6 Tips for Marketing to Millennials

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DECEMBER 31, 2013 • MARCIA KAPLAN

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Millennials are the roughly 65 million Americans between the ages of 18 and 34, a coveted demographic for brands and merchants. They spend a lot of money, even if they have little discretionary income. See“Ecommerce Merchants Should Not Ignore Older Shoppers,” my recent article, for additional information on the relationship between baby boomers and Millennials.

Characteristics of Millennials

Most Millennials are college-educated. They have an unemployment rate in excess of 15 percent — counting those who have dropped out of the labor force and are no longer looking for work. A substantial number are underemployed, working only part-time. Yet their spending habits do not reflect their financial reality. Most are not interested in saving.

While Millennials spend heavily on clothing, food, electronics, and entertainment, they often have little interest in owning houses or automobiles. Online shopping is certainly more convenient than purchasing at brick and mortar stores if one does not own a vehicle and Millennials are very comfortable doing a substantial amount of purchasing online.

Fifty two percent of them are more likely to make an impulse purchase than older shoppers, according to Hanover Research. Seventy eight percent of Millennials are more likely to select a merchant with a loyalty program than one without such a perk. Though many brand manufacturers and retailers fret that Millennials exhibit no brand loyalty, these shoppers will continue to show interest in a brand that continually rewards them. It also helps if their friends and influencers provide buzz on social media sites about a particular brand.

Millennials are typically voracious users of coupons and always look for deals before purchasing. “Millennial shoppers have the lowest shopping conversion rate because they are the most selective as well as the most economically challenged,” according to Marshal Cohen, chief industry analyst of The NPD Group, which published a study on millennial shopping this summer.

Mobile devices and social media are an integral part of their lives and they rely heavily on both for product and price information. According to a survey conducted by Research Now, 58 percent of millennial respondents acknowledged engaging in showrooming, nearly 10 percent more than older shoppers. And over 19 percent of millennial shoppers have been in a store and purchased an item via their mobile phone from a different retailer while still in the store, twice the rate of all other respondents.

According to the Google 2013 Holiday Shopping Intentions Study conducted in September 2013, 95 percent of Millennials planned to use the Internet as a holiday shopping resource and 88 percent of all Millennial smartphone owners planned to use their devices for holiday shopping this year (versus 67 percent of smartphone owners over age 35). Millennials both research and purchase via mobile devices at a higher rate than older shoppers.

6 Tips for Merchants

• Millennials desire a seamless shopping experience so make sure your site design accommodates the same screen on all devices.

• Don’t spend money on television or print advertising. These media are mostly ignored by Millennials.

• As for social media, don’t rely solely on Facebook. Have a presence on all social media platforms. According to a study of female millennial shoppers, performed by Edison Research in November for social media solution provider NetBase, while Facebook is the most consulted social platform, it does not have the most influence over buying decisions. Blogs and message boards are most influential, followed by Pinterest and then Facebook, Instagram, and Twitter. Eighty three percent of 18 to 24 year olds say they consult at least one social media platform before purchasing a fashion item according to the Edison study.

• Provide plentiful information. Millennials don’t purchase without doing substantial research and, because they are underemployed, they have the time to browse.

• Make your marketing efforts visual. Millennials prefer visuals, especially in the accessory and clothing categories.

• Millennials want to feel special. They want brand manufacturers and retailers to court them. You can do that with promotions that show you are aware of their product interests. Personalized coupons and emails can make Millennials feel connected to a retail brand.

Mobile Commerce: More than Closing Transactions

OCTOBER 22, 2013 • DALE TRAXLER

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Here’s a quick summary of mobile devices and their impact on commerce.

• Mobile devices are ubiquitous.
• More than 50 percent of Americans have a smartphone and that percentage is increasing.
• Tablets are replacing desktops and laptops.
• Tablets are a preferred platform for ecommerce transactions.
• Smartphones are used more for research than actual purchases.
• Apple iOS devices are the most heavily used devices for commerce.
• People are becoming increasingly dependent on their smartphones — it’s the first and last thing many adults do every day.

When most ecommerce merchants think of mobile commerce, the first thing that comes to mind is closing transactions. But there are many other activities that are being done daily on mobile devices that may impact your future online business strategies.

Will all of them affect your revenue stream? That depends on the products you sell. As an example, for a long time online merchants benefitted from showrooming, the practice of using a smartphone to research products and do price comparisons while in a brick-and-mortar store. Ecommerce merchants could simply present a better price, free shipping, and possibly no tax and close a deal by being present in an organic search.

Today, it’s much harder to get seen in a mobile organic search because the volume of advertising is much higher. Brick-and-mortar retailers are fighting back by offering price matching and free shipping for out-of-stock items. Consumers also use shopping apps for comparison shopping as they showroom, making it more difficult for online retailers to be found.

This article introduces many mobile activities and applications that you should be aware of as you evaluate mobile strategies. I am an iPhone user and all the apps listed here are on the iOS platform. I am not recommending any of these apps — they are simply the first ones that appeared in different categories I searched on, which usually included dozens of similar apps.

Ecommerce

Let’s start with ecommerce. All online merchants should develop a mobile friendly store. There are several options to do this.

• Responsive site. Adapts to virtually any device or screen size.
• Mobile site template. Presents your store in a mobile-friendly manner.
• Third-party hosted site. Manages your store and displays your product catalog as if it were part of your main domain.

Your mobile store should deliver a customer experience that is consistent with your desktop version. You should include the same product content, branding, ratings and reviews, pricing, search, and navigation. You may present some of content in a more mobile friendly way — like tabs for detailed information — but it’s important to offer all of your product content.

The Electrolux site displays on both desktop and mobile devices.

To be successful on mobile devices, include alternative methods of payment like PayPal to eliminate the need for your buyers to have to fumble around with credit cards while making a mobile purchase.

Mobile transaction currently account for about 10 percent of all commerce in the U.S. This number is expected to increase significantly over the next few years, led by sales on tablets.

Vertical Shopping Apps

Have you shopped for a new house, car, or apartment lately? There are many new apps that serve as a marketplace for those industries.

Apps like Zillow and Realtor.com reduce the need to have a real estate agent showing you properties. You can shop virtually or simply drive around town using your GPS to guide you to properties that meet your search criteria. Can you buy these online? Not currently. But they facilitate research, thus changing the role of a real estate agent. CarSoup is a similar app for finding automobiles.

Realtor.com mobile app.

Product Research

Product research is a popular mobile activity. Most adults use tablets or smartphones for some type of research before making a purchase. With showrooming, you do the research while in a physical store. Research could include looking for product details, alternatives, deals, and availability. Local stores, including large retailers like Home Depot, are finally presenting on their mobile sites product availability in those physical stores, eliminating driving all over town looking for an item. They also make it easy to order online and pick up your goods in the local store. This will have an impact on pure-play online retailers as they face more competitive pressure from physical stores.

Beyond obvious starting points like Google search, many consumers use blogs, other online retailers, brand websites, and catalog apps to research products. Here are a few product-research vehicles I found in a quick search.

• Catalog Spree
• Coffee Table
• Amazon Mobile
• Decide

Price Comparisons

In-store and online price comparisons are becoming standard for many product purchase decisions. Consumers can use tools like Google, Shopping.com, and Bing. Amazon and Ebay are good places to compare prices too.

There are also many apps that are popular with showroomers. These apps allow shoppers to scan a UPC code and receive a broad range of price comparisons among different retailers. Most link to the retailers’ sites, where shoppers complete the purchase. Many brick-and-mortar retailers will allow you to use these apps in real time to negotiate an in-store price match. Here are a few apps that support scanners and comparison tools.

• Decide
• RedLaser (Ebay)
• Price Check (Amazon)
• Quick Scan Pro
• myShopanion

Social Shopping

Many consumers like to share their shopping lists with family and friends. Many also want feedback on their purchases. Sites like Wanelo and Pinterest facilitate sharing of products and other ideas. There are also wish-list apps to save and share product ideas. Consider a wish list in your mobile site if you don’t already have one.

• Wish
• Wanelo
• Pinterest
• WishList.com
• GiftIdeas.com

Email Marketing

A key mobile activity is reading emails on smartphones. Be sure your emails and landing pages are mobile friendly.

Flash Sales

Mobile devices are ideal for facilitating flash sales. Merchants can display a limited number of items and offer a quick checkout. Many new mobile apps and sites enable flash sales. Here are few that I found in a quick search.

• Ebay Fashion
• Joss & Main
• PLNDR

Shopping Lists

Shopping lists on mobile devices are common. Many of them also offer coupons in the app. There are shopping lists that are specific for groceries. Others are more general. Many can be shared.

• Grocery List
• Grocery IQ
• AnyList

Coupons and Deals

Many shoppers look for deals. Daily deal sites like Groupon are well known. There are also many other specialized apps and sites that focus on more specific industries. Here are a few.

• Grocery Pal
• Saviry
• The Coupons App
• RetailMeNot

Payments

Apps like Square, PayPal Here, PaySimple, Intuit Go, and others make it possible to accept credit card payments by swiping on a dongle — i.e., a mini card scanner that plugs into a smartphone. These apps do not require a separate merchant account, payment gateway, or virtual terminal. Rates and fees are competitive with traditional point-of-sale solutions.

via Practical Ecommerce http://www.practicalecommerce.com/articles/60052-Mobile-Commerce-More-than-Closing-Transactions

How digital coupons influence shopping behavior

This summer, 54 percent of online back-to-school shoppers cited coupons as the leading factor that influenced them to shop at a particular store. The latest Shop.org Snapshot report “Consumer Use of Digital Coupons” examines the new frontier in coupons: digital and mobile.

eMarketer projects that about half of U.S. Internet users will have redeemed a digital coupon by the end of this year. The exciting news: 48 percent of those are mobile coupon users, up from 39 percent last year, and more growth is ahead.  As retailers head into the holiday season, it’s important to know how consumers are planning to find and redeem coupons this year. Here’s what Prosper Insights and Analytics found in their research:

• Redeeming from email and the web is mainstream. Consumers say they’re almost as likely to print a coupon from an email (64 percent) or a web site (57 percent) as from an ad insert (74 percent) or sources such as a magazine or newspaper (63 percent). Digging deeper, nearly three-quarters (73 percent) of women print coupons from a web site.

• Coupons trigger online searches. Second only to face-to-face communication, two out of five women have started an online search because of a coupon.

• Online coupons influence brand product choices. On a scale of one to five, consumers rated the influence of online coupons a 3.4. This is ahead of shelf coupons (3.3), coupons on register tape (2.8) and coupons on mobile devices (2.3). However, women and millennials rate both online coupons and mobile coupons higher than this average. But the amount of influence varies by category, with consumers saying coupons play a bigger role with apparel purchases, for example, than electronics.

In short, retailers need to explore whether and how digital coupons make sense for their customers, product and category.

Retailers are strategically using digital coupons to achieve a variety of goals beyond the immediate sale. For example, Ace Hardware recently concluded a in Northern California that encouraged in-store shoppers to text them for a coupon. This test increased average basket size in the store and grew the company’s opt-in text-messaging list. Coupons can be a key element in campaigns to re-engage customers, avoid abandonment on the checkout page and rescue abandoned carts.

via Shop.org Blog http://blog.shop.org/2013/09/18/how-digital-coupons-influence-shopping-behavior/

Easter shoppers will hop to their smartphones, tablets in 2012

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By Fiona Swerdlow, Head of Research, Shop.org | Published: March 29, 2012

As I mentioned recently, Easter announces that the annual spring gift giving season is truly upon us. This year, BIGinsight found in its latest consumer survey for NRF that 82.3% of online consumers plan to celebrate Easter – a number that has continued to inch up since 2007 (79.5%). Consumers intend to shop across channels, with almost 9 out of 10 online Easter shoppers buying food and candy, two-thirds expect to buy gifts, and approximately half will be in the market for greeting cards and clothing, followed by flowers and decorations. The combined net average forecast spend per online consumer celebrating Easter this year is $150.70, a nice start to Quarter 2.

So where should retailers focus their attention to capture the attention of online consumers?

Almost one in five (18.7%) of those consumers celebrating Easter will be going online for some part of their Easter shopping this year, a good leap even from last year (14.8%). In line with online shopping trends, online consumers will be spreading their Easter shopping activities over the web, across smartphones and tablet devices and – the omnichannel shoppers that they are – in traditional brick and mortar stores such as discount stores (63.5%), department stores (42.6%), and specialty stores (25.4%). Cross-channel marketing and promotions (such as promoting in-store specials online and via mobile, matching in-store specials online, offering access to customer ratings and reviews in the store, and so on) will appeal to consumers who move quickly and effortlessly from one customer touchpoint to the next.

Approximately half of online consumers who own a smartphone and/or tablet device will be reaching for those as part of the shopping process. Smartphone owners will use their device to research products and compare prices (28.8%) and look up retailer information such as location, store hours, etc. (22.3%). They will also use their smartphone to redeem coupons (17%) and to purchase products (14.4%). It’s a great opportunity to make sure your mobile-optimized site is working seamlessly; that the retailer info is clear and easily accessible from the first screen the consumer sees; and you are clearly communicating your messages about Easter and spring offerings, both textually and visually.

Similarly, over a third of online consumers who own tablet devices will use those to research products and compare prices (38.4%), find retailer information (28.4%), purchase products (27%) and redeem coupons (18.9%). See how your tablet presence measures up – and where you can fine tune – using the advice of Resource Interactive’s Stephen Burke who gave these primary tablet device design principles: make the tablet shopping experience engaging, share-able, shoppable, and extendable.

10 Online Shopping Personality Traits

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Aubrey Beck  |  March 7, 2012   


Retailers have typically approached marketing from a product-centric standpoint, but behavioral commerce technology now on the market enables retailers to take a more people-focused approach for giving shoppers an incentive to complete a purchase.

As online shopping gains momentum, shoppers are looking for online retailers to provide them with more personalized shopping experiences. Marketers can tailor these experiences to specifically defined target audiences by understanding the shopping personalities and buying behaviors of customers. Because when you've discovered what drives specific shoppers to buy, you're able to increase sales and margins.

Shopping behavior data derived from a behavioral commerce analytic platform used by several prominent online retailers was analyzed to determine the 10 most common shopping personality profiles.

1. The distracted shopper: "When I shop online, I often begin the check-out process but for one reason or another I don't always complete the purchase." 

Note: This type of shopper is frequently distracted and is prone to multitasking while shopping.
To close the deal: Offer 10 percent off the next order if she completes this one. You can also show her the types of products she was browsing to remind her to return and complete the purchase.

2. The premium shopper: "I only buy the best. I want premium name brands with the latest features and most advanced technology." 

Note: This shopper is a trendsetter who doesn't mind showing off or inciting a little jealousy in her friends.

To close the deal: Show this shopper the newest products that have just arrived. Increase the average order value by throwing in a small offer if she reaches a high order value threshold.

3. The determined shopper: "I always research before I buy. I'll view the exact item I want multiple times, looking for a drop in price, or a special offer." 

Note: This shopper wants to be absolutely certain she has made the right choice before buying.
To close the deal: Provide positive reinforcement during her shopping process. Let the shopper know that this is the right product by showing positive consumer feedback on the items she's browsing and, if necessary, provide an incentive like $10 off to write a product review .

4. The active shopper: "I'm always browsing but not always buying. I'm not looking for incentives, but they can help me convert when I'm window shopping." 

Note: Active shoppers like the positive psychological effects of browsing products online across different sites.

To close the deal: Try secret sales, daily deals, or flash sales to get these shoppers over the finish line. Try offering additional items that complement what they've been browsing.

5. The free shipping hunter: "I like to buy online, but if the retailer doesn't offer free shipping, I'll leave and find a website that does." 

Note: This shopper is turned off even if shipping costs are minimal.

To close the deal: Offer free shipping to these shoppers to ensure that they complete the purchase.

6. The thrifty shopper: "I like to buy used or refurbished items. If I can get the same product used for much less, I'll buy it." 

Note: For this shopper, the amount of savings can be more powerful than the product need itself.
To close the deal: Make used and returned items visible to them. Show her overstock and clearance items based on what she's been browsing. Those products might be just as attractive to her based on the savings.

7. The loyal shopper: "I only purchase if I can join a rewards club or special rewards program. This often leads to me purchasing at the same stores." 

Note: This shopper likes to build up and then cash in points from loyalty reward programs. This type of shopper will generally spend more than others in the pursuit of rewards points.

To close the deal: Remind her how many points she'll get for buying certain items. Provide extra points for items you're trying to clear out. Offer loyalty club deals so club members feel they're getting something in return for their loyalty.

8. The methodical shopper: "When I shop online, I like to browse for the exact product I'm looking for. I often use site navigation until I find that perfect match." 

Note: These shoppers are tenacious and don't like being distracted by marketing messages or product fluff. They follow site navigation and site maps to find the right product.

To close the deal: Present a message to these shoppers asking if they need help or have product questions if they seem to be getting lost within your site. Provide additional product suggestions combined with offers based on what they've been browsing to help generate sales.

9. The impatient shopper: "If I don't find what I want immediately, I look somewhere else."

Note: These shoppers are antsy to buy and be done with it. Making the navigation and checkout process fast will increase the likelihood of closing the sale.

To close the deal: Create a bold offer to grab their attention and maximize conversions. If they leave without purchasing, quickly present an offer combined with what they were browsing to try and win them back.

10. The wish list shopper: "I like to shop online, but I don't always purchase. I add everything I like to the shopping cart to see what the total price will be." 

Note: This shopper needs help moving from fantasizing about products to actually purchasing the products.

To close the deal: Daily deals, flash sales, and secret sales work well for these shoppers. Add to their shopping excitement by showing additional items that complement existing items in their cart. This completes the visual picture for these shoppers and can drive them to purchase everything.

When retailers factor shoppers' personalities and buying behaviors into their marketing decisions, everyone wins. Shoppers find products they're looking for and are rewarded with incentives that mean the most to them, and retailers don't waste money giving away huge discounts across the board.
By using a behavioral commerce platform, retailers can have a more thorough understanding of the shopping personalities of their site visitors and can maximize sales and margins by making strategic offers.

The Social Credit Card: AmEx Syncs With Twitter To Turn #Hashtags Into Savings

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BY Austin Carr | 03-06-2012 | 5:21 PM
 

Want $20 back from Whole Foods when you use your AmEx card? Tweet #AmExWholeFoods. Here's what's behind the new deals for the sharing generation.

Today, American Express unveiled a new program with Twitter to let cardmembers sync accounts with the social network, and earn savings from big brands such as Whole Foods, Best Buy, and Zappos--just by retweeting certain hashtags.


With the partnership, AmEx helps fortify its role as the credit card for the social media generation--and, apparently, following through on the whole Social Currency idea beyond offering membership points rewards. In addition to its partnership with Twitter, the company, which boasts more than 90 million cardholders worldwide, has already rolled out a national program with Foursquare for check-in deals and Facebook for rewards through Likes. AmEx aims to be the connective tissue between merchants and consumers on social media that will provide a mix of offers, data, and branding to its members.

As with Foursquare, the process of syncing your AmEx account to your Twitter account is a quick, one-time process. Once linked, U.S. cardholders have the opportunity to earn rewards by tweeting special offers from hashtags. "Tweet #AmExWholeFoods, get $20 back 1x on next $75 in-store purchase," Whole Foods might tweet. Once the consumer tweets the #AmExWholeFoods hashtag, the offer is automatically loaded into that member's account, ready to be redeemed effortlessly the next time he or she shops at Whole Foods.

"Twitter is already being used as a platform to connect buyers and sellers, but no one has really nailed it in terms of proving that Twitter conversations can drive directly to commerce, or that tweets can really be linked to transactions," says Dave Wolf, VP of global business and market development at AmEx. "That's what we're really excited about doing."


The benefit of the service is as much about the deal for the consumer as it is the data for the merchant. "We can go to Whole Foods or any merchant we work with and give them information and analytics," says AmEx vice chairman Ed Gilligan. "How many people used the offer? What was the size of the shopping cart when they checked out? Did that customer come a week later or a month later?"

In other words, AmEx has finally developed a way to demonstrate a tweet's ROI--and not just in terms of commerce. The deals will also have a benefit on Twitter, leading to "more trending topics, more followers, and more conversations," says Leslie Berland, SVP of digital partnerships and development at AmEx. "Are our followers growing? Are people talking about our business? Are people engaging with our content?"

It's a social strategy AmEx has used to take the friction out of the point of sale, and turn something as simple as a hashtag into a potential future transaction. It's also a social strategy we should expect AmEx to continue to pursue beyond Facebook, Foursquare, and Twitter.


 "We want to go where our cardmembers are," Berland says. "So when you talk about Instagram, if they presented an opportunity where it evolved into something that would be a natural fit for this, we would definitely look at it. We are looking at platforms that both have scale, and that we're able to put our technology in in a very authentic way. But yes, we can do this with a variety of different partners, and we, candidly, have many partners beating down our doors to do exactly that."