A Strategy for Marketing to Millennials

With the above characteristics in mind, it's also important to note there's a huge polarization in the spending power of millennials. From a retail perspective, we can divide them into two groups.

The first group tends to be underemployed, buried in college loans, frugal and focused on savings, making them particularly interested in price and value. They use technology to comparison shop and research customer reviews to find the best deals.

The second group tends to be well-educated, employed, living without dependents and thus far less concerned about their financial security. They have money and they're ready to spend it! Convenience and location is their No. 1 priority when it comes to where to shop. They value variety, social experiences and saving time to enjoy the finer things in life. When they shop, they're looking for products with exceptional innovation and the best features.

With these trends in mind, here are six best practices you can implement into your business to better reach millennials:

1. Leverage digital tools to engage, connect and more powerfully influence millennial shoppers’ paths to purchase, from pre-purchase research to in-store browsing to post-purchase feedback. Millennials are active online, and are using their smartphones to research products before they buy. They're also accustomed to sharing with their peers and are influenced by social networks (e.g., Pinterest) and digital advertisements.

2. Don't fight showrooming. Millennials are already actively showrooming. They visit stores armed with Wi-Fi-enabled mobile devices to compare competitor prices, especially Amazon.com. Give them a reason to buy in-store, such as unique experiences and price-match rebates. Know that millennials desire immediacy, so they're even more likely to look at products online before purchasing them in a physical store.

3. Be a socially conscious brand. Millennials are concerned about reducing their carbon footprint and investing in the long-term care of the environment. They will favor brands that are ethical, have authentic moral credentials and support causes. This will also play out in some of their retail behaviors. For example, millennials embraced the idea that owning bulky, rarely used items is both expensive and unsustainable. To this end, they're renting more and reusing options at retail.

4. Know the nuance of the polarized millennial. They're not one size fits all and their attitudes and preferences differ on brands, stores, etc. Customization and personalization are key to securing their purchases.

5. Ensure a seamless shopping experience across channels and platforms. To most millennials, the retail world exists just as strongly online as it does in brick-and-mortar stores. Make it easy for them to shop the way they want, whether that's in-store, online or via mobile device.

6. Do it for me. Millennials value service and prefer retailers that incorporate service propositions into the cost of the product.

Shilpa Rosenberry is the director of consumer strategy and insights at Daymon Worldwide, a company that specializes in the sales and marketing of private label consumer products.