Ironically wrapped up by a Millennial.
Whatever your feelings are regarding the Millennial generation, there’s no denying their buying power in 2020. And harnessing the spending momentum of millennials is going to be crucial for retailers in the coming decade.
How Millennials buy, where they shop and why they purchase are becoming increasingly important. Trevor Gormley (a professional researcher on Millennials) and Kausik Kannan (a Revionics pricing & product guru) teamed up to give an interesting viewpoint on Millennials and their spending habits. If you didn’t have time to catch our Millennial Mindset webinar in December (we know, you were probably trying to survive the Holidays), here are 5 key takeaways you can implement today.
- No longer a function of just the marketing and media teams, Personalization needs to be embedded throughout the entire organization. Millennial shoppers desire personalized product promotions and will reward the retailers that offer them with loyalty and larger basket sizes. Another way to woo Millennials is to personalize offers by showcasing items that pair well with their current selection.
- Millennials ARE purchasing; , it’s just delayed
- It’s not that millennials won’t buy washers or dryers (but I admit I’ll totally avoid this until I have to) – it’s that their “big life” purchases are happening later when compared to that of the baby boomer generation. Baby boomers married and started a family much younger than later generations. The average Millennial doesn’t marry until the age of 30, thereby delaying major life purchases. And now that the Millennials are coming into that older age group, they are projected to spend $1.4 Trillion in 2020 alone. A huge number that is hard to ignore.
- Why shoppers buy and how they feel when doing it is becoming crucial for retailers across the world to understand. Is your product eco-friendly? What’s your carbon footprint? What is your corporate giveback policy? You get the idea. Millennials feel more justified in their purchases if something they personally value is reflected in the product/company and are likely to become repeat customers as a result. But be careful not to make assumptions based exclusively on age. Someone who is 32 may have the same value(s) as someone who is 75.
- If its outdated update it
- Digital-native Millennials are impatient and don’t want to waste time on poorly functioning or outdated operating systems. Using a pricing and promotions strategy that they have already seen, or they are used to, won’t cause the same buzz as a reinvigorated plan. Millennials are used to change, and quite frankly, they expect it. Leveraging technology teams and incorporating their work into the pricing strategy is an essential step to creating a seamless omnichannel presence.
- Speaking the Language
- How you are communicating to with millennials is just as important as what you’re communicating. Have you recently been to a mall? A large percentage of shoppers have their heads buried in their phones, scouring for discounts and deals long before they step foot into a store. Consider adding mobile geolocation technology into your 2020 strategy in order to capitalize on where millennials are getting their information while shopping.
If you tweak your pricing and promotion strategies in 2020 to reflect even a few of the points covered in this webinar, you just might earn the admiration of the increasingly affluent millennial shopper.