How Millennials Impact Retail Shopping

><NAHFA | LAS VEGAS WINTER MARKET 2016

HOW MILLENNIALS IMPACT RETAIL SHOPPING

MARISA PEACOCK

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Millennials are the generation born between 1982 and sometime in the early 2000’s. Some definitions have the Millennial Generation starting as early as 1978 and starting as late as 1985.

Described as social, collaborative, technological savvy, mobile, entitled, passionate

AKA: Generation Y. Echo boomers. Digital natives.

There are an estimated 83.1 million Millennials living in the United States.

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Millennial

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They have spending moneyMillennials make up 21% of all consumer discretionary purchases

They’re Parents25% of Millennials are parents

They believe in somethingAlmost 50% of Millennials would rather purchase from a company if their purchase supports a cause

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They have friends46% of Millennials have more than 200 Facebook friends

They live in urban areasAustin, Salt Lake City, San Diego, Los Angeles, and Denver have the highest concentration of MillennialsThey buy furnitureMillennials comprised 37% of all households buying furniture and bedding in 2014.

6 Fun Facts about Millennials

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MallsBy late 80s, early 90s more than 60 malls were built annually; Average customer spent 80 minutes shopping, spending an average of $75.

Online ShoppingThe World Wide Web comes online; amazon.com launches; most stores begin launch websites;

Multi-ChannelCustomers shop using different channels made available by a company — a website, mobile applications, in store.

Omni-ChannelConsumers use multiple channels simultaneously; Show rooming & reverse show rooming; One-third of Americans have made a purchase on a mobile device in the past 6 months

80s 90s 00s 10s

The evolution of retailShopping, then and now.

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Boomers

While tech-savvy, Boomers are less likely to use their devices as a shopping tool. Less motivated by price when making decisions;


Gen X

Gen X consumers need to research before buying; Skeptical about marketing tactics and use their extensive research to avoid being a target. Brand Loyal.

Millennials

Millennials use tech to make shopping easier, doing research on their smartphones and tablets before they buy; turn to technology to improve their in-store shopping.

How Generations Shop

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Mobile87% of millennials use between two and three tech devices at least once on a daily basis.

Social Media62% of millennials say that if a brand engages with them on social networks, they’re more likely to become a loyal customer. Collaboration interested in helping companies develop future products and services

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ValuesMillennials connect best with people over logos; love brands that support their local communities

Context89% of millennials are likely to act on the notification received from their favorite brand

Word of MouthSeek the opinions of others; don’t make a major decision until they have discussed it with a few people they trust

How Millennials Impact Retail Shopping

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01Mobile

Mobile can be a map, a shopping list, a personal shopper, a salesperson and a product finder all at once.

Devices can provide retailers context, helping them learn what matters to a consumer in a particular location and at a particular time.

Constant connectivity, contextual relevance, and a multi-screen world

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02Social Media

Socialize & Sell

Online retailers need to provide a more shareable and social shopping experience.

Integrate social media into marketing campaigns by focusing strategic efforts and creating unique social sharing opportunities around news, trends, flash sales, and relevant offers.

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03Collaboration

Invite customers to contribute ideas for new projects, accessories, hacks or partnerships. Develop workflow that lets users submit ideas and receive valuable follow-up.

Millennials enjoy the possibility of collaborating with businesses and brands, as long as they believe their say matters to the company.

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04Values

Create an experience where shopping is more than a transaction and the pleasure of being in the store isn’t limited to the goods that customers take home.

Give back. Support local communities. Invest in sustainable materials. Stand for something.

Retailers are encouraged to build a relationship and deep connection with millennials. As a result, they will continue to purchase from you as they age.

Authenticity, Sustainability,

Loyalty

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05Context

Retailers can deliver personal, relevant

suggestions at scale

Give shoppers what they need to locate deals and current offers near them and successfully complete a local shopping trip.

By understanding context, retailers can anticipate what a customer might need based on when, where and how they arrive at their site and help them decide how to respond to them

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06Word of Mouth

In this age of social media, “valuable brand advocates” who share opinions on- and off-line with peers are arguably the most effective marketing tool.

Retailers need to be there when inspiration strikes consumers and as they start researching purchases online.

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Generation Z is the most ethnically and racially diverse generation in the country’s history. They care about owning. Teens prefer to shop online versus in stores, but they prefer sites that have actual, physical stores versus retailers that operate on a strictly ecommerce basis. Teens — and Gen Z in general — will stay away from massive retailers. Value fun but value privacy more — use ephemeral apps like Snapchat, YikYak, Kik. They appreciate experiences, and marketers will have to think outside traditional tactics to get their attention.

AKA: centennials, post-millennials

Generation Z consists of those born between 1996 and 2010.


Generation Z

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What comes next?

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WHO USES SOCIAL MEDIA?

18-29 30-49 50-64 65+ Urban SuburbanAfrican-American

Hispanic White

Male Female

P I N T E R E S TFA C E B O O K T W I T T E RI N S TA G R A M L I N K E D I N

Source: Pew Research Center, March 17 - April 12, 2015

T U M B L R

STRATEGICPEACOCK.COM

@MARISACP51

[email protected]

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How Millennials Impact Retail Shopping

Marketing

Transcript of How Millennials Impact Retail Shopping