- Seventy-two percent of millennial women say spending on experiences makes them the happiest, according to new research titled “Why Millennial Women Buy," which was released by performance marketing agency Merkle and Levo, the network for millennials in the workplace. Forty-five percent of millennial women say their biggest purchases over the past 12 months were on experiences, and 54% say experiences will drive their biggest purchases in the next year.
- Millennial women, which the study defines as those born between 1982 and 2000, seek out brands that they are proud to support, and 47% know their favorite brand’s origin story, 41% know who founded the brand and 40% follow the founder or someone affiliated with their top brands on social media. More than half (57%) say that their purchase decisions are driven by a brand’s values and stance on issues that are important to them.
- Comments, customer ratings and reviews influence purchase decisions for 84% of millennial women, and 62% report trying a brand based on recommendations from an influencer. Eighty-one percent of millennial women think brands are designing products with their needs in mind, and 70% think brands listen and respond to their needs.
The report hightlights key characteristics that marketers should take to heart as they attempt to craft strategies to reach millennials, which total 75.5 million and spend $200 billion per year. This year, they are projected to have the largest spending power of any generation. They also have a higher spending velocity and volume, according to the Merkle-Levo report. Among millennial women, the top 60% spenders are 19% more likely to spend during a specific time frame and will spend 25% more than other segments of the U.S. population with the same spend rankings.
The research suggests that the trend toward experiential marketing that has been evident over the past year is likely to continue and even ramp up. Not only does the “Why Millennial Women Buy” research highlight how experience is a top factor in driving millennial women’s purchasing decisions, it also reveals that they are willing to pay more and work harder to get it. According to the report, 81% of millennial women said they are willing to indulge themselves, but look for the best deals, while 14% said they enjoy spending money and don’t focus on price. To support their spending habits, more than 40% of millennial women have a side hustle to earn extra money.
Millennials are careful about which brands they associate with, most often rewarding those that support the causes important to them and those with compelling brand stories. A Sprout Social survey found that two-thirds of consumers think it’s important for brands to take a public stance on social issues. Marketers should craft a story for their brands that resonates with millennials on a personal level, consistently tell that story across channels and deliver consumer experiences that live up to the story.
To deliver experiences that will resonate with millennials, marketers need to focus on creating omnichannel strategies with consistent, personalized messaging and a two-way conversation that makes consumers feel like the brand is listening and responding to their needs. The good news for marketers, as the study reveals, is that most millennials see their favorite brands doing this.