Digital customer experience is the way of the modern world, and no generation seems to embrace this idea more than millennials, or Generation Y. As savvy consumers attached to their smartphones, numerous studies have shown that their demand for quick and thorough information on the go has reshaped the customer experience, influencing how customer service is delivered, sales are made, and brand loyalty is ultimately won. Here are seven compelling reasons why millennials are a driving force behind sales, and a brand’s success.
They have serious spending power. According to a study by Badgeville, a gamification platform, millennials spend $600 billion per year and outspend other generations in industries such as retail, travel, and food. It is projected that millennials will spend $1.4 trillion by the year 2020.
They value time. As consumers on the go, millennials value their time and respond well to brands that recognize this point. Brands savvy enough to offer mobile-friendly service and checkout options as well as well-timed marketing offers are likely to win a loyal following from millennials.
They like to research products before purchase. Millennials are curious to know what their peers think before making purchases. Forbes cited that 33% of millennials like to consult blogs before making purchase decisions, while a study pioneered by Elite Daily and Millennial Branding entitled “The Millennial Consumer” found that 58% of millennials expect brands to publish content online before buying. Brands therefore need to provide thorough, engaging, and timely content on all platforms, including their website and social media, to educate and convince the millennial customer to make purchases.
They use smartphones to make purchases. Millennials are a mobile-dependent generation, and their mobile use frequently involves making purchases. A Nielsen study confirmed that 85% of millennials own smartphones, while the Badgeville study cited that 58% of millennials are mobile shoppers and 41% have made purchases on their smartphones. The key takeaway for brands? Mobile engagement is critical to winning the business of millennials, so taking steps such as mobile optimization with live chat buttons, easy checkout, and even separate apps for purchase are all ways to appeal to this demographic.
They are vocal on social media. Just as millennials consult peer comments on blogs and social media before making purchases, they are also keen toward expressing their own opinions post-purchase or service. Negative experiences expressed on social media may lead to customer churn, but great experiences may result in brand advocacy that leads to new business and long-term loyalty. Brands should be sure to engage regularly and authentically with millennials on social media, always asking what they could do better to improve while acknowledging the positive comments with gratitude.
They like to contribute to brands. Millennials not only support brands that reflect their personal values, but they also love brands that encourage customer participation. Brands that proactively ask for customer opinions on products and services and invite customers to vote for a favorite or share their own content tend to appeal to millennials. According to the Millennial Consumer study, 62% of millennials claim to become loyal customers to a brand that engages them on social media, while 42% are interested in playing a role in future product development.
They embrace the omnichannel experience. Millennials like to engage with brands on multiple channels, often switching from one social media platform to chat as they feel like it. Brands should take notice and be sure to embrace an optimized omnichannel strategy. Agents should be well-trained and consistently responsive and proactive across all channels for both service and sales.
Millennials are a vocal generation with a preference for socially conscious, authentic brands that listen to their feedback and embrace customer needs. Winning the loyalty of millennial customers is key to driving sales, optimizing service, and turning customers into long-term brand advocates. Learn about Vocalcom contact center software solutions for excellent omnichannel customer experiences.