Digital marketing should target 'Millennials'

SINGAPORE--"Millennials", a term used to describe 18 to 25 year-olds, are savvy online users who are more receptive to digital marketing messages and willing to receive commercial e-mail messages, according to Epsilon International.

In a report released Wednesday, the research firm said millennials are generally interested in a variety of offerings and open to receiving information via e-mail.

Singaporean respondents identified the top three types of commercial information they want to receive being grocery coupons, health-related content and household, craft tips and recipes.

The study revealed millennials in the island state are more willing to remain subscribed to e-mail marketing campaigns, compared to older generations. The study notes, however, that the younger group is discerning, with 73 percent of millenials likely to unsubscribe from content deemed irrelevant.

Millenials primarily communicate online via instant messaging, with 46 percent of them selecting that as their main tool. SMS messaging was next mode of communication, at 33 percent and e-mail at 20 percent.

Despite the growth of social networks, only a minority chose these as a form of online communication, the study noted.

Dominic Powers, senior vice president, Asia-Pacific, Epsilon, said marketers should focus on segmentation strategies that address the needs of the age groups within their customer base. "We regularly see that a targeted approach based on the segmentation can drive significant improvements in campaign performance," he said.

Epsilon said the younger generation demands more personalization and regular filtering of e-mail messages from familiar brands or companies. Its survey said millennials are particularly responsive to subject lines containing discount offers, names of familiar brands or companies and free product offers.

Response to an e-mail campaign would be more likely if e-mails were personalized, according to 89 percent of respondents. 79 percent felt that interests in the content would make e-mail messages more relevant.

This group is also more receptive to cross-channel e-mails, such as clicks leading to Web sites for games or audio clips. As a result of opening promotional e-mail messages, 52 percent reported making purchases at retail outlets while 44 percent made online purchases.

Powers remarked that the "growing disposable income" of this group has increased its purchasing power.

These findings were based on an Epsilon survey conducted earlier this year comprising 4000 consumers from the United States, Canada, China, Singapore, Hong Kong, Australia, India, Malaysia, Japan, the United Kingdom, France, Germany and Spain.

Based in Singapore, Konrad Foo is an intern with ZDNet Asia.