Millennials are people born between 1980 and 1999.
To understand how to sell to Millennials it is important to first understand following brand rules:
– Brand as a collection of values accepted by a customer. Each brand has many customers and offers many values.
– Values can be hard and soft. Hard values are measured easily (cheaper gas, faster car, bigger apartment). Soft values are hard to measure (right of passage, social positioning, youthfulness).
– Soft values are created by content, and not by the actual products. A soft drink can become a part of a relationship thanks to a Coca Cola ad which is video content.
– Customer’s ability to crave values is unlimited. As soon as customers get all they want, they will want more. There are no limits to how many products there can be.
– The relevance of soft values for purchasing decision has been increasing through history because there are less and less hard problems to solve.
Based on above sales to Millennials should follow these rules:
1) Brand should focus on soft values;
2) Content should be substantially present;
3) New values should be constantly created.
Nike is following these rules by paying Cristiano Ronaldo 1 billion USD for a lifetime contract. By sponsoring Ronaldo they invest in decades of highly relevant content, mostly on social media, which could be a more important investment than in RnD.
On the other side, we can see the failure of USA retailers who are closing their stores because they focused only on hard values – vicinity, choice, and price – and not on soft values and content.