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Merrick, NY—Define a Millennial without using the words “wired,” “over-sharing,” or “entitled.” 

Those are the common stereotypes, but such a broad-based group of consumers—97 million of them—aren’t all the same. There are similarities, just as there are across any generational cohort. But there also are significant differences in this group born between 1978 and 2000, and marketers who understand those differences are more likely to win the hearts and minds of this important consumer group for their brand.

Author MaryLeigh Bliss, a trends editor and strategic consultant at YPulse youth market research firm recently wrote a blog for MediaPost’s Engage: GenY, in which she identified five distinct segments within the Millennial consumer population.

• The first, dubbed “The Supremes,” account for about 20% of the cohort. They’re most likely to come from more privileged backgrounds, be high achievers with good grades and big-ticket educations. They’re more self-focused than their peers, especially when it comes to looks and fitness, and they care very much what their friends think. Though this group is still a bit young (58% are under age 21), these traits suggest they’re the most likely to become luxury customers. Higher education is a key indicator of consumers who understand quality and craftsmanship, and a more affluent upbringing suggests they’re more likely to be personally exposed to luxury products early in life, as well as being brand-aware.
• The second, dubbed the “Alt. Idealists,” 18% of the cohort, are the most socially conscious. They value individuality, creativity, tolerance, independent thinking, the environment, and helping those worse off than themselves. These consumers are more likely to set trends than follow them, but they’re also the ones who can be most attracted to reward your efforts to give back and likely to want to personalize their purchases. They’re still a little young; 61.6% are between 22 and 31 years old.
• The third, dubbed the Moralistic Middles, comprise 23% of the Millennial generation. They are the most traditional; despite statistics showing a rise in cohabitation and corresponding decline in marriage among Millennials, this group believes in doing it the old fashioned way. Courtship, marriage, and family are important to them, and their tastes are likely to be a bit more mainstream than indie or trendy. They skew a bit older, age 25-31, making them a prime target for bridal jewelry.
• Muted Millennials, a robust 28% of the Millennial population, tend to be under age 21, and the recession has hit this group hard. An overwhelming percentage (72%) still live at home with their parents, they have the highest rate of unemployment among Millennials, and they’re unsure if they’ll ever have a bright future.
• Finally, a small (11%) group she dubbed the Beta Dogs is overwhelmingly male, and though often married and desiring of success, they don’t always act like it. This group is more likely to be active partiers, binge drinkers, or engage in other behaviors that provide an adrenaline rush. But they’re also big spenders on fashion and luxury—already more so than the other groups.

Another key point, says MediaPost.com, is that Millennial purchasing decisions are based on what makes sense for them at that moment. For a generation dubbed “spoiled,” they’re more price-conscious than their older counterparts (perhaps because they have the technology to more easily compare), and they’re also less likely to buy something because it’s the expected thing to do. If a Millennial thinks a car is too expensive, he’ll just take the bus. Buying a car has to make sense at that moment.  

Correspondingly, a study by the Boston Consulting Group identified more unique behaviors and attitudes that Millennials are likely to bring to their next lifestage. For example:

• Instant gratification. These consumers want it now.  They put a premium on speed, ease, efficiency, and convenience in all their transactions, and care relatively less about “friendly” service than their older counterparts. Much of what they do—from donating to causes to downloading music—is likely to be done on the spot via mobile device. It’s a challenge for marketers to get this always-in-a-hurry consumer to spend time with their brand.
• The new experts. The person who has the most credibility to recommend a brand, product, or service isn’t the person with the most impressive credentials, it’s the person who’s already used it themselves, preferably a peer or close friend. They tend to seek multiple sources of information (i.e. “crowd-sourcing”), especially from non-corporate channels like user reviews and social media. Amplified consumer voices mean something that resonates will spread rapidly and be quickly reinforced (i.e. “go viral”). It’s essential that companies monitor what’s being said about them and participate in the conversation, because the right advocates can make a brand and the wrong ones can do a lot of damage to it.
• Über-connected. Though both Millennials and non-Millennials are active users of social media, Millennials are most likely to feel they’re missing out if they’re not current with social chatter. They’re also far more likely to prefer brands with a Facebook page and a mobile site. Offline, they’re also more group-oriented than non-Millennials and are more likely to go shopping and dining in packs. This is good news for retailers, says BCG, because people shopping in groups tend to spend more money than loners.
• Be-cause they care. This generation was taught to recycle in kindergarten, says BCG’s survey, and that social consciousness has stayed with them. This group believes collective action can make a difference, and they’re far more receptive to cause marketing than non-Millennials. They actively support issues they care about, buy sustainable or fair trade products, will actively encourage others to participate in causes, and they expect companies to care about causes.

Top image: csulb.edu