Report: Impulsive, thrifty millennials a tricky group to court

Seattle — A new report from MSLGROUP and the Hartman Group is underscoring grocers’ need to appeal to millennial shoppers in unique ways. The report, Food Shopping in America found that one of the youngest and constantly connected consumer groups is also a tough nut to crack — simultaneously impulsive, thrifty and wary of inauthentic marketing.



“Millennials are more spontaneous and adventurous than previous generations in their interactions with food and beverage,” Hartman Group CEO Laurie Demeritt, said. “Millennials' strong ties to technology and new ways of engaging with food and beverage occasions make this generation's shopping and dining habits worth watching, not just for clues about what young adults want but for ways that Millennials are influencing changes across generations.”



Due in large part to the median household income among millennials ($37,500 compared to $62,500 among Gen X and 72,500 for Boomers), budget constraints have the largest impact on where they shop. As a result, they are more likely to shop at two or more stores per shopping trip to get everything they want, and their basket tends to be an eclectic combination of prepared or frozen food and specialty items like organics, dairy alternatives, pet food and sports drinks.



But grocers and retailers have a big opportunity to connect with millennial shoppers on mobile. According to the report, about 70% of them shop with their mobile device on hand — looking for recipes or coupons — which provides an opportunity for mobile outreach. Though not strictly in the grocery business, Target recently began piloting beacon technology to reach more customers on mobile.



However, millennials also seek authenticity and personalization, as they highly value input from friends and family, so outside endorsements might have less of an impact on shopping habits than marketing efforts that leverage millennials’ social networks.



“Brands must adapt to connect directly with the millennial shopper,” MSLGROUP’s director of food and beverage marketing Steve Bryant said. “Millennials value companies that are authentic and transparent, and are more willing to connect with companies that try to address their needs. Marketing efforts should focus on carefully tailored, personalized communications, with a focus on both convenience and affordability.”



To read an executive summary of the report click here, and see the report's infographic for additional insights.