Millennials are changing the game in which companies interact and operate in more ways than one. Since millennials are the biggest generation in US history (even bigger than baby boomers) they have and will have a significant impact on every facet of how the world works. Specifically their economic and technological impact are ones to watch out for.
Economically, by next year alone, millennials will have the greatest spending power of any generation. By 2020, they are also expected to account for 30% of retail sales in the United States. That equates to $1.4 trillion in spending.
Technologically, millennials are the generation that have come of age during a time of technological change and globalization due to the technological improvements. This results in millennials having a different set of behaviors and experiences.
Additionally, millennials also have a high expectation of technology. In order to meet these expectations, companies should greatly consider hiring a UX design agency to make sure these needs are met.
Those who fall under the millennial generation are the ones that were born between 1982 and 2000. In 2017, that means the millennial generation is between 18 and 35 years old. Currently, the millennials account for 25% for the US population.
The key facts to know about this generation is that they grew up when technology was rapidly changing. For example, the older millennials were born in a time that the internet was not an actual thing.
This is unlike the generation Z who is the generation following the millennials. Many times there is a misconception that anyone young is a millennial. But these generations have a very key differentiation – millennials grew up in an age of change whereas generation Z does not know a world without such technology.
1. Millennials are 2.5x more likely to be an earlier adopter of technology than other generations.
2. Millennials value brands that enhance their lives. New tech must serve a purpose in order to be cool.
3. Millennials are connected to their devices and on average own 7.7 connected devices and use 3.3 each day.
56% of millennials report they are one of the first to try new technology. If you are a company trying to reach the millennial demographic implementing new technology and utilizing a UX design service is the way to go.
The grocery store industry is a key example of implementing technology in a traditional industry. Currently, 30% of millennials do their grocery shopping online.
Then, those that are not shopping online are generally expecting more advanced technology. For example, a mobile app development agency in Chicago created an app that utilizes beacon technology that notifies shoppers when they are walking by an item that is on sale.
Industries need to stay ahead of the curve in regards to technology or companies based on technology, like Amazon, will start to enter and take over more industries like they did with Amazon Fresh.
As a brand in 2017, having a social media presence is a must. Currently, 63% of millennials stay up to date with brands on social media.
On top of gaining awareness, millennials are also turning to social networks when making their purchasing decisions; an opportunity brands need to capitalize on.
Overall, brands need to positively and effectively portray your brand on social networks, just as they would in-store or on a website. More importantly, social media allows the opportunity to engage and have a conversation with their customers in order to increase conversions and traffic to a website.
The millennial group is all about access rather than ownership. They are reluctant to buy items and thus the sharing economy emerged.
Two big players in the sharing economy space are also ones that are based on technology; Uber and AirBnb. A prominent reason theses companies are so successful is because their experience of renting a home or catching a ride is based on seamless and integrated technology that makes that experience so easy.
Combining a sharing economy strategy with easy to use technology is one that will continue to grow in our world today and one that brands should continue to adopt.
A surprising statistic about millennials is 90% of them use coupons. But unlike the generation before, they are not taking the time to cut out the coupons from a magazine.
Instead, they are looking for digital coupons that serve the same purpose but is easily accessible. Thus, as a company placing an emphasis on offering coupons is a traditional and effective strategy if implemented through technology.
The millennial group is no longer just the trendsetters of society, they are not the ones with the highest buying power. Brands need to adopt the newest technology in order to reach such an important generation.
Whether that be adopting new technology, increasing a social media presence, altering a strategy to a shared economy or as simple as providing digital coupons, the answer begins with technology.