Jeremiah: Is it true that Millennials seek access to goods and products rather than owning them?. What impacts does that have to brands who’re trying to sell to “Consumers”? What should brands do?
Dan: A lot of industries are having a lot of trouble engaging millennials. For instance, the automotive industry is in trouble because millennials aren’t buying cars. In 2010, despite being a large percentage of the population, millennials bought only 27% of all new vehicles sold in America, down from 38% in 1985. When it comes to the travel industry, millennials are using Airbnb.com and Uber in order to save money and have a unique experience, which is why both are experiencing revenue growth.
The real estate industry is hurting because millennials would rather rent than own property. From 2009 through 2011, just 9% of millennials were approved for a first-time mortgage. Fast food restaurants, especially McDonalds, are hurting because millennials are health conscious. Hamburger chains have seen a 16% decline in traffic from millennials since 2007. Companies, in general, are having a very challenging time retaining millennials and the average tenure for a millennials is only two years.
If you want to sell to millennials, you have to build a strong brand personality, connect with them on social networks, align yourself with a cause, have an open culture and include their opinions as you build new products. They want custom brand experiences that take their wants and needs into account. If you want to retain them as workers, you need to invest in their careers, mentor them, provide them with internal hiring opportunities and feed their entrepreneurial ambitions.