Today's consumers have new expectations. Shopping today involved multiple mediums - in-store, online, and mobile. Consumers, especially millennials, have growing expectations about their shopping experience, regardless of the how and where they buy. The questions remain, “Are retailers updating their strategies to accommodate these expectations?”, and if not “How much do they stand to lose?".
Merchant Warehouse and Retail Pro International recently surveyed over 1,000 millennial shoppers and retailers to learn more about their preferences and habits to understand where divides and opportunities exist. The results of this survey as well as other interesting data points on these two groups is available in the infographic below.
Merchant Warehouse is committed to empowering merchants so that they can improve their business - whether that is on understanding how credit card processing works or are prepparing themselves for the upcoming EMV deadlines. Our infographic below is the latest in a series of resources aimed at increasing education around terms and processes that many retailers come across on a daily basis but may have a limited understanding of.
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If you are interested in adding only a section of this infographic to your website we have made available each section independently here: Shoppers & Retailers, Seamless Shopping, Mobilizing In Store, and Call of the Coupon
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A Retailer's Guide To the Millennial Shopper
Why is the millennial shopper so important to businesses today? There are approximately 105 million consumers who can be identified as millennials. The Bureau of Labor Statistics estimates that 46 percent of the workers in the U.S. in 2020 will be millennials, and approximately 75 percent of the workforce will be made up of this generation by 2025.
This demographic currently has a buying power of $200 billion. Statistics show that millennials prefer to purchase online. Over 30 percent of females and 40 percent of males indicated that they would buy everything online if it was possible. However, people in the 18 to 29 range generally prefer to buy products including furniture, shoes, jewelry, clothes and household items in stores.
A major problem with retailers that are serving millennials today is the fact that these businesses have delayed any efforts to offer items for sale online. Retailers that fail to maintain an online storefront missed out on $216 billion in 2013. It is expected that these business will miss out on $440 billion by 2017.
Half of retailers allow customers to shop online. Approximately 11 percent of retailers indicated that they were considering adding e-commerce options to consumers, and just over 7 percent of these retailers were actively setting up online shopping options.
While millennials enjoy being able to shop online, research shows that these individuals are more likely to make a purchase in a store. However, these shoppers are highly likely to utilize a mobile device to access information about the items they are purchasing while they are at the store.
Research is a major factor in the purchase decision of 85 percent of millennial shoppers. Over half of these shoppers felt that the retailers that they favored did an adequate job of offering information over mobile platforms. These shoppers described their shopping experience as being seamless.
Over three-quarters of people who did not feel that retailers offered them a seamless shopping experience, and this group felt that retailers' websites did not provide enough information or opportunities to learn more.
Product descriptions and reviews are the two pieces of information that consumers would like retailers to post online. The three primary sources of information that consumers use include retailers' websites, Amazon, and word of mouth.
The Rise of Mobile Commerce
Millennials are more likely than any other generation to use their mobile devices to enhance their retail experience. Nearly three-quarters of millennials read mobile reviews, and half of people in this demographic use their mobile device to check into stores in order to earn rewards.
The rise of price matching has led millennials to utilize their mobile devices to check prices while shopping in stores. Approximately 44 percent of these shoppers also scan QR codes when they are in stores to learn more about products and manufacturers.
Half of all retailers report that their mobile marketing efforts are not targeted. The retailers that make the effort to target their marketing campaigns are more likely to successfully reach potential customers.
The Role of Coupons
Coupons that are available on mobile platforms are increasingly popular with millennials. Half of millennial consumers indicated that they would visit a store if they were offered a 20 percent discount. One-quarter of respondents would need a 50 percent discount to visit a store.
Loyalty programs are also important with this demographic. Over 80 percent of these consumers would be more inclined to visit a retailer's website if they knew that the retailer offered a loyalty program. Three-quarters of shoppers would consider switching to a different retailer if they were offered real-time promotions through a mobile application or website.
Retailers are missing out on the opportunities available when they offer coupons to consumers. Only 27 percent of retailers offer mobile coupons, and less than 12 percent of retailers offer daily deals through a discount website.