A Portrait of the Millennial Shopper

A Portrait of the Millennial Shopper WHO ARE THEY? Essential Stats 75.3 M 19-35 estimated Millennial years old population in US 61% $200 B in collective annual buying power have attended college 55% $1.2 T in collective student debt have full-time employment RENT 48% 2/3 live in cities are renters, not buyers Diverse, Digital, and in Debt Millennials are adults who are under 35 years old. Collectively, they constitute the largest, most educated, and most diverse generation alive today. They're price-conscious, digitally native savers, and 82% prefer to shop in physical, not digital, stores. Millennials' demographic attributes cause them to value low prices, but not at the expense of product quality and commendable business practices. TAKE AWAY THE MOBILE INFLUENCE Millennials 92% 37% spend more due to their use of digital own smartphones 69% read product reviews on mobile 29% have responded to location-based offers 47% use social media during the shopping journey Digitally Savvy Quality Seekers TAKE Millennials want good deals, and they're using technology to find them. That said, they very much value quality and are willing to do plenty of online research on their mobile devices both before they make a purchase and while they shop. AWAY M Discount LoYALTY PrograMS HUGE savings Coupon purchasest Exclusive online offer on all your I savings, special offers ond more with this voucher. Hurry, offer ends soon! --- 50% are likely to use branded apps 75% seek out loyalty programs want to download coupons or reward certificiates 77% 60% want to redeem points through an app 29% are likely to respond to daily deals 46% receive text offers BRAND-SPECIFIC LOYALTY 62% 75% are more likely to become a loyal customer said that it's important that a company if a brand engages with them on social networks gives back to society, instead of just making a profit What makes them more loyal to a brand, quality or price? 33% p 55% price quality Loyal, Idealistic Shoppers Though Millennials crave a good deal, they are loyal shoppers who appreciate fair, tech-savvy loyalty programs, and they are likely to remain loyal to and recommend the brands they trust. For Millennials, "trust" takes two forms: quality and responsibility. Millennials value high-quality products and fair prices. They also expect a company to be socially conscious, give back, and have a positive impact on society. TAKE AWAY SHOPPING HABITS, by Generation Millennials Questions Non-Millennials (Gen Xers & Boomers) Travel and apparel What are you most likely increase your spending on? Packaged foods and insurance 60% YES Do you research products on a smartphone before making a purchase? 14% YES 90% YES Do you routinely research products before making a purchase? 86% YES What type of "advertising" makes you most likely to buy a product? Word-of-mouth Ads or advice from a saleperson Different from, yet Influential of Later Generations Millennials have different ways of approaching making purchases, and traditional advertising is not as effective on Millennials as it is on Gen Xers and Boomers. This is why retailers should push to leverage social media: getting a personal recommendation from someone Millennials know, even if it's done online, is the best way to get them to purchase a new product. Personal recommendations convince Millennials of a product's quality, which justifies its price. TAKE AWAY Finally, know that Millennials' overall shopping habits are slowly being passed on to older generations. The more that Millennials shop digitally, the more that non-Millennials will follow suit. Millennials are trend setters. 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