As the consumer landscape undergoes a significant shift, Millennials are now key drivers of buying habits, with increasing purchasing power as they move into the next phase of their careers shaping the market
The next few years will witness a significant shift in buying power as the consumer landscape evolves. With the oldest members of Generation X (born between 1965 and 1980) nearing retirement, Millennials (born between 1981 and 1996) are gaining prominence as significant drivers of consumer habits. Millennials in the 26–40-year-old bracket now comprise almost a fifth of the UK population, contributing to their increasing purchasing power. With the oldest Millennials reaching 40, they are no longer just starting their careers but are now advancing into senior roles in the workplace. As a result, many are gaining decision-making authority and purchasing power within organisations.
While Generation Z is not far behind – they projected to represent 27% of the world’s income, surpassing Millennials by 2031- for now, Millennials hold the title of the most powerful spenders. For dealers, understanding the buying habits of this age group is crucial for navigating this shift and recognizing the diverse priorities and preferences of a new generation of potential customers.
Faceless communication
Millennials are undoubtedly the social media generation. However, while platforms like Instagram have proven effective for marketing products, research indicates that when it comes to after-sales service or customer care, buyers in this age bracket are more inclined to use messaging services such as WhatsApp to communicate sales queries. Perhaps unsurprisingly, in-person and telephone inquiries are the least likely to be utilised, meaning dealers are more likely to achieve engagement by offering multiple options for faceless communication.
Short and sweet
Research indicates that Millennials highly value time as a commodity and are unlikely to invest significant time in projects or activities that they perceive as holding little interest or value. This is not a matter of attention span but rather indicative of their ability to discern what is important to them. Therefore, sales pitches should be concise and devoid of jargon. Millennials often prefer to receive basic information upfront and then conduct their own research into the finer details independently. It is essential for your sales team to keep pitches short and direct, highlighting product benefits front and center.
Just the facts
Having grown up with access to a wealth of information via the internet, Millennials are avid researchers when it comes to business facts and information. They are the most likely to make decisions based on online reviews and forums and often consult multiple sources to confirm any information provided. Distrust of businesses is prevalent among Millennials, so sales teams should prioritise consistency and transparency in providing information about goods or services.
Influencer impact
Millennials are often sceptical of traditional advertising and are savvy to old-school sales techniques. They prefer to make purchasing decisions based on peer recommendations and social influence. To engage with these customers effectively, dealers should leverage social media influencers and user-generated content. Reports indicate that customers in this age bracket are “experience-centric” and dislike traditional advertisements that can feel too polished and sales-oriented. Instead, they prefer to view and share personal experiences and opinions.
Although the buying habits of the Millennial generation may seem like old news, it’s essential to consider these habits in the context of Millennials moving into the next phase of their working lives. A decade ago, Millennials were the new kids on the block, but now they are becoming the CEOs and directors shaping the UK business landscape. Therefore, it’s an opportune moment for dealers to reassess their sales strategies to ensure they align with Millennial preferences and values.
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