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When it comes to reaching the emerging generation of Millennial power purchasers it takes more than product and price. It takes a cause, literally. Millennials, more than their generational predecessors want to know not only the details and origin of the products they buy, but also about the company behind them.
“Our research illustrates 84% of millennial moms have purchased a product or shopped at a retailer because of cause relationships,” said Maria Bailey, whose marketing firm BSM Media specializes in reaching millennial mothers. “They also appreciate authenticity, so it’s imperative for retailers who engage in cause marketing to align themselves with organizations that make sense.”
Millennial moms represent an estimated $23 billion in spending power and are a critical demographic for anyone looking to market home furnishings in today’s digital-centric retail environment.
However, this generation has grown up surrounded by marketing-speak and has highly evolved “spin” detectors. As a result experts advise against any claim or strategy that can be perceived as inauthentic.
“We’ve seen up to 30% revenue growth for companies when they integrate social impact into the DNA of their company,” said James Citron, CEO of Pledgeling, a tech firm that helps businesses connect with nonprofits. “Making a donation to a nonprofit with every product sold empowers the customer with the knowledge that they’re doing something good for the world. In turn, they become more loyal customers.”
There’s no one-size-fits-all approach to cause marketing, which can range from sustainably sourced materials and charitable contributions to sponsorships of environmental or social justice organizations. “It can even be as simple as dedicating a percentage of sales to a local-interest charity or program, like a food bank, animal shelter or green spaces project,” said Krista Fabregas, a retail analyst at New York-based FitSmallBusiness.com.
She noted that sustainably sourced manufactured goods represent a relatively simple way to make use of cause marketing, allowing products themselves to the story.
“Visit any buyers’ market in High Point, Atlanta, Dallas, Chicago, or Los Angeles, and you’ll find plenty of furnishings and home accessories manufacturers that market sustainable, eco-focused goods,” Fabregas said. “The materials tend to be on-trend, which is a sales plus, and these manufacturers already have a cause-focused story line that retailers can easily adopt and promote themselves. Retailers can take this a step further and dedicate a percentage of sales on these goods to specific local or broader eco-related programs.”
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