Millennial Shopping Trends: How Marketers Should Plan for 2023
Millennials, generally defined as people born between the years 1981 and 1996, should be considered the first truly digital generation and are the demographic that every brand wants to win over. But the first trick in gaining their loyalty involves getting their attention and, much more importantly, maintaining it.
This is not an easy task as younger consumers aren’t as likely as Generation-Xers or Baby Boomers to respond to traditional advertising or marketing strategies. So, innovative measures will need to be taken to win over this lucrative sector of society.
You can't draw a hard line between Gen Z and Millennials - being part of a certain "generation" is as much about culture as it is age.
For this blog, we'll use the Pew Research Centre’s definition: anyone born in 1997 or later is Gen Z. In the past, Gen Z and Millennials were often lumped together as "digital natives" when it came to shopping.
These two generations are so powerful that they are predicted to push the social commerce market to $1.2 trillion by 2025. At this rate, it is growing at three times the rate of normal or traditional e-commerce.
As the purchasing power of Millennials and Gen Z grows, it is increasingly important for marketing teams to adapt as they evolve in the digital marketplace – a space that is becoming increasingly competitive.
How Millennials Are The Biggest Opportunity And Threat To Businesses
Despite being arguably the most lucrative demographic to market to, Millennials are also potentially the most challenging. As they are the first generation to grow up with the internet, smartphones, social media and a number of other technological advancements, Millennials tend to be very tech-savvy and quick to adopt new technologies when they appear.
Yet because of their familiarity with this medium, they are also notoriously, almost instinctively distrustful of commercial or traditional advertising. The types of approaches and promotional content that is effective for older generations, will be usually ineffective and wasted when targeted towards a Millennial audience.
Millennial Shopping Habits
Many millennials consider social responsibility and respect for the environment when considering their purchases, so brands face significant expectations of Millennials in terms of purchasing and investing dollars.
They often choose to follow their instincts or follow their peers, but they are wary of financial advice given by parents and experts in the field. They also prefer personal relationships with those who manage their money, which reflects their values of trust, honesty and choice.
When shopping, Millennials focus on savings. They prioritise price over recommendations, brand name and even product quality. They follow online models only for discount opportunities. 66% of millennials would switch brands if offered a discount of at least 30%, and only a third would see a sign to accept a trend or product update.
Gen Z shoppers are fans of loyalty programmes, with most female shoppers in Britain belonging to at least one programme.
Ironically, 60% of millennials say they are more loyal to the brands they currently buy from if they are treated well through the customer experience. To ensure sustainability, companies include loyalty programs with structured discounts and active gender relations.
Other types of values worth focusing on are authenticity, local sourcing, ethical production, great shopping experiences, and giving back to society. 75% of Millennials consider it important or very important to kind of give back to society rather than just making a profit.
Millennial Buying Trends 2023
Millennials grew up learning not only how to use ever-shifting modern technologies but also how to quickly and effectively review any advertising content placed in front of them. They are well versed in how to avoid falling for marketing ploys and won’t hesitate to call them out when they see it.
Here are a few trends worth noting:
- 47% of millennials acquire entertainment online
- 72% of millennials say social media has an impact on their purchasing decisions.
- 40% of millennials shop on social media.
- 78% of millennials follow brands on social media
- 75% of millennials shop on Amazon vs. Walmart (46%), and eBay (20%).
- 44% of millennials shop online because the #1 factor is fast shipping and more product options.
- Millennial consumers are spending more on food; The group said they spend up to $298 per month on shopping.
- Average 25-34-year-olds say they spend $2,008 a year at cafes.
All of this leads us to a number of questions that you’re probably asking yourself at this point. Namely, how do you get the attention of Millennials if traditional methods are normally unsuccessful? What are the trends for Millennials in 2023 to target as well as further into the future? And, probably most importantly, what is the best way to market to Millennials in 2023?
How To Create Millennial Marketing Strategy
In short, millennials are willing to listen to ads, but only if you find them in the right places. Millennials are twice as likely to watch video ads on their phones than on TV. Best of all, those who watch these videos are 1.8x more likely to take action on the ad. Why? Because people look at their smartphones often while they are busy - researching products while shopping, for example.
Remember that brand values are important
About 82% shoppers consider the brand when making a purchase, which is higher than the five in 10 that is average for all American adults. This means that today's brands must not only be image-savvy but also create messages that resonate with these millennials. While young people watching your YouTube ad may not be interested in brand messages that touch on key values such as sustainability and environmental impact, you can expect millennials to listen. real ears.
You may remember that "authentic" is one of the main traits that millennials admire. What are the facts that make millennials likely to buy from you? And why did they think in the beginning?
For starters, the truth works with all ages. It shows up among Millennials in higher-ranking polls than Baby Boomers and Gen Xers. Like everyone else, Millennials like to make their own decisions. They will happily tap a Facebook ad if they think its values match theirs. But when brands try to dip their toes in the water in ways that seem inconsistent with their core values, millennial media has a way of spotting it.
Millennials offer great loyalty, but only for brands that have earned that loyalty through two-way communication. A vision like an interactive website can help strengthen your brand's "conversation" process. But you can also turn to social media for new relationships. Essay contests, client points (such as featuring a client in a post or having them “host” your social media account for a day), and other visual displays of fan engagement and - show that you are having a two-way conversation.
Use - and update - your blog
Statistics suggest that a well-written blog can generate a 55% increase in website visitors. But you don't just do it as a business plan for millennials. You do this for the algorithm in the search engine that looks for fresh, new and updated content.
Given that 55% of millennials ignore brands that don't show up well in search results, you can use a clean, fresh and frequently updated blog to be a great way to reach them.
Many millennial shoppers may indeed look at your blog before making a purchase. But that nature can be worth the time and effort it takes to create that message. Not only do better search results help you attract more customers, but millennials searching the internet want to check the "blog active" box before they decide to buy from you.
Motivate them to spend
Likewise, millennials are like any other generation: they can't pass up good inspiration. But you have to be wary of millennial media preferences if you want to create compelling content.
While a simple coupon appeals to everyone, keep in mind that millennials spend more than money. According to Forbes, millennial employee incentives tend to provide millennial employees with more options at work. It might be easy to write them a check, but in practice, millennials value time and experience as much as financial incentives. Your digital marketing strategy should reflect this.
Make inbound marketing informative
Millennials care more about privacy than previous generations. But in the years to come, as laws crack down on the ability to share customer data with third parties, advertisers will need first-hand data to gain insight into their customers' preferences.
Primary data is the knowledge you get directly from your audience.
When they fill in their address, for example, you get demographic information about your market. But not everyone will fill out the shipping form right away. You need other ways to get information from incoming customers.
10 Key Marketing Strategies You Can Use to Target Millennials in 2023
1. Consumers buy directly on social platforms
Marketing is fast becoming a social activity. Whether that means that consumers find businesses through social media or share their shopping habits and see their friends, there is a clear change in business. The world's largest social media platform uses this change.
Facebook reported that in 2021 the Facebook marketing platform now has one billion users. It is also home to about one million stores that sell to 250 million customers every month.
Additionally, a recent study found that compared to other social media platforms, TikTok users are twice as likely to make in-app purchases. No wonder the popular hashtag #TikTokMadeMeBuyIt has been viewed 18 billion times.
2. Consumers continue to buy goods online
The growth of the goods went up between 2020 and 2021, and the sales of US goods in physical stores rose from $58.44 billion to $69.97 billion.
To put that into perspective, over the past decade, from 2010 to 2019, sales have grown at an average of just 1.3% per year, adjusted for inflation.
What's more, before 2020, 81% of American consumers have never tried shopping online.
3. E-commerce businesses run across all types of products
While groceries led the growth chart for online shopping in the United States, the pandemic also boosted e-commerce growth in many other categories.
With 70% of shoppers avoiding crowded places by mid-2020, sales at brick-and-mortar stores fell 30% from a year ago. But much of that spending has been moved online, with many digital shoppers spending more on everything from shoes and clothes to home goods.
4. E-commerce forces retailers to adapt
As the world becomes increasingly closed, retailers have realised that they will need new ways to serve consumers through channels other than in-store. In a survey of 11,500 participants in 16 countries, global market research firm Ipsos found that 65% of consumers made more purchases online than last year.
In the United States, 92% of consumers have made purchases online, including Gen Z, Millennials, Generation X and Baby Boomer consumers, ages 18-65. In other words, 78% of consumers said they use new channels in many stores, such as "buy online, collect in-store" (BOPIS) and pin on the side.
5. Ethical purchasing decisions
76% of shoppers say they recycle and reuse packaging and products, and 67% say they've taken to shopping bags again. And 57% of consumers say that they pay attention to the environmental impact of what they buy.
Consumers also say they will not buy from companies that behave inappropriately in society or the environment. 31% of respondents said they would never buy from these brands again, and 24% would tell friends and family not to buy from these brands.
Consumers are also clearly willing to follow suit, as 55% of total CPG sales come from sustainable sub-brands, although these are only 16% of the product portfolio of these companies.
6. DTC product niches
McKinsey reports that 75% of consumers have changed their shopping habits in the past year, paving the way for new DTC models to gain traction.
7. Quality is becoming a key factor for consumers
Perhaps one of the few good things to come out of the illness is an increased focus on wellness. This has manifested itself in a variety of ways, including increased consumer interest in hygiene, healthy eating, home cooking, health and personal care.
Online hand sanitiser sales have risen 357% during the pandemic, but hygiene awareness may remain the same.
8. Chatbots are proving to be beneficial for consumers and good for marketers
In the next few years, experts in the retail industry suggest that fewer consumers will talk to humans when shopping.
Instead, they will participate in what is called "conversational business". Chatbots and intelligent speakers are the most common examples of conversational business today.
The chatbot market is expected to grow at a CAGR of nearly 35% until 2026, reaching a total value of over $102 billion that year. Marketers use AI-powered chatbots to help consumers determine their specific needs and preferences, and they direct consumers to specific products online.
9. Voice marketing is gaining popularity
Another important part of the conversation is voice marketing through smart speakers or smartphones. There are over 4.2 billion voice assistants in 2020, but by 2024 that number is expected to rise to 8.4 billion.
For many people, these smart speakers provide an easy way to shop. Search interest in "smart speakers" has increased by 316% in the last 5 years.
10. Consumers still rely on influencers when it comes to purchasing decisions
One of the most important ways for marketers to sell their products today is through social media. Search volume for "influencer marketing" continues to grow (440% in 5 years).
Almost 90% of consumers have purchased after seeing a product promoted by an influencer. This is according to a 2019 survey from Rakuten Marketing.
This practice is especially important when it comes to young consumers - 97% of Gen Z consumers say that social media is the main source of their business.
Millennial Shopping Statistics 2023
The influence of millennials on the growing business market. Therefore, it makes sense that shopping marketing and buying behaviour have attracted the attention of many search engines. Needless to say, there are major differences in their budgeting process compared to previous generations.
There are a lot of interesting facts and figures about millennials. We scoured the web and found these stats that provide a comprehensive summary of their spending habits over the past year.
- 67% of millennials prefer shopping online over stores
- 81.3% of millennials say they shop online at least once a month
- 45% of millennials admit they prefer to shop online because they can compare products and prices
- Eight out of ten millennials don't buy anything without first reading a review
- 95.1% of millennials admit to impulse buying
- 83% of millennials don't think about security when shopping online
- 40% of millennials use voice search before making an online purchase
- More than 53% of millennials would prefer to research details online over talking to a store employee while in-store
- 79% of millennials said they purchased Amazon.com in the past month
- 61% of millennials find it easier to communicate with a salesperson through digital communication channels such as text, online chat, or messaging apps, as opposed to visiting a physical location.
Whether you are looking to create a marketing strategy for luxury brands or a sustainable clothing company, Millennials will more than likely be a major part of your target demographic. Despite being notoriously tricky to market to, if done correctly and sincerely, they are a fiercely loyal group that offers a great opportunity for repeat business. By adhering to key strategies listed in this article getting them on board can be easier than you think. However, ensuring that you get your strategy right is pivotal so getting help from experts who have experience designing eCommerce websites specifically targeting Millennials is also an important step in the process.
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