Millenials are those born between 1980 to 2000 into a world of the digitalisation of everything. Their world has been filled with Smart phones, Smart watches, and even Smart fridges. Every action of their life now has an element of technology, even how they shop.
But contrary to popular belief, Millenials aren’t just buying everything online on their darn smart phones. Instead, they use technology to create a fulfilling, seamless, shopping experience.
As Accenture Consulting has put it, “this generation is using the online channel to become smarter, better-informed customers, but they still want to see what they are buying, ask questions, and try things on”.
This brings me to my earlier blog, “7 Factors for a Successful Online Store”. In order to be a successful online store, and in extension, attract their target online market of Millennials, you need the following:
- Have high quality products
- Offer competitive pricing
- Have engaging content
- Utilise your current customers to gain more customers
- Be a trustworthy business
- Have an easily navigated system
- Have proper customer support
But what do you need to know about Millenials in order to cater to their (online) shopping needs?
- Last year, Millenials spent $600 billion in the United States of America alone in shopping expenditure. Once “typecasted as financially independent teens”, Millennials are now full time workers. They have been working since their teenage years, and are trying to buy and pay off homes, cars, and get the latest and greatest versions of things but at the cheapest price possible.
- 41% of Millennials practise the shopping art of “showrooming”. This is when they visit the retail store to see the products, then go online to read reviews, and find the cheapest price from competitors. It is essential as a business owner that you offer competitive pricing on your products, and practise price matching. Armed with smart phones, Millennials have no problem to Google search who does the best price for what they want and buy from them instead of you.
- Millenials make up only 26% of the global population but account for 35% of the global retail spending. In fact, on average they spend $2000 a year just on online, retail stores. So you must market your products, if relevant, to Millenials as within a six month period, over half of online shoppers are Millennials.
- Since 2014, there has been a 32% increase in mobile sales. What does that mean for your business? Make your website mobile optimised. When you travel, are at work, or just lounging around, how often do you visit online stores even if its just for the purpose of a quick browse? If your website isn’t mobile optimised, then you are losing a large percentage of potential customers. In fact, in a six month period, over half of online shoppers are Millenials.
- 33% of Millenials will read blogs, read reviews, watch the products in use, before they buy a product. Interestingly, only 1% of Millennials stated that they have felt compelled by traditional advertising to purchase an item. They are more influenced by social media in understanding a more authentic view of the products. Are you advertising on social media? You should be.
- 79% of Millennials were introduced to a new product or brand from using their mobile devices. As mentioned earlier, you must have a website that is mobile optimised, but you also have to be everywhere.
- 54% of Millennials have stated that their smart phone, not their wallet or money, is the most important shopping necessity. While they do have brand loyalty, they will buy from brands that offer them the most convenient experience, at the lowest price. But due to poor mobile optimisation, 60% of Millenials will use their desktop computer to make the purchase.