
For anyone looking to get a handle on what makes the influential
millennial consumer tick, don't forget this simple truth: not all millennials are alike, and this is especially true when it comes to the sexes.
Like all populations, millennials can be segmented into unique and
specific subgroups, and you'll want to add gender to the top of your
list when approaching your segmentation strategy. Because when it comes
to the sexes, there are some key differences in their lifestyle and
purchase behaviors.
What are these differences? First, some stats. According to
the Bureau of Labor Statistics, women are quickly climbing the ranks,
earning 60 percent of master’s degrees, about half of all law and
medical degrees, and 42 percent of MBAs. In the workplace, women have
also made strides, now holding over half of managerial and professional
jobs—up from 26 percent in 1980. And in the professional fields, close
to one-third of America’s physicians are now women, as are 45 percent of
associates in law firms.
Despite these advances, women continue to face barriers with pay
equity being a key concern. Fifty years after the Equal Pay Act, women
are still paid an average of 77 cents for every dollar paid to men. But
take heed: according to a 2012 Pew Research Center study, 40 percent of
American working wives now already out-earn their husbands, and according to one blog on the subject,
referencing a Boston Consulting Group study that predicts, in 15 years,
women will not only close the income gap with men but out-earn them.
Given this assertion and assuming things relatively equal in terms of
buying power between millennial guys and gals, here are three key
differences:
1. Millennial males are more likely to be early adopters
From the research, millennials, across the gender divide, are 2.5 more
likely as non-millennials to be early adopters. But when parsing the
differences between the sexes, millennial men express a heightened
interest in being the first to try the hottest new technologies
available.
This finding holds true when considering their shopping habits. Indeed, eMarketer recently highlighted
a 2013 DDB Worldwide survey of US Internet users that underscores the
increasing influence of male shoppers between the ages of 18 and 34. Not
only did 40 percent of male millennial respondents say they would buy
everything online if they could versus 33 percent of female respondents,
but male millennial consumers are more likely to shop online auction
sites, more likely to use a mobile shopping application and request a
price match via their smartphone and are more likely to use a retail
store app than female consumers.
The bottom line? Given their early adoptive nature, the male
millennial consumer is an increasingly interesting target for digital
marketers these days. Case in point: The Dollar Shave Club, an online
razor subscription service, became a household name and go-to brand for
men thanks to a viral video and a bevy of amused millennial males who couldn't wait to share the hilarious video with their friends
2. Men are "lone rangers"
In general, millennials are highly social, both off and online, and are
significantly more likely to do things in groups, like traveling
together, than non-millennials, research shows.
But, again, when parsing the differences, the research shows that
you're more likely to find millennial men enjoying a "lone ranger"
lifestyle from eating to shopping to traveling alone. On the other hand, women like to do things with their gal pals and families in greater numbers, according to one study.
To reach them effectively, create custom experiences that appeal to
these consumption behaviors. For instance, in the case of male
travelers, focus on providing efficiencies like quick check-ins and outs
via kiosks where human interaction could be viewed more as a nuisance
when a long wait time is involved. When targeting women, consider
offering group travel discounts or "girls night out" exclusive brand
experiences for the ladies to win their loyalty.
3. Moms are taking charge
With this final point, it's not that moms matter more than dads. However, according to the research, millennial moms are finding themselves in the position of being the key decision makers
on big decisions, as opposed to the past, when men were the heads of
the household. Today, moms are "calling the shots" when a situation
involves major household purchase decisions.
Indeed, a Pew Research Center survey found that the woman makes
decisions in more areas than the man in 43 percent of all couples. Men
make more of the decisions in only 26 percent of all couples, while
couples that split the decision-making responsibilities comprise the
remaining 31 percent.
"Mothers are now directly influencing the for a family unit," says Christine Barton, as quoted in
Marketing to Millennials (AMACOM
2013). "Not surprisingly, there is a lot of consumption of mom opinions
thanks to an overwhelming number of mothers, especially first-time
moms, turning to social media for product research and advice. There is a
tremendous amount of power in mom advocacy as a unit."
These moms are indeed influential, with 50 percent of them making a
brand or product recommendation either daily or weekly, and 21 percent
talking to their friends and family members about products at least once
per month. So when targeting millennial parents with a new or existing
product offering, step into the shoes of these savvy moms and think
about how you can cater directly to their needs.
Given these differences, it makes sense to think of millennial men
and women as two different groups. Spend time getting to know your
target consumers and the differences, whether by segment or by gender.
It will lead to a bigger payoff in the end.