Millennials (those born between 1981-2000) are reshaping the business landscape. In the U.S., they now own and operate 40% of all businesses and represent 70% of new start-ups. As Gen X leaders, now mostly in their 50s, gradually transfer business ownership and leadership roles, Millennials are stepping up, bringing new perspectives and driving fundamental changes in how businesses operate.
Source: Xero, Young Entrepreneurs survey
Understanding Millennial Business Owners
Millennials operate distinctly from previous generations, which has profound implications for marketers and brands. They grew up in a digitally connected world, meaning their approach to decision-making, communication, and purchasing is vastly different.
Key questions for marketers include:
- What do Millennial business owners look like?
- How have business owners changed over the last decade?
- What are the future trends in Millennial business ownership?
- How can we adapt to engage this emerging audience effectively?
These differences in socialisation present unique opportunities for communication strategies.
The Digital-First Mindset
Perhaps the most immediate distinction is that Millennials are true digital natives. They’ve always had the internet at their fingertips, shaping a preference for online interactions. They tend to handle everything digitally – from banking and travel arrangements to staying connected with family and friends. Their comfort with texting and social messaging makes digital channels more appealing than traditional in-person or phone interactions. Studies show that, when given the choice, Millennials overwhelmingly favour mobile apps over call centres.
Millennial Consumer Behaviour
As consumers, Millennials are avid researchers: 64% research products online before buying, and 12% turn to social media to seek advice. They value peer recommendations – even from online communities they don’t know personally – as these provide trusted input on critical life decisions.
They also process information differently, as they’re used to rapid, bite-sized content. Long-form ads are unlikely to resonate; instead, messages need to be short, engaging, and memorable.
Source: One Picture Research, New Zealand
The Socially Engaged Generation
Millennials were socialised in an era where social media serves as a constant mirror to their thoughts, experiences, and emotions. This has created a natural expectation that brands be ever-present and engaged in their social feeds. To succeed, brands must keep pace with their expectations and maintain a consistent, relevant presence.
Moreover, Millennials are highly adept at amplifying their opinions. With access to social platforms, each Millennial has their own media influence capable of both boosting your brand or highlighting its shortcomings.
Innovation-Driven and Risk-Prepared
Millennials are drawn to innovation. Having grown up during disruptive events like the financial crisis and COVID-19, they are always on the lookout for better ways to do things. They’re open to new technologies, such as AI, and bring a high level of tech-savviness to their businesses. Brands should meet them where they are, using channels they prefer and crafting messages that fit naturally within these platforms.
The Value of Purpose and Ethics
Shaped by challenging global events, Millennials are pragmatic yet idealistic. They value ethics and sustainability, gravitating towards brands with strong values and purpose. Companies like Allbirds and Patagonia resonate with Millennials because of their commitment to social and environmental causes. Millennials are willing to pay a premium for brands that align with their principles, making authenticity and corporate responsibility essential.
A Generation of New Opportunity
Millennials bring both fresh perspectives and high expectations as they take the reins of leadership from Gen X. They are looking for brands that can offer empathy, reassurance, and alignment with their values. By adapting to their preferences, businesses have an opportunity to build enduring connections with this influential generation.
As a parent, I’m optimistic about the future this generation is building. Millennials are leading with resilience, innovation, and a commitment to inclusivity and sustainability. Now is the time to connect with these dynamic leaders and align with their values. Contagion can help you reach Millennial audiences in meaningful ways – let’s work together to grow with the next generation. Get in touch with us today!
Other resources:
Source: BNZ, millennials in the workplace