How Millennials Decide Who to Buy From
Millennials are transforming the world and are slowly changing shopping as we know it. Described as the generation born between 1981 to 1997 or 1982 to 1996, this group makes up a sizeable portion of the market. They are now in their early 20s and 30s and with their numbers at 80 million in the United States alone, this generation cannot be ignored. Millennials now make up the largest generation in America according to Pew Research and spend a whopping $600 billion per year.
A tech savvy generation, Millennials do everything on their smartphones but interestingly, most buy offline and only a good 16% make most of their purchases online. Older Millennials ages 32 to 35 buy items online more frequently than younger Millennials ages 20 to 23.
Experts say that they are like their Baby Boomer parents too. A good 80% of Millennials are always influenced by price tags even if they also look for other requirements from the brand they buy from. According to Time Magazine, this includes “authenticity, local sourcing, ethical production and a great shopping experience.”
It’s not just because Millennials are financially cautious though, it’s because they have to be. One attribute, according to Barkley, is how the generation was molded by their Boomer parents. Millennials were encouraged to do the things they love and as a result, they usually have fulfilling jobs that do not pay enough. On top of that, this generation is also dealing with college debt. Another factor that contributes to this thriftiness is the fact that grew up in during the Great Recession.
Often called the grab-and-go generation, 29% of Millennials frequent gas stations to buy food and beverages. This, according to Time, is beating chains like Starbucks to the curb. They are a curious bunch but once you get their attention, your brand will experience an increase in sales even though this will take some time. Not many Millennials have credit cards and most save money first before they make a purchase.
Millennials, Brands, Brand Loyalty or Lack Thereof
There has always been this presumption that branded products are more valued by consumers. Unfortunately for brands, Millennials don’t care about them because it all comes down to the price tag. There is no such thing as brand loyalty. In fact, Millennials are more than willing to switch brands if offered a 30% discount or more. Getting a discount is very important for this generation and it is not surprising that a huge percentage of Millennials look for coupons before making an online purchase.
Discounted merchandise are very alluring for this group that’s why fashion outlets like H&M and Zara have grown through the years. It must be noted that making your brand unique is still important because giving discounts just to get merchandise to move won’t be sustainable. However, it is still essential for brands to acknowledge the fact that America’s largest generation is on a budget.
Get More Millennial Customers
How does a brand get ahead of the pack when it comes to Millennials? This group is tech savvy and rely on their smartphones to get information. It is not surprising that they rely on reviews from friends or peers for them to make a purchase decision. If they can relate to a reviewer, the review written by said reviewer will carry a lot of weight for Millennials.
Does this mean that you should start getting reviews from your Millennial customers? The short answer is yes but don’t offer them incentives. You need to get legitimate reviews from their peers. Do not fall prey to review fraud just to get a slice of the Millennial market though because this generation will avoid you like the plague if your brand has a questionable reputation.
Reviews are important for Millennials and they also want prompt responses since they are always online. They want a genuine conversation with brands not only through review sites but through community pages on Facebook and other sites as well.
You can make your brand stand out by telling the world about your values. If you have a social cause, Millennials will love you. Toms Shoes, for example, donates a pair of footwear for every pair bought by a consumer. If a brand operates a sweatshop, many Millennials will stay far away from the brand.
Millennials also share a lot of things online – their emotions, their stories, the restaurants they go to or the place they are currently at, and the products they buy. It pays to make it easy for them to share your products on their social media accounts. Constant social media exposure is key to getting their attention.
How Review Fire Can Help
Make responding to reviews faster and more convenient. Review Fire can help you manage all your reviews under one roof so you can immediately respond to reviews left by a generation that is always online.