08 Aug Understanding The Spending Habits of Millennials For Downtown Lakeland Shopping
Marketers for Downtown Lakeland shopping are targeting millennials because of their sheer size and their spending power. Despite the fact that their incomes are lower compared to the previous generation, marketers want to tap this rich resource of clientele. In 2016, the millennial generation officially surpassed the baby boomers as the largest living generation, which means that there are now more millennials who are willing to spend on your products and services than baby boomers.
But before creating your marketing strategy solely based on how millennials think and shop, you must first understand where they are coming from and what their spending habits are.
Millennials are earning more, but they are still in debt
The average yearly income of millennials is $65,373, according to statistics released by the US Bureau of Labor and Statistics. It’s lower than the average of $74,664, but still significant enough for them to play a huge role in the consumerism behavior that businesses tap.
They are earning more, yes, but they are still in debt because of student loans and credit cards. In a survey in January 2017 by PwC, 40 percent of the responders ages 21 to 35, said they are still paying the loans they took for their education. They also owed an average of $3,864 on credit cards.
Millennials are taking home mortgages
The reputation of millennials as perpetual renters might have to be eliminated in a few years. Millennials aged 28 and older are now taking on home mortgages to become homeowners. This figure will increase further as the millennials grow and become more responsible with their finances. That is why the trick is to target the younger millennials—those whose ages range from 18 to 27 years old.
Millennials are influenced by online reviews
Sure, this generation has a lot of spending power, but they are also pickier shoppers because their incomes are not as high as the other generations. Their spending decisions are heavily influenced by their peers, by online reviews. Most millennials check what others have to say about the products before purchasing them. They rely heavily on online customer ratings when making purchasing decisions.
Millennials are attracted by bargains and deals
Millennials are the foremost group that heavily rely on bargains, deals, and discounts before making a decision to purchase a product. A good discount is a top reason for them to purchase a product and they are more likely to buy a product or subscribe to a service when it received good online reviews.