Millennials’ Path to Purchase
Posted: May 31, 2016
Don’t let the mobile generation fool you. Many Millennials still prefer to shop in a physical store where they can touch and feel products before they buy. Millennial shopping habits also indicate they enjoy the social element of shopping in-store with their friends. Peer opinions matter, after all, and these folks like to get others’ thoughts on everything they do, including what they purchase.
A report released at the end of 2015 by Coupons.com Inc., “Uncovering Truths of Millennial Spending,” showed some interesting aspects of money management in Millennial, Gen X and Boomer generations.
Seth Marlett, Vice President of Analytics and Research at Coupons.com, says, “Almost 70% of Millennials closely monitor their budgets. They embrace the idea of frugality, considering themselves smart shoppers, and take pride in educating themselves how to get the best deals when they want them.”
How Millennials approach this is to do research online first, then head to the stores. 81% say when it comes to buying groceries, they prefer to shop in the store and over 70% indicated they’d rather shop in a physical store for household goods, beauty and personal care items.
Rather than relying on social media outlets, Millennials hunt down deals through email offers (42%) and mobile apps of retailers or companies that provide discounts (36%). When shopping online, 39% said they rely on coupon code sites.
80% of Millennials are always on the lookout for the best deals, with 37% of respondents saying they would go to a store that they wouldn't normally visit to get better deals for groceries. About 50% said they’d shop a store for apparel, depending on the savings they can get.
Other findings by the study indicated that two-thirds of Millennial parents use coupons for baby products; followed by grocery (60%); household goods (55%); and beauty (49%).
Millennials often splurge on beauty and personal care, with 20% saying they go over budget in this category.
Almost 80% look for digital coupons using their smartphone.
Trends forecasting group Cassandra recently surveyed Millennials for their likes and dislikes when shopping. According to Cassandra’s report, most Millennials dislike loud and busy stores; rather they prefer a retail atmosphere that is calming, where they can rest and relax a bit.
Recommendations for retailers based on Cassandra’s findings are:
1) Pare things down: Fewer products in striking imaginative displays has more appeal to this demographic than crowded shelves. Creating more “white space” between items allows for a more calming atmosphere and Millennials are big on wellness and calming influences.
2) Pay attention to color: Color palettes with soothing or neutral, rather than bright, colors evoke relaxation. Calming colors like natural greens, sky blues, and beiges, make your shopping environment much more appealing to Millennials.
3) Appealing to all the senses: calming sounds and scents also play a big part in creating retail spaces that appeal to Millennials.
4) Creating spaces for relaxation: You don’t have to do a major remodel to have a resting place in your store. Having a small room near a dressing room in a clothing store with comfortable seating, soft rugs, soft colors and music create an atmosphere for lingering, and more shopping. Having charging stations and wifi are one more thing to make Millennials want to return to your store, since they know they’ll stay connected to their social channels.
Creating changes like these, will not only attract Millennials, but will give your store an upscale, modern feel, which appeals to all generations.TAGS: retail, retail trends, retailers,