Online shopping is growing by leaps and bounds. Online shopping sites are pulling in sales of massive proportion with figures going into billions of dollars. Millenials are the new generation of purchasers.
Mobile and social purchasing
Studies conducted on their shopping behavior and their preference of payment gateways showed that this segment of consumers concentrate on mobile and social purchasing. They compare offers across sites, and their behavior is far removed from that of traditional shoppers of the previous generations.
Conventional retail outlets need to study the purchasing behavior of the millenials so that they can cater to their demands.
The key parameters of the millennial purchase behavior which can help traditional retailers boost their sales are:
- Millenials mainly use their smartphones to connect to the internet. This is far in excess of the use of laptop, tablets, desktops etc. To get this segment on board retailers need to develop the mobile as a means of connecting.
- Millenials are heavily into social media. Not only is it a major channel of communication between them and the world at the personal and professional level, it is also the means through which they find out about new products, brands, deals, discounts etc. Social media thus becomes the primary source of awareness with television, radio and print media falling far behind. Retails need to plug into social media in a big way.
- Millenials are extremely price sensitive. When it comes to factors that influence purchase behavior, the studies show that price is the main determinant of purchase for this group of consumers. Other factors like brand, product features, quality, outlet, availability has less influence on their decision to buy or not to buy. The reason for this could be the ease of instant comparison across sites and instant savings.
- Millenials are great followers of Google and Amazon – they use their smartphones to check on products and prices through these 2 sites. If retailers are to woo millenials to their outlets they have to offer greater discounts than are offered on these sites.
- Millenials say that they like to buy products that give them high-value discounts. A one-off price slashing is not as appealing as long term savings. This is true for any kind of product or service. Retailers should try and offer discounts and deals that are easy to avail of because this generation is impatient and will move over to another outlet if it is not so.
- Millenials are not averse to physically picking up their purchases after they buy them online. This way they save transportation costs, handling costs etc. Retailers could use this data to attract consumers to their outlets, physically.
- This young group of consumers is worried about cyber security. They are not comfortable with payments online and would prefer to use gift cards or alternate channels of payment like Paypal, PayTM etc.
- There is not much brand loyalty among millenials. They shift brands which offer them higher rebates and rewards and offer lower prices. In such a scenario it makes sense for retailers to offer loyalty programmes that can secure consumers to their brands. Millenials are seen to be quite in favour of loyalty programmes that afford them savings and rewards.