'Millennials': news-worthiness vs. business value

It often feels these days we are surrounded by (content on) the #Millennials -- popping up left and right, and out of the proverbial fridge. A gazillion of articles emphasises the importance of sharp business focus on the early-1980s-to-late-1990s cohort, citing various sources of research into how 'Millennials' think and what 'Millennials' do: when shopping, at work, in relationships, etc. etc. …

Despair not! A major change is on its way: in coming years, ‘Millennials’ are going to get less and less coverage. Mark my words! ‘Generation Z’ is already getting more traction: how they think and what they do when shopping, at school (soon to be replaced by ‘at work’), in relationships, etc. etc. …

Keeping the myth alive

Let's take a closer look at the flood of the Millennials-focused content we are fed most days.

Astonishingly few of the authors produce evidence showing how different 'Millennials' actually are compared to rest of the crowd out there.

Paragraphs carry definitive claims and charts show percentages, but the vast majority only provide facts about ‘Millennials’ / ‘Generation Z’. Not a peep about any other group, nor about the ‘general population’ as a whole...

Have you ever wondered, why?

As unpopular as it sounds, the answer offered by your intuition is likely correct: it’s because -- when you stick the same label on all of them… when you force-bucket them… when you average their thoughts and behaviours into numbers followed by a ‘%’ sign… -- 'Millennials' are actually not that different from the rest. Not in a meaningful (a.k.a. business-significant) way. So, direct comparisons don’t make for a good story.

Is your business that simple?

There are at least two major issues with looking at ‘Millennials’ as a consumer segment in business context.

First, by definition, #segmentation is about identifying groups that are internally homogeneous and mutually exclusive (as much as it is possible). Neither all ‘Millennials’ exhibit the same behaviours, nor they share the same opinions – to start with, there are way too many of them! (no, ‘Younger Millennials’ and ‘Older Millennials’ doesn’t cut it either). At the same time, some ‘Millennials’ and some people in other age groups do share same/similar behaviours and opinions.

And second, while defining a consumer segment based solely on age may appear ‘simple’ and ‘actionable’ (not to mention the news-worthiness…), I beg to differ. If anything, it is a rather crude and simplistic way of looking at ‘segmentation’, and one that often points to a super-lazy option in terms of business actions (think 'targeting'...).

Identifying meaningful consumer segments

In order to generate tangible business value (a.k.a. ROI) and drive positive change, one needs to embark on a journey called ‘needs-based segmentation'. It makes use of a blend of attitudinal and behavioural variables to identify meaningful consumer segments in the market. Then – and only then – one can use all sorts of characteristics to ‘profile’ their segments. Feel free to include age and look for the ‘Millennials’: I bet you are going to find them in almost every needs-based segment.

Less news-worthy, for sure.