The secret’s out. Millennials spend money differently than previous generations. And with a penchant for sharing their entire lives on social media, Millennials are approaching their prime earning and spending years. And they’re positioned to be the nation’s biggest spenders for the next 15 to 20 years.
In our efforts to better understand and contextualize what we know about Millennials, we surveyed 2,279 Millennial Afterpay customers on their spending habits. (1) Their responses were eye-opening and enlightening. Here’s what your business needs to know about attracting and retaining this unique group of shoppers.
Millennials Expect More From Brands
When it comes to the marketplace, Millennials are the exact opposite of passive participants. They value brands who go the extra mile to build relationships with them through meaningful connections and trustworthy relationships. And they are extremely loyal to brands who engage with and listen to their needs.
- 70% of Millennials stopped doing business with a brand after a poor customer service experience.
- Over 50% repeatedly buy the same single brand to solve a problem.
Millennials Are Unique
Millennials have different stripes. Is your business acknowledging how this group of shoppers is completely disinterested in business as usual?
- 80% of Millennials view themselves as unique.
- 1B Millennials come together on Instagram and WhatsApp every day.
Let’s think about it: Millennials came of age as the first digitally native population. They value digital connectivity and communities, and are far more likely to align themselves with brands supported by their diverse group of family and friends. They prize experiences over things, and heavily weigh a brand’s customer experience into their perception of a brand. (2)
With 74 percent of Millennials reporting that they will switch to a different retailer or brand if they have a negative experience, it is important for companies to focus heavily on making sure their customers are satisfied.
Millennials are Extremely Comfortable with Digital Payments
Overall, Americans are much more comfortable using their debit and credit cards for everyday purchases. More so for tech-savvy Millennials, who opt for digital, cashless payments, which can be opened with a swipe or on a smartphone app.
- 86% of Afterpay’s Millennial customers already shop with retailers based on whether they offer a shop now, pay later option.
- 49% of Millennials shop on the go, on their mobile device
Millennials Love to Shop. And They’re Heavily Influenced By Social.
Millennials are avid fashion and beauty enthusiasts and consumers. They engage with their different online communities daily, often sharing their opinions about their likes and dislikes multiple times a day.
- 92% of Millennials use social media to influence a purchase
- 51% consider celebrities and influencers to influence a purchase
- 47% of Millennials buy a fashion item weekly
- 42% buy a beauty product weekly
Millennials’ spending power is projected to reach $1.4 trillion in 2020. Is your business doing everything it can to attract and maintain the attention of these power purchasers?
- Molnar, N. (2019). Building Trust with the Biggest Shopping Generation. Presentation, New York, New York.
- Anonymous. (2019, January 2). 45 Statistics on Millennial Spending Habits in 2019. Retrieved from https://www.lexingtonlaw.com/blog/credit-cards/millennial-spending-habits.html
