Millennials are people born between 1982 and 1996 and today they’re 21 to 35 years old. It’s estimated that they will represent a staggering 30% of retail sales by 2020. Here are some of the ways they are profoundly changing the retail landscape.
Millennials are always in a shopper mindset because social media has put them on a constant state of alert for new trends and fashions. They also demand instant gratification because the internet makes price comparison so easy. They want it now at an affordable price. Millennials love coupons and want a discount either delivered online or through the mail. These factors also make them impulse purchasers much more so than previous generations. It’s much more of a “buy now, deal with the repercussions later” mentality.
When shopping, millennials are more interested in experiences rather than products. One way retailers can achieve this is through the use of touchscreens and virtual reality in store. They want to share their experiences with their network online. Because of this, food, entertainment, music and activities should be included when targeting youth. To build brand loyalty with millennials retailers should develop a customer-centric shopping experience – one that is tailored to their wants and needs. Retailers need to effectively use customer data collected through loyalty programs to deliver this tailored approach.
Where they shop and where they buy are two different places. They may see a product in store and then go online to buy it because it’s a better price. Or, they may use the internet to provide the information and insights they need to buy the product in store. They want to be able to seamlessly switch between smart phone, personal computer and physical store when shopping.
Although they are big social media users, retailers are better off trying to create “buzz” through social media rather than trying to use it as a selling channel. Social approval is very important and what they buy is strongly influenced by social media posts and online influencers. To validate their own purchase choices, they look for online approval.
One interesting trend is that millennials donate their time and money to charitable causes more than previous generations. Pretty soon, the brands that Millennials support the most are likely to have a positive impact on the world.
Looking ahead, retail technologies of the future include virtual and augmented reality which allow shoppers to experience a brand without having to leave their homes. Overall, millennials want a personalized experience but just like everyone, they’re looking for great products at a great price.
