The Millennial Consumer (Boston Consulting Group) - AB12

The Millennial Consumer
Debunking Stereotypes

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the center has amassed a rich set of proprietary close collaboration at all levels of the client
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The Millennial Consumer
Debunking Stereotypes

Christine Barton, Jeﬀ Fromm, and Chris Egan

April 

AT A GLANCE

Little has been written about U.S. Millennials as consumers. With this generation’s
peak spending years fast approaching, forward-looking companies need to create
effective strategies for winning its business.

THE RISK OF STEREOTYPING
Non-Millennials tend to view the Millennials a “lazy” or an “entitled” generation.
These dismissive attitudes can prevent companies from understanding and fully
addressing Millennials’ needs—and establishing strong brand relationships.

GENERATIONAL ATTITUDES AND BEHAVIORS
Beyond U.S. Millennials’ widely recognized affinity for technology, our research
identified other distinct behaviors and attitudes, each with implications for compa-
nies and their brands.

STAYING ON TOP OF THE TRENDSETTERS
Millennial attitudes are early indicators of more widespread future trends. Compa-
nies that pay attention today can gain valuable insights into tomorrow’s opportuni-
ties and get a head start on capturing a larger share of the Millennial wallet.

 T M C

M  , U.S.  boomers. The Millennial generation is bigger than you
and growing in influence. (See Exhibit 1.) Now numbering 79 million (com-
pared with the boomers’ 76 million), U.S. Millennials—people between the ages of
16 and 34—have been the subject of abundant analysis and commentary, mostly
revolving around their avid use of technology, changing media-consumption habits,
and entry into the workforce. Less has been written about Millennials as consum-
ers. How do they interact with brands? Where do they eat and shop? How do they
make buying decisions, and what factors influence their opinions and choices? Is it
true that Millennials consume less than previous generations? On average, U.S.
Millennials already shell out and influence the expenditure of hundreds of billions
of dollars annually—an amount that will only increase as they mature into their
peak earning and spending years.

Millennials’ expectations are different from those of previous generations, and
companies will need to rethink their brands, business models, and marketing
accordingly. Yet our research shows that many executives who make product and
service decisions for their companies have negative or dismissive attitudes toward
Millennials. Clearly, companies will have to understand, accept, and embrace the

E  | U.S. Millennials Will Outnumber Non-Millennials by
22 Million by 2030
Age 2011 2030
85–89
80–84
75–79 Boomers (66–84)
70–74 56 million
65–69
60–64
Boomers (47–65)
55–59
50–54 76 million
45–49 Millennials (35–53)
40–44 78 million
35–39
30–34
25–29 Millennials (16–34)
20–24 79 million
15–19
10–14
5– 9
<5
1 0 1 1 0 1
Population (millions)
Men Women
Source: U.N., Department of Economic and Social Affairs.

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characteristics and values of this generation if they are to create and market
relevant products and services that resonate with them and meet their needs.

Although the youngest members of the Millennial generation are still economically
dependent on Mom and Dad, older Millennials are beginning to enter their peak
spending years. While they are not yet set in their ways, they are forming preferen-
ces, exhibiting tendencies, and influencing one another’s opinions and behaviors.
This generation engages with brands, channels, and service models in new ways
limited only by the rate of technological advancement and innovation.

To better understand this generation, The Boston Consulting Group, along with
Barkley and Service Management Group, surveyed 4,000 Millennials (ages 16 to 34)
and 1,000 non-Millennials (ages 35 to 74) in the United States. A key goal of this
research was to identify how behaviors and attitudes differ between the two groups
Companies that truly and determine which of those differences are truly generational characteristics of
“get” the Millennials Millennials—and not merely qualities associated with youth in general. We extend-
and engage with them ed the broadly accepted definition of “Millennial” a few years beyond the upper
appropriately can end of the age range in order to capture the pivotal years during which Millennials
differentiate them- transition to the next stage of life. This allowed us to gain greater insights into
selves in the market- which of their attitudes and behaviors might change later in life and how.
place and forge
long-term relation- The first of two reports, this overview of Millennial consumers explores who they
ships with their are today and what they think of themselves and the world around them. We’ll also
customers. examine the six different segments of U.S. Millennials that our research revealed. In
our second report, we’ll delve deeper into the industry sectors and categories that
the survey addressed, such as how the members of this generation shop for apparel
and groceries, where they eat out, how they travel, and their favorite brands rela-
tive to non-Millennials.

The Risk of Stereotyping
Our survey asked U.S. Millennials and non-Millennials which words best describe
the Millennial generation. While Millennials’ perceptions of themselves are gener-
ally favorable, non-Millennials tend to view them far less kindly, oen referring to
them as “spoiled,” “lazy,” or “entitled.” (See Exhibit 2.) These perceptions may be
coloring how executives view the Millennial consumer, preventing companies from
understanding and fully addressing the product and service needs of this genera-
tion—and establishing strong brand relationships.

We found a generation engaged in consuming and influencing, one that embraces
business and government and believes that such institutions can bring about global
change, one that is generally optimistic, and one that has oen-unexpected atti-
tudes and behaviors. Those companies that truly “get” the Millennials and engage
with them appropriately have an opportunity to differentiate themselves in the
marketplace and forge long-term relationships with their customers.

Our research did confirm one stereotype: U.S. Millennials are extremely comfort-
able with technology. They are “digital natives,” meaning that they’ve largely grown
up with technology and social media, using these new tools as a natural, integral

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E  | U.S. Millennials View Themselves More Positively Than
Non-Millennials Do
U.S. Millennials U.S. Non-Millenials
Hardworking greedy connected unmotivated educated
rude
iPod
fresh rock pop grunge carefree
open-minded free apathetic responsible

awesome party
entitled crazy
computers happy
connected money
independent
good digital
lazy
driven wild
ambitious
dumb
rock
independent
smart
social wild
Internet
wise entitled gamers
tech-savvy irresponsible
tech-savvy
driven conservative confident
hippies awesome
creative motivated
Internet
computer
rude
dependent
intelligent
music lucky
ambitious fun immature green loving
cool
hippies green
friendly
consumers

innovative
interesting
young
fun hardworking
groovy
entitlement
crazy lost
innovative
impatient
advanced
creative
great
coolspoiled lazy social work hip
music
poor kids
punk unemployed debt materialistic trendy
alternative
motivated
smart centered liberal naive confident
good electronic selfish self-centered
y2k
young boring
selfishunique
hip liberal
intelligent trendy
energetic
disrespectful spoiled
Source: BCG analysis.
Note: Size of word indicates frequency of response.

part of life and work. Millennials consider themselves fast adopters of new technol-
ogies and applications, and they are far more likely than non-Millennials to be the
very first or among the first to try a new technology. They also tend to own multiple
devices such as smartphones, tablets, and gaming systems. More U.S. Millennials
than non-Millennials reported using MP3 players (72 percent versus 44 percent),
gaming platforms (67 percent versus 41 percent), and smartphones (59 percent
versus 33 percent), while more non-Millennials reported using desktop computers
at home (80 percent versus 63 percent) and basic cell phones (66 percent versus
46 percent). As a result, U.S. Millennials are much more likely to multitask while
online, constantly moving across platforms—mobile, social, PC, and gaming. Millennials are far
more engaged than
Both groups spend roughly the same amount of time online, but Millennials are non-Millennials in
more likely to use the Internet as a platform to broadcast their thoughts and rating products and
experiences and to contribute user-generated content. They are far more engaged services and upload-
in activities such as rating products and services (60 percent versus 46 percent of ing videos, images,
non-Millennials) and uploading videos, images, and blog entries to the Web and blog entries to
(60 percent versus 29 percent). the Web.

It’s no surprise that U.S. Millennials spend less time reading printed books and
watching TV. Only 26 percent watch TV for 20 hours or more per week (compared
with 49 percent of non-Millennials), and when they do watch, they’re more likely to do
so on their computers through services such as Hulu (42 percent versus 18 percent).

Generational Attitudes and Behaviors
Beyond Millennials’ widely recognized affinity for technology, our research identi-
fied a variety of unique behaviors and attitudes that these individuals are likely to
bring to their next life stages.

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“I want it fast, and I want it now.” U.S. Millennials are all about instant gratifica-
tion. They put a premium on speed, ease, efficiency, and convenience in all their
transactions. For example, Millennials shop for groceries at convenience stores
twice as oen as non-Millennials. They also value getting through the line quickly
in so-called fast-casual restaurants (upscale fast-food chains without table service,
such as Chipotle) (81 percent versus 71 percent) and care relatively less about
“friendly” service. This preference for efficiency is even reflected in how they
participate in causes. Of Millennials who make direct donations (34 percent),
almost half donate through their mobile devices (15 percent), compared with only
5 percent of non-Millennials. To meet the expectations of this generation, compa-
nies will need to rethink their existing customer-service models. These consumers
are always in a hurry, and it’s critical to determine how you can get them to spend
time developing a relationship with your brand.

“I trust my friends more than ‘corporate mouthpieces’.” For this generation, the
definition of “expert”—a person with the credibility to recommend brands, prod-
ucts, and services—has shied from someone with professional or academic
credentials to potentially anyone with firsthand experience, ideally a peer or close
friend. U.S. Millennials also tend to seek multiple sources of information, especially
from noncorporate channels, and they’re likely to consult their friends before
making purchase decisions. For example, more Millennials than non-Millennials
reported using a mobile device to read user reviews and to research products while
shopping (50 percent versus 21 percent). “Crowd sourcing”— tapping into the
collective intelligence of the public or one’s peer group—has become particularly
popular. The reach and accessibility of social media have amplified the voice of
individual consumers. Now anyone can become an expert. Messages that resonate
are quickly spread and reinforced through user reviews and other online forums.
Given this new reality, companies must monitor what is being said about their
brands and participate in the conversation, especially since Millennials are much
more likely than non-Millennials to explore brands on social networks (53 percent
While the right versus 37 percent). It may also be time to reevaluate whether current brand endors-
brand advocates ers are credible and effective with this audience, because while the right brand
can be very influential advocates can be very influential, the wrong ones can be detrimental.
with Millennials, the
wrong ones can be “I’m a social creature—both online and offline.” Although both generations
detrimental. value personal connections, U.S. Millennials use technology to connect with a
greater number of people, more frequently, and in real time. Millennials use
social-media platforms more than non-Millennials (79 percent versus 59 percent),
and they maintain significantly larger networks: 46 percent have 200 or more
“friends” on Facebook, compared with 19 percent of non-Millennials. Millennials
feel that they are missing out when they’re not up to date with social-media chatter,
and they feel validated when the community “likes” their posts. When it comes to
making purchases, Millennials are far more likely than non-Millennials to favor
brands that have Facebook pages and mobile websites (33 percent versus
17 percent). They overwhelmingly agree (47 percent versus 28 percent) that their
lives feel richer when they’re connected to people through social media.

This desire for connection and shared experience also extends offline. Millennials
are much more likely than non-Millennials to engage in group activities—especially

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with people outside their immediate family. They dine, shop, and travel with
friends and coworkers, to whom they look for validation that they’ve made the right
decisions. This can be good news for retailers and restaurants, since groups of
consumers tend to spend more money than people who are by themselves. Smart
companies are using location-based shopping services such as Foursquare and
Shopkick to capitalize on this trend.

“I can make the world a better place.” The generation that was taught to recycle U.S. Millennials are
in kindergarten wants to be good to the planet and believes that collective action more likely than
can make a difference. Millennials believe that working for causes is an integral non-Millennials to
part of life, and they are drawn to big issues. Instead of making one-off charitable purchase items
donations in cash or in kind, they’re more likely to integrate their causes into daily associated with a
life by buying products that support sustainable farming or “fair trade” principles, particular cause.
or by joining large movements that aim to solve social or environmental problems.
Our survey found that Millennials, more than non-Millennials, prefer to actively
engage in a cause campaign by encouraging others to support it (30 percent versus
22 percent) or by participating in fundraising events (27 percent versus 16 percent).

U.S. Millennials are receptive to cause marketing and are more likely than non-
Millennials to purchase items associated with a particular cause (37 percent versus
30 percent). Millennials expect companies to care about social issues and will
reward those that partner with the right causes. Recent examples of successful
campaigns are Nike’s Livestrong campaign and the Nike(Red) “Lace Up, Save Lives”
campaign to fight HIV/AIDS in Africa. Despite this affinity for causes, the great wave
of volunteerism that was generally expected of this generation has not material-
ized. Millennials are only slightly more likely than non-Millennials to volunteer
their time (31 percent versus 26 percent), a difference that is likely a function of
more free time rather than a greater commitment to social issues. Indeed, the word
“slacktivism” was coined to describe the sort of engagement in a cause that re-
quires little personal effort.

Other key Millennial beliefs and attitudes that our survey revealed were a general
egocentrism beyond what would be expected of young people, a global viewpoint,
and overall tech-savviness. We also discovered two attitudes that appear to be more
life-stage specific: a tendency to live in the moment and to make decisions at the
last minute, as well as a desire to leverage the resources of large entities—such as
government—to change the world rather than to act alone.

Not Your Typical Millennial: Disparate Personalities
Despite these shared beliefs and attitudes, U.S. Millennials are by no means homo-
geneous. On the basis of their responses to questions about technology, cause
marketing, media habits, and general outlook on life, we identified six distinct
segments within the Millennial population: Hip-ennial, Millennial Mom, Anti-Mil-
lennial, Gadget Guru, Clean and Green Millennial, and Old-School Millennial. (See
Exhibit 3.) Each one exhibits Millennial traits in varying degrees and combinations.

For instance, Marcus typifies the Clean and Green Millennial. He’s a 27-year-old
graduate student with his own blog on the benefits of green living. He spends a lot

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E  | U.S. Millennials Comprise Six Distinct Segments

Hip-ennial Gadget Guru
“I can make the world a better place.” 29% 13% “It’s a great day to be me.”
• Cautious consumer, globally aware, • Successful, wired, free spirited,
charitable, and information hungry confident, and at ease
• Greatest user of social media but • Feels this is his best decade
does not push/contribute content • Greatest device ownership, pushes/
• Female dominated, below-average contributes to content
employment (many are students • Male dominated, above-average
and homemakers) income, single

Millennial Mom Clean and Green Millennial
“I love to work out, travel, and “I take care of myself and the world
pamper my baby.” 22% 10% around me.”
• Wealthy, family oriented, works out, • Impressionable, cause driven, healthy,
confident, and digitally savvy green, and positive
• High online intensity • Greatest contributor of content,
• Highly social and information hungry usually cause related
• Can feel isolated from others by her • Male dominated, youngest, more
daily routine likely to be Hispanic, full-time
• Older, highest income student

Anti-Millennial Old-School Millennial
“I’m too busy taking care of my business “Connecting on Facebook is too impersonal,
and my family to worry about much else.” 16% 10% let’s meet up for coffee instead!”
• Locally minded, conservative • Not wired, cautious consumer, and
• Does not spend more for green charitable
products and services • Confident, independent, and self-
• Seeks comfort and familiarity over directed
excitement/change/interruption • Spends least amount of time online,
• Slightly more female, more likely to reads
be Hispanic and from the western U.S. • Older, more likely to be Hispanic


of time online updating his blog and uploading articles and studies that support his
opinions. He is a healthy eater and sees himself as an expert on green products,
oen taking time out of his day to rate environmentally friendly products and
services. Charity work matters to him. He not only volunteers his own time, but also
encourages his friends and families to support his causes.

Another example is Amy, a 28-year-old Millennial Mom and brand manager at Procter
& Gamble. The Internet is her go-to source for daily information. She relies on online
publications and social media to keep current on digital-marketing trends. When
planning the week’s dinners, she finds new recipes and menu ideas online, and she
shops Amazon Mom for deals on diapers and baby formula. She cares about staying in
shape and exercises at least three times a week—oen using her Wii Fit—and uploads
data from her Fitbit. She uses Google Maps on her iPhone to find her way around and
dreams of visiting foreign countries with her family one day.

Understanding and recognizing these distinct segments and their nuances is
essential for companies that hope to develop effective product offerings, marketing
campaigns, channel strategies, and messaging. A one-size-fits-all effort will fail to
connect with every Millennial segment.

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Staying on Top of the Trendsetters
So what does all this mean for companies and their brands? For some, a fundamen-
tal reinvention may be in order. For instance, brands that target teenagers, college
students, or young adults may have to be rethought for each successive generation.
In other cases, companies may need to ﬁgure out how to introduce their brands to
Millennials at the appropriate life stage. And for others still, reaching Millennials
may simply require more relevant and resonant marketing messages. Some
brands—such as Nike and Sony—are favorites among U.S. Millennials and non-
Millennials alike and must try to remain so. Others, such as Target and Apple,
appear to have a particular edge with Millennials. (See Exhibit 4.)

E  | Many Favorite Brands Are Shared by Both Generations

U.S. Millennials U.S. Non-Millenials

Olive Garden
Honda Sony Sony Ford
Covergirl Honda

Nike
Samsung Levi’s
Reebok Olive Garden
Amazon Amazon
Target
Old Navy Wal-Mart HP Old Navy
Lowe’s
Abercrombie & Fitch Apple
Nike
American Eagle
Vans Microso Target Outback
McDonald’s
Ford Dell Chevy
Forever 21 Best Buy Wal-Mart Adidas Red Lobster

Apple Adidas Home Depot Dell Toyota Applebee’s

HP
Toyota Samsung Best Buy
Covergirl Nintendo New Balance

Note: Size of word indicates frequency of response.

Mindful of the value and opportunities that Millennials present, forward-looking
companies are planning ahead and taking action. In the area of marketing,
content and delivery platforms already reflect the Millennial influence. Compa-
nies in the financial services and travel industries are beginning to rethink their
business models and offerings, particularly where capital investment is involved.
American Express, for instance, has already set up a digital-payment platform as
an alternative to traditional credit cards to attract the under-35 demographic.

Amex has also partnered with Facebook, Twitter, and Foursquare to move beyond
its older, more affluent customer base. Many companies are setting up Millennial
advisory boards, changing their organization structures, and creating new in-
house groups to focus on Millennials. Other businesses are reevaluating their
service models, retail formats, and delivery channels in light of the needs and
interests of this generation. And companies that must maintain their core while
refreshing their franchise are experimenting with entirely new brands or lines of
business.

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N -M   examine their own attitudes toward the
Millennials. Companies that fail to understand and embrace the needs and
characteristics of this generation will have a hard time developing well-targeted,
appealing products and services. Some may argue that the peak spending years of
the Millennials are far enough in the future that companies can take their time in
developing products and services that will appeal to them. But we believe that
staying on top of Millennial trends is critical because they will ultimately inﬂuence
today’s big spenders, the 35- to 74-year-old non-Millennials. Millennial attitudes in
such areas as media consumption, social-media usage, advocacy and cause market-
ing, marketing messages, and shopping technology are leading indicators of future
trends. Companies that pay attention today can gain valuable insights into tomor-
row’s opportunities—and get a head start on capturing a larger share of the
Millennial wallet.

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About the Authors
Christine Barton is a partner and managing director in the Dallas office of The Boston Consulting
Group. She is the lead advisor for the Americas to BCG’s Center for Consumer and Customer In-
sight. You may contact her by e-mail at barton.christine@bcg.com.

Jeff Fromm is an executive vice president at Barkley and the founder of Share.Like.Buy, a Millen-
nial marketing conference (www.sharelikebuy.com). You may contact him by e-mail at jfromm@
barkleyus.com.

Chris Egan is the chief operating officer at Service Management Group. You may contact him by
e-mail at cegan@smg.com.

Acknowledgments
The authors would like to thank Dominic Field, Catherine Roche, Kate Sayre, Miki Tsusaka, Steve
Knox, Kate Manfred, Carrie Perzanowski, Neal Rich, Lainie Decker, Sean Bramble, and especially
Cheryl Uynicky. They are also grateful to Courtney Lee Adams, Martha Craumer, Angela DiBattista,
and Gina Goldstein for contributions to the writing, editing, design, and production of this report.

For Further Contact
If you would like to discuss this report, please contact one of the authors or one of the following:

Catherine Roche
Partner and Managing Director
BCG Toronto
+1 416 955 4200
roche.catherine@bcg.com

Dominic Field
Partner and Managing Director
BCG Los Angeles
+1 213 621 2772
field.dominic@bcg.com

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To ﬁnd the latest BCG content and register to receive e-alerts on this topic or others, please visit bcgperspectives.com.

Follow bcg.perspectives on Facebook and Twitter.

© The Boston Consulting Group, Inc. 2012. All rights reserved.
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