2022 proved to be a year of massive success for most retailers. Retail sales rose steadily each quarter, jumping 1.3% from September to October. And those figures paled in comparison to the $9 billion record-setting high on Black Friday.
Millennials were among the top spenders this year and are projected to continue growing. While millennials accumulate more financial power, retailers must take note of their shopping habits and adjust their business strategy accordingly.
Here, we’re sharing 10 facts every retailer should know about millennial spending in 2022.
10 Millennial Shopping Facts You Need To Know
1) 28% of millennials have purchased a product through an in-app shop in the past three months, and 26% have bought based on an influencer’s recommendation.
This stat proves the importance of optimizing shopping experiences across all touchpoints. Millennials are constantly on their phones consuming social media and watching influencers who inform their buying decisions. Meet your millennial customers where they are by creating a seamless mobile shopping experience.
2) 73% of millennial consumers are willing to pay more for products and services that promote social responsibility or are environmentally friendly.
What is your business doing to show millennials that you care about your environmental impact? They’re taking note!
3) Millennials report averaging $164 per month on entertainment (versus $101 for Gen Xers and $134 for Baby Boomers).
Millennials will pay up for worthwhile entertainment. There are hundreds of ways to incorporate entertainment into your shopping experience through gamification. Video content, lucky spins, and virtual try-ons are just a few methods to consider.
4) 32% of millennials used curbside pickup services, compared to 20% pre-pandemic.
Online-to-offline (O2O) services, like curbside pickup and virtual try-ons, are more popular than ever. Entice millennial shoppers who prioritize convenience by Insulating your omnichannel strategy with O2O solutions.
5) Millennials purchase 36% of all homes yearly. Nearly half of this group buys furniture online, spending roughly $27 billion on it each year.
Attention, all furniture retailers: millennials are likely your primary customer base right now. If you’re not already customizing your business model around their wants and expectations, it’s time to start!
6) 61% of millennials prefer to chat with retailers via digital channels, such as text, live chat, and messaging applications.
Millennials hate talking on the phone, especially for customer service. One way to improve customer experience is by using chatbots, software programs that use AI technology to simulate natural conversation by phone or text in real-time.
7) 69% of millennials purchase clothing for reasons other than fundamental necessity.
It’s no surprise clothing sales dropped during the pandemic. But now that life has mostly returned to normal, apparel retail is back up and running. Millennials have places to be and people to see again, and they’re willing to spend money on clothing they like, even if those items aren’t entirely necessary. Use this knowledge to your advantage when marketing to them!
8) Millennials are three times more likely to pay for expedited shipping than older shoppers.
If millennials are willing to pay more to get their products faster, why not offer expedited shipping? Give millennials the option to get their order faster by adding a shipping threshold counter to your website.
9) 40.6% of millennial digital shoppers use buy now, pay later options.
Most millennials are in their prime spending years, making big purchases like houses, cars, and weddings. Help alleviate their buying anxiety by offering financing options, like buy now, pay later.
10) 40% of millennials check online reviews before making a purchase.
Customer reviews help millennials feel comfortable when making a purchase, especially when it’s from a company they’ve never used. Put your new customers at ease by providing written and photo reviews on your site.
Looking for more millennial shopping trends? Stay in the know by keeping up with Sophelle’s monthly Millennial Report.