It’s well known that Millennials were among the hardest hit by the economic downturn these last few years. And while it’s taken a toll on their financial strength, young people remain a key consumer base--and how they spend their cash should be top of mind for any customer-facing business.
That’s the focus of a new survey from Elite Daily, an online publication known as "The Voice of Generation Y," and Generation Y researcher Millennial Branding. On the whole, young people are eager to spend on technology like smartphones and cars versus, say, shelling out for a mortgage. As far as shelter goes, they would prefer to rent, according to the survey, which polled more than 1,300 Millennials in October 2014.
For this group of consumers, not only is brand loyalty important, but it is earned through product quality, a good customer experience, and the brand’s support for society. While 60 percent of respondents said they are often or always loyal to brands that they currently purchase, nearly half said the quality of the product is the most important attribute in a purchasing decision--more than twice that of price. And despite growing fears that all Millennials are all selfie-taking narcissists, 75 percent reported that it is either fairly important or very important that a company gives back to society instead of just making a profit.
A good customer experience and a “quality product” are the two most cited reasons for what influences Millennials to share information about a brand online. Sixty-two percent say that if a brand engages with them on social networks, they are more likely to become a loyal customer. Forty-three percent say Facebook is the social network with the most influence on their spending habits, followed by Instagram at 22 percent.
“If you want to connect with Millennials, then you’re going to have to rethink the way you advertise and market your product to them,” says Dan Schwabel, founder of Millennial branding. “Instead of traditional advertising, which they ignore, brands have to publish authentic content as a way of building trust and loyalty with this extremely important and influential demographic.”