The old method of packing retail locations into malls to attract business has certainly lost its charm to consumers and nowhere more-so than with the prime millennial demographic, according to JLL Research.
With millennials accounting for such a prime slice of of the retail demographic, they cannot simply be ignored. According to the report. “they’re on track to spend $1.4 trillion annually by 2020, accounting for roughly 30 percent of all retail sales.”
What can retailers do to attract the millennial demographic?
The study from JLL Research suggests some strategies for appealing to millennials:
1. Meet millennials via mobile and online – Millennials are technologically oriented and connect with the world through mobile devices. Mobile applications and mobile web sites are essential to connecting with millenials.
2. Offer coupons and sales – Millennials like a good deal. While they collectively wield great spending power, individually many are unemployed or underemployed. Coupons and targeted promotions work well and research shows that 38% of millennials are influenced by savings-related signs and in-store displays (compared with 28% of all shoppers).
3. Have a physical location – Millennials prefer to buy in stores. JLL Research shows that millennials will seek out good deals online but gravitate to gathering places and experiences that retail properties can offer when it comes time to buy. This gives millennials an opportunity to touch the products prior to purchase as well. Millennials like to touch and try out product
By developing you marketing plans around the way millennials connect with the world, your business can benefit.
“Millenials have strong skills with mobile devices and are apt to use those skills when shopping,” according to Kimber Johnson, Managing Director Vanity Point, he continues, “they are quick to search product reviews and look for the best prices. Retailers that give them the tools they are looking for on their mobile applications and web sites are at a definite advantage when it comes to marketing to millennials.”
According to the 3rd Annual US Mobile Path to Purchase Study, mobile is pushing purchase decisions. Often the actual purchasing of those products is happening in physical stores but consumers are researching their decision on mobile devices beforehand, which creates an excellent opportunity for businesses that are prepared with a solid mobile strategy covering mobile applications and mobile friendly web sites.
“Mobile is becoming a increasingly more important way to drive in-store activity for businesses,” say Kimber Johnson, Managing Director of Vanity Point. “Consumers are looking to make decisions quickly and often with a local focus, so we are seeing businesses that are prepared are benefiting.”
Points of interest from the study include:
1) Over a third of mobile shoppers say that they use mobile exclusively or that mobile is their most important research tool.
2) 64 percent of mobile shoppers say they finish purchases in-store rather than on their mobile devices.
3) 53 percent of mobile shoppers call local businesses from mobile search results.
Ability to access an audience that is looking to buy on their preferred device is essential. The study also states that product research typically happens at the beginning of the purchase funnel and that 65 percent of shoppers said they complete the purchase that day.
“Designing and developing mobile applications for both the iOS and Android platforms and mobile web sites to support the consumers in store experience is helping push purchase decisions,” continues Mr. Johnson, “putting the tools consumers want in their hands is essential in the modern market.”
In a recent survey by eMarketer, they predict that by the end of 2014, 1.76 billion people will own and use smartphones. This is more than 25% higher than the number using smartphones in 2013. The market doesn’t show any signs of slowing either. eMarketer estimates that by 2017 over 1/3 of of the people on earth will be smartphone users.
Smartphones and their usage have already substantially pervaded the user base in many countries and by 2015 more than half of the population using smartphones and mobile applications in 15 countries. South Korea had the deepest smartphone penetration, where smartphones were used by more than half the citizens in 2012. Australia followed surpassing 50% in 2013.
Western Europe is the region with the second highest number of smartphone users (behind the Asian market), with 196.6 million smartphone users in 2014. By 2015, most of Western Europe will be using smartphones. The US will also reach 50% smartphone use this year and for the next few years the US will remain the second-largest smartphone market worldwide, behind China.
As smartphone hardware use continues to expand, mobile applications continue to grow as well. Gartner recently predicted that global revenue from the app stores is expected to rise 62% this year to $25 billion.
“We are expecting to see solid growth in the applications market as we are now developing apps for tvs and other household devices as well as for mobile devices.” states Kimber Johnson, Managing Director of Vanity Point. “The industry continues to expand and grow in exciting ways that bring new levels of convenience and functionality to users.”