Millennials desire authenticity, are cause-oriented

New York--Though the Millennials were severely impacted by the recession, they remain an optimistic generation who will continue to spend, albeit with continued caution and control, a new report by Nielsen shows.

In “Millennials--Breaking the Myths,” Nielsen found that since Millennials have been particularly hard hit by the poor economy they have a higher “Misery Index”--measured by the unemployment rate plus inflation--than the older generations. This fact should not be forgotten when communicating with the generation.

Honestly and authenticity are the best ways to approach the communication, two factors which Millennials value in brands and companies. Companies should engage in a two-way conversation with them, especially on social media.

Their lower-than-average income also means that Millennials are more likely to live paycheck-to-paycheck. Though they want to buy the latest products and tend to make impulse buys, they have to find a balance with the money they actually can spend; Millennials make fewer shopping trips than their older counterparts but spend more per trip, $54 per trip versus $46 for baby boomers, the report showed.

They’re also intently focused on finding a good deal. Deals account for 31 percent of their shopping dollars, according to Nielsen. Additionally, the top 20 apps used by this generation are either retail or discount focused.

Despite the difficult situation they’ve had while coming of age, Millennials remain optimistic and ambitious. While 69 percent don’t feel like they currently earn enough to support the kind of lifestyle they’d like, 88 percent think they’ll be able to in the future.

They also care deeply about philanthropy, both from themselves and from the brands and products they’re buying. Despite a low income and unsteady financial situation, three-fourths of Millennials made a financial gift to a nonprofit in 2011. The report showed that they care most about education, poverty and the environment. 

They’re also more willing than the older generations to say they would spend more for goods and services from companies that have programs that give back to society. Caring about a brand’s social impact thereby makes cause-marketing appeal to this generation, Nielsen emphasized.

Being the social generation that they are, they also will spread the word to their networks about the causes and events that they care about. This constant connection and conversation makes social media and mobile a very efficient way to communicate with them. As of the first quarter of 2013,