How to run targeted marketing strategies to reach the needs of Closed Consumer Groups: Gen Z and Military deep dive

So, you’re a brand looking to reach a specific closed consumer group (CCG)...

We’re on hand to help! This is our bread and butter over at Pion.

In fact, we’ve been pioneering (pardon the pun – we had to, sorry…) in this space for the last 14 years.

How do we help?

Pion helps brands target their best customers by rewarding the consumer groups that are most valuable for your brand. We do this by incentivizing consumers with offers tailored just for them.

We might be known for our student discounts, but that’s just the tip of the iceberg.

Brands can choose from Gen Z students, graduates, military personnel, healthcare workers, teachers, first responders, charity workers, people with disabilities, new parents, and low-income earners.

In this deep dive, we’ll be focusing specifically on students and military discounts, showing you exactly why you need to incentivize these closed consumer groups (CCGs).

We’ll give you an overview of these CCGs, share specific days of interest to them, and then break it down by each sector: fashion and beauty, entertainment, food and drink, and home and utilities.

Let’s get stuck in…

Why do you need to incentivize Closed Consumer Groups?

Brands can benefit massively from connecting with specific closed consumer groups.

‍These niche markets offer great opportunities for loyalty, advocacy, and long-term value.

By focusing on particular demographics, brands can create a sense of exclusivity (and community!) and foster an emotional bond with their customers.

A targeted approach can make your efforts more efficient, as you’re marketing directly to an audience that’s more likely to respond positively. Plus, by catering to these closed groups, brands can stand out in a crowded market.

The result?

‍Happier, loyal customers.

Students: leveraging the power of days of interest and key trading periods

For students, Freshers Week, Back to School, and the Loan Drop periods are crucial spending dates.

UK: Freshers Week

Freshers' Week takes place in September every year. It’s a time when new students dive into university life. They’re on the hunt for essentials – think new room gear, textbooks, stationery, and event tickets. Brands can jump in with student-specific discounts and promotions to catch their attention.

US: Welcome Week

Welcome Week in the US mirrors Freshers' Week, with students gearing up for the school year. Welcome Week usually takes place during the last weekend of August. Students will be shopping for dorm supplies, books, and personal items. Brands can score big by offering deals on tech gadgets, dorm décor, and school supplies.

Don’t forget the importance of IRL (in real life) during Freshers Week and Welcome Week. Getting your brand front-of-mind often requires being physically present in these spaces.

In the UK, Domino's has built a name for itself as a Freshers Week brand, giving out free pizza to hungry students the whole week.

‍

UK: Back to School

Back to School is a major shopping season as students and parents gear up for the new academic year. It’s all about uniforms, backpacks, and school essentials. Brands can reel in customers with back-to-school sales and promotions.

‍

US: Back to School

Back to School in the US is just as important. A lot of spending takes place in the weeks ahead of returning to campus – on everything from clothing to electronics and school supplies.

‍

UK: Loan Drop periods

In the UK, students get their loans in chunks, usually at the start of each term. This means a spending spree on tuition, rent, and discretionary items. To maximize their impact, brands can time their promotions to when the drops take place.

‍

US: Loan Drop periods

Loan drops look a little different in the US. Instead, US students receive financial aid. This typically drops at the semester's start, giving students a financial boost. They spend on tuition, textbooks, and personal expenses.

However, it’s important to note that many students (in both the UK and the US), won’t just be spending on the essentials during the loan drop periods. For many, it’ll be a time for splurging or finally buying items they’ve had in their baskets for months.

In both regions, these periods are gold mines for brands

‍Students have cash to spend and are actively looking for products and services that fit their needs. Brands that tap into these key dates can drive sales and build long-term loyalty in the student market.

Students: vertical breakdown...

Reaching students as a fashion brand

Today’s young consumers are always on the lookout for the latest trends – often setting them themselves! Gen Z uses fashion and beauty as a vehicle for self-expression – and online communities and creators play a huge role in this.

How to capture student spend as a fashion brand

Value oriented marketing

It’s fair to say that young consumers are conscientious.

Raised exposed to news about the climate crisis, they (generally) lean towards sustainable spending. According to Pion's Pulse data, 97% of Gen Z say it’s somewhat important for a brand to be eco-conscious. They’re aware that 100% sustainable practices aren’t always feasible but will appreciate transparency when it comes to this and are quick to call out brands that 'greenwash'.

{{ctaNeon}}

It’s not one-size-fits-all

Young consumers are unique, expressive and want to see themselves reflected in marketing. In fact, 85% of them want to see “more diverse representation” in this vertical. Brands that aren’t catering to certain sizes – or fashion chains that aren’t inclusive in their marketing – will face criticism, and ultimately lose the spend of young consumers.

Engage with your communities and harness creators

Social media has been a godsend in many areas – but most notably, in its power to build communities.

Most brands will understand the importance of having a social presence, but are they getting enough out of it?

Engage with your followers in comment sections. Stitch organic user-generated content, and consider using Instagram’s “Broadcast” feature to create a specialized channel. Work with creators to show off your products, hauls and deals. Gen Z are visual consumers: they get their fashion inspiration from seeing products  – and if they can't do this physically, through a phone screen is the next best thing.

Reaching students as an entertainment or cinema brand

Bringing new heights to binge-watching, Gen Z are a major economic force for entertainment and cinema brands. There’s a whole treasure chest of opportunities here.

How to capture student spend as an entertainment or cinema brand

Gen Z appreciates good content

#Barbenheimer wasn’t just the phenomenon of the summer in 2023: it was a whole immersive movement.

Since then, films like Saltburn, Inside Out 2, and the Mean Girls musical have captured the cultural zeitgeist. Young consumers still have an appetite for IRL entertainment – but it’s about creating a fully immersive and enjoyable experience. By supporting the right content, and giving students great value  through a student discount, you can create a buzz and drive footfall. Winner winner.

Don’t believe everything you hear about their attention spans

‍It’s probably fair to say that students have short attention spans – but this isn’t the be all and end all. This is also the same cohort that can watch an entire season of a show in one day if the content is compelling enough. Work with creators to spread the word about your offer or screening – we're all a sucker for the FOMO effect, and the visual nature of TikTok is a great driver for this.

Make leaving the house worth it

‍For entertainment brands, it’s not about just getting Gen Z through the door, it’s making the experience memorable. For popular movies or cult classics, organize events where the audience can get involved (Mamma Mia singalong, anyone?). Enhance your food and drink offers by tapping into the entertainment you’re showing: think creative popcorn flavors, themed drinks and more.

Discounts, discounts, discounts!

What will tie the ribbon, so to speak, on all the above?

‍A discount.

Incentivise your consumers by offering them a discount. This doesn’t have to just be on the experience alone: things like early access to tickets, members-only events and more will drive loyalty and ensure students return again and again.

Reaching students as a food and drink brand

Food and drink is a vertical relevant to every single student and young consumer.

Most obviously, because everyone’s gotta eat! 

Food and drink establishments are hubs of community – they play a central role in social interactions. Sharing food and trying new culinary experiences is a love language for many. 

How to capture student spend as a food and drink brand

Tailor your brand to their lifestyles – and understand these lifestyles with insights

Students are busy.

They’re wrapped up in studying, socializing, working part-time jobs or just rushing around between classes. They need options that are convenient, and fit into their hectic lifestyles.

In short, they want something efficient, and they want something tasty. However, this isn’t the case for every single establishment. If you’re a food and drink brand with a higher cost, you’ll need to incentivise the purchasing decisions of these consumers.

Affordability matters

‍Which leads us nicely to our next point: money is tight. If students are looking to spend money on a high-ticket meal, they’ll want good value for money. Every dollar and pound counts. If you’re a high-cost establishment, consider throwing in a freebie for a special occasion. For cheaper, on-the-go restaurants, a blanket student discount is *always* a winner.

In fact, 83% of students are searching for a discount every single time they’re searching for a product. Plus, a good deal equals good testimonials. Students will be likely to spread the word about your offer, bringing in more repeat customers, word-of-mouth marketing and brand recognition.

Work with creators and influencers to spread the word

‍No vertical has benefited more from the rise of TikTok search than food and drink. In fact, TikTok is the number one search platform for users looking for new places to eat.

Working with a creator is a great way to get your name out there. Creators are a tried and tested method: they know their audience and are perceived as trustworthy and authentic. Got a delicious new dish? Instagrammable new cocktail? Show it off!

‍

Reaching students as a home and utilities brand

Did you know that 85% of students say the experience they have with a brand now is likely to influence where they shop in the future? For home and utilities brands, the time is now.

College and university students will be leaving home for the first time. They’re starting a new chapter, and want their new home to be comfortable, functional (and obviously) stylish.

Streamline the buying experience and make it fun!

‍For many, a trip to IKEA or Home Bargains is a full-on day out. Home and utilities brands have an opportunity here: make the trip an adventure. Creators are a great way to spread the word about this – many have become famous for their “Come With Me” style videos. If you’ve got a specific pop-up or special event, they should be your first port of call to spread the word.

Equally, you could work with Pion to create a paid, on-site placement or an extra “Bundles” page, jam-packed with the essentials students didn’t know they needed.

Extra student and new homeowners discounts

Remember the importance of days of interest? Yep, well, you guessed it: periods like Welcome Week and Freshers Week will be a hotbed of students searching to secure home essentials. Offer extra incentives for your target audience during this time – because what’s better than one discount? A double discount.

Targeted and personalized promotions

‍Personalization should be a priority for any brand looking to reach Gen Z: but if you don’t know what they’re looking for, it can be a difficult realm to navigate. Pion’s data-driven insights can help brands here.

Want to know how many consumers want eco-conscious appliances? How many are searching for smart home solutions? Whether they’d be likely to spend more on a product if it fit a certain aesthetic? We can give you the data to help you build brand recognition and capture student loyalty.

‍

Military: leveraging the power of days of interest and key trading periods

For military consumers, there are some key spending dates you need to be aware of.

UK: Armed Forces Day

Armed Forces Day in the United Kingdom is an annual event celebrated in late June to commemorate the service of men and women in the British Armed Forces.

You can jump on the hype by leveraging sales specifically for military members and their families. Highlight products that may be of particular interest – such as outdoor gear, tech gadgets, or family-friendly items. You can promote this in the build-up by OOH advertising, targeted email campaigns or promote this via your social channels.

Consider partnering with military charities or organizations. This could be via co-hosting an event, using a charity to spread the word about a specific discount, or just bringing attention to why the day is an important one for military personnel.

US: Military Appreciation Month

Military Appreciation Month, also known as National Military Appreciation Month (NMAM), is a month-long observance in the US that honors the contributions and sacrifices of current and former members of the U.S. military. It takes place every year from May 1–31.

Get involved by launching marketing campaigns that tell the stories of military personnel. Share these stories on social media channels, via in-store displays or through an email campaign. We can help with that...

Consumers want to see actions and not just words: consider pledging a portion of your sales to military-related charities or support groups. Publicize your contributions to demonstrate your brand's commitment to this community!

US: PCS (Permanent Change of Station) Season

Permanent change of station (PCS) season is a time when active-duty service members are transferred to a permanent duty station (PDS) for a long-term assignment. PCS assignments can last between two and four years and can involve moving from one state to another within the U.S. or to another country.

This is a time where military personnel will be uprooting their lives – and will be looking to spend, as a result.

Get involved by providing special offers. Brands that sell utilities can offer discounts on essential items for setting up a new home. You could also provide educational content, or resources through working with a creator.

Veterans Day (US)

Veterans Day is a federal holiday in the United States observed annually on November 11, for honoring military veterans of the United States Armed Forces. It's a commemorative day – and if you're looking to launch a campaign, your efforts here must be authentic.

{{ctaDark}}

‍

Military: vertical breakdown...

Before we get into it, let's quickly set the scene on why you should be targeting military consumers.

As of 2022, there are 19 million U.S veterans. 1.3 million are on active duty. 1 million are in the reserve or guard, and there are one million active duty and reserve spouses.

In total, this consumer group has an estimated buying power of over $900 billion.

Military personnel typically have a stable income. This ensures consistent purchasing power and makes them a pretty dependable consumer group.

Plus, it’s not just military personnel who will appreciate a good offer. Offering a military discount creates a positive impression of your brand to all consumers: it shows you appreciate the sacrifices of veterans.

The stats: what do you need to know?

• 92% of all respondents said they would like access to exclusive offers and discounts.
  ‍
• 92% of all respondents have previously accessed offers and discounts that were exclusive to military professionals.
  ‍
• 85% said they currently search for a military discount when making a purchase, whereby 23% will look on a daily basis, and 31% will look for discounts on a weekly basis. 23% will look on a monthly basis.
  ‍
• 85% rated cost-of-living expenses as their highest concern.

Reaching military consumers as a fashion and beauty brand

Just like anyone else, Military consumers and veterans enjoy looking good and staying on trend. In fact, a lot of today’s trends and fashion items stem from military clothing!

Members of the military will often seek practical yet stylish fashion choices that fit their active lifestyles. 

Online communities and social media can significantly impact their purchasing decisions – in fact, over 93% of active duty military use social media. 

How to capture military spend as a fashion and beauty brand

Targeted influencer marketing

‍You might think ‘influencer’ and ‘military’ are two words that probably don’t go that well together, but you’d be mistaken. We know that military personnel are spending a lot of time on social media – so consider partnering with influencers (or creators) who have a strong following within the military community.

Word-of-mouth marketing is king

‍76% of the military community say they learn about military discounts from word of mouth. This consumer group is tight-knit – they have special bonds with one another, and trust the recommendations of their peers. When you’re marketing to the military, ensure your offers and promotions are thoughtful and generous.

Offer incentives

Discounts are incredibly popular in the military community, with many brands offering special military pricing. This isn’t just a way to capture military loyalty, but also a way for your brand to show you actually care about the service veterans provide to their country.

Time your promotions

‍Timing is key when it comes to reaching military consumers as a fashion brand. Key calendar dates such as Veterans Day, Memorial Day and Independence Day are all super important spending periods: send press releases, marketing material and social media pushes to emphasize your discounts.

‍

Reaching military consumers as an entertainment brand

Military personnel often look for ways to relax and unwind. 

Movies and entertainment provide a perfect escape. Targeted promotions can help them discover new films and special offers, making their leisure time more enjoyable.

How to capture military spend as an entertainment brand

Make your discount easy to access!

As an entertainment brand, you probably chiefly operate with IRL customers and footfall. Ensure your discount is easy for military personnel to access, either via an online offering or an in-store redemption code.

Engage with military communities

‍Partner with military bases and local organizations to host events or provide entertainment options tailored to military families. Think group screenings, specialized discounts and more.

Tap into the family-friendly nature of entertainment

Off-duty military members will likely be wanting to spend time with their loved ones. As an entertainment brand, you have a big opportunity here. Market your promotions through targeted email sends and promote family-friendly screenings. At Pion, we can help with that, through our on-page advertising and paid placement offers. Get in touch to learn more.

‍

Reaching military consumers as a home and utilities brand

Military families often move frequently and need practical and affordable home solutions. Typically, military consumers spend more than the general population on home improvement and auto stores.

The top home improvement buys are for things like outdoor projects, hardware and weather supplies – no surprise considering the resourcefulness being in the military encourages!

How to capture military spend as a home and utilities brand

Discounts!

‍We know from the data that military consumers are both searching for discounts and wanting brands to offer discounts. If you’re looking to capture long-term loyalty, this is your golden ticket. Provide special pricing or discounts on utilities, home services and products, and they’ll thank you for it.
‍

Peer-to-peer marketing will bring in even more patrons

We've established that military consumers trust one another. If you offer an incentive, they’ll spread the word to their peers, leading to long-term loyalty. Plus, offering a military discount can enhance your brand’s image; portraying you as patriotic and community-orientated.

Consider partnering with a creator to promote your discount

‍Over 93% of active duty military use social media – so don’t forgo the power of the creator in spreading the word about your offer. Consider partnering with a creator who is trusted within the military community (if you don’t know where to start, we can help with that, by the way!).

‍

Reaching military consumers as a food and drinks brand

Food and drink establishments serve as communal gathering spots for military consumers. They can socialize, unwind and build camaraderie with their peers and families.

How to capture military spend as a food and drink brand…

Tap into the idea of a home away from home:

‍Dining out provides an opportunity to share experiences. For those stationed far from home, familiar food and drink brands are the ultimate comfort provider. Nostalgia is a big purchase driver for consumers of all ages, and many food and drink brands will hold nostalgic value, reminding military personnel of home.

Family-friendly environments

The majority of active duty consumers have families – and many of those are young families, with 28% having children under the age of six (this is significantly more than the 10% of the general population!). These consumers will be looking for family-friendly environments for them to spend some much-needed quality time.

Special offers will increase footfall and your online presence

‍Offering a special discount or promotions for military personnel will be highly valued. Discounts make dining out more affordable and will create long-term loyalty. Consider offering both an in-store and online discount to really hook them in. Hello repeat customers!
‍

You might not be 100% familiar with the world of CCGs, but these consumer groups are a game-changer for driving brand loyalty and revenue.

Focusing your marketing strategies around students and military consumers can help you achieve measurable results, while making an impact in the communities you serve.

In the ever-competitive world, the key is finding your niche and building targeted marketing strategies to meet your audience’s needs.

‍

‍

‍

‍

‍

‍

‍

‍

‍

‍

‍

‍

‍