At 88 million strong, Millennials (ages 26-41) are now the largest adult population in the world. And with a reported spending power of $30.2 billion, they’ve proven themselves to be a formidable demographic in the alcoholic beverages industry. In fact, Millennials were the driving force behind many of the recent industry changes, such as the RTD explosion, the tequila takeover, and the recent influx of wellness-inspired ingredients, just to name a few.
Millennials are unique in their preferences, especially in comparison to their older and younger counterparts. They tend to be more open-minded and adventurous in their alcohol purchases, and not as brand dependent as older generations. They also prefer quality over quantity and are willing to spend more to get it.
To effectively tap into this lucrative market, on- and off-premise businesses need to adapt their marketing to appeal to the evolving tastes and preferences of Millennial drinkers. Let’s look at six strategies to help you do exactly that.
1. Embrace Authenticity and Storytelling
Millennials value authenticity above all else. As well-educated, savvy consumers, they aren’t afraid to use their tech skills to dig underneath a business's surface-level presentation and will quickly pass on anything that seems false or dishonest. They prefer to support businesses with a genuine story they can connect with on a human level.
You can leverage these preferences by highlighting the stories behind the products you sell. This might look like inviting knowledgeable brand representatives or beverage producers (talk to your SG rep for help making connections!) to host special tasting or educational events; educating your servers or salespeople on the heritage and craftsmanship behind the products you offer; or investing in dedicated marketing or promotional campaigns that focus on brands with strong personal stories.
2. Curate Unique Experiences
Millennials want more than just a good drink; they want an experience. Events such as mixology masterclasses, themed spirit tastings, wine pairing events, etc. are great options to entice Millennials with hands-on learning. Other ideas to consider are holiday parties, murder mystery nights, live performances, books n’ brunch, battles of the bartenders… and the list goes on. There’s no shortage of fun, creative ways to offer interesting, exciting experiences.
As an added bonus, events can create buzz and generate social media-worthy moments that Millennials are likely to share with their networks, giving your business an extra marketing boost.
3. Lean into Social Media
Speaking of social media, you can’t effectively market to Millennials without it. As digital natives, social media plays a significant role in their lives, and about 75% of Millennials say a company's social media presence impacts their purchasing decisions.
Maintaining a strong, active presence on platforms like Instagram, Facebook, TikTok, and/or YouTube is essential. It’s well worth your time to learn how to do social media well—or hire someone who can—to build a loyal online community.
Focus on lively, engaging content, such as cocktail recipes, behind-the-scenes glimpses, contests and promotions, user-generated content, and high-quality photos. Video tutorials can also be leveraged to generate in-depth opportunities for education and engagement, such as the story behind a brand and how it can be enjoyed, at-home cocktails or pairing recommendations, etc.
4. Personalize the Customer Experience
While Millennials might shy away from heavy-handed marketing, they do appreciate high-touch, personalized buying experiences, such as loyalty programs that offer exclusive discounts, personalized recommendations based on previous purchases, or customized cocktail or wine menus.
If you aren’t already, now’s the time to start using data analytics and CRM systems to help you create tailored offerings and strengthen rapport with your customers. Technology can also help you provide the fast, convenient service Millennials expect; so don’t hesitate to utilize tools like mobile ordering or reservations apps.
5. Foster Community
Millennials prioritize connection and actively seek opportunities to engage with their community. By hosting social gatherings, supporting local performers, partnering with neighboring businesses, and participating in local festivals and events, you can position your establishment as a thriving community hub. Make the effort to foster a vibrant, welcoming atmosphere, and you’ll attract Millennial consumers who aren’t merely looking for a place to drink, but also a space to connect with like-minded individuals.
6. Emphasize Sustainability and Social Responsibility
More and more businesses are making sustainability and social responsibility a core part of their identity. A move that makes sense, given the fact that Millennials are increasingly conscious of the environmental and social impact of their product choices, and willing to spend more to support brands and businesses that align with their values.
You can capitalize on these preferences by offering a robust array of brands and products that align with these values. Make sure your staff is well-versed with such products and can speak about them knowledgeably.
You might also consider partnering with charitable organizations or community non-profits or dedicating a portion of profits to causes that resonate with your Millennial customers.
By implementing even just a few of these strategies, you can do a lot to create meaningful connections and expand your reach with Millennial customers. They’re a demographic that isn’t afraid to offer their feedback, so don’t hesitate to solicit their opinions and ideas along the way.
