Millennial spending statistics UK (2018)
Millennials, also known as Generation Y, preceded by Generation X are typically attributed by demographers to those ones born in the early 1980s and mid-1990s to early 2000s as the ending birth years. The generation has been labelled as lazy, temperamental and lacking loyalty and work satisfaction. To others, they are creative, innovative and approachable. Although what it is certain is that they are increasingly involved with communications, media, and digital technologies. But Millennials are more than that. They are dreamers, ambitious, generous and very sympathetic individuals who value more experiences than materialistic possessions. During their childhood, they were very exposed to the internet and therefore influenced by it which definitely gives a singularity in comparison to previous generations.
# Millennials spend two thirds more than Baby Boomers on entertainment
Understanding the values and aspirations of millennials has been one of the challenges modern marketers have recently faced and for many, it is still an incognita as they differ majorly from previous generations. For example, the way they see leadership is probably one of the notable traits that them from Generation X as well as how they perceive the work environment and the way they interact at the working environment.
What does drive them?
Unlike other generation, Millenials are more driven by experiences and half of the millennials prefer to spend on experiences over materialistic things
Often derogatorily labelled as narcist, it is undoubtedly one of the hardest groups to market for its nonconformist and rebellious attitude towards traditional conventions. According to Facebook, 70% of millennials are influenced by social media when choosing their holidays destination. Digital marketing consultants and public relations are using influencer marketing to reach them effectively via Youtube, Instagram, and Facebook and believe it to be the most powerful strategy to create a lasting impact.
In the technological era, the instant gratification phenomenon is increasingly rooting and millennials are inevitably being affected. Consequently, any marketing tactic that satisfies this ‘need’ will absolutely pay favourably, that is the reason behind the next day delivery initiatives.
# Millennials spend around £150 on restaurants and eating out
If you can offer a solution or a more effective way to do things online for millennials, you will definitely have a lot of chances to succeed. Examples of these are chatbots, a two-click holiday booking, order food in just two clicks or applying for a job in just a single click - no more going to travel agencies, or speaking to managers or posting letters for a job vacancy, no more phone calls to order food (actually just adding your details when signing up is more than enough).
# Millennials spend an average of £73 on new clothes per month
When marketing successfully a product for this generation, authenticity and personalization are not only crucial but also seem to effectively drive a lot of engagement. A campaign such as 'Share a coke' launched in and turning into an instant success by increasing sales by 7% is a clear example of this. Moreover, there is an increasing demand for personalized apparel and accessories. According to Deloitte, 1 in 4 customers are willing to pay more to receive a personalized product. Brands that can offer personalized products should consider doing so, not only as a tactic to drive more sales but also as an opportunity to increase engagement and build a reputation.
Millennials don't care about catchy and clever phrases, sophisticated wording or extensive advertising campaigns, on the other hand, factors such company’s mission, originality and exclusivity are among the most decisive factors in the purchase process.
How to attract the Millennial customer?
# 63% of Millennials use social media to stay updated on their favourite brands
1. Be Social
Social media is the most cost-effective marketing tool ever being gifted to marketers, adults between 35-49 spend an average of almost 7 hours a week on social media. How much time do you think millennials spend on social networks? I don't want to know. Unlike their parents, they see shopping more social and entertainment activity.
2. Be unique and authentic
Speak your language audience and serve your target audience, especially if they are millennials. By doing so, Millennials hate being treated a part of the herd, that is the reason why uniqueness and personalization work so well. Birchbox offers a monthly subscription of beauty samples based on skin and hair type’s individuals.
# 60% of Millennials prefer to spend on generic brand than name brand
3. Inbound marketing as the main channel
Just like that old saying: everyone wants to buy, but no one wants to be sold. Millennials don't want to feel like someone is selling them something as if they didn't have control or decision over the sale. Millennials want simple practical information, blog posts, and useful videos, they follow influencers and experts. This marketing approach has more chances to appeal to them successfully rather than communicating product facts. In the technological era, traditional retail models are being relegated or outdated by e-commerce and traditional advertising is being replaced by social media, influencers, and reviews. Companies targeting them would need to be up to the date with the technological changes, offer experiential marketing to increase customer loyalty and build brand reputation.
What do they say?
Millennials as a target audience can be challenging but very rewarding in the long term. As a millennial muself, I feel identified with some of the tracts and with which we have been tagged. Companies know that opening to a millennial audience would help them grow their revenue and secure their market position.
# 90% of them share, recommend or review their favourite brands, restaurants, experiences
60% of millennials admit being loyal to the brands they like and regularly purchase from the same companies if they are satisfied with the service. They believe that brands on social media are more trustworthy than traditional advertising. 90% of them share, recommend or review their favourite brands, restaurants, experiences… This group is notable for recommending products they love and 93% of them try a new product if a friend or family member recommends it.
Personalized products, originality, authenticity, and experiential marketing are the keys to drive millennials attention. turning your whole sales funnel into a shopping experience would increase engagement among millennials. Increase your influencer marketing and focus on producing quality video content as 76 per cent of millennials follow brands on Youtube.