Deal or No Deal?
A look into how companies are using social discounting to penetrate the millennial generation
The numbers don't lie -- the "spend now, think later" Millennial generation (born 1980-1995) is fueling the social media boom. In a Pew Research study, 67 percent of technology specialists anticipate that Millennials will continue online sharing as they grow older. In a JWT Intelligence study, survey responses indicate 70 percent of Millennials act when presented with a limited time discount offer. These intersecting trends have implications worthy of consideration by consumer focused companies, as Millennials broadcast offers via social networking at a rapid pace to a large and tech-savvy audience (47 percent of Millennials share product experiences on social media sites).
A recent Duke survey of 249 U.S. companies' CMOs validates the growth as results indicate companies will likely increase their spending on social media from 7.1 percent of their overall marketing budget to 17.5 percent in five years. So how can consumer-based companies use their social media spend to cash in on the trend of sharing via social networking and better penetrate the Millennial market? Why should they use emerging social discounting sites and mobile applications, such as Groupon, LivingSocial and Scoutmob, to target Millennials? How can companies decide if this is the right deal at the right time for them?
By embracing the social discounting trend and monitoring responses through social media tools, companies can proactively manage the dialogue with tech-savvy Millennial consumers.