Millennials – who are they and why do they matter?

Born between 1980 and 2000, Gen-Y grew up in a time of great technological disruption. More so than their predecessors, technology has shaped their lives, influencing the way in which they work, socialise and shop.

For years, retailers have been focused on understanding, targeting and converting these customers. Capable of influencing the way that other generations think and behave, millennials are fast shaping the future of retail.

As channel agnostic shoppers with buying power, how do retailers engage with their millennial customers?

Tech-influenced Trends

Millennials are savvy online consumers, making them a massive contributor to the growth of e-commerce. Though not opposed to brick-and-mortar, this demographic expects an elevated experience when opting to shop in a physical store. For retailers, this means creating a seamless sales journey from door to till point. Brands can achieve this by incorporating technology to conventional sales processes for an easier in-store experience.

Being ‘connected’ has become a basic need. The advent of smartphones has made information accessible, with 83% of shoppers using their mobile phones to search for product promotions whilst in-store. An omnichannel approach to sales suggests that a mobile-optimized website is no longer just a nice-to-have; it’s the key to winning over the young market.

Gen-Y values experience over products; and are likely to document and share these experiences on social media. Creating an elevated in-store journey is a great way to secure loyalty and enhance reputation.

Shopping For Experiences

The advent of e-commerce means shopping in-store is no longer a necessity – it’s for the experience. Millennials still prefer the tactile exercise of shopping, with 78% of shoppers citing an enjoyable atmosphere as a key factor in opting to shop in-store.

Music plays a big role in creating an enhanced retail shopping experience. By changing the tempo and style of the background music, retailers can create a visible change in atmosphere. With a customised audio solution, brands can invoke feelings of familiarity with classics; or keep it fresh with the latest hits by rising artists.

Digital signage is a contemporary take on a traditional sales tool. There is no denying the visual impact that dynamic content has on a customer. Replacing printed signage with a digital alternative creates a richer in-store journey. For an impatient target market, digital screens can entertain shoppers while they wait; or inform them on the latest promotions. By incorporating technology, brands can engage with customers on a more personal level while encouraging product feedback and involvement.

It’s not just technology that matters – the human touch does too. Millennials value interacting with knowledgeable staff who can influence purchase decisions. Along with fulfilling the instant gratification need of getting the product instantly, shopping in-store also appeals to the need to browse and discover new things.