How to Successfully Market Your U.S. Business to Millennials, Gen Z

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Millennials, born between 1981 and 1996, and Gen Z, born between 1997 and 2012, have an awful lot of cash to splash.

The former, with a population of over 70 million, boasts an annual buying power of $2.5 trillion and is expected to overtake baby boomers as the new power spenders within the next year. Gen Z-ers, meanwhile, with a population of 65 million, has $360 billion in disposal income — a figure that has doubled in the past three years.

Any business would be delighted to tap into this huge customer base. But winning over the hearts and minds of these generations is easier said than done. A recent study conducted by the McCarthy Group, for example, found that 84% of millennials don’t trust traditional advertising, while 58% of Gen Z-ers have admitted to not trusting big companies, period.

One possible way to tap into the psyche of these younger consumers is to emphasize products being “American-made.” As many organizations look to reshore their operations in a post-pandemic world, “Made in the U.S.” labels are cropping up on more and more products — and that’s certainly something worth promoting.

Below, we explore some of the reasons why millennials and Gen Z are so eager to purchase “American-made” products and advise on how to effectively market these benefits to the consumer.

Why Do Millennials and Gen Z Want “American-made” Products?

Here are four reasons millennials and Gen Z-ers are eager to get their hands on “American-made” products.

1. Carbon Footprint

Overseas manufacturing has a significantly higher carbon footprint thanks to the additional packaging, shipping, and warehousing required before products or components reach their end customer. Not only does a shorter journey mean fewer carbon emissions, but manufacturing regulations regarding the environment may be more stringent in the U.S. 

Millennials and Gen Z are mindful of these factors and keen to shop with sustainable brands. A study from Nielsen, for example, found that 73% of millennials will spend more on a product from a socially conscious brand. 

Research from the World Economic Forum shows that Gen Z cares more about sustainable buying decisions than brand names. Furthermore, Gen Z is actively inspiring other age groups to act more sustainably.

2. Supply Chain Transparency

Supply chain transparency is another top concern for socially-minded shoppers. When organizations outsource their operations overseas, it’s more difficult to keep track of human rights issues. Consumers want to be sure their products are being manufactured in a safe environment and that workers are being paid fairly and treated respectfully.

3. Supporting Small Businesses and the Local Economy

Since 2018, trust in big companies has fallen among both the Millennial and Gen Z generations. These shoppers are keen to connect with brands on a more personal level, have a clear understanding of a product’s origin, and support their local economies.

As many as 62% of millennials say they are spending more money with small businesses now than they did last year, and 72% say they are committed to supporting small businesses more in the future. Meanwhile, just 37% of Gen Z said they rely on large e-commerce sites, such as Amazon, compared to 67% of older generations.

Businesses looking to attract consumers of these generations should focus on what differentiates them from big corporations, whether it’s customization, excellent customer service, locally produced products, or job creation in the local area.

4. Personalized Services

Impeccable customer service and the option for customized or personalized products are two factors that really matter to millennials and Gen Z-ers. As many as 54% of millennials, for example, said they stopped doing business with a company as a result of bad customer service.

Smaller businesses have the option to build genuine and meaningful relationships with their local communities and quickly pivot or personalize their product offerings as desired by the customer.

How To Advertise to Millennials and Gen Z

Here are a few ways to target your millennial and Gen-Z customers:

• Social media marketing - 95% of millennials follow brands they like on social media and 97% of Gen Z use social media as their top source of shopping inspiration. Furthermore, 63% of millennials and 61% of Gen Z say they are more likely to support small businesses with a digital presence. If you want to build your millennial and Gen Z customer base, it’s vital that you create a meaningful and active online presence.
• Marketing automation – Investing in marketing automation technology will enable your business to target specific customers with specific messaging, increasing your conversion rates and ultimately driving more revenue for your business.
• Focus on user-generated content –  Millennials and Gen Z value authenticity, so why not leverage and amplify their voices in your marketing campaigns? As many as 82% of Gen Z said that peer reviews were extremely important to them when shopping online. Consider incentivizing customers to complete surveys or submit product reviews that you can use as part of your marketing materials.

At present, just 15% of small businesses are going to the trouble of creating targeted marketing campaigns for their millennial audiences. But investing in this largely untapped area could prove hugely beneficial for your organization — creating a loyal customer base, driving increased revenue, and improving your brand’s reputation.

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