The days of stock tips on the golf course and ringing up brokers on the phone are long gone.
In the digital age, Millennials are swiping through apps and checking their digital devices not only for tips, but also for making actual investments. Growing up in the midst of the 2008 recession, millennials were wary of diving straight into investments. However, the rise of apps and social media tools has made the learning curve and ease of investing much less intimidating.
Robinhood, the almost free stock trading app, is incredibly popular among millennials. The app, which allows you to invest in publicly traded companies and exchange-traded funds listed on U.S. exchanges without paying a commission, gained a lot of attention recently due to Snap’s (parent company of Snapchat) recent IPO. Snap sold shares at $17 a piece in its IPO on March 1. The next day, on the first day of trading on the New York Stock Exchange, the stock shot as high as $26.05.Trading activity on Robinhood skyrocketed by 50% on the day of Snap’s debut, with more than 40% of those who traded that day buying Snap shares. The median age of Snap shareholders on the platform? Just twenty-six years of age, the same age as Snap Chief Executive Evan Spiegel.
Millennials, who grew up with and love the instant, impermanent version of communication, are hungry for shares in one of their favorite apps, Snapchat. With over 158 million users (many being millennials) companies should start taking note of how millennials are investing in companies they admire, like Snapchat.
A recent Reuters article, featuring interviews with various millennials, revealed that for some millennial investors, loyalty is more important than financial details. The case of Snapchat is the perfect example.
Technology has bridged the gap, allowing millennials to feel more comfortable and intrigued by investing. A report in the Wall Street Journal revealed that over 30% of millennials surveyed say they are more loyal to brands that are relevant in terms of technology. Millennials can see through the BS of inauthenticity. They appreciate brands that stand for something, are up-to-date with technology, and show transparency.
How can your company brand itself so millennials not only want to work for your company, but also buy from it? Looking at the success of how Snapchat has swayed millennials and gained their trust, your business can emulate the following strategies.
Millennials love Snapchat for many reasons: it’s familiar, it’s easy to use, and it’s relevant to how they communicate in 2017. Millennials have enormous faith in investing in Snapchat because of its prevalence in their every day life. A 29 year old HR consultant and investor in Snapchat explained, “There are a lot of companies I don’t know or recognize, but Snap, I use the product, and know everyone – my friends, my co-workers, even my parents – uses it.”
Millennials have two paradigms, both equally as real: online and offline. Is your company prevalent in both worlds? If not, how can you find ways to increase your prevalence, and gain trust among millennials? Millennials spend three hours per day on their phones. Today more than ever, companies must have a strong presence online (a.k.a social media.)
Shelby Seyrafi, managing director at FBN Securities, reveals that “One of the non-fundamental reasons driving the stock is that many millennials purchased Snap shares at inflated levels due to their preference for the product. That is, not due to a real understanding of the number or valuation.”
How is your company seen from a millennial POV? Are you transparent and authentic in what you stand for, what you provide, and how you deliver? The Snapchat-millennial romance shows that you must deliver a great product or service that millennials appreciate. Speak and communicate in a way that they understand.
Communicate In Modern Times
Nontraditional work schedules are becoming more common as companies are embracing digital communication. The 24/7 constant communication is normal for millennials. As a millennial employer or vendor, understand that millennials aren’t “turned off” before 9 a.m. or after 5 p.m. Utilize different mediums of communication.
Within your organization, consider apps like Slack, WhatsApp, or Zoom for communication. These apps allow for instant group and individual communication, minus the bore and turn-off of email. Be frequent in your interaction and engagement. Give feedback often, and make it brief, yet meaningful. Provide detailed instructions when needed.
When communicating to millennials as a brand, speak in the language they can understand. Emphasize what your company stands for; be transparent in the social impact you’re creating; be clear about your company values; and show how you nurture passion. By being authentic and providing a great product or service, you build trust. As Snapchat has shown, millennials are more willing to invest in companies they frequently use and trust.
Takeaway on Millennial Investing Trends and How Your Company Can Benefit
Apps and social media continue to play a huge role in the lives of millennials—and that includes how they invest. Millennials are more willing to invest in (and purchase products/services from) companies they trust and use frequently. As a company, make sure the way you communicate is relevant to millennials. Within your organization, use short, meaningful, impermanent methods of communication. Communicating your brand to millennials, be authentic, have a strong online presence, and make it clear what you stand for.
Want to learn more about how your company can bridge the generational divide in the workplace? We can help with that. Also, check out our most recent launchbox article, “A Short Lesson In Coaching Millennials How to Ask The Right Questions.”