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Rearview 2014: Millennials take the wheel

As more and more of their contemporaries move into leadership roles, millennials are moving from the passenger side to the driver's seat.

Rearview 2014 is a five-part series where we take a look back at the big trends of 2014.

December 15, 2014 by Brenda Rick Smith — Editor, Networld Media Group

Marketers were obsessed with millennials once again in 2014, and with good reason.

The generation born after 1982 and before 2004 is three times the size of Generation X (1965-1984) and even larger than the Baby Boomer generation (1946-1964). Millennials boast nearly $600 billion in spending power, a figure is likely to increase as the generation matures.

But millennial influence extends far beyond their own pocketbooks, and into the hearts and minds of other generations.

The voices of these digital natives are amplified by social media, and they drive the trends across industries. Their tastes and preferences are often mimicked across generations, because who doesn't want to be younger?

Despite the demographics' growing influence, however, there is an alarming trend among millennials: they are dining out less. Dining out has declined 20 percent among millennials since 2007.

Impact of the Great Recession

Why the decline in eating out among millennials? Many millennials graduated from college and were just taking their first shaky steps into adulthood when the economy tanked during the Great Recession. As a result, millennials are more value-conscious, and may be choosing to dine at home rather than go out to eat.

In the years to come, we may see the Great Recession shaping millennials in other ways, too.

Capriotti's CEO Ashley Morris – himself a millennial – believes his generation's experience during the Great Recession is sparking interest in franchising and small business ownership. 

"That was the greatest lesson learned from the Great Recession by my generation and younger," said Morris who bought his first Capriotti's franchise when he was in his early 20s, and bought the whole company just a few years later. "Seeing promises made and not kept. Seeing your parents get downsized. It's given the younger generation the incentive to be in charge of their own destiny."

Taking charge

And millennials do have a reputation for being in charge of their own destiny, a perhaps undeserved reputation for being fickle and quick to abandon one brand for another.

But that's not necessarily so, according to millennial marketing expert Jeff Fromm. 

"If someone has a more efficient, more interesting, more unique, more authentic experience or product, millennials are willing to switch," he added. "They are not disloyal, they are savvy, because they'll stick with who they switch to if they like it."

Brands who want to woo and keep millennials will need to work at building relationships with them and keeping those relationships fresh and exciting. Successful brands will demonstrate authentic, transparent connections to causes millennials care about, they will offer healthy options at accessible prices and they will deliver fresh food as quickly as fast food.

A study by Brand Keys earlier this year revealed a 20-percent decrease in visits to QSR chains and a 42 percent increase in visits to fast casual restaurants. Millennials surveyed indicated they are looking for "tastier, healthier and more customized food" and are willing to pay more to get it.

Millennials also expect a customized, frictionless experience. Restaurants that make it easy for millennials to place orders, split checks, pay and more will reap the rewards.

What's ahead?

Millennials, long accustomed to interacting with brands as fans, are beginning to move into the drivers' seat. Successful brands will transition from seeing millennials solely as consumers, and will add prisms of understanding which reflect millennials as partners, leaders and advisors.

For example,Weinershnitzel has established a new Visionary Department and hired J.R. Galardi, the the 25-year-old grandson of the brand's late founder, John Galardi, to head it up.

The Visionary Department will utilize social media, strategic partnerships, digital marketing and event sponsorships, and cause marketing in an effort to expand the brand's reach among millennials.

Focus Brands President Steve de Sutter recently praised Starbucks' founder Howard Schultz's decision to put millennials on its board,and expressed admiration for other brands who are assigning millennials to mentor senior leadership in a reverse coaching role. He's investigating the possibility of doing the same for his company. 

Photo courtesy of Chris Dodson via Flickr. Creative Commons license here.

Rearview 2014 is a five-part series where we take a look back at the big trends of 2014.

• Part 1 - Fast Casual is kind of a Big Deal
• Part 2 - Millennials take the wheel
• Part 3 - Here's what we were hungry for
• Part 4 - Cause marketing moves from fundraising to partnerships
• Part 5 - Mobile helps brands reduce friction, stay connected

About Brenda Rick Smith

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Brenda has more than 20 years of experience as a marketing and public relations professional. She invested most of her career telling the story of entrepreneurial non-profit organizations, particularly through social media.

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