Millennial Activists Driving America's Revenue Growth

The millennial activist is now driving revenue growth in the American economy. Their quest for products and companies that are “cool with a purpose” is driving the revenue success of Apple, Google, Patagonia and Chipotle. They are also a key demographic group that is driving down the revenues of McDonald’s, Coca-Cola and your local utility. Figuring out how to successfully align with millennial activists is now the strategic challenge facing every business.

Millennial activists seek solutions

For 40 years the American economy has been driven by a boomer generation that demonstrated for peace and love during their teenage years but then, after Woodstock, “sold-out” to their personal consumption. It was the boomer generation that embraced fast food as America’s diet choice because it was tasty, fast and cheap. The boomer generation created suburbs of less energy-efficient homes, linked to their workplaces through an urban commute too often executed in full-size vehicles powered by V-8 engines. To fund their consumption, they made the working mom an economic reality along with credit card debt and unsustainably high mortgages. The unintended consequences of the boomer generation’s decisions include a national obesity and diabetes epidemic, pump/meter price pain driven by energy demand, and increased government regulations to address the human and planet health impacts from record levels of air emissions. Our economy now struggles to grow against the headwinds of costs and debt created from the boomer generation’s consumption decisions.

The millennial generation seeks solutions to the problems they have inherited from their parents. This is not a personal rejection of their parents. But it is a rejection of lifestyles built upon energy inefficiency, consumer debt and unhealthy food consumption. Led by pioneering millennial activists, the millennial generation is rejuvenating downtowns across America. They are choosing to live in more energy-efficient, in-town homes to gain the benefits of social participation, diversity and sustainability. They are adopting lifestyles built on healthy foods, walking/biking to work, sharing rather than purchasing and the adoption of digital technology to enable productivity while also reducing their environmental footprint. Influenced through millennial activists, the millennial generation is adopting a new culture built upon best practices that align value with values.

Who and what is cool with a purpose?

Elon Musk is the poster person for cool with a purpose among millennial activists. They are captured by his vision that is bigger than the quest for wealth -- though the millennial generation is also attracted by his financial success achieved through making a positive difference. Yvon Chouinard, founder of Patagonia, also engages millennial activists. His story of turning his passion for rock climbing into a successful retail store chain -- that markets environmental sustainability with pioneering ads like “Don’t Buy This Jacket” -- is this generation’s Horatio Algers story of personal success that is both cool and purposeful.

Not every company can have an Elon Musk or Yvon Chouinard as their founder. But the companies that win the revenues of millennial activists have these four characteristics:

• Good wins. Whether it is offering a living wage or a commitment to environmental solutions, a business must be in business to create good if it is to attract the millennial activist. Millennial activists respect Costco for its treatment of employees. They are attracted to the solar industry because of its zero onsite emissions. They align with Google’s Code of Conduct that begins with “Don’t do evil.” A business that does not create good stands on a house of cards that will not sustain revenue growth with the millennial generation.


• An alignment of values and value. The millennial generation began their careers in the mist of the Great Recession. Value is a paramount procurement driver for them. But, especially among millennial activists, the search for value is not at the expense of their values. They will not eat at McDonald's even if it is cheap because they view the food as unhealthy. They will eat at Chipotle because the food is a good value and Chipotle has made a corporate commitment to sustainably source its ingredients. Millennials are embracing Uber and the sharing economy for its value but also because it aligns with their values for achieving a smaller environmental footprint. The business path to revenue growth with the millennial generation is to align value with values.


• Sustainable innovation. Millennials were raised expecting a sweeping digital technology innovation every two years. Millennial activists look to technology innovation as the solution path to realizing human health and environmental solutions. They expect the businesses they do business with to be leaders in adopting technologies that create sustainable solutions. Millennial activists have expectations that business locations will be zero waste, resource efficient and use renewable energy. Beyond the economics, it is the millennial activists focus upon sustainable innovation that is pushing companies as diverse as Walmart and Apple to commit to using 100 percent renewable energy at their locations.


• Engagement and diversity. The millennial generation is the most diverse in U.S. history. They are also the most digitally connected generation. They live, connect, engage and learn through their mobile devices. No business will succeed with the millennial generation without a mobile technology path that engages. No business will have a meaningful engagement with millennial generation activists without contributing toward their quest for a “cool with a purpose” society that respects diversity.

Who is not cool with a purpose?

Millennial activists view American corporations as part of the problem rather than being cool with a purpose. Banks are at the top of their list because millennials hold banks as being responsible for the Great Recession. They also have unpleasant personal experiences fighting banks over overdraft and other banking fees. With that understanding, is it a surprise that Apple, a brand with a strong millennial generation affinity, launched Apple Pay?

The Coca-Cola Co. and McDonald’s are two companies with a revenue crisis tied to their struggling alignment with the millennial generation. Millennial activists view these companies with mistrust from a lifetime of massive promotions for products that are laced with sugar and artificial ingredients that millennials link to today’s national obesity and diabetes epidemic. A generation raised by their parents on Happy Meals and a Coke is now choosing healthier alternatives. The economic consequences for the Coca Cola Co. and McDonalds are lower revenues.

Oil companies and local utilities are at revenue erosion risk from the millennial generation’s adoption of energy efficiency, digital technologies and sustainable best practices. The millennial generation associates Shell, BP, Exxon-Mobil and Chevron with environmental disasters that span the globe, including climate change. It is not cool with a purpose to drive a V-8. It is cool with a purpose to drive a Tesla. It is especially cool with a purpose to not own a car because you live in an in-town loft and bike or walk to work. Most millennials are more focused on buying the next smartphone than on buying a car.

Electric utilities are, for the most part, invisible to a millennial generation that engages and connects via smart phones. Millennials view the utility industry as an outdated dinosaur that fails to engage through blogging, tweets or Facebook posts other than placing their own messaging online. They also view the industry as being a barrier to the adoption of cool with a purpose technologies like solar. The millennial generation would view a Net Zero Energy home or office with smart systems that seamlessly integrate onsite solar generation, onsite batteries and energy efficiency technologies to achieve lower costs and environmental impacts as a much cooler with a purpose solution than natural-gas fired power plants linked via transmission and distribution wires that deliver high bills and emission levels unsustainable in an environment now experiencing climate change from a carbon surge.

Design a revenue growth strategy satisfying millennial activists

Revenue growth for every American business is now tied to their ability to align with the millennial generation’s guest to be cool with a purpose. The key to winning millennials as customers is to engage millennial activists who, through their digital outreach via their smart phones, are pushing the pictures, videos and text that are influencing what millennials buy and who they buy from. The business path to attracting millennial customers is to align value with values in product offerings. That is being cool with a purpose. That is the path to revenue growth in the 21st century economy.

Image credit: Flickr/faircompanies

Bill Roth is an economist and the Founder of Earth 2017. He coaches business owners and leaders on proven best practices in pricing, marketing and operations that make money and create a positive difference. His book, The Secret Green Sauce, profiles business case studies of pioneering best practices that are proven to win customers and grow product revenues. Follow him on Twitter: @earth2017