How Starbucks and La Colombe Use Micro-Influencers To Reach Millennials

Driven by an increase in consumer demand, the coffee industry is undergoing a rapid transformation. Over the past few years, we’ve witnessed ready-to-drink (RTD) cold brew coffee sales skyrocket, compelling the emergence of niche brands like La Colombe and Chameleon Cold Brew who have developed an entire brand around the RTD cold brew product. With an increasing number of options, consumers are spending more on coffee than ever before – with the average U.S. worker spending around $20 a week on coffee. And demand for coffee doesn’t seem to be slowing down anytime soon – in 2017, 62% of Americans reported drinking coffee on a daily basis, up 5% from last year. Leading the way for coffee drinkers are Millennials, making up 44% of the country’s coffee demand.

With infinite coffee options, Millennials rely on micro-influencers to guide their decision making process. Some key stats:

• 70% of Millennial consumers are influenced by the recommendations of peers in buying decisions.
• 70% of Millennials prefer product endorsements by non-celebrity bloggers.
• 50% of Millennial video subscribers drop what they’re doing if an influencer posts a new video.
• 40% of Millennial YouTube audiences feel that their favorite YouTubers understand them better than their friends.
• By 2018, Millennial spending power is estimated to reach $3.39 trillion, giving them the post spending power of any generation.

In order to appeal to Millennials, brands need to focus on integrating authentic and trusted influencer-generated content across their customer journey. Partnering with influencers helps brands to deliver personalized, relevant experiences for consumers at every touchpoint, increasing brand trust and accelerating their path-to-purchase.

Within the coffee industry, niche brands have turned to influencer-generated content (IGC) to highlight specific product attributes, appealing to a Millennial market. On the other hand, global brands like Starbucks have used IGC to diversify their products and position themselves as a one-stop shop, appealing to a mass audience.

Here’s an insider look at some of the most noteworthy trends we learned from the brands leading share of influencer voice among ready-to-drink cold brew coffee brands:

• The category leader in volume and engagements, owns 72% share of voice and generates 3x more engagements than the category average.
• IGC from category leaders reinforces product portability and convenience – two of the most important factors to Millennial drinkers.
• Leading brands’ product packaging highlights the use of ‘clean and real’ ingredients, aiming to appeal to the health conscious consumer.
• IGC from category leaders includes personal testimonies from the influencers, highlighting the product’s importance in their daily lives.

Want more key insights? Download the full report below to learn which coffee brands had the greatest share of influencer voice in the last year, as well as examples and best practices from coffee brand category leaders.