The millennial generation makes up a large proportion of consumer spending in the global economy. Over the last several years, the generation has shaped the tactics and strategies of product marketing. Their shopping patterns are deeply influenced by how a company markets its products and services
As technology and the internet continues to progress, so do millennial spending habits. 86 percent of millennials are thought of as digital buyers. It is viable to understand how millennials have shaped the state of the economy and the long-term effects of their spending preferences.
Who are millennial consumers?
The millennial generation, also known as Generation Y, were born between the year 1981 and 1997. Millennials make up the largest portion of the U.S. population at 22 percent. The demographic persistently focus on features, worth, and brand image when delegating their spending. When it comes to the millennial’s preferences, they choose brands that provide loyalty and quality.
What do millennials look for in a brand?
93 percent of millennials surveyed cite having purchased a brand’s product after hearing about it from a friend or family member, and 70 percent cite to always look up reviews on the product before purchasing. In comparison to the younger generation, Gen X, that looks to celebrity endorsements and sponsored advertisements to navigate their spending habits. Millennial consumers look for brands that they can trust and that will provide them with the best experience and quality.
Brands that align with values
Millennials want to feel that they align with the same values a brand or company offers. 83 percent of millennial consumers cite that they want companies that they support to align with their values. They look for brands that have a significantly higher purpose that sets them apart from competitor brands, such as partial proceeds going towards a charity fund or donation. The consumer wants to feel that their purchases are not meaningless and help to support a charitable goal.
They are more willing to support a brand that has an active stance on current social issues and is conscious of the news and controversial issues. A brand that speaks more upon social issues is much more appealing to millennials over brands that are more transactional.
Brands with a strong digital presence
Not only has digital marketing and e-commerce boomed during the last year as many stayed home during the pandemic, but it also has grown significantly as the preferred shopping outlet for millennials. 30 percent of millennials have increased their online shopping since the start of COVID-19 last year. With that, they are much more conscious of their spending habits and tend to spend on products that are of quality and necessity over products that are cheaply made and not worth the purchase.
They strongly believe in the power of online reviews when it comes to spending their money on products. It is recommended that brands provide easy access to product reviews and market personal testimonies to grab the attention of millennials online. They are less likely to purchase a product if a company has poor reviews or cannot provide viewable product reviews.
Brands with non traditional marketing
Millennial consumers want to feel connected to a brand and its purpose. They much prefer personalized marketing tactics and advertisements over outreach email marketing and mass media campaigns. A brand is more likely to reel in the millennial audience by building an authentic connection between itself and the consumer. This is easier for smaller brands that do not have a large consumer base but is doable for any brand looking to target millennials.
Brands with value
Millennial consumers would much rather make purchases with added vouchers or coupons. A brand should use its social channels to provide online discount codes and market daily discount sales on their online websites. If a brand can, establishing a loyalty or rewards program that provides discounts and perks is recommended. Not only will millennials be interested in reward discounts, but it will increase the chances of the audience staying loyal to the brand over competitor brands.
Brands with quality customer service
This is agreeable amongst many consumer generations. However, it is most important when connecting with millennial consumers. Ways to provide quality customer service include free shipping on purchases, establishing an easy return policy, and providing easy access to personal customer service with a company hotline. Millennials prefer brands that allow them to submit recommendations on products or services.
Millennials are by far the largest population of consumers, which makes them the most important to target when advertising a brand or product. When it comes to establishing branding elements that work to attract millennial consumers, it is important to keep in mind what they are looking for. For this generation, it is beneficial to create customized marketing campaigns that align with their beliefs and values.