One of the biggest challenges for winery owners right now is knowing how to market to the next generations. So many wineries rely on Baby Boomers to buy their wine and join their wine clubs.
Right now, most wine is consumed by Baby Boomers. But it’s not going to stay that way.
And, as you know, relying on current sales and current customers is a recipe for fizzling out. Your business can’t just be profitable. It’s also got to be sustainable.
An article in Wine Spectator quotes Rob McMillan, senior VP of Silicon Valley Bank’s wine division:
“We have 10,000 [Baby] Boomers a day that are hitting retirement. And they’re being replaced by financially disadvantaged people. The tradeoff isn’t good.”
Here’s what’s happening.
By 2021, Generation X will take the lead in wine consumption. However, this won’t last long because Gen Z is made up of only around 50 million people, compared to the 75 million Baby Boomers and 80 million Millennials.
So just five years later, in 2026, Millennials are reported to become the largest generation of wine drinkers.
Are you ready for this huge shift?
The average wine consumer will change drastically over the next eight years. And this isn’t bad! It just means your marketing strategy will have to evolve, too.
How to market to Millennials
Millennials, born between 1981 and mid-1990’s, are different than previous generations mainly because of their preference for all things digital.
While Baby Boomers and Generation X grew up with traditional media talking at them – Billboards, radio, TV – where there was zero interaction between brands and consumers, Millennials grew up in the digital age. They expect interaction and a personalized experience.
Think of a dinner party where the person next to you talks about themselves the entire time and never asks you a question. This is how Millennials view most brands.
Now think of the same dinner party where the person next to you asks you questions, and you also ask questions, and it leads to a conversation. This is a much more enjoyable dinner party for all involved. This is how Millennials want their experiences with brands to be, in real life and online.
In terms of marketing, this means shifting from conventional advertising to content marketing strategies like email marketing and content creation.
Here’s another way to think about it: There’s a marketing saying, “Know me. Like me. Trust me. Buy from me.”
Each generation goes through these marketing stages in a different way.
Thirty years ago, it was about getting people to come into a physical store to make a purchase. Their customer journey went something like this: A consumer found out about companies through newspaper ads, television, billboard or radio, then went to the store, talked to the salesperson about the product, bought the product, and used it. The product worked, so they became repeat buyers.
Since Millennials are so digitally focused, they want this same customer journey to play out online.
Brands need to think of the entire online customer journey, so that customers can know their brand, like them, trust them and ultimately buy.
Who are Millennials?
For a host of cultural and historical reasons, Millennials prefer to spend their money on an experience or an event, not just a product. They’re socially conscious and prefer to collaborate with others and with brands (which is why social media is so important to this generation).
They’re idealistic, inclusive and want everybody to win.
Their favorite way to communicate is by text or messaging. When making purchases, this generation is heavily influenced by social media ratings, friend’s thoughts, reviews, and recommendations.
Convenience is King for Millennials. If they see a photo of a product, they expect that they can immediately purchase it online.
This generation is also all about loyalty, and they want to be rewarded for it. They love loyalty programs and subscription boxes. Millennials are about twice as likely to use a subscription service as other generations.
Why it’s tricky to reach Millennials
First, on average, Millennials have about a 12-second attention span.
Secondly, traditional forms of advertising just don’t work with Millennials.
Remember the dinner party? Billboards and TV commercials are the dinner guests who won’t stop talking at them.
Millennials particularly hate aggressive sales pitches, traditional media, and long-form content.
How to target Millennials
If you’re targeting Millennials in your marketing campaigns (which you will be, sooner or later), host events that will increase interaction, like live events, experiences and online contests.
Build a loyalty program.
Make sure your brand is on review sites like Google Business and Trip Advisor, and respond to all reviews (yes, both good and bad!).
We often tell our clients that video produces more online conversions than any other content, across multiple generations. Millennials consume video across several social media channels, including Instagram and YouTube.
Millennials are socially responsible and prefer to research online before making decisions. This is good news for marketers: Brands can make sure they engage with ratings and reviews to foster relationships while communicating benefits online.
Optimize your mobile experience. Make sure your website is responsive. All generations are using their smartphones more and more for their web experience.
Use email marketing consistently. Email marketing is the most personal and cost-effective way to market to your audience online. To better deliver a customized experience, segment your email list into different age groups and market different content to different users.
Another key tool for these younger generations is for brands to work with Influencers. They often require a flat fee or a percent of commissions for users using their code at checkout. They tell their fans about your product and off giveaways or contests with your product. Building a relationship with an influencer is important and should not be a one time thing.
Here’s the gist.
Millennials want to have a conversation with your brand online, not just be talked at.
Brands need to consider the online customer journey across all web and social media platforms.
Rather than shying away from this next generation, think about how you can build community online and create a brand that younger generations can interact with, know, like, trust and buy from.
Not sure if you’re poised to attract Millennials?