Millennials are changing up the retail game in some unexpected ways and they are leading a change in purchase trends. So, why this particular group is so important for retailers?
Whether you like it or not, millennial consumers are driving the industry forward. They are shopping and engaging, but pretty much in ways different from previous generations. Relatively, this generation grown up in the great recession, saddled with student debt loan and yes-they are broke! Yet they are spending money.
About 39 percent from this group-post reviews of products or brands online, and this generation is likely to listen and connect to people like them rather than celebrities. Their shopping behavior is way too different, thanks to advancing technology.
As much as it seems like brick-and-mortar stores are in the edge of crack and doom, that’s not the case at all. Here, we compiled key things retailer should know about millennial shopping behaviors.
Smartphones and Internet are Essential to Daily Living
More than half of the millennials are using their phone to check what is available in the market, product research and around 84 percent search for coupon and discount codes while inside the store premises. The convenience of smartphone is truly paramount to this group.
Millennials still prefer physical stores over e-commerce, due to the fact that is a leisure activity to partake in and there is something far more gratifying to purchase a product immediately. However, take note that they expect cross-channel communication whenever they shop and retailers should know how to access to the tools, so they can keep up.
Social Media is One-Stop Shop for Shopping Information
Millennials are internet savvy and are strongly connected to social media. It has been the point of reference for product information, trends and other shopping news. Millennials are always on the lookout for discounts and promos. Hence, retailers should at least integrate digital media with their traditional advertising campaigns- or if not, replace it altogether.
Another important aspect is that they turn to online customer service first before going into your physical store, so being fast on responding online is a key to gain this type of consumer.
Millennials are Cautious when Spending
One thing that millennials, like their parents, is that 90 percent are sensitive to price. They are changing some aspects, like the concept of sharing economy (Uber and AirBnb), where instead of owning a house and car, they opt to share rides and homes. Another is their desire to buy secondhand items. Truth of the matter is; thrift shops are growing 20 times faster than traditional retail stores nationwide.
Experiences over Stuff
Around 80 percent of millennials aren’t just looking to buy products because it is necessary, but they need a story behind them, they like to buy experiences. In addition to being socially and environmentally conscious consumers, millennials are pretty much motivated by lifestyle. Experience are much significant than things and millennials want memories to show off on social media.
Winning Millennials through Loyalty Programs
Just like everybody else, millennials love a good deal. They are really good at scouring the internet for ways to make their dollars go the distance. According to a recent study, 70 percent of millennials will remain with loyalty programs if they can quickly reap the benefits. To keep them engaged and interested, during a customer’s first visit, they should receive a several boost points, this way they will be prompted to return to your store anytime soon.
If millennials are not digging your rewards or requiring them to do a lot of visit or purchases prior earning a point, they will drop your program like a hot potato!
Retailers have to pay attention to trends in spending habits if they want to survive with the major shifts in the retail landscape. Attracting millennials can be easy and affordable. One should embrace social media and providing personalized services are essential to keep your retail business alive.