As of 2021, millennials were the largest generation group in the U.S. with an estimated population of 72.19 million according to Statista. Statista defines millennials as born between 1981 and 1996. In 2023, they’ll be 26-41 years old with an expected buying buyer of over $4 trillion by 2030.

Unlike generations that came before, the millennial generation was raised in a digital world and their consumer behavior reflects this. Most shop online and many use ad blockers. On average they spend 60% of their income on luxury items but distrust marketing. Many are college-educated but in debt.

In order to attract this powerful consumer group, it’s wise to understand their socioeconomic buying habits.

Millennial Culture and Career Trends

Millennials were raised to value education and it shows as they have the highest rate of college degrees among any generation. Unfortunately, the cost of that education has pushed them into debt, along with a global recession and a minimum wage that hasn’t kept pace with inflation. So while college-educated Millennial shoppers significantly outperform their peers, they have not received the same access to the American Dream as their predecessors.

Many millennial consumers cannot afford cars or homes so they spend on travel, fun, and experiences. Of course, these native techies spend on tech too but ad overload has likely led to an average of 60% of their income being spent on luxury items.

In 2023, as more Millenials start families, debt is expected to grow among Millennials. From 2020-2021, only Generation X had higher debt growth. More than half of both Generation Z and Millenials say trust is most important when sharing their dataThe term Data as defined in business. More but free delivery is most likely to get them to purchase again, according to a Draper’s survey. Promotional offers and fast delivery ranked next beating out personalized recommendations, free returns, and satisfaction with other products bought from the retailer. So, free, fast, and discounted seem to beat trust.

Millennials Media Trends and Culture 

90% of millennials are on social media (Pew Research Center, 2015), so naturally, their consumer behavior is also social. When they find something they like (or don’t like), they are quick to share it online through social media platforms. And their peers listen, 51% of millennials say that seeing consumer opinions has an impact on their buying decisions (Deloitte Millennial Survey, 2016).

Businesses should listen too – 65% of millennials start interacting with a brand online (Parature, 2016). Millennials prefer customer service to be available online to the extent that Twitter reported customer service interactions increased 250% in 2018. Using Twitter dataThe term Data as defined in business. More, The Harvard Business Review discovered customers who had a customer support interaction on the platform were much more likely to pay more for the company’s services and much more likely to go with that company over a competitor.

Twitter’s own research shows 64% of users who shop on the platform say they would rather message a dedicated support handle than call a business. Businesses can keep pace by embedding social share buttons on their content and product pages, encouraging customers to leave reviews, and making them visible on websites. Websites should also be mobile-friendly and easy to navigate. Also, consider social customer service as an alternative or in addition to a support line.

Of course, social media is essential but it also needs to be monitored, responsive and engaging. User-generated content is highly influential on social media so customer-made reviews, recommendations, and product placements can launch a brand. Unfortunately, this means bad reviews can do real damage too.

This has led to the rise of influencers and it doesn’t look like they’re going anywhere anytime soon. Unlike gen Xers and baby boomers with a traditional buyer-seller dynamic, millennial shoppers consider themselves co-creators of brands. They like to interact and engage with brands and, conversely, will be vocal about brands they don’t like. This makes them more loyal to brands they like. Savvy businesses actively engage with social media influencers and bloggers to encourage collaboration on both product and services.

How This Affects Millennial Consumer Behavior 

Millennials continue to grow more and more comfortable with the digital world. According to a new report by CouponFollow, 80% of millennials do most of their shopping online and 50% complete the entire buyer journey online. Both numbers are up about 20% from 2019. The same report shows millennials shop online more during the week than in 2019. This is possibly due to more work-from-home options, as is the increase to nearly 50% of all millennials now shopping during the week -up from 40% in 2019.

Of course, millennials are also developing higher standards for their digital shopping experience. While savings and deals still reign supreme, product recommendations and a smooth checkout process are most important for 42% and 22% of millennial consumers, respectively [CouponFollow, 2022].

An 2018 online survey by PowerReviews, indicates 80% of millennials consult at least one review while only 8% ask friends and family. In fact, nearly half (48%) of Millennials won’t purchase a product without reviews, compared to 42% of Gen X shoppers and just 39% of Boomers.

Still, only 45% prefer online shopping to brick-and-mortar. So, being online, being mobile-friendly and being on social media are important to align with millennial shopping habits. 34% of millennials agree with the statement: “When a brand uses social media, I like that brand more” (Association of National Advertisers, 2017) while I just 16% of people ages 36+ agree with this same statement.

Are You Selling To Millennials?

The bottom line for businesses? You need to be online, mobile-friendly, and provide a seamless user experience. Plus, being on social media is a major advantage. MTMN+ Mentor, @RogeraMTM, can guide you through the research and execution of a strategy built around your team. She’ll help you create a marketing plan and system you can sustain for years to come. 

Need a team to execute it? Her MTM Executives are experienced, trained in operations systems, and ready to help.

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