Last Thursday, we talked about the reasons why you shouldn’t ignore Gen Xers in your ecommerce strategies. Today, we’ll explore the minds of another generation you should pay extra attention to—millennials. ✨
Spoiler: It’s not all about one-click buys and same-day deliveries.
- The ways to millennial shoppers’ hearts 💘
- No more time-consuming marketing ⌚
- Millennials’ thoughts on Prime Day 2024 💭
BIG IDEA
Did you know millennials could make up more than half of the global workforce by 2025? This shift means their purchasing power is something no retailer can afford to ignore.
Their preferences and behaviors are likely setting the stage for the future of retail. GhostRetail provides a glimpse into what this future might look like.
👤 Millennial shoppers in a nutshell
Millennial shoppers, particularly those aged 25–35, are tech-savvy, values-driven, and highly connected. Here’s a snapshot of their shopping habits:
- Social media consumers. About 43% of millennials have made purchases through social commerce, and 36% have bought items based on influencer recommendations.
- Values first. 47% want brands to take a stand on social issues. When a company aligns with their values, it’s a major win in their book.
- Digital fans. Traditional ads still have some pull, but they’re more likely to discover new products through digital channels.
🛒 Key shopping preferences
Millennials have specific preferences that set them apart. If you want to win them over, here’s what you need to know:
- Convenience and speed. Millennials lead busy lives and expect their shopping experiences to be fast and seamless.
- How to ace this: Offer quick, hassle-free shopping.
- Personalization and customization. This generation loves products that feel tailor-made for them.
- How to ace this: Use a recommendation algorithm to generate specific product recommendations to your millennial buyers.
- Sustainable and ethical shopping choices. Millennials are drawn to brands that prioritize sustainability and ethical practices.
- How to ace this: Embrace green practices, such as adopting reusable/recyclable packaging.
But what’s the ultimate way to win their hearts?
Millennials are driving the future of ecommerce with their demand for convenience. But to fully capture this generation, you need to join the mobile revolution.
Millennials are glued to their smartphones, using them to browse and buy with just a few taps. So, make sure your website is optimized for mobile and offers seamless mobile payments.
That’s a surefire way to reach them and win their loyalty. 🔥
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BITES OF THE WEEK
- Millennial Market: What can ecommerce brands do to successfully market to millennials?
- Modern Expectations: Aside from convenience, what other Millennial expectations do you need to meet?
- TikTok’s Influence: FYI, U.S. millennials shop more frequently and 64% are active on TikTok.
- Social Generation: Different generations are fans of different social media platforms.
HOT TOPIC
Millennials aren’t fans of Prime Day 2024—here’s why
Amazon’s Prime Day remains a shopping juggernaut, drawing millions of buyers and racking up billions in online sales. However, this year’s event saw a slight dip in enthusiasm among millennials.
- The spending by this generation dropped by 1.3% compared to the previous year.
- There’s also a 4.4% decrease in the number of millennials shopping on Amazon during Prime Day.
- Meanwhile, baby boomers, Gen Xers, and Gen Zs all upped their spending from 2023. Even more intriguing, millennials didn’t cut back on spending with other retailers during the same week.
So, what’s going on?
🧠 The culprits
Retail analyst Sucharita Kodali from Forrester offers some insights into why this might be happening:
- Statistical blip. The observed decrease in millennial spending might not be substantial. This means that the dip might be within a range that doesn't represent a true shift in behavior.
- Student loan payments. The resumption of student loan payments after a pandemic-era pause might be impacting millennials' disposable income.
- Home buying savings. Millennials might be saving more to purchase a home, leading to reduced discretionary spending. 🏠
The bigger picture
Despite these trends, Amazon's overall Prime Day success is measured by subscriber growth and retention. As of June, Amazon had 184 million Prime members.
Although millennials’ spending on Prime Day dipped, there's no indication that their membership is waning. In short, Amazon is still in a good place overall, even if millennials aren’t as enthusiastic as they used to be. 👏
