Who Are Millennial Shoppers and Why Are They So Powerful?
Just who are these millennials and why are retailers competing for their business? Millennials are generation Y shoppers, born between the years 1981 and 1996. These young shoppers are known to adapt quickly to technology. In fact, they perform the majority of their day to day activities on their mobile device. This includes networking, job searching and, of course, shopping. In fact, millennials complete nearly 100% of their shopping online. Because millennials make up a vast majority of consumers, retailers must appeal to this generation in order to see an increase in sales.
Fun Fact: In 2017, demographic data suggests that millennials present an estimated 40 percent of the spending power, which totaled over $200 billion in sales.
To put it simply, millennial shoppers are leading the way for new shopping trends and because of this, retailers need to learn quickly how to appeal to them. Unlike their predecessor’s (Generation X), millennial shoppers make use of all the modernized technology in existence today. Their sense of thrifty spending and tech-savvy intellect makes them the ideal shoppers for retailers big and small. To capture their attention retailers need to know how to speak the language, and how to offer the right products that these millennial shoppers are seeking.
Reaching Millennials Through Rebates
Through modern rebate programs, retailers can take advantage of the buying power millennials have. Here are three ways to appeal to millennials using rebates:
Mobile Networking Channels Millennial Shoppers
Mobile technology has become the primary vehicle retailers use to reach young shoppers. With the world going in the direction of a technology-based environment, it stands to reason that more than two-thirds of young shoppers today, get their information from their smartphone. Time is of the essence, and with this group of shoppers, they prefer not to waste time comparing coupon discounts. Instead, retailers need to offer rebates that provide more savings, than a simple 10 or 20 percent discount. Millennials are materialistic and somewhat preservative. They only want to buy something they know can benefit them.
Therefore, retailers can introduce new brands or make millennials aware of existing brands, by simply adding their email or cell phone number to their company’s data collection profile. This is where data collection can help retailers single out generation Y buyers, their shopping trends and what they buy. Mobile advertising offers a cheap and effective means of getting sales information into the hands of young shoppers. The fact that this age group cannot or will not part with their electronic device, makes mobile advertising one of the best and quickest way to keep millennial shoppers informed.
Social Media Presents a True Online Presence and Acceptance
Retailers need to connect their brands to social media networks. Studies show that millennials are active on social media platforms more so than any other platform. When millennials want to know what’s happening, or what new brand is coming out, they turn to social media for the answer. Businesses make their presence known online and work diligently to create a connection between online shoppers and their business. Once retailers build a connection that is built on trust and commitment, they offer shoppers a say as to how well a brand work, and if they were satisfied with their purchase. This type of feedback is done in the form of consumer surveys or suggestions boxes.
Social media is cost-effective, and it is a great advertising tool. If millennials can give a business a positive review, other millennials are sure to read about, and follow-up. Millennials control a great portion of online presence, and without their presence and input, retailers would not have the feedback they need to make revisions in their programs. Retailers that use television, print and other methods of advertising, will do a lot better if they choose to integrate social media or digital advertising as a compliment to their marketing strategy. Social media
Millennials Prefer High-End Rebates Vs Percentage Discounts
Studies show that 95 percent of millennials are price-sensitive shoppers. What does this mean? For retailers, it means that unless they have products that are worthy of their price, millennials will not be participating in their sales projection. Millennials have the power to instantly buy what they need with no second thoughts. Price is the biggest influence when it comes to buying anything at all. If shoppers feel that the merchandise is not a quality product or the brand they want is not available, they tend to move on to another phase in their shopping. However, retailers that offer a rain check in addition to “X’ numbers of dollars off when the product comes in, have a higher chance of recruiting and retaining these shoppers.
This type of incentive gives shoppers a reason to come back, compared to no reason at all. Discounts are not really good incentives for items that are already overpriced. Millennials see savings of $5 or $10 dollar off items more valuable than 5 or 10 percent off of the same item. In the long run, those $5 and $10 off, adds up to $100s of dollars in savings throughout the year.
Offer Hassle Free Convenience Shopping
Maybe this generation is lazy, but who isn’t at times. Convenience shopping is the best way to catch and hook young shoppers. Numerous stores are offering shop online features with benefits. Shoppers can sit at home, order that products, and pick them up from the retailer. Millennials love this feature, as it does not take away from their schedules, and they can continue with their daily routine without any interruptions. Millennial shoppers shop from their phone by using an app, or by going to the retailer’s website. Once there, they have the option to choose several options, including same day delivery, next day delivery, two-day shipping, standard shipping or in-store pickup.
Shipping is expensive and a waste of money. Smart shoppers like millennials understand and appreciate the value of a dollar. If in-store pick up is not part of the marketing strategy, it should be. Millennials flock to retailers that can meet their needs, save them money, and offer products they can afford. Most importantly, it must be products that are of great monetary value. It must be an equal, preferable, or acceptable trade-off. Millennials prefer to deal with retailers that are authentic and not generic. This means that if retailers want to reach this group they have to appeal to these shoppers from a personal standpoint, and their message must be real.