A New Perspective on Millennials

How can we get more millennials in our store? Retailers are asking this question again and again, and given the attractiveness and size of the millennial market – 80 million people, according to the U.S. Census Bureau – it makes sense to target this group. But the “how” is what needs to be determined. 

At Interbrand Design Forum (Dayton, Ohio) millennials have been a topic among our clients for years. And, often those conversations go something like, “How are we going to get these millennials to choose our brand and buy more? All they do is play video games and live off their parents,” or “They only seem concerned with social causes and spend all their time on social media.”

Interbrand Design Forum recently conducted a study to understand millennials from a behavioral perspective. With this generation being loosely defined as people born between 1978 and 2000, we wanted to understand what behavioral nuances and differences exist within this population. Interbrand was ultimately seeking to understand the foundational attitudes that drive millennial behavior and to understand how to unlock their purchasing power – an estimated $600 billion, according to Accenture.

Interbrand Design Forum partnered with Oracle to design, develop and field a 4000-person online study. By recruiting a demographic and geographic representative sample of the U.S. population between the ages of 18-35 and using the responses collected from the survey, it was determined that five segment breaks exist within the millennial generation. This segmentation is based upon the clustering of their various attitudes and behaviors, with each of the segments representing a cluster or “tribe” of people that behave similarly.

We uncovered that not all millennials are created equal: This study provides a deeper perspective on these cohorts and a better understanding of how to best connect with the segments that have the most opportunity to drive value for your brand.

An overview of the segments…

THE UP & COMERS
The first segment is the most diverse. Dominated by males, we see a large representation of African Americans, Asians and Hispanics in this segment. Typically, they fall between ages 18-25 and are likely to reside in an urban environment. They tend to be employed full-time and typically have a higher education level and income. This group is highly active, ambitious and ready to take on the world. They are the life of the party – rarely watching TV or relaxing at home – instead it’s sporting events, bars, hitting the gym or enjoying the outdoors.

Favorite Brand: Urban Outfitters

THE MAVENS
A stark contrast from the first segment, millennial moms are happily settling into adulthood. These women are 27-35 year-old suburbanites with the highest income of all the segments. They’re well-educated, employed full-time and are most often married or in a committed relationship. The Maven is excited to try the newest products but don’t waste time offering her a deal – she doesn’t care! These outgoing social media queens and wine lovers are always on the go, trying to find the right work-life balance.

Favorite Brand: Amazon

THE ECLECTICS
The Eclectics, as their name suggests, are a very diverse and unique group. Living on a college student’s budget, they often get creative with their available funds and seek out deals wherever possible.  Their aversion to anything outdoorsy means they would rather be home trying out new recipes for friends. More introverted and cynical about life, the Eclectics are less likely to have children but more likely to spend time with a close-knit group.

Favorite Brand: Anthropologie

THE SKEPTICS
Committed to their video games, movies and Internet browsing, the Skeptics don’t really aspire to much in life. With the lowest income in the study, they are the most likely to live at home and least likely to go out often. This segment tends to worry a lot and hold grudges. You’re most likely to find them in a bean bag chair in their apartment catching up on the latest action or science fiction movie. They are least likely to volunteer and tend not to drink alcohol.

Favorite Brand: Walmart

THE TRENDSETTERS
By far the youngest group of millennials, Trendsetters are either still in college or just settling into their first job. They keep up with the latest and greatest, staying in the loop with their extended social networks and following entertainment gossip in US Weekly. Whether it’s grabbing a beer or sipping a mixed drink, the Trendsetter enjoys socializing. Our most outgoing group, they can be found working out, cheering at the big game, enjoying the theater or being wherever there is a scene to be seen.

Favorite Brand: Sephora

The overviews of these five segments are just a glimpse into the subsets within the millennial generation. But what quickly becomes clear is targeting millenials as a whole is ineffective as they range from financially dependent teens to married homeowners with kids – groups with very different behaviors and attitudes. By considering these unique segments and determining which has the most potential for your brand, there’s an opportunity to build a deeper connection and deliver an experience that will appeal to the next generation of customers.

Dirk Defenbaugh is managing director at Interbrand Design Forum, a retail design and branding agency located in Dayton, Ohio. For more insights from the report, please visit interbranddesignforum.com.