The millennials are a messed up generation. First they were told they can’t get ahead in life if they don’t have higher education. But the universities are now so expensive that not many can afford them. The solution? Student loans. These loans, they were told, are good ones. You don’t have to pay it back as long as you are in school, and start paying them only 6 months after graduation when, hopefully, you have a job. Almost every student, from middle class families to the poorest of the poor, took loans and continued merrily studying.
But when they went out into the job market, there were no jobs to be had. The economy was tanking and the cost of living kept going up. Many of them couldn’t find jobs, moved back to live with their parents and struggled to pay back those ‘good loans’.
Some years went by, the economy has improved a bit and the millennials are now joining the work force in droves. The influx of young workers is not only changing the workforce but also increasing their buying power.
That is why small business should pay attention to them.
The millennials are the most electronically connected generation. They can make or break a brand almost instantly with social media. They can (and do) publicize their purchases and experience with brands and as we know, word of mouth is the best advertising.
They are altering the share of buying power between generations. Research has shown that the millennials currently have about $200 billion in buying power. Targeting the millennials correctly is a smart business decision that can bring great financial rewards.
Millennials tend to be brand loyal, more so than previous generations. Industry experts say that over 60% of millennials are loyal to brands they already purchase from.
“Small business owners are missing out on a potentially big piece of the action by not marketing to millennials, a key consumer demographic, according to a recently released survey.” Wrote small biz Trends.
Millennials are values-driven generation and they seek to challenge the status quo. They want to make a difference.
A millennial study done by Sun Group in March 2016, found those interesting facts about Millennials:
- They are great in living within their means. After the student loan debacle, they don’t like credit cards (65.6% indicate they have no credit card debt.)
- They are more industrious than they were given credit for.
- They have various saving goals – If past generation were saving mostly to buy a house or a car, the millennials want to save for their passions.
As self-starters, tech savvy, and success-hungry generation, millennials fit perfectly into the entrepreneurial mold and are said to be on track to take small businesses to the next level.