admin  Apr.24.2015

As the retail landscape is rapidly changing, more and more brands try to keep pace by adopting new ways of communicating and interacting with consumers. Moreover, Millennials i.e. the first digitally-based generation, are emerging as the segment of shoppers that retailers are currently focusing on engaging. This special demographic group is mainly consisted of tech-savvy, sophisticated shoppers, with considerable disposable income, increasing purchasing power and high expectations about what they expect from retail environments.

Attracting Millennials requires a solid marketing strategy and retailers need a deep understanding of their behavioral patterns in order to meet their needs and demands. Here are some facts that marketers should consider:

  • Millennials seek intensively for offers, deals and discounts more than any other segment. They are also savvier at searching for coupons on mobile, while in-store. According to the Accenture survey ‘Insights into Millennial Shopping Behavior Patterns’, 55% of the respondents said that they seek out “the cheapest return option.”
  • 60% of millennial participants in a Zogby survey held for Mitek, believe mobile will take-over all processes over the next five years. While some brands are responding accordingly by providing mobile solutions, these consumers are likely to disengage with businesses that do not.
  • 81% of them say it is important for retailers to have high quality mobile apps available for customers. (Zogby survey)
  • According to Supermarket News, Millennials love shopping more than any other generation—including food shopping— and for them what matters most is experience.
  • According to a recent Samsung Electronics report two-thirds of the 16 to 24-year-olds questioned, said retailers could do more to keep them interested in products when they are already in store, while a 68% said they expected retailers to try something new to make the retail space more appealing to them.
  • It is estimated that Millennials spend approximately $600 billion annually.  This estimate is projected to increase by 2020 when Millennials will represent at least 30 percent of all retail sales. (Accenture)
  • According to a study by Edelman, 7 out of 10 Millennials consider themselves “alpha-influencers,” believing not only that they influence the decisions of friends and family but also that they have a responsibility to share their brand and retail experiences via social media and other channels. Moreover, a Boston Consulting Group report indicates that over 50% of Millennials explore brands on social media sites and a 87% say that social likehood configure their purchasing decision: they are more likely to seek and share information on these sites—and to have more confidence based on what friends and peers say as opposed to messages delivered by traditional advertising.

Considering the above facts we can now figure out the key components in order for brands to deliver on their strategy and engage Millennials:

  • Optimize and integrate an Omnichannel  strategy:  the way Millennials value a shopping experience is correlated to its seamlessness and the ability to deliver a consistently personalized, on-brand experience for each individual customer at multiple touch points/channels, anytime and anywhere.   
  • Enhance of Brand awareness:  it is essential for retailers to build a foundation of trust among millennials and that can be achieved by providing consistency in the customer experience and ensuring its seamless function. That includes the experiences Millennials expect before they arrive, while they are in the store and after they leave. Millennials want to find a good deal online, purchase the product in the store and scan their coupon on their phone at check out.
  • Enhance loyalty by incorporating personalization: One of the biggest challenges faced by marketers is to turn a brand-shifting group of consumers to lifelong consumers. Millennials are still very prone to developing loyal relationships with retail brands if they are provided with services that meet their expectations.  Millennial customers appreciate a shopping experience that is tailored specifically to them.  Therefore personalized coupons and push notifications are also convenient ways Millennials feel connected to a retail brand.
  • Leverage the resonance of social networks: as young adults are constantly socializing in various networks, by providing an engaging and interactive experience for to them generates the potential to create a resounding positive influence on various demographic groups
  • As Mobile reflects on the ability to interact with Millennials, retailers should be able to capitalize on the popularity of mobile devices by incorporating new trends such as location-based technology and geo-fencing in order to provide valuable shopping experiences.

Finally, to deliver excellently to Millennials, retailers will need to team up with strategic partners that can integrate cutting-edge technology, data and analytics in such way so as to strengthen their customer value propositions.

MPASS is a leading service provider specialized in delivering turn-key solutions, leveraging the whole spectrum of channels (mobile, social media, email, SmartTV).

Please contact us to learn more about how you can benefit from MPASS quality tailor made solutions of Omnichannel Campaign Management just for your needs.

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