How to Reach Millennials and Gen X in B2B Marketing
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What you need to know about reaching Millennials and Generation X.
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How to Reach Millennials and Gen X in B2B Marketing
- 1. What you need to know about reaching Millennials and Generation X
- 2. Understanding the differences between Millennials and their predecessors, Generation Xers, has been the key to many a successful marketing campaign. While the differences between these two groups have been recognized in B2C marketing, the effects they may have on Business-to-Business (B2B) marketing are less documented. To fully understand how best to market to these two audiences, it’s important to examine the traits and defining characteristics of each. REACHINGMILLENNIALSANDGENERATIONX Marketing to Millennials has been a popular topic for the last few years, particularly in the Business-to-Customer (B2C) space. 2
- 3. Generation X Often referred to as the “lost” generation, Generation X refers to anyone born between 1965-1981 (coming of age defined as approximately between1988-1994), although many articles will state slightly varying dates. This generation is often overlooked, with marketers preferring to focus on Baby Boomers and Millennials. Generation X is known mainly for being ignored, although there are 66 million of them compared to 75 million Baby Boomers. The economic decline of the 1980s occurred just as Gen Xers were entering the workforce and attempting to carve their career paths; competition for jobs was high. Disappointed and frustrated with institutions from government to organized religion to marketing, these “latch key kids” became an unappealing group for many marketers to target. Millennials Also referred to as “Generation Y” or “The Peter Pan Generation,” Millennials were born between 1982 and 2000. They grew up in the aftermath of the Great Recession and are known for their technological savvy. They tend to be extremely adaptable and to value innovation. Being the generation on the receiving end of excessive parental attention, instant gratification and a need for recognition are a hallmark of this generation. Marriage, children and home ownership within this generation are not happening until much later in life. Research found that they earn some 20% less than Boomers did at the same stage of life, despite being more educated. While B2C marketers may be intensely aware of how these groups interact with marketing and advertising, it’s important for B2B marketers to understand just how powerful their respective traits can be in the B2B space. 1965 1981 1982 2000 REACHINGMILLENNIALSANDGENERATIONX 3
- 4. Takeaway for marketers: • It’s easy to assume that the Gen Xers in the room hold all of the purchasing power, but smart B2B marketers will note that they are more than likely in that room because a Millennial researched and positioned them as a viable vendor. • Reach out to Millennials. Direct your marketing to them and don’t simply assume they are in non-buying positions. Here are five important things to note: A Pew Research study found that Millennials have surpassed Gen Xers as the largest generation in the U.S. labor force, therefore overlooking the buying power of Millennials is a mistake. As digital natives (those raised in a digital and media-saturated world), Millennials are often tasked with researching and evaluating different vendor options for senior management (Gen Xers) and making recommendations. Google discovered that in 2014, 46% of potential buyers researching B2B products were Millennials. This was up from 27% in 2012 and this number only continues to grow: Millennials are now the biggest generational group researching B2B products for potential purchase. B2B marketers often target their communications to the managerial roles of Gen X, but with a purchasing power of $2.45 trillion worldwide, Millennials are now making purchasing decisions, forming brand loyalties and influencing their peers. As Millennials are promoted and develop their own career paths, they’re assuming more responsibilities as B2B purchase decision-makers. Millennials are making buying decisions. 1 of potential buyers researching B2B products were Millennials in 2014 46% REACHINGMILLENNIALSANDGENERATIONX 4
- 5. Takeaway for marketers: • Websites need to be mobile and responsive. Make sure they clearly communicate product value propositions and include strong and clear calls-to-action. • 2017 has been hailed as the year of video. In fact, it has been predicted that video will account for 69% of all consumer Internet traffic this year. So B2B marketing to Millennials needs to focus on helping them learn about products and services in video format; this group wants to see your product in action. Of course, your video marketing will still appeal to Generation Xers, but take note: Gen Xers still appreciate standard mail. Fans of written cards within their personal and professional life, Gen Xers can still be reached effectively with direct mail. An estimated 86% of this generation brings in the mail daily and 68% use coupons they receive in the mail. Gen Xers are used to receiving paper bills and mailing birthday cards and are therefore a prime demographic for direct mail. Here are five important things to note: Digital is the most important sales and marketing channel for B2B Millennial buyers, consuming information via social networks, videos, blogs, etc. An astounding 50% of Millennials use mobile devices to research products and reviews, compared to just 21% of non-Millennials. Millennials are seeking visual content that is readily accessible and engaging to inform their purchase decisions. Gen Xers, on the other hand, are not as conservative as boomers but certainly not as liberal as Millennials, so traditional marketing tactics continue to work well for them. Millennials are the true digital generation, while Gen Xers still appreciate mail. 2 Millennials are seeking visual content that is readily accessible and engaging to inform their purchase decisions. REACHINGMILLENNIALSANDGENERATIONX 5
- 6. Takeaway for marketers: • Develop a cadence of credible thought leadership and branded content through content marketing. Branded content is important and while it is more subtle than advertisements, its goal is to still sell products and services. Thought leadership is indirect, creating prestige for brands through association. It expresses a depth of knowledge and expertise to potential customers. It essentially says to the Millenial, “Not only do we have great products and services, but also industry experts that agree and support our claims.” • Thought leadership is extremely important to both groups. Create thought leadership by writing content about timely events and demonstrating your knowledge and expertise on that subject. Position your brand as an industry expert by having members of the C-suite speak at conferences, publish white papers or take part in interviews on relevant industry subjects. Here are five important things to note: Millennials don’t trust marketers. A 2015 survey found that just 1% of Millennials said that an ad would increase their trust in a brand. They are attracted to authenticity and seek out brands and content that they perceive as authentic. Approximately 29% of this generation turns to industry analysts when researching a product or service with another 24% trusting case studies or customer testimonials. Thought leadership is the anti-advertisement, and as Influence co-founder and CEO, John Hall, explains, rather than tell their audiences that they should be trusted, thought leaders drive important conversations that engage audiences and show them why. Branded content, such as case studies and customer testimonials, can still influence Gen Xers, but 31% of this generational group cites industry analysts (thought leadership) as influential when it comes to B2B purchasing decisions. The importance of thought leadership. 3 REACHINGMILLENNIALSANDGENERATIONX 6
- 7. Takeaway for marketers: • For Millennials, make sure there is sufficient and relevant content available on your website so they can conduct their research. The importance of relevant thought leadership comes into play here, as well. • The data Millennials acquire during this stage is important because they have a great need to have their purchase decision informed by data, not by first impressions or personal experience. They tend to make decisions as a group, and digital is their favored channel. Here are five important things to note: Before making a B2B decision, Millennials look to two main sources: their organization’s data analysis and recommendations from their peers. In the research stage, they want to see facts, figures and industry expert associations to validate their choices. Only when they’re ready to buy do peer recommendations have the ability to sway their decision. In stark contrast to this, peer recommendations have little influence over the purchasing decisions of Gen Xers. Instead, they rely on their own personal experiences and impressions. In fact, a Marketing Profs report found that 42% of Gen Xers are influenced by their personal experience and/or their first impression of a product or service. Gen Xers turn to industry experts only when they need additional insights. Millennials are data centric; Gen Xers focus on personal experience and first impressions. 4 REACHINGMILLENNIALSANDGENERATIONX 7
- 8. Here are five important things to note: The path to purchase is different for everyone, and that holds true when comparing Millennials and Gen Xers. Millennials are looking for authentic conversations and are flexible in regard to where those conversations occur, Whereas Gen Xers are likely driving the conversations from start to finish. Favored communication methods differ for both groups depending on where they are at in the buying cycle. Communicating to Millenials and Gen Xers on their path to purchase. 5 Takeaway for marketers: • As a Millennial lead moves through the sales funnel, face-to-face conversations are less likely to happen. Continue to engage them over the phone or via email and consider where else you can make it easier for them to connect with your team. • Since Gen Xers rely heavily on research and reviews when finalizing their decision, ensure you are monitoring what is being said about your brand or services. • Provide both generations the information they need to feel confident in your brand or services. The more you can back up your statements with proof, the more likely both generations will have confidence in what you have to offer. Top of the sales cycle A study by IBM found that Millennials will seek vendor contact at their own convenience and at the top of the sales cycle. This contact is important for this generation because they are not only gauging whether or not the product or service is right for them, but also if the vendor team is a right fit. In contrast, Gen Xers prefer to look to third-party sources at this stage. They are looking for the assurance that their expectations of the product or tool will be met before seeking more information. Engaged Although they differ on how they enter the sales funnel, once in, Millennials and Gen Xers both prefer to continue conversations via email or phone, not face-to-face. The difference between them, though, is that Millennials are also open to having conversations via social media, instant messaging and live chats. The buying decision When it comes to making the final purchase decision, Millennials and Gen Xers really diverge. Where Gen Xers are confident in making their decision based on their personal expertise and research, Millennials turn to peers and loved ones to help reaffirm their choice. REACHINGMILLENNIALSANDGENERATIONX 8 At the final purchase decision, Millenials and Gen Xers diverge
- 9. Learning more about your audience and their influences is more important than ever as you fine-tune your marketing strategy to meet the needs of your customers and drive the success of your brand. Thought leadership plays a large role in today’s B2B marketing, and relevant, available and quality content is no longer a luxury but a necessity. Companies that understand the unique behaviors and motivating factors behind their audiences will create the best experience for these customers, driving sales and bottom-line revenue while building a loyal customer base. Position your business for B2B success by aligning your marketing strategy with the changing face of your customers and prospects. SUMMARY REACHINGMILLENNIALSANDGENERATIONX 9
- 11. Concept Group is a full-service advertising agency that specializes in bold digital and traditional marketing. Our expertise in B2B and consumer communications covers a wide range of industries and markets from manufacturing, industrial and engineering to healthcare, retail and food service. Founded more than 35 years ago in St. Paul, MN, we believe in crafting powerful positioning that tells your story and makes compelling connections with your target audiences. Our bold approach to solving communications problems often features the convergence of traditional and new media— integrating branding, advertising, collateral and other proven communications strategies with digital solutions such as web development, content marketing and social media. To learn more about Concept Group or receive more insights, subscribe to our blog. About Concept Group 11 BRAND STORYTELLERS DIGITAL MARKETING SPECIALISTS USER EXPERIENCE EXPERTS THOUGHT LEADERSHIP STRATEGISTS 332 Minnesota Street, Suite N-110, St Paul, MN 55101 • 651-221-9710 • conceptgroup.com