5 Stats on Millennial Buying Habits
  • Marketing
  • Industry Trends

5 Stats on Millennial Buying Habits

by Jaime Netzer | Apr 18, 2019

Millennials are a force: the first digitally native generation is set to overtake the Baby Boomers as the largest adult population in the country. Millennials now range in age from 23 to 38, and many have settled down with careers, homes, and families. Their buying power is undeniable: By 2030, the collective annual income of millennials worldwide is expected to exceed 4 trillion dollars.

That’s a figure that has retailers doing a double-take. But, while millennials present a huge market opportunity, they have high expectations of brands and low regard for advertising, meaning brands must use different tactics to reach them. Millennials often scoff at traditions and they care about a brand’s values and actions within their communities. To draw the interest of this oft-maligned yet powerful group, you need to understand who they are and how they make their purchases:

1) Fifty-seven percent of millennial women say that their purchase decisions are driven by a brand’s values and stance on issues that are important to them.

(Source: Business Wire, 2018)

Millennial women in the U.S. have $170 billion in buying power—that’s 85% of the total buying power of U.S. millennials, and social responsibility matters to them. As a brand, it’s important to clearly define what values and morals matter to your company and convey those values to your audience in a thoughtful, authentic way.

2) Fifty percent of millennials say that positive customer service experiences is a factor in their loyalty to brands.

(Source: Morning Consult, 2018)

You already know that, in the age of social media, one well-placed disgruntled Tweet can negatively impact your brand’s bottom line, and that’s frightening. But, if you work towards ensuring positive care experiences for all of your customers, you can build up good will for when you need it.

3) Thirty percent of millennials feel loyal to brands.

(Source: Inmoment, 2018)

We know that brand loyalty is the ultimate goal for brands. When a consumer is loyal to your brand, that loyalty can be an airbag during a crisis, and it can mean consumer advocates in the wild. The fact that just thirty percent of millennials feel loyal to brands means, we think, that brands have a lot of potential to build loyalty among this important group. Millennials want to feel connected to brands, they want to know that brands they buy from share their values, and they want exceptional customer service.

4) Sixty percent of millennials say they’ve held relationships with specific brands for 10 or more years.

(Source: Inmoment, 2018)

The median millennial age is 30, meaning that the majority of millennials formed lasting brand relationships in their twenties, or even earlier. Building relationships with millennials that will last is incredibly important, even when it comes to the youngest millennials because, even if they don’t command the highest purchasing power yet, they tend to stay loyal and as they age, they will.

5) Seventy percent of millennials will go out of their way to buy from a brand they feel loyal to.

(Source: Inmoment, 2018)

Millennials truly are distinct from other generations: their purchasing decisions aren’t just about the product or service, or even the ease of purchase. That nearly three-quarters of millennials will devote their time and energy to shopping from a specific brand to which they feel loyal is a real, tangible benefit of fostering loyalty in your customers.

See how Khoros can help you reach your customer care and digital marketing goals to connect with the force that is millennials.

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