April 4, 2016
Blackhawk Engagement Solutions Explores Millennials’ Shopping Habits
Blackhawk Engagement Solutions published shopper data late last year examining millennials’ path-to-purchase habits. Rodney Mason, GVP Strategy & Marketing at Blackhawk Engagement Solutions, recently shared insights on millennials’ disruptive shopping behaviors with Retail TouchPoints in the article, Can Retailers Keep Pace With Millennial Consumers?
“Millennials are leading a change in purchase trends. As such, it’s incredibly important for retail marketers to understand how to appeal to this demographic,” said Rodney. “Millennials are savvy shoppers and many have come of age in a post-recession era; our research shows that this group routinely comparison shops on mobile to get the best value and shopping experience, but the market has not yet capitalized on those habits.”
Key findings from the research include:
- Smartphones are a primary means to connect to the Internet: Smartphones are a dominant method of connection to the web for millennials, with 89 percent using them to connect to the Internet, versus 75 percent using laptops, 45 percent using tablets and 37 percent using desktop computers.
- Social media is #1 for shopping info: Social media is millennials’ primary source for shopping news and discovering new products; TV is #6.
- Millennials are sensitive to price: Ninety-five percent have more or the same sensitivity to price as last year. Additionally, price has the greatest influence on millennials’ purchase decisions above all other factors, including product quality, brand, store and availability.
- Google and Amazon are favorites for comparing prices on smartphones: Amazon (46 percent) and Google (43 percent) dominate millennials’ preference for price comparison activities on their smartphones.
- Retail apps are sort of where it’s at: For value, savings and rewards, millennials moderately use the apps of the retailers they shop frequently.
- Millennials choose higher-value rebates over instant discounts across shopping categories: For categories including electronics, entertainment, sporting goods, clothing, wireless plans and even groceries, the majority of millennials would choose a higher-value rebate offer over an instant discount.
- Millennials will consider Buy Online, Pickup In Store (BOPIS) for an incentive: BOPIS could offer an opportunity for retailers to get millennials in store and save on shipping costs: 88 percent of millennials say they would consider buying online and picking up in store to save $10 on a $50 item.
- Gift cards believed to be safest for online shopping: 64 percent of millennials believe that gift cards are safer to use online than any other digital payment method. Sixty-six percent believe gift cards limit identity fraud.
- Millennials embrace loyalty programs: 69 percent belong to a retail loyalty program and 70 percent of those are happy with the program.
To read the complete findings, visit here.