Catering to the Millennial Market: Marketing Tips for Small Businesses

Key considerations

It’s crucial to note that not all millennials are the same. There is no one-size-fits-all marketing strategy that will appeal to allmillennials, however there are several subgroups within this demographic that can help you refine your target audience, making your marketing efforts more effective.

For example:

Early, mid and late millennials: Within a generation, there can be subgroups that are defined by narrower age ranges. For millennials, this includes early millennials (generally considered to be those born in the early to mid-1980s), mid millennials (born in the mid-to-late 1980s to mid-1990s) and late millennials (born in the mid-to-late 90s). Late millennials are also referred to as “Zillennials” since they share characteristics of both millennials and the following generation, Gen Z.

Life stages: Over time, interests, priorities, lifestyles, values (and more) can evolve, so it’s important to understand the life stage of your millennial before kicking off any marketing activity.  For example, early millennials are more likely to be growing their families and settling into careers as leaders or soon-to-be leaders, while mid millennials might only just be breaking into the workforce, considering starting a family or purchasing property.

Evolution of technology: Another distinguishing factor between these groups is the evolution of technology. Early millennials would have come of age in the 2000s, and they may have experienced significant technological changes during their formative years, such as the rise of the internet, social media, and mobile devices. Early millennials will also remember a time when you had to decide between using the landline or the internet, and when you had to have a university email address to access Facebook.

For mid millennials, touchscreen mobile phones were the norm, not the exception at school. Facebook is considered mostly passé, turning instead to grandparent-free platforms such as Snapchat or Instagram for their social media fixes.

As the youngest members of the millennial generation, late millennials came of age during the rise of social media and the sharing economy. They have grown up with technology and are more likely to embrace new social media platforms such as TikTok and Twitch.

The 2007-2008 Financial Crisis: Perhaps most significantly for mid millennials, the financial crisis hit full force when they were entering, attending, and leaving university. They graduated into an economy that wasn’t hiring experienced workers, let alone graduates fresh out of university. Despite their idealistic upbringing by Boomer parents, they weren’t spared the bleak realities of entering the working world saddled with crippling university debt and no job opportunities in sight. Consequently, mid millennials tend to be more realistic and financially-conscious than the collaborative and optimistic early millennials.

Other millennial subgroups include:

• Digital natives: Grew up during the rise of the internet and are highly tech-savvy. They are often early adopters of new technologies and platforms.
• Health conscious: Place a high value on healthy living, exercise, and nutrition. They are often interested in organic, non-GM, and locally sourced food.
• Socially conscious: Passionate about social and environmental issues and seeks out brands that align with their values. They are often interested in fair trade, ethical sourcing, and sustainable practices.
• Urban millennials: Live in urban areas, typically in large cities. They tend to be more socially liberal and prioritise experiences over material possessions. Values walkability, access to public transportation, and cultural diversity.
• Suburban millennials: Live in suburban areas, typically outside of large cities. They tend to have a more traditional outlook on life and prioritise stability and security.
• Rural millennials: Live in rural areas, typically in small towns or farming communities. Tend to be more socially conservative and value community and family above all else.
• Boomerang generation: A term sometimes used to describe millennials who move back in with their parents after initially moving out.
• Foodies: Interested in food and often seek out new and unique dining experiences.
• Activists: Highly engaged with social and political issues and are often involved in activism and advocacy.

These are just a few examples of millennial subgroups, and there are many other ways to segment this demographic based on factors such as income, education, and lifestyle. (It’s important to note that these subgroup examples are not universally recognised or agreed upon, and different sources may use different definitions or labels for millennial subgroups.)

Understanding the subgroups within the millennial market can help you tailor your marketing efforts to better resonate with specific subsets of this demographic.

However, make sure you:

Avoid Assumptions and Generalisations

Generational labels like “millennial” are broad categories that encompass a wide range of individuals with diverse backgrounds, experiences, and perspectives. While some common traits or behaviours may be more prevalent among certain subgroups, it’s not appropriate to make assumptions or generalisations about any individual based solely on their age, location, education, for example.

While it can be helpful to consider different subgroups within the millennial generation for marketing or research purposes, it’s important to approach such categorisations with nuance and recognise the inherent diversity within any given generation.

Why is it important to consider millennials in my marketing strategy?

Catering to the millennial market is an important strategy for small businesses that are looking to build a loyal customer base and increase revenue. With a growing population of over 14 million millennials in the UK, the potential for small businesses to succeed in this market is significant. (If your offering isn’t relevant to millennials, could you consider expanding your offering to appeal to this large demographic?)

By implementing these marketing tips – steered by your chosen subgroups – and staying attuned to the latest trends and preferences of this demographic, you can position your business for long-term success and growth.

Now, as an early millennial, I’m off to optimistically scroll through Facebook and reminisce about inflatable chairs, Tamagotchis and Um Bongo. (Good times.)