The millennial marketing puzzle

Born between 1980 and 1999, millennial consumers make up the largest U.S. demographic group among the generational groups widely used by marketers. They shop quite differently than their elders, and e-retailers have to learn to relate to capture their loyalty.

The typical millennial lives on her smartphone, connects with friends and family on several social networks and has an attention span just long enough to watch a 6-second Vine video. For e-retailers, those pieces add up to a puzzling consumer who no longer follows the traditional path to purchase.

But that puzzle is becoming increasingly important to solve. The millennial generation (also known as Gen Y)—generally described as those born between 1980 and 1999, although there’s no official range—is now the largest age demographic in the United States with about 80 million consumers in its ranks, edging out even the baby boomers.

Millennials are just entering their peak spending years, but taken individually at this time they have less money to spend than young adults of previous generations. A study from Georgetown University’s Generations Initiative found that men between 18 and 29 years old in 1980 earned 85% of the median wage for all age groups. In 2012, they made just 55% of the median wage. And millennials’ median wage last year was $35,300, down 6.1% from $37,600 just in 2010, according to the Federal Reserve’s “2014 Survey of Consumer Finances.”

Having less money means millennials are pickier when it comes to where they spend their money, says millennial Christine Epps, who works as a marketing consultant. She says millennials are more loyal to themselves, rather than to brands or retailers, and the web has made it easy to search out the best price online. That can make it harder for retailers to turn a one-time customer into a repeat, loyal shopper. “Being able to read reviews and search for products on Twitter and Facebook means there’s no reason to be loyal,” she says.

But it’s important for merchants to find a way to engender loyalty among millennials because by 2018 their collective spending power will exceed that of baby boomers, according to Javelin Strategy & Research. The shift will come as boomers retire and scale back their spending, while millennials increasingly buy homes, raise children and spend accordingly. Merchants who understand that this generation’s shopping preferences change nearly as often as Facebook’s news feed algorithm, and relate accordingly, will be poised to capture repeat sales. Online retailers that target millennial-age shoppers today say the key is to speak the generation’s language and appeal to its values.

Read the whole story on Internet Retailer.

A PayPal founder introduces a new way to pay for cash-strapped web shoppers

Many of the customers of cosmetics e-retailer Beautylish are shopping for personal use, but others are makeup artists shopping for products she plans to use at freelance gigs. That causes a cash flow issue, says Nils Johnson, Beautylish’s founder, because the customer has to pay for the product up front before she gets paid for her work.

Johnson wasn’t able to offer his own financing solution but he knew the team at Affirm, a consumer finance service, was developing a service that split payments into more manageable chunks. That service, called Affirm Split Pay, officially launches today.

Max Levchin, a co-founder of PayPal—now owned by eBay Inc.—started Affirm in 2012 to make credit more accessible to consumers. About half of the company’s senior team is former PayPal employees, but they represent just a small percentage of the company’s 32 total employees, Levchin says. Affirm now offers Split Pay, which literally splits the purchase price, plus a small amount of interest dependent on the individual consumer, into monthly payments.

 

Read the full story on internetretailer.com.

For Love & Money

It all started with a press conference and kernel of an idea. For the March 2014 issue of Milwaukee Magazine, I analyzed what the economic ramifications of same-sex marriage might be if the state of Wisconsin legalized it. What I found was a large figure, but an even larger impact.

Read the story here.

20 of the Most Creative Milwaukeeans: Ken Leinbach

We’re on the top level of the tower at the Urban Ecology Center’s Riverside Park branch, clear views of Downtown to the south and the new Rotary Centennial Arboretum to the west. Ken Leinbach, the center’s executive director, has just shoveled in his lunch. “When you’re up here, you get a different perspective,” he says.
He points to the northeast, to the park he built when he first started out. (“Just me and a toad in a trailer,” he jokes.) To encourage children to come from that park to the Urban Ecology building, a series of three sculptures dubbed Walk Like a River was installed.
Read the rest on milwaukeemag.com

20 of the Most Creative Milwaukeeans: Brad Pruitt

For Emmy-winning filmmaker Brad Pruitt, it’s function over form. Although his past few projects have been documentaries – Bending Toward the Light about education and Mark My Words about spoken-word poets – Pruitt is returning to narrative for his upcoming film, Behind Closed Doors. Narrative just makes sense for this story, he says. The film follows five neighbors who live in the same apartment building in Milwaukee. It’s a film about connections and community, race and economics. The story had been developing in his mind for years.

Read the rest on milwaukeemag.com.

End of the Line

The Milwaukee County Transit System has been trapped in a budget-induced death spiral – increased fares and reduced service, leading to fewer riders and less revenue, leading to increased fares and reduced service. But it wasn’t always that way. Can an out-of-state, for-profit company resurrect the public system?

Read the story on milwaukeemag.com.

Glitter vs. Grit

Rounding the corner, she looks ahead to a group of skaters, trying to catch up. It seems promising, but as she squats deep into the turn, a skate catches. She trips and goes down. Hard. A skater tumbles over her, and yet another over her. Four women end up tangled on the track. One gets up and screams in frustration.

But the skater who tripped is still down, lying on the track, her dark hair covering her face. She cradles her left arm. The skidding of wheels against the rough cement ceases, and the skaters take a knee. This is nothing they haven’t seen before. A few seconds pass before she extends her elbow forward, realizes her arm isn’t broken and hops up.

“Who’s the asshole who fell?” she asks with a sarcastic bite, her head dropping in faux shame.

In this warehouse space – lovingly nicknamed “The Bruisery” but undeniably unglamorous – four 20-member roller derby teams, officials and coaches gather every Sunday for scrimmages. The track is outlined with hand-applied fluorescent orange duct tape and patched up as needed. Foam-covered walls, old posters and a cement floor referred to as the “cheese grater,” for its effect on wheels, also fill the space.

But the real games – or bouts, as they’re called – are played in a different type of place, one that’s worthy of a professional matchup – the U.S. Cellular Arena.

Before these bouts, 34-year-old Anna Krajcik lays out her gear: helmet, mouth guard, elbow pads, wrist guards, knee pads, her gold knee brace from a torn ACL and, finally, gold and red quad roller skates. She meticulously crimps her hair – even the pink-tinged ends – while listening to hardcore rock, lots of Ozzy Osbourne and Rob Zombie. The last thing Krajcik does is apply thick, red makeup around her eyes, “putting on my game face,” she says.

The arena’s lights dim as the skaters are introduced, and their images are projected onto the jumbotron above the track. When Krajcik emerges, she is Grace Killy, co-captain of her team. “Grace Killy is a larger-than-life persona,” Krajcik says, “and I put her on for games.”

Thousands have gathered for this March 24 event, courtesy of their $18 tickets, and the crowd roars. On the receiving end of those cheers: Milwaukee’s own Brewcity Bruisers.

The juxtaposition between the stage makeup and bright lights of the U.S. Cellular and the grit of the warehouse practice space represents the test of modern roller derby. Since the sport’s revival in Austin, Texas, in the 2000s, it has struggled with both a perception problem and a balance between athletics and entertainment. “There was a search for its identity,” Krajcik says. And that search is ongoing. Roller derby is pushing the definition of sport, slowly catching the eye of mainstream institutions, but it hasn’t completely cut ties with its theatrical past.

Therein lies the challenge: Can derby retain its DIY spirit and punk aesthetic while gaining acceptance from mainstream sporting culture?

Read the full story on milwaukeemag.com.