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The Importance Of Millennial Consumers

Millennials are the next indulge boomers: a group of people so economically valuable that advertisers drop their existing methods to cater to them. Per the U.S. Census Agency, as of 2019, millennials only accounted for 25%-27% of the total population, which surpassed the baby boomers (those transport between 1946 and 1964) population in numbers. With an estimated U.S. population of 86-88 million, the millennials represent a substantial amount of splurge money.

Who Are the Millennials?

Millennials are the group of people born from 1981 to 1996, dates recently crystallized by the Pew Explore Center after years of vagueness that set them anywhere from 1980 to the early 2000s. The generation is also occasionally known as Generation Me or the Trophy Kids, nicknames that imply negative stereotypes, such as that the demographic is languorous, spoiled, and selfish.

Key Takeaways

  • Millennials represent a large segment of the population and are an important target market for consumer friends.
  • The group consists of people born between 1981 and 1996, or roughly 25% of the U.S. population.
  • Many millennials delving online, test products in stores, and seek out honest reviews before making a decision to buy.
  • While many are underemployed and troubled with student debt today, millennials are likely to get richer over time and represent an important market for advertisers and consumer crowds alike.

The laziness is perhaps understandable because millennials grew up as digital natives and seem to command technology effectual of doing anything they don’t feel like getting up to do. The television remote is too far away? There’s an app for that. Don’t want to parcel out with a long commute every day? Work remotely half the week. To older generations, it seems like millennials are doing a everything lot of nothing.

Why Do Millennials Matter?

Millennials are careful with their money. Having come of age in the aftermath of 9/11 and during the Expert Recession, Millennials are facing futures with less overall wealth than the previous generations. A number of objects have caused this problem. First off, millennials bought into the American Dream of having post-secondary classes and, as such, colleges are graduating an increasing number of students each year. However, these new grads are faced with debts that norm roughly $39,000 per borrower.

Large debts mean that millennials are not able to live the same way their progenitrices did. Entry-level salaries are sometimes meager and much of that income goes towards debt payments, credit show-cards, and, unless they’ve moved back in with mom and dad, to living expenses. There simply isn’t a lot of money left over for non-essentials.

While online inform oning is a great convenience that could, perhaps, contribute to the aforementioned lazy millennial stereotype, brick-and-mortar shops aren’t booming away. Remember, this is a generation that has either grown up or become accustomed to the instantaneous world of the Internet. For them, intermission for seven to nine business days for a product to ship is agony when the shop down the road has the same piece ready for immediate use.

Why Now?

Why should advertisers pay attention to this poor, low-spending demographic? For starters, millennials are extremely reliable to the right companies. While Sears (SHLD) and Chevrolet (GM) may not be getting millennial dollars, companies with an efficient societal media presence and those that customize the shopping experience find that young adults will pop up again.

In addition, companies are finding that traditional advertisements are becoming less effective as a means to entice millennial shoppers. That’s because the demographic typically elect to spend their scarce cash on products that they know will be worth their money: they enquire online, test the products in stores, and then seek out honest reviews by their peers before making a win.

By capturing the millennials now via cheap techniques, companies will find their advertising dollars stretch further as this faction gets richer.

The Bottom Line

Millennials are underemployed and heavily indebted, but although guarded with their rake-off rich, the group will spend when they think the purchase is worth the money: on services, heavily researched superiority goods, and purchases that their peers have made. The group is loyal to companies that treat them like people, not copies, and that interact with them (and solve problems) on their favorite social media sites. 

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