5 minute read
Millennials are the largest living generation in the US, and by 2020 they are expected to represent 30% of total retail sales. It’s no wonder companies are doing all they can to cater to this generation. However, it’s important to note that not all millennials are the same – some live for deals while others look for assurance from peers before they buy.
Since millennials are such a diverse generation, you should know each type of shopper so you can tailor the experience to their needs. Although there are a variety of millennial shoppers, here are four we think are important.
The bargain hunter
Bargain hunters don’t mind spending extra time comparing prices or waiting for a sale if it’s going to save them cash. You can think of them as the coupon shoppers of ecommerce. A large portion of millennials fall under this category as 43% say low prices determine where they shop and 66% are content waiting for the best price. These shoppers also aren’t afraid to use loopholes to save money as many use multiple email addresses or birthdays in hopes of greater savings.
Use promotional emails to attract more bargain hunters because it gives them exactly what they want – a discount. And since almost half of all millennials create a cart hoping to receive a price deduction, it’s a step in the right direction. After only 30 days of sending remarketing emails with small discounts, Peak Designs found they recovered 41% of revenue lost to cart abandonment.
If you don’t want to lower your prices, an excellent alternative is to offer loyalty programs because 78% of millennials say loyalty programs make them more likely to shop at a store.
The impulse buyer
Inconsistent buying behavior and impulsive purchases are typical among these shoppers. And when they do shop online, many can be easily persuaded to buy more than anticipated. If you want to convert more browsers into buyers, make shopping and paying a breeze.
The ability to reduce shopping friction can make or break an impulse purchase. Have a 1-click checkout option on your store or offer a streamlined payment option to help these shoppers get in and out, faster.
Recommending additional products is also a brilliant way to get impulse shoppers to buy more. Retailers can use algorithms based on customer search history and commonly paired items to ensure suggestions are relevant, improving their chances of spontaneous purchases. In fact, Amazon has said product recommendations account for 35% of their sales.
The social shopper
Social media is used every day by millions, but for these shoppers it’s more than just a source of entertainment or a way to communicate – it’s a place to get insights into products and even shop. Perception and peer approval are essential to these shoppers. Unfortunately, many retailers are still struggling to sell through their social media accounts.
While social buy buttons have had mediocre success, social media can still be an important sales channel for these shoppers. To unlock the full sales potential of social media, you need to focus on making social shopping faster and more convenient.
One option that can be easily added to your Instagram account to improve the social shopping experience is Like2buy. Like2Buy allows your customers to find products featured on Instagram within your posted photos. Not only does this help shoppers find what they want more easily, but it also speeds up the shopping process, allowing them to go from browsing and buying in only 3 clicks. Additionally, every product that is liked is saved under “My likes” for future references.
Software like Like2buy can boost the efficiency of your social sales channels and help you convert more social shoppers. Just look at online furniture retailer, Domino. After they added Like2Buy to their Instagram account, their social conversions skyrocketed 120%.
Another way to entice social shoppers is with customer reviews. Although gathering, promoting, and managing reviews is a time-consuming task, it’s well worth the trouble. Almost all millennial shoppers check reviews and those who interact with them convert 58% more than those who don’t.
The daily shopper
For these millennials, shopping is a daily activity. They love the experience and have high expectations because they’re always online. Daily shoppers are comfortable using multiple devices to shop, expect a variety of ways to pay, and love to stay up to date with the latest trends.
Because these customers use a variety of devices to shop, an all-around optimized shopping experience is a necessity. Since many who shop every day prefer the mobile experience, you need to make shopping on a smartphone as easy as possible.
Daily shoppers also feel strongly about being able to pay how they want and expect the flexibility to choose what best suits them. Whether you want to improve your AOV or sell more expensive items, adding a financing option should be your top priority because almost three-quarters of daily shoppers say they would be more likely to purchase a product if financing was available.
Since these shoppers browse multiple stores every day, they always want to know if retailers make any changes to their stores such as adding new items or promotional discounts. Send emails to keep them in the loop when it comes to exciting new additions to your store. If you make it easy for them to find what you’ve added, the more likely daily shoppers will come to your store.
Where should you start?
The hardest part of making changes to your business is deciding where to begin. If you want to make the most of these millennial shoppers, first analyze who shops at your store and how they buy. For instance, if a significant portion of your website visits can be tracked to social posts, focus more attention on your social channels. If you find a ton of shoppers abandon their carts, make checking out super simple.
After that, you need to give each customer type their preferred online experience. However, these shoppers’ preferences aren’t mutually exclusive – some improvements you make for one type may have positive spill over to another. Regardless of which improvements you adopt from the suggestions above, they will put you on the fast track to converting more millennial shoppers.
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