As the number of baby boomers retiring climbs, many businesses hope the next largest generation can replace the gap in purchasing power that their parents will inevitably leave behind. This is why everybody from consumer packaged goods companies to retailers continue to scramble to find the best way of tapping the millennial customer.
Some fast-food chains even spread their marketing messages over so many social media platforms in an effort to reach as many millennials as possible, IBM's Big Data and Analytics Hub blog noted. However, using technology wisely and with the assistance of predictive modeling tools can solve the riddle of how to market your brand to Generation Y.
Give them the technology they need
One thing about millennial shoppers that sets them apart from older generations is the fact that many were born with a computer in the house. These digital natives, as they're known, can be skeptical buyers since they typically research a brand as well as competitor prices before making a purchase. With smartphones at their side, they can also look up a product in store. With that said, retailers have the ability to add more interactive features within their brick-and-mortar locations that can work with shoppers' smartphones and trade data back and forth.
"Predictive analytics also enables a more strategic marketing approach."
Gleaning the information collected from millennials' smartphones and apps, businesses can then use predictive modeling software to market themselves more effectively to the 18- to 34-year-old demographic.
Millennials are the customers most likely to embrace apps or other technology brands provide them, Website Magazine reported. With smartphones being an everyday tool of modern life, it only makes since for companies align themselves with technology to engage Generation Y shoppers.
A different form of word of mouth
Not all millennials use social media platforms on a regular basis. While you might think that being tied to a smartphone for the better part of the day means members of Generation Y are scrolling through their Facebook accounts, you could be wrong. IBM pointed out that using analytics can show businesses how to correctly market themselves to different segments of these 20 and 30-somethings.
Predictive analytics also enables a more strategic marketing approach instead of blanketing multiple social media platforms with coupons and announcements.
One form of communication millennials value before making a purchase is word of mouth. However, thanks to the Internet and streaming video, this type of selling known as influencer marketing is taking off in popularity. Many brands now pay bloggers or vloggers to mention their products and review them in a post. A business can employ predictive analytics to locate potential influencers and get them onboard to promote the brand.