Purchasing Power Starts with Millennials

Purchasing Power Starts with Millennials

Internet Shopping ConceptWe hear all the jokes about millennial’s laziness in the workplace and entitlement attitude. Even I’ve discussed it here on multiple occasions. Truth is not all millennials are the devil and many are lending hand in making this world a better place. More shocking for retailers is millennials are now moving into the largest purchasing group this world has ever seen. Yes, even bigger than boomers.

There is now an estimated 92 million millennials verse only 61 million generation x’ers and 77 million baby boomers. These digital natives, socially connected, more in debt, and different priority oriented individuals will now control retail. What does this mean for the average marketer working in retail and how will it affect your ability to sell products? The good news is the primary marketing manager you have is likely a millennial and is already creating campaigns on how they would likely want to be marketed too. According to a recent article in Mashable, they put together research from a variety of resources that showcases four primary opportunities marketers should consider when marketing to millennials.

  • It’s not about the brand. Our parents and grandparents purchased products based on brands they trusted. It really was about making sure your brand was everywhere because the simple fact of identifying the brand had huge weight in purchasing decisions. Not with millennials. Over 60% of millennials do not purchase products based on the name of the brand. This means marketers must be intentional with their customers communicating quality, pricing, and ROI for the customer. What will this product do for me?
  • Social Media marketing. It’s no secret that millennials grew up in the digital boom but many marketers believe millennials overlook social media advertising simply because of how many advertisements are hitting them daily. This is not the case. 34% of millennials are more likely to purchase an item if the brand uses social media verse only 16% of individuals over 35 years old.
  • Online shopping. It shouldn’t surprise you that millennials love shopping online. Nearly 90% of all millennials purchased something online in the past 12 months. This is up nearly 15% from just five years ago. Focus on having a strong eCommerce marketing plan.
  • Value doesn’t beat quality. While price is an important factor to millennials, it doesn’t beat quality. Nearly 55% of millennials say they will purchase a product based on quality over price. When you look at industries like craft beer and coffee, millennials flock to purchasing $5 cups of coffee and $10 craft beer selections verse purchasing cheaper alternatives.

Millennials have grown up and now control purchasing power. What are you doing to welcome them to your brand?

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