Millennials (born between 1981 and 1997) are tech savvy and are often financially cautious due to high student-loan debt and healthy spending habits, they prefer to pay with cash rather than plastic..
When Millennials buy something:
1. They stick to their budget and pay cash
Millennials prefer to save up for purchases and pay with cash/debit. A Bankrate study revealed that over 65% of Millennials don’t have a credit card because they fear getting into debt.
Average student loan debt is around $28,000 and millennials are graduating into a soft job market and finances are tight. Millennials are exploring new ways to purchase the items they want in a financially responsible way. Some are choosing new financing options (like Affirm) that allow them to buy an item now and spread out their payments over several months, all while avoiding credit card compounding interest and hidden fees.
2. They buy from companies with social values they admire
51% of millennials have no brand loyalty and care more about the product than the brand name attached to it, unlike their brand loving baby boom parents. However, they love brands that align with an charitable, environmental or a social cause such as Bombas Socks, Solo Eyewear, Patagonia, FEED and Toms Shoes that donates a pair of shoes for every pair of shoes purchased. They will avoid buying from brands that use child labor, sweatshops, harm animals, and are not eco-conscious.
3. They buy products with a purpose
While Millennials may be more willing to try something new, they will not become loyal consumers of new products or services unless it gives value by making their lives easier by addressing their consumer pain point or opportunity and WOWs them!
4. They rely mostly on reviews from friends and influencers
A positive review from a friend or someone they admire is a powerful thing. Relatability is huge for Millennials when looking for advice about a product. Social media communities, forums and review sites like Yelp, where like-minded consumers share their opinions about a company/brands’s products or services, attract Millennial fans and reviewers.
5. They love to share products and experiences on social media
Millennials check their mobile devices 43 times per day! Millennials are accustomed to publicly sharing online, they’re posting videos, stories, images and opinions on Instagram, Facebook, Snap, Twitter and YouTube – Social media is how millennials get new information and engage with others.