The Millennial generation has been a marketing and media fascination for years. Many pundits have pointed to some fundamental behavioral differences between this generation and Gen Xers, Baby Boomers, etc. Once considered the young disruptors, those at the higher end of the spectrum are actually now in their mid-30’s, becoming parents, and affecting the retail model in new ways.
To understand the opportunity for brands, consider these statistics:
- 17 million U.S. Millennial women are mothers.
- 50% of US children have Millennial parents.
- $1 Trillion is spent annually on raising children in the U.S.
The National Retail Foundation recently released a study released a study on the shopping habits of this high-value group of moms and dads, and in many ways the data demonstrates that the partnership channel is well-suited to their shopping style. Here are three specifics on Millennial Moms and Dads:
Mobile’s Role in their Customer Journey
Let’s start with the fact that 78% of Millennial parents use their phone to research products at the start of their shopping journey. This is compared to 58% for other parents. Here lies a prime opportunity for affiliates and partners to not only reach, but influence, their purchasing decision at key moments of opportunity. Whether they are browsing mobile web or spending time within apps looking for high-quality products, well-reviewed products discovered in the digital world of these parents short on time and always on the go, can be enormously influential.
The study also shows that Millennial parents are much more likely to check prices on their phones, giving you and your partners another prime way of reaching them at the point of purchase. This group is so attached to their mobile devices that they are twice as likely as Millennial non-parents to engage after purchase. One of their post-purchase activities is leaving reviews, so you might even find an opportunity to turn your top customers into influential partners.
Your best brand advocates and ambassadors may emerge from these mobile-first consumers. Using a SaaS platform like Partnerize will help you optimize mobile campaigns geared toward Millennial parents. Many of our clients drive 25% or more of sales from mobile transactions. The key is to ensure that you follow best practice for mobile measurement.
One could infer from the NRF data that subscription service products are one of the brightest sectors for busy Millennial parents and possibly their kids. Considering the massive array of types of subscription services available to make their lives easier, it’s no wonder that 40% have at least one subscription and 58% would like to try one. Everything from diapers to formula, prepared meals, and clothes can be delivered periodically, and Millennial parents seem to like the convenience.
There are several way that the partnership model can benefit subscription businesses and drive substantial growth efficiently. By defining the perfect partners for your brand, finding content partners, leveraging the right messaging, and harnessing rich data, you can get rolling on gaining customers. Partnerize’s own Charlie Calabrese wrote more on this in MarTech Advisor.
Additionally, it’s now possible for subscription companies to compensate partners based on their lifetime value of a subscriber, rather than just the initial transaction. Several Partnerize clients are already doing this with great success.
Brand loyalty is another trait where Millennial parents are well represented. The data shows that 54% of them consider themselves very loyal to brands and retailers. 46% also say they are loyal to 5 or more brands, compared to 32% of Millennial non-parents.
Strategic brand-to-brand partnerships, in which one leading brand forges an agreement with another leading brand for co-marketing efforts, are becoming increasingly popular. Such arrangements appear to hold the potential for great performance with Millennials.
If you are considering how to grow your brand through strategic partnerships, seek out brands that have a loyal base of Millennial customers. This could open up a world of potential customers to you.
Separately, maintaining affiliate relationships to keep your brand top of mind, delivering value, and easing purchase for time-constrained Millennial parents is a way to ensure they remain loyal to your brand or service -- whether they are first-time buyers or repeat customers.
There is a tremendous amount of purchasing power tied up in this growing demographic of Millennial parents and partner marketing can help increase your share of their wallets. Understanding their shopping habits is an important step to understanding how to best leverage the channel. For more information and insight, contact us today.