Targeting Millennials is a common goal for many clients. There’s a misconception that the only way to reach them is through digital as if they don’t see billboards while driving or have a mailing address. They may have a tremendous digital presence and be targetable through traditional means. But now matter how you reach them, studies show one underlining factor that converts Millennials into a customer is a company with a cause.
When we say “cause,” we don’t mean a company bringing xyz product or service to customers in an efficient way, or whatever a mission statement reads. That’s not the type of cause or purpose we’re talking about. What we’re talking about comes from a Kantar study finding two-thirds of Millennials and Gen-Zers will buy from a company that’s taken a stand on a social issue through cause marketing or business model.
A Shoe That Fits The Cause
Take for example the Toms Shoe craze a few years back. How did a start-up company in 2006 become one of the most popular shoes among Millennials within two years? Every pair of shoes purchased saw the company giving a pair to an impoverished child. The simple idea had a great effect. The shoes are $30 a pair, half the price of competing brands’ shoes. It’s common for customers to purchase multiple pairs at a time, thus allowing customers to feel like they are making a difference. Company founder Blake Mycoskie often took hundreds of shoes to children in developing countries. The footage of the exchange made for great PR, took over the Internet, and increased brand awareness.
Good Things Come From Cause Marketing
The Kantar study also shows a brand’s valuation is heavily influenced by a company’s cause. Since 2006, the median growth of brand evaluation is 86%. Companies without a cause saw their brand evaluation only grow by 70%, where as those with a high sense of cause saw a 175% increase. Companies that have a cause have a major advantage over the competition that operates under a business-as-usual mindset.
Of course, a cause needs to make sense for a company, but they need to go beyond the message. A company needs to be about it and not just talk about it. Consumers should see them actively partaking in the social mission. A local business could partner with a local food or blood bank, an animal or homeless shelter, or even become a sponsor of a charity event.
Customer Funded Company Executed
One thing you don’t want to do is beat consumers over the head with it. Millennials may donate or volunteer on their own time, but they’re not entirely looking for companies to invite them to be a part of the solution. They’d rather buy from a company that does the charitable work, rather than physically come help with the process. Like Toms Shoes. Although customers fund the entire project, it’s the company actually doing the legwork. A highlight can encourage them to get involved, but the message should focus on how the company is making the real difference. Show consumers the results.