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How To Quantify The Millennial Influence On Brand Preference Across Categories

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It is no question that millennial consumers today think and behave differently and their influence extends up and down the generational line. To put this into perspective, I am by no means a millennial (don’t tell anyone) but I am just as committed to wearing my Nike Fuel Band as my 20-year-old son. While I consider myself to be an early adopter, I am acutely aware of the fact that I wouldn’t even own a Nike Fuel Band if it wasn’t for my son’s influence. This is a common market theme: older generations adopting millennial behavior. Specifically as it relates to brand preference, our research has shown that there are six millennial mindsets that determine preference across generational lines:

‌• Social Circle – Is your brand part of a consumer’s close social circle (not just social media)?

‌• Self – Does your brand have an emotional connection with your consumer?

‌• Innovative – Is your brand in a constant state of beta?

‌• Trusted – Does your brand put the consumer’s needs first?

‌• Purposeful – How does your brand add good to the larger community?

‌• Accessible – Does your brand simplify the lives of consumers?

However, while brands today are already well versed in the millennial market influence, what has proven to be more difficult is quantifying how important the millennial influence is to driving brand preference across industries. The key to future proofing a brand across generations will be two-fold. First, understand which millennial mindsets are most important to driving brand preference for individual categories and brands, and second, how well does a brand score on delivering against the key benefits sought after in each millennial mindset?  

I interviewed Chad Nicholson, Vice President/Business Strategy Director at Barkley Advertising Agency to learn more about the research and what brands need to know in order to win with millennial mindset consumers.

Jeff Fromm: What are the most important things companies and brands should keep in mind when considering what millennial mindsets matter most to their category or brand?

Chad Nicholson: This question has a two-part answer.

1. The process is like peeling back an onion -- You first want to understand the importance of the mindsets at driving brand preference at different levels including industry, category and then brand.  This allows brand leaders to get a picture of the total landscape and understand if their brand over or under indexes vs. the category and competition regarding millennial mindset importance.

2. It's not one size fits all -- once it's determined how important the millennial mindsets are to driving brand preference, the next critical step is determining which millennial mindset dimension is most important to a category and brand (e.g., Social Circle, Self, Trustworthy, Innovative, Purposeful, Accessible).  As an example, what's most important in the auto category is very different from what's most important in snack foods, hotels and beverages.  This is also true of brands within a single industry or category... it's not always one size fits all.

Fromm: So, what does a brand do once it has determined how important millennial mindsets are at driving brand preference?

Nicholson: Once a brand has determined the most important mindsets, knowing how the brand scores on the benefits consumers seek in that millennial mindset is critical when determining where to focus resources to realize the largest potential ROI. A good example is the auto industry.  One of the most important millennial mindsets at driving brand preference for the auto industry is Social Circle. However, this is the auto industry's lowest score across mindsets.  Its highest score is on Accessible, one of the least important millennial mindsets at driving brand preference. The gap that exists is a major indicator of a growth opportunity for the category.

Fromm: What are the other factors that drive brand preference that the millennial mindsets can't explain?

Nicholson: Investing in advertising, communications and innovation are often the first to be on the chopping block when budgets get tight because it has historically been difficult to quantify their value. The millennial mindsets are meant to quantify the impact that these less tangible aspects of a brand have on brand preference. What the millennial mindsets aren't intended to explain are the more tangible, and traditional, aspects of brand preference such as price, product, placement and promotion.

Fromm: At the end of the day, what is the key takeaway that brands should be aware of as it relates to the millennial mindsets?

Nicholson: The key takeaway is simple: consumer’s most favorite brands are the ones score high on the millennial mindsets. We live in a new market and the brands that are aligning with a modern consumer audience are the ones that have embraced new communication strategies that span traditional advertising (think the 4P’s) and instead venture into a world where intangible benefits are just as, if not more valuable, than tangible benefits.

Disclaimer: Jeff Fromm and FutureCast have an ongoing business relationship with Barkley Advertising Agency