Business owners know that you need to appeal to your target audience. With an aging demographic, that target audience is now being taken over by the Millennial marketplace – and as you know, when it comes to business, its evolve or face extinction. This is true for all industries and service segments including established institutions such as the banking community.
So who are these Millennials, and how do you reach them? In placing Millennials into a bucket, first we must define this target audience. Millennials are characterized as individuals born between the 1981 to 2000 – making them 16 to 35 today. Studies find that characteristically, Millennials tend to:
- Be multitaskers and wear many hats.
- Look towards developing and nurturing relationships with others. Social media plays a huge role in this.
- Thrive in team oriented settings and communities.
- Be tech saavy – at least in comparison to other generational groups.
Millennial values include:
- Attaining a work-life balance and having the flexibility to juggle the various aspects of their lives.
- Receiving instant gratification.
- Establishing transparency in all relationships – they want everything out in the open and clearly communicated.
So now that the guideline has been laid, how do you start to lay out the plan to reach and engage with Millennials? Below are some basic steps to get you on your way:
- Communicate – Identify your language and tone based on the factors outlined above. This means, have clear messaging that can capture a target’s attention quickly – these multitaskers do not have much time and have a short attention span as a result of the communication styles fostered through social media information sound bites.
- Incentivize – Present a common front. Align marketing campaigns with values important to the target audience. How are you more convenient than the competition? How are you sensitive to the customer’s limited resource of time? Are you being upfront about your value proposition?
- Engage – Once you got their attention, how can you create an environment and culture where the customer can feel as though they are an active, valued member? Technology plays a huge role here. Many businesses look to develop or improve current Apps that entice members to keep checking in with a business.
- Retain – Establish brand loyalty. Aligning your brand with values similar to the customer’s values fosters the feeling that a relationship with your company and your brand is an extension of who they are. Why go anywhere else when your solution identifies with everything they are looking for?
Tying this into Company Value
There are certain intangible factors that add to or detract from a business’ overall value beyond its earnings capacity. Other than actually showing a profit, businesses that demonstrate predictable revenue streams command higher market valuations. The recipe for predictable revenue streams is a combination of increasing the number of active clients, increasing the sales/revenue per client account, and retaining the clients for an increasing amount of time (aka loyalty). Understanding your current and future client demographics is the first step in being able to acquire a growing market share.
Jessica Timmerman is a Certified Valuation Analyst (CVA) with Quantive Business Valuations, LLC. Ms. Timmerman’s primary focus is servicing lower-middle market businesses across the country. She has performed valuations for hundreds of companies spanning various types to include niche manufacturing, wholesale, service, and retail businesses. Ms. Timmerman has extensive experience regarding valuation services for gifting and estate planning, shareholder buyouts and disputes, merger and acquisition considerations, buy-sell agreement development, divorce, litigation, and financing among many other purposes. Ms. Timmerman can be reached at email@example.com.