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Buyer Knows Best

BUYER KNOWS BEST RETAILERS, MILLENNIALS, AND OMNI-CHANNEL SHOPPING TODAY'S CONSUMERS HAVE NEW EXPECTATIONS. Shopping today involves multiple mediums – in-store, online, and mobile. Consumers, especially millennials, have growing expectations about their shopping experience, regardless of how and where they buy. The questions remain, "Are retailers updating their strategies to accommodate these expectations?", and if not "How much do they stand to lose?" THE MILLENNIAL SHOPPER 105 MILLION According to the Bureau of Labor Statistics, by 2020, Millennials 46% will comprise 46% of the United Millennials are in the States workforce-skyrocketing market today. to 75% by 2025. MILLENNIALS CARRY SAY THEY 40% of male Millennials WOULD BUY $200 BILLION EVERYTHING 33% of female ONLINE IF Millennials IN ANNUAL BUYING POWER. THEY COULD. Despite primarily choosing to shop online, consumers ages 18 to 29 do prefer to shop in store for a number of items: 73% 62% Jewelry 81% 76% 62% Furniture Shoes Clothes Home Goods THE MODERN RETAILER DESPITE THE DESIRE FOR MILLENNIAL SHOPPERS TO COMPLETE THEIR PURCHASES ONLINE, MANY RETAILERS HAVE BEEN SLOW TO TAKE ADVANTAGE. RETAILERS WITHOUT AN ECOMMERCE PRESENCE MISSED OUT ON $262 11.8% 7.5% say they're researching the potential opportunity. say they're in the process of building BILLION IN ECOMMERCE SALES DURING 2013, A FIGURE EXPECTED TO GROW TO a presence. $440 BILLION BY 2017. $440 BILLION 31.2% 50.5% $262 BILLION say they DON'T have say they have an an e-commerce e-commerce presence. presence. 2013 2017 SEAMLESS SHOPPING DESPITE THE RISE OF E-COMMERCE, MILLENNIALS ARE STILL BUYING MOSTLY UN-SEAMLESS IN STORE. BUT, NOW THEY'RE USING THEIR MOBILE DEVICES WHILE IN STORE TO RETAILERS ACCESS INFORMATION, DISCOUNTS, AND REVIEWS ON THEIR POTENTIAL PURCHASES. SEAMLESS SERVICE MEANS SEAMLESS SHOPPING Of the remaining shoppers who don't consider the experience seamless, However, only 54.6% OF 53% of millennials surveyed RETAILERS don't feel their feel their shopping experience shopping experience is at favorite retailers is seamless. seamless; leaving a real 78% think the retailers' divide between their websites fail to deliver on their assumptions and their customers experience. desired shopping experience. RESEARCH DRIVES SALES Get information directly 60% Nearly 85% of respondents report researching products before making purchases. from retailer websites Get information 57.5% from Amazon Retailers with websites that fail to provide accurate product descriptions and Get information by reviews, encourage potential customers to look elsewhere for the information 54.7% word of mouth they rely on before making their purchase. MOBILIZING IN STORE NOT SURPRISINGLY, CONSUMERS' LIKELIHOOD OF UTILIZING THEIR MOBILE PHONES WHILE MAKING PURCHASES INCREASES WITH EACH SUBSEQUENT GENERATION, WITH MILLENNIALS BEING THE MOST MOBILE SAVVY. MOBILE MILLENNIALS STATIC RETAILERS 50% OF RETAILERS REPORT THEY DON'T MARKET DIFFERENTLY TO VARIOUS 50% SHOPPER DEMOGRAPHICS 69% 50% 46% 44% Doing this allows proactive Read product "Check in" for Request price matches Scan QR codes merchants to bring in new customers discounts, using location-based mobile apps reviews to get more and establish loyalty, while others information play catch up. MOBILE PAYMENT OPTIONS 50% of smartphone users anticipate they will use mobile wallets In fact, U.S. mobile-based transactions have grown an average of 118% per year, for the last 5 years. by the year 2017. RETAILERS AND PAYMENT OPTIONS Although younger generations are more likely to use mobile payment options, 88.8% of retailers don't offer mobile payment options to their shoppers. Offering mobile payment options lets retailers market to and attract Millennial shoppers. They also provide retailers with additional tools for marketing to their customers. THE CALL OF THE COUPON WITH THE POWER OF KNOWLEDGE, CONSUMERS 63% of Millennials would be more likely to "check in" to businesses on various social channels if it meant they'd receive a coupon or discount for doing so. CAN PRICE-MATCH EVERYTHING. COUPONS ARE KING, AND DISCOUNTS AND OFFERS ARE A MUST FOR COMPETITIVE BRANDS. ------ A 20% discount is enough 50% 23% said they would to prompt almost 17% said they'd appreciate 50% OF RESPONDENTS need coupons valued discounts at any price. to visit a retailer's location. at least 50% off. LOYALTY GOES MOBILE 84% of consumers said they're 75% of consumers would switch 73% of smartphone users are more likely to visit websites of retailers with loyalty programs. to brands that deliver real-time interested in using their mobile discounts and promotions to their smartphones while shopping. devices to interact with brands' loyalty programs. RETAILERS AND THEIR COUPONS* 1O MISSING MOBILE LACKING LOYALTY OPTIONS 72.7% of retailers don't 50.5% of retailers don't offer any loyalty programs. offer mobile coupons to 41% of retailers offer simple loyalty programs. 8.4% of retailers offer integrated loyalty programs their shoppers. Only 27.3% do. that cover all channels. DESPITE THE DEMAND FOR COUPONS AND REWARDS IN THE MARKETPLACE, 88.7% OF BUSINESSES DO NOT ACTIVELY PARTICIPATE IN DAILY DEAL OFFERINGS. MERCHANTS AND MILLENNIALS If your company isn't on the same page as your customers, you're set up to fail. Make sure you're doing everything you can to attract Millennials. $4 OPTIMIZE GET THE MOST REWARD MOBILIZE YOUR CREATE A SEAMLESS YOUR WEBSITE FROM REVIEWS LOYALTY PAYMENT OPTIONS SHOPPING EXPERIENCE REMEMBER, MILLENNIALS ARE THE MOST TECH SAVVY BUYING GENERATION. THEY HAVE BUYING KNOWLEDGE AT THEIR FINGERTIPS, AND THEY KNOW IT. BRING YOUR BUSINESS INTO THE FUTURE, OR YOU MAY GET LOST IN THE PAST. SOURCES: Merchant Warehouse retailpro. Merchant Warehouse I NRF I Search Engine Land I AdAge I Oracle I eMarketer *Does not add to 100%, due to rounding

Buyer Knows Best

shared by merchantwarehouse on Apr 09
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In late 2013 Merchant Warehouse and Retail Pro International surveyed more than 1000 US retailers and millennial shoppers to identify any gaps that existed between the two groups around marketing and ...


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