How Young Consumer Buying Habits Impact Your Business
In 2016, a momentous event occurred in the U.S. that went unnoticed by most of the population, despite the lasting effects if would have on society: Millennials overtook the baby boomers to become the largest generational demographic in the U.S., according to the Pew Research Center and based on data from the U.S. Census Bureau. This generation of young adults, born between approximately 1980 and 2000, is an ethnically and economically diverse group, and yet they tend to be similar to each other in several important ways. Millennial consumer buying habits are particularly unified in ways that resonate with small-business owners who want to capture – and captivate – this emerging market.
Consumer buying habits of millennials
Across industries as varied as construction, online retail, finance and health care, understanding your audience is absolutely critical. For those businesses that especially want to target young adults, or simply cater to the largest slice of the demographic pie, it helps to know some of the traits that unite most millennials:
• Price comparison: According to research from Goldman Sachs, more than half of millennial shoppers are diligent deal-hunters, using every resource available to compare prices before making purchases.
• Brand loyalty: When millennials seek out a product or service, a business’s brand is a less important factor in the decision than it is for older generations. Instead, young adults pay closer attention to price and what their peers are sharing on social media.
• Health and social focus: More than older generations, millennials are highly conscious of their personal health, as well as that of others and the world at large. This means they place greater value on products and services that can prove a benefit to their own lives in addition to the health of their communities and the environment.
Action steps for small businesses
The data on consumer buying habits continues to flow out of the academic community and public policy organizations, but it can be enormously valuable to business owners and entrepreneurs who can apply it to their specialty.
Encourage reviews and recommendations
In many businesses, but particularly in construction and home remodeling, personal recommendations from current clients are huge factors in winning over new business. This dynamic takes on a new life for millennials who seek out recommendations online and from their personal networks before making a major purchase. To increase their chances with this demographic, small businesses should maintain a web and social media presence, as well as monitor customer reviews on these channels to glean deeper insight and continue improving.
Highlight hidden benefits
Younger buyers might be most driven by low prices, but they still value quality in the things they spend money on. To turn this into an advantage, businesses should consider how their products or services benefit the consumer’s health or the environment. Highlight these in your marketing materials to make any deal that much sweeter to the average young buyer.
Adapting to any new trends takes time, effort and often money. QuickBridge specializes in loans for small businesses as they pursue new opportunities, helping them realize growth by any means. Talk to QuickBridge to learn more about how they can help your business succeed.