As the millennial generation comes into its prime spending years, Credico (USA) LLC urges brands to consider how their integrated marketing appeals to this demographic who now holds the most considerable buying power in the country.
As millennials age well into their 30s and beyond, they are an increasingly important consumer group. For example, more than 40 per cent of millennials are parents, and they have exceeded the buying power of the baby boomers with a collective spending power of $1.4 trillion in the U.S. alone.
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While 53 per cent of millennials shop in-store during a typical week and account for more than one-third of all US shopping visits, much of their product research and influence comes from online channels. Therefore, social media and digital assets can play an influential role in supporting more traditional marketing channels.
Google released a report in 2011 which found that consumers consulted an average of 10.4 new media or traditional sources before purchasing, twice the number of sources consulted just the year before. The study went on to find that most people are not ready to buy at the first touchpoint. The first time they interact with a member of staff or visit a website is unlikely to be the moment they buy a product or service. Google found that a buyer needs seven hours of interaction across eleven touchpoints in four locations.
Since then, successful marketing has revolved around the 7-11-4 rule.
Would it surprise you to know that a full 70 per cent of Americans say they look at product reviews before making a purchase?
Or that 79 per cent of consumers now say they use a smartphone to help with shopping?
Or that 83 per cent of mothers say they do online research after seeing TV commercials for products that interest them?
Understanding consumer buying behavior is more critical than ever before. We know it is not surprising news that shoppers like to do research. Consumers have always talked "over the back fence" and investigated products on their own. Credico has observed that there is more pressure than ever for brands to be available across multiple marketing channels.
Do you have four different locations in which your ideal customer can interact with you? This can be a website, a storefront, social media channels, or an event.
Across these four locations, a customer needs to interact with you 11 times. They may see a Facebook advert, watch four videos, see a billboard, visit your blog twice, read an email, attend an event and speak with a retail agent before they are convinced to buy your brand.
Google determined the critical factor of success to be seven hours of interactions. Therefore, these 11 touch points should add up to seven hours for maximum effectiveness.
In practice, this 7-11-4 marketing rule clearly demonstrates why utilising social media marketing can accelerate the speed at which your ideal prospects can be exposed to your business. Retail experiences and face-to-face interactions are hugely valuable, particularly when supported by an omnichannel approach.
Credico analyses customer acquisition data to establish a complete picture of earning and spending patterns across demographics, geographies, and vertical industries. This analysis helps it to predict how it believes these trends may change in the future.
The bottom line is that the millennial generation will define the next 25 years of buying power. It will be the force that drives the regeneration of the economy; it will challenge long-held traditions and demand innovation. Using an integrated marketing approach is a must to ensure longevity in business.
How can Credico support your integrated, multi-channel marketing goals? Get in touch to discuss your outsourced face-to-face marketing needs.