Purpose Marketing - Millennials
To have a solid grasp on purpose marketing as it pertains to Millennials. Specifically to understand what motivates Millennials for brand preference, and what the statistics support buying decisions with people that are influenced by organizations that "give back" to causes or organizations.
- For the purposes of this research we are defining "Brand Purpose": this way: "A powerful brand purpose sets out how a company intends to change the world for the better. Its role is to unite customers and culture alike in the pursuit of that intention. It’s a statement of belief, of hope, of pursuit. Branding Strategy Insider explores the best practices in defining an effective brand purpose."
- For the purposes of the research, we are defining Millennials this way: "Anyone born between 1981 and 1996 (ages 23 to 38 in 2019) is considered a Millennial."
- Millennials prefer being part of a team, being inclusive and democratic, and ensuring the processes are collaborative. They love being part of a team: they want to participate and want their opinions heard.
- While 66 percent of global consumers are willing to pay more for sustainable goods, a full 73 percent of Millennials are.
- Brand authenticity is second only to loyalty discounts in importance when choosing companies to support for Millennials. Millennials tend to switch brands if they sense that a brand isn’t being genuine or trustworthy.
- "Despite the fact that Millennials are coming of age in one of the most difficult economic climates in the past 100 years, they continue to be most willing to pay extra for sustainable offerings", according to Nielsen.
- Instead of donating money directly to causes they care about, shoppers under the age of 40 prefer to give back through where they shop.
- If a customer is torn between a brand that gives to charity, and another brand that doesn’t give to charity, they’ll likely pick the brand that supports the social cause over the competitor that does not. The Horizon Media’s Finger on the Pulse study shows that 81% of millennials expect companies to publicly pledge to be good corporate citizens.
- A study by The Boston Consulting Group found that millennial consumers, taught to recycle at a young age, believe that “collective action” can make a difference. They also believe that working for causes is a part of life and are drawn to big issues.
- U.S. Millennials are receptive to cause marketing and are more likely than non-Millennials to purchase items related to a particular cause (37% versus 30%). They also expect companies to care about social issues and will reward those that partner with the right causes.
- “Millennials have stated how they are happier to align with brands that have a social consciousness rather than those focused on profit only,” said Jeannie Walters, CEO of 360Connext. “But it’s not just that demographic. Most of us are looking for a ‘better reason to buy’ these days.”
- In a January 2019 survey by information technology firm CGS, more than a third of respondents said they were willing to pay 25% more than original price for eco-friendly items. Almost 70% of respondents age 18 and up said sustainability was an important factor for them in making purchases, with 68% of Gen Zers surveyed saying they’d made an eco-conscious purchase in the past year.
- Nearly two-thirds of millennials and Gen Z express a preference for brands that have a point of view and stand for something.
- 64% of consumers choose, switch, avoid or boycott a brand based on its stand on societal issues.
- 86% of consumers believe that companies should take a stand for social issues and 64% of those who said it’s ‘extremely important’ for a company to take a stand on a social issue said they were ‘very likely’ to purchase a product based on that commitment.
- When it comes to what purpose attributes are most important to reputation, Americans prioritize companies that are responsible (86%), caring (85%), advocate for issues (81%), protect the environment (79%) and give back to important causes (73%).
- 33% of consumers are now choosing to buy from brands they believe are doing social or environmental good.
- In addition to this public search, we scanned our proprietary research database of over 1 million sources and were unable to find any specific research reports that address the stated goals.
Summary Of Our Early Findings Relevant To The Goals
- Our first hour of research confirmed that there is a plentiful amount of publicly available data and statistics surrounding the topic.
- Our first hour of research returned a few insights, as well as multiple statistics concerning purpose marketing as it pertains to Millennials. In addition, to add robustness, we also found, and included, statistics surrounding this for consumers in general.
- We assumed a global focus, but made sure to include the United States. Moving forward, we are suggesting a United States focus. If a broader approach is required, for example, a global focus, that would clearly have to be communicated to us in any reply.
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