Getting Millennials Into the Holiday Retail Spirit
Not so long ago, conventional wisdom was that Millennials, those born roughly in the 1980 to 2000 timeframe, were on track to be self-centered, materialistic, unprepared adults. And then came the Great Recession.
Faced with the realities of the time — such as a slow job market, no raises and paycheck cuts — many of this generation had to figure out what it meant to live on a budget, earn a paycheck (or two) and focus on buying needed items, rather than wanted ones. They became a bit frugal. The Intelligence Group tracked the shopping habits of 1,300 people aged 18 to 34 (as well as a smaller group of those aged 14 to 17.) A little more than a third of the millennials in the study buy only “necessary” purchases.
However, the malls are packed with people aged 18 to 34. They may have tight pursestrings, but they do shop. The key is for retailers to understand how to appeal to this group.
The Intelligence Group study found that services are huge to Millennials. Netflix is valued more than owning a movie, for example. Why buy a car when you can use one whenever you want (Zipcar) or just call for a ride (Uber)? And, although they are not spendthrifts, Millennials will pay more if they believe it benefits what they perceive to be a worthy cause. For instance, four in 10 say they will pay a premium for eco-friendly products.
How can retailers expect to engage Millennials in holiday shopping? According to Accenture, there are roughly 80 million Millennials in the United States alone, and each year they spend approximately $600 billion. That’s quite a few potential sales. Here are three ways to appeal to the Millennial at the most wonderful time of the year:
#1: Provide a seamless experience no matter the channel. Millennials often do their homework online before purchasing. They often know exactly what features each item they are interested in has and are at least as well versed in the product specifications as the sales associate. They expect pricing to be consistent online and in the store. In addition, Millennials’ browsing habits favor brands with seamless digital-to-storefront experience: They expect that the inventory seen online is also available in stores.
#2: Provide good value. Retailers must understand these customers are
Millennials research products online, but often go to a brick and mortar to purchase.
looking at value more than previous generations. They want bargains. They like coupons, too — and also want to use their mobile devices while shopping. Finally, a group that welcomes push notifications. But beware: Your technology better be up to snuff. Millennials want mobile coupon scanning capabilities, and having to print out coupons prior to shopping is not acceptable. One summed it up this way in the Accenture report, “When I get to the store, if I haven’t printed out my coupon and I can’t use it, I walk out.” Be sure to push coupons to mobile devices, and be sure no printing is required.
#3: Provide experiential retailing. Interestingly, this generation is not loyal necessarily to a product brand, but are loyal to retailers. That gives retailers a great opportunity to provide a personalized retail experience for customers. It seems especially appropriate at holiday time for retailers to go the extra step for customers: “I see you bought perfume last month, Mr. Jones. Would you like to see the other items in our fragrance collection?” Millennials must perceive they are welcome and valued customers. Many want personalized, targeted promotions and discounts in return for their loyalty.
