How on earth can we market to millennials?
13. 79% of millennials accept advertising as a part of their life.
First of all, millennial consumer behavior indicates that most people from this generation have absolutely no problem with advertisements. It is, at worst, a necessary evil, though most believe that ads can improve their shopping experiences and help them purchase the things they need. About 46% of them have no issues whatsoever with ads, compared to 39% of those over 35. So not only is it entirely possible to market things to millennials, it turns out it’s easier to market to them than to the older generations.
14. 33% of millennials use ad blockers.
Millennial spending statistics indicate that while this generation doesn’t mind advertising, they hate it when it’s too aggressive: videos that play unprompted, banners that cover half of the content, violently bright colors and loud call-to-action buttons that flash before your eyes. These advertising techniques are off-putting and they can harm brands in the long run.
15. 3 out of 4 millennials prefer spending money on experiences rather than things.
Today, millennial purchasing power revolves mostly around experiences. They want to make unique memories and see things they haven’t seen before, and they’re ready to dish out a lot of cash for this luxury. Does this mean you can’t sell them a fancy dress or a clever little gadget? Not at all. It simply means marketers should learn to present products through experiences. This can be particularly easy in the beauty industry. For example, a moisturizer is more than a wrinkle-preventing solution — it’s an elixir of youth, a chance for a person to indulge in a nightly self-care ritual that will make them feel rejuvenated.
For millennials, shopping habits are influenced by the opportunity to feel good. Remind them that your product can offer more than simple material benefits and you’ll draw their interest.
16. 66.3% of millennials are more likely to shop in places where they are part of the loyalty program.
There’s nothing like a good loyalty program to make sure a customer keeps returning to the store. Millennials are particularly fond of them because they help them feel closer to the brand.
17. 15% say loyalty points influence their purchases.
Millennial spending habits can easily be influenced through point-gathering programs. They are more likely to consider a new body wash if loyalty points allow them to try the product at a discount.
18. 50% of millennials say they always respond to limited-time offers.
Limited-time offers are a great way to create a sense of urgency and get people to click on the purchase button. When it comes to millennials, online shopping statistics indicate that things like countdown timers, flash sales, and limited-time coupons seem to be the most effective strategies.
19. 55% of millennials blame FOMO — fear of missing out — for their last impulsive purchase.
Limited-time offers are a good way to induce FOMO in millennials and get them to put a product in the basket. Bear in mind that this tactic could scare them away in the long run. Ultimately, you want the customer to leave your store or website feeling good about what they bought – especially if your customer is a millennial.
20. 94% of millennials use coupons compared to 90% of Gen X and 89% of boomers.
(Infographic Journal, Psychology & Marketing)
Statistics regarding consumer spending by generation show that millennials love a good bargain. Coupons, especially digital coupons, go above and beyond simply saving a few dollars. According to a Claremont Graduate University study, receiving a coupon can increase a person’s oxytocin levels, decrease the levels of stress hormone called adrenocorticotropin, and even slow the heart rate by 4%. The psychological reaction is similar to having a positive social interaction. It’s no wonder people like to indulge in a little retail therapy after a bad day — it works.
21. Prices need to be at least 10% lower to get millennials to switch to a retail competitor.
Statistics about millennials once again illustrate that they’re not quick to jump ship and run to competitor brands without a very good incentive. If you’re trying to stand out in a cut-throat market, you’ll have to offer significantly lower prices to pry them away from other companies and make them pay attention to your offers.
22. 40% of millennials say their favorite online influencer understands them better than their real-life friends.
(Think With Google)
What do millennials enjoy besides adventure travel and Netflix? Apparently it’s YouTube. Influencers, rather than celebrities, are now affecting millennial spending power because they provide a more intimate, distinctive experience. Compared to celebrity videos, influencer content has three times as many views. It focuses on a smaller number of people and has very high engagement within that group. Famous YouTubers feel less like glamorous stars and more like friends — they come off as down-to-earth and approachable, so people are more likely to trust their product recommendations.