- Millennials and under-20s are more likely to consider the opinions of friends, colleagues, and even strangers as compared to generation X-ers, boomers, and silents. This demonstrates younger generations' tendencies to allow online reviews and social media interaction to influence purchasing decisions, including food and beverage products.
- The most commonly mentioned top-line levers companies can use to create value in the eyes of millennials are innovation (mentioned by 70% of respondents), channel shift to online (60%), pricing (57%), innovative marketing (57%), and relevant styling (53%).
Dive Insight:
Brand sensitivity is a tool that if wielded correctly can foster customer loyalty from a generation that has been known to upturn established trends, flip-flop between brands, and distrust large food and beverage manufacturers. Because millennials are so heavily influenced by the opinions of others, social media is a clear avenue for tapping into that brand sensitivity.
As for creating value for millennials, the report's recommended levers fit in with the generation's tendencies, such as shifting to online commerce and seeking innovations in product development and marketing strategies. But some things never change — such as price still being a key factor for influencing consumers' purchasing decisions.
But what's different is that pricing isn't always about which brand offers the cheapest product. Millennials seek value, so they won't have an issue with paying more for a particular product if that company can demonstrate the product's unique benefits over its competitors, such as natural ingredients or functionality. In addition to the individual sale, highlighting and delivering upon those benefits is what will encourage brand-sensitive millennials to share their finds with friends, colleagues, and social media followers.