With their collective buying power of more than $200 billion annually, millennials are the driving force of capitalism. Unsurprisingly, this very same power is making way for better things. They are leading the trend of “capitalism with a conscience”, in which they do away from being passive observers and instead demand a participation economy.
A Participation Economy
Participation economy is a community dynamic in which the consumers are given the power to contribute, co-create and shape the giving behaviours of brands they love. Cause marketing, non-profits and other charitable institutes, like Bountify, all take the millennial inclination for brands that give back to the community as part of their schemes.
Millennials aren’t only noted for being quick to embrace digital technology. They have also very quickly latched on the concept of brands making a difference. To illustrate, 87% of millennials donated to a non-profit in 2013 while 85% of them correlate their purchasing decisions and willingness to recommend to the brand’s social good efforts.
Doing Good While Doing Well
Companies with millennials as their target market — or even those who simply want to tap the potential of millennials as their market — can’t afford to ignore this generation’s profit-driven preferences. It doesn’t take a lot to integrate philanthropy in a brand’s business philosophy and to create social good through business.
Look at your consumers and explore what they value. Identify how your target niche wants you to make a difference, and then work it into your company’s business model. You can also consider giving your consumers the chance to collaborate by making it a co-op.
Give them a voice in your business and take the time to actually listen. Millennials not only want to see change, they want to be a part of it. The effort to appeal to consumers this way may just be the catalyst needed to take your business to the top.