Big CPG is focused on the new generation of consumers called millennials and how to capture their shopping dollars. Three recent studies validate this unique generation’s shopping preferences. They are the:
- NPD Group Reports Most of Millennial Dollars are Spent in Stores vs. Online
- Millennial Shoppers: Tapping Into The Next Growth Segment – IRI
- Who are the Millennial Shoppers? And what do they really want?
Millennials were born between 1980 and 2000. They are the first digital generation, meaning that they're very tech savvy and frequently do extensive research before making a buying decision.
Three key points stand out and resonated through each of the studies:
- Millennials are extremely frugal.
- Millennials prefer to shop in brick-and-mortar stores.
- Millennials are exceptionally loyal customers. This bodes well for natural retailers and natural brands.
Extremely frugal, yes, but they are willing to pay for quality, and they're not afraid to shop around to find the best deal at the best price. Brands are not as important to them as the shopping experience—they like shopping to be fun. The economy has hit them hard. One article said that they are big coupon users always looking for deals, with 68 percent influenced by coupons (one of the highest redemption rates) and 38 percent influenced by in-store displays—more than other groups. They frequently eat at home and are always looking to stretch their budgets.
They are experts in technology and very active on social media. Smartphone apps help direct their shopping.
More millennial intel
- 47.9 percent of millennial shopping dollars are captured in grocery.
- 84 percent are trying to eat healthier.
- 81 percent of millennials' spending was in brick-and-mortar stores. They typically want to see the actual product before making a purchase.
- They are extremely important consumers as their spending is expected to more than double by the year 2020 to $1.4 trillion annually.
Good customer service is paramount to millennials. This is good news for naturals that are in a position to provide some of the best customer service in the industry that keeps customers coming back time after time. The shopping experience is important to millennials who want to be treated as valued customers. Accordingly, loyalty programs work as millennials appreciate the extra attention as well as the targeted promotions.