How to Reach the Millennial Consumer
It’s the question on every brand’s mind — how do I reach the millennial consumer?
Is it all about social? Should I focus on mobile? Should I allocate more of my advertising budget toward this trendy website?
It’s frustrating. Millennials frequently change their interests and buying behaviors. However, because millennials in the US spend about $600 billion a year, it’s pivotal to capture and maintain the attention of this audience.
To market to this treasured demographic, retailers must understand millennials’ buying habits, as well as find ways to stay flexible and adjust to their changing behaviors.
Take a Multichannel Approach
Shoppers have increasingly longer, varied and nonlinear paths to purchase, and millennials are leading this charge. They’re shopping everywhere, so your products should be visible on as many channels as possible. They like immediacy, so make it easy for them to find and purchase your products. Implementing a multichannel e-commerce strategy and making data-driven decisions about where to allocate your advertising dollars should be the foundation of your business.
• Be everywhere: A successful multichannel approach means implementing both digital marketing and marketplaces strategies. As millennials bounce from site to site and change their buying behaviors, a diverse multichannel strategy increases the likelihood that you and your products will be visible throughout the buying process.
• Be ready for industry developments: Major innovations and disruptions that intend to improve the customer experience can oftentimes leave many retailers scrambling to find solutions. If you’re unable to adjust, it can be crippling to your revenue. Implementing technologies and systems that allow you to be flexible and adapt to change will keep you ahead of the curve.
Improve the Mobile Experience
A Bank of America survey reported that 96% of millennials onsider their phones the most important product in their daily lives. Another study found that millennials are on their phones an average of almost 15 hours a week.
Millennials are the first generation to grow up with the internet, and they’re used to technology evolving quickly — so they’re able to adapt to new devices and functionalities. As a result, you can expect millennials to reach for their smartphones when shopping.
• Be accessible on all devices: A responsive, mobile-friendly web design is necessary, especially after Google’s recent mobile-friendly update. In the 2015 ChannelAdvisor Online Retail Survey, over 30% of U.S. respondents said their conversion rate from mobile traffic is only 2%-3%. Consider your website design. Is your text readable on mobile devices without tapping or zooming? Does the site’s layout on a mobile device take away from essential product information?
• Take advantage of existing mobile apps: There’s no need to spend significant money and time building and promoting your own app. Mobile users are constantly bombarded with new apps, and chances are, other apps will have better functionality. Marketplaces like Amazon and eBay already have popular apps you can use.
Focus on Price
Millennials are money-conscious. According to a study by the Intelligence Group, a third of millennials, purchase only items they deem necessary. Forrester Research claims that millennials are headed toward economic catastrophe because of student loans and educational debt.
• Offer free shipping: Free shipping was an introduced benefit to consumers who shopped online early in the e-commerce lifecycle, but that’s not the case with millennials. Millennials have likely only known fast and free shipping, so it’s become the expectation. Through its Prime program, Amazon has almost singlehandedly reconditioned modern consumers’ expectations.
• Offer promotions: Want to give your Google Product Listing Ads (PLAs) an extra boost? Try Google’s Merchant Promotions, which add a “special offer” link to the bottom of your product ads. When shoppers roll over the link, a promotion code for a discount shows up. Moreover, it’s entirely free for retailers.
Get Social
Social media is becoming a popular channel for consumers to interact with each other about purchasing decisions. The ChannelAdvisor 2015 Online Retail Survey found that the top reason retailers are using social media is to increase brand awareness. Millennials are almost four times as likely to share content on social networks as other generations.
• Get involved in the conversation: Wanelo and Pinterest are two social media platforms soaring in popularity these days. Members “pin” and share items, as well as find inspiration from their networks of followers. Social sharing is word-of-mouth advertising at its best.
• Incentivize them: The communication between a consumer and a retailer has become a dialogue now. Millennials know that you’re trying to sell to them. Own up to it and engage with them authentically. Get to know them through the data you receive. Likewise, if you make a mistake, admit it. They’ll share that with their followers, and you’ll likely earn their trust.
Increase Brand Recognition
If incentivized, millennials can be great ambassadors for your brand. All that chatter on social media leads to the discovery of new brands and products, which then leads to more brand sharing. In addition to encouraging conversations about your brand, facilitate easy points of purchase so you can benefit when interest is high.
• Keep your reputation intact: Millennials do their research, so the importance of maintaining a strong online reputation can’t be emphasized enough. When faced with the decision to buy the same brand-name product from a retailer with a poor reputation or from one with glowing reviews, the choice is obvious.
• Offer loyalty programs: Research shows that 78% of millenials are more likely to choose a brand that offers a loyalty or rewards program over a brand that doesn’t. Millennials want the relationship, but they also want something in return. They’re loyal, and they’ll be your advocates, but that loyalty and free advertising come at a price.
Millennials are an important audience to target — but in the end, the ability to adapt is what will lead you to success. In an ever-changing industry, you need to be ready to pivot your online strategies frequently so you can adjust to consumer behavioral changes and be ready for what’s next. For more information about marketing to millennials, click here.