The beginning of the new millennium welcomed approximately 50 million Americans into adulthood. Now, members of The Millennial Generation (defined as 18-34 year olds) are starting households of their own and establishing purchase habits in a downturn economy. This huge shopper segment, predicted to spend $56 billion on CPG products over the next decade, presents an enormous opportunity for retailers and manufacturers to create lasting and profitable relationships.
Our newest Times & Trends report goes inside the minds of millennial shoppers and provides actionable recommendations to marketers. The report draws data from our second quarter MarketPulse research, which for the first time, includes a view through a new research lens, the SymphonyIRI Shopper Sentiment Index™.
This new index compares consumer attitudes and behaviors to those of Q1 2011 in terms of price sensitivity, brand loyalty and changes in spending needed to maintain desired lifestyle. As shown in the middle section of the infographic below, millennials have demonstrated a steadily declining sentiment score during the past 18 months.
This lack of fiscal confidence has no doubt contributed to the fact that millennials are more cautious and frugal than other shoppers, and is evidenced through their CPG purchase behavior. For marketers, touting value and everyday low prices is important, but it is not the only way to connect with millennials. The “fun factor” is absolutely essential, as millennials are more likely to seek out exciting products and consumer-centric retail experiences that don’t break the bank. The full report provides examples of how some retailers are embracing opportunities in this area.
To win with millennials, create messages around value and enjoyment to address their unique wants and needs. And, because millennials over-index in their digital usage, digital media is the ideal space to make an emotional connection. Compared to the average shopper, millennials are two- to three-times more likely to be influenced by digital media, such as mobile advertising, online recommendations, smartphone apps, and more. The bottom third of the infographic presents this data.
For more information about our new Shopper Sentiment Index and millennial shoppers, take a look at the press release <LINK> and download the full Times & Trends report, “Millennial Shoppers: Tapping into the Next Growth Segment.”
Additionally, I will host a webinar offering actionable recommendations for retailers and manufacturers to connect with this segment. Registration is now open for the webinar tomorrow, Thurs., July 12 at 12 p.m. CT.
Your thoughts and ideas on this huge and influential group are welcome.