Move over Boomers and make way for the Millennials. Born between 1980 and 2000, this group of 80 million consumers is charged with potential. They earn a total annual income of $211 billion and spend $172 billion per year. In 2010, it's projected that Millennials will have more economic influence than any age group.

The Millennials include consumers in their upper 20s with money to spend. The older segment of this demographic falls into the first-time homebuyer category and is a prime target for kitchen and bath remodeling and design projects. Because of the federal legislation passed this year, including the economic stimulus package and the 2009 American Recovery and Reinvestment Act, the Millennials are best poised to enter the housing, remodeling and kitchen and bath marketplace with unprecedented advantages including:

• The lowest mortgage loan rates in the past 15 years

• An $8,000 tax credit for first-time homebuyers

• A 30 percent energy tax credit (up to $1,500) for energy-saving projects completed in 2009 and 2010, including replacement windows and doors, roofs, insulation and water heaters

• Relatively unscathed emergence from the economic crisis as their exposure in the stock market was minimal

From a housing perspective, we've already felt this group's influence. In the first quarter of 2009 alone, first-time homeowners accounted for 65 percent of the total number of U.S. home sales. As k & b industry professionals, why should you reach out to Millennials? Simply stated, they will significantly impact your bottom line today and over the course of the next 20 years.


MILLENNIALS DEFINED

Millennials' central character traits include being optimistic, confident, open-minded, technologically advanced, community-minded, achievement-oriented, sociable, highly educated, collaborative, motivated and resourceful. They have always felt preferred, needed and important. Their boomer parents' child-rearing style taught them to be interdependent and to "start achieving now!" Their world revolves around a strong focus on family, multiculturalism and globalism. This generation experienced firsthand the tragedies of the Oklahoma City Bombing, the Columbine shootings and the catastrophic events of 9/11.

The first digital generation, they comfortably surf the web with lighting speed, download file-sharing music for their iPods and message each other on Facebook instead of dialing their friends' 10 digits. They blog and they pay their bills and balance their checkbooks online. They have the latest tech gadgets and use them as their connection to daily life. The Pew Internet & American Life Project summed the Millennials up perfectly when it described them as "digital natives in a land of digital immigrants."


BUYING HABITS

Surprise, surprise! Millennials research and purchase products and services online. When shopping, this group performs thorough research before they purchase. They read online reviews, peruse company websites, blog about and read other blogs to research products and services, and conduct online comparison shopping. They rely heavily on their friends (online communities and social networks count!) and parents for advice in the decision-making process. "They've never known life without a computer—they can take in 20 hours' worth of information in seven hours," said Nancy Kramer, CEO of Resource Interactive in an article for Time magazine. "There isn't a brand or a trend they aren't aware of."

Used to processing large amounts of online information and being the most advertised-to generation in history, this generation is also resistant to "traditional" forms of marketing and advertising. In a survey, "How prepared are companies for the millennial consumer?" conducted by Economist Business Intelligence, it was found that: "When it comes to purchasing products and services, corporate reputation and brand are less important to Millennials than peer recommendation and viral marketing. Millennial respondents also said it is convenience—more than price—that drives their purchasing decisions."

The survey further concluded that Millennials seek "customization, fast and reliable service, frictionless interaction, personalization and 'cool' as motivating factors." They seek companies that value them, listen to them and think progressively. They prefer companies that are community-minded, give back to charities and causes, and are environmentally friendly and dedicated to sustainability.


HOW TO MARKET

Though many and influential, Millennials are disjointed, difficult to reach and far less easily influenced than previous generations. Media conduits, such as discussion forums, blogs and social networks, are adding to the challenge of targeting this highly elusive group, which is sophisticated, skeptical and alert to marketing tricks. With that said, it's essential to business success to reach out to Millennials where they engage with companies—the Internet and social media channels.

To appeal to them, provide community-based networks that enhance their online experiences, and allow for peer validation and greater choices in customizing products and services. Think conversation, engagement and relationship building. Are Millennial consumers reading your blog, interacting on your website, evaluating your comparative information and engaging in conversation with your company? It's all about having a discussion with Millennials and most importantly, listening and responding to what they have to say.

Because Millennials conduct exhaustive research prior to making purchasing decisions, provide them with an abundance of information and enrich the interactive buying experience. Encourage online sharing and provide comparative information. Consider personal web portals on your company website, web-based support and live online chats to provide them with information and enhanced customer service options. Also of note, this group responds to humor, irony and direct messaging. Millennials do not respond well to irrelevant messages, so ensure your marketing speaks to them in their language.

Entice and entertain them without slowing them down. Focus on value, convenience and accessibility. Offer loyalty incentives through contests and promotions. They are a generation of upgraders, so stay on top of technological advances in the marketplace. Provide them with multiple options and flexibility.

And most importantly, empower them to buy your brand.


—Steven Kleber is president and founder of Kleber & Associates, Marketing and Communications (K&A) in Atlanta. K&A specializes in the home improvement marketplace, working in partnership with a variety of clients, including KWC America, VitrA USA, Gerber Plumbing Fixtures, Mr.Steam, DreamMaker Bath & Kitchen, the SEN Design Group and Craft-Art Wood Countertops, among others. Kleber is the immediate past president of the National Kitchen & Bath Association’s Center for Kitchen and Bath Education and Research (CKBER) and frequently speaks on consumer behavior and trends at key industry events.