Have you ever wondered what Millennial shoppers represent in the sales of your product (or of your brand)? Who are these consumers and how do you establish a buying relationship with them
According to Accenture by 2020, Millenials generation will account for $1.4 trillion in consumer spending.
“Doing out nearly $600 billion annually and poised to inherit $30 trillion from their Baby Boomer parents, Millennials now account for 28% of all daily per-person consumer spending—a figure that could rise to 35% by 2030”. (The Millennial Shopping Report, Published on 03/19/19)
With these numbers, it is easy to understand why your brand should concern with the Millennial buying habits.
In this article, we will analyze the meaning of the term “Millennials generation” and what are the habits and consumption preferences of this shoppers population.
Who are the Millennials?
Who are the Millennials, and why are they so-called?
The term “Millennials” is demographic and statistical. The Millennials generation is also defined as “generation Y,” and although there is no consensus among academics, Millennials are identified as those born between the early 80’s and the late 90’s.
As you can see below, Millennials succeed generations X and precede generation Z.
|Baby boomers||Authority and discipline (marked by the Second World War)|
|Geração X ( 60s e 70s)||– contact with globalization– regular use of television– increased access to information– the decrease of discipline and authority– influenced by the counter-culture movement (make love, not war)|
|Geração Y ( 80s e 90s)||– integration of the personal computer and the internet in the daily lives of young people|
|Geração Z (from 2000) “homo zappiens” (Vee & Vraking, 2009)||– major technological advances– blogs, Facebook, Twitter, Youtube, etc.– challenges of the web 2.0 tool|
Source: Souza, Tatiana. Ph.D. Thesis: Digital nomadism: representations and practices of a nomadic work and lifestyle (2020). Nova University of Lisbon. Categorization table of the different generations based on their greater or lesser contact with the digital world during their youth, based on the work of Souza, Karine P. & Silva, B. (2013).
According to The Millennial Shopping Report, Millennials represent the largest generation in human history, with over 80 million members only in the U.S.
Most of the Millenials are digital natives
A large number of individuals belonging to the millennial generation are also considered to belong to the age of digital natives. They are viewed that way because they grew up with the internet and the computer already integrated into their lives (Souza, Tatiana. 2020).
They have excellent access to information. They are active on social networks and engage in different causes.
Millennial buying habits
In 2013 Accenture conducted global market research on the shopping behaviors of 6,000 consumers, of which 1,707 were Millennials, across eight countries: the United States, the United Kingdom, Germany, France, Sweden, Japan, China, and Brazil.
In a more recent survey conducted in 2019, the Follow Coupon heard 1,002 Millennials between the ages of 22-37 from all over the United States.
From the analysis of these surveys, we observed exciting facts about Millennial buying habits and relationships with brands in an online and offline environment.
Many people think that Millenials prefer to buy online than in physical stores.
Perhaps because, as we have seen, a large part of its individuals belongs to the generation of digital natives, it is thought that they prefer to make use of online platforms for purchase.
When we analyze the Millennials buying habits of the youngest Americans, this fact is confirmed, as shown in the graph below extracted from the Coupon Follow (2019) survey:
As you can see, older Millennials, between the ages of 32 to 37, are more likely to buy in physical stores while younger Millennials are more likely to buy online (Cupon Follow, 2019). Those who prefer to buy in physical stores explain that they like to see, feel, and try the products (Accenture, 2013).
Millennials usually consult the internet to research products before making their decision, both in online and physical stores.
79% OF MILLENNIALS BROWSE THE INTERNET BEFORE MAKING EITHER AN ONLINE OR OFFLINE PURCHASING DECISION
Millennials are disappointed by the disparities in offers between physical and online stores. For example, they criticize the fact that many online stores offer products or discounts that are not available when going to physical stores (Accenture, 2013)
DECISION FACTORS FOR PURCHASE
Millennials want to be treated as a “valuable customer”. This means that their loyalty can be earned through excellent customer service.
In the Accenture survey (2013), they explained that the previous service experiences by employees and by the companies’ policies determine whether they will buy again from a particular brand or not.
They also value strategies that seek to maintain their loyalty, because, for them, it is a sign that brands and marketplaces value their purchase. Discount coupons sent by mail lists and promotions on social networks are some of the strategies that brands can implement to seek the loyalty of their Millennial consumers (Acceture, 2013).
Coupon Follow (2019) research revealed that Amazon is the dominant online retailer for Millennial shoppers. Price point and its reviews are the most significant factors for Millennial shoppers on the platform.
According to the Cupon Follow survey, 2019, 70% of Millennials follow brands on social media:
Although many of the Millennials are also part of the generation of digital natives, the Accenture (2013) survey reveals that their relationship with brands on social media is not the same as their relationship with family and friends.
Few of them follow the brand pages, and when they do, they see the relationship in a more transactional way (Accenture, 2013). They explain that they like to follow the companies’ pages to collect deals such as special offers and discount coupons (Accenture, 2019, Cupon Follow, 2019).
Regarding the discount coupons, the Coupon Follow (2019) survey also reveals that expired and not working tickets are a pain point for Millennial buyers.
Millennials represent a mighty portion of today’s consumers and is very important for brands to be aware about Millennial buying habits.
Some of the strategies that can be adopted by brands to gain the attention and purchase preference of Millenials shoppers are:
- invest in online stores with a modern and user-friendly design;
- offer excellent quality of customer service;
- be active on social networks providing exclusive offers to followers.
What about your brand? What is your experience with Millennial buying habits? Please share with us what strategies your brand is adopting to win their preference and loyalty.
At Hello-Bottle we are specialized in the needs of online businesses in the glass packaging market, by offering innovative and unique packaging but also content tailored to online shop needs, advice for digital advertising and online shop platforms. Send us an e-mail with your questions. We will be happy to help you by providing the guidance that you need!