Millennial parents shop, spend and engage differently with brands than other generations, according to the National Retail Federation.
The survey found that Millennial parents differ from other parent groups in terms of lifestyle and shopping choices. For example, 40 percent hold a graduate degree or more; 69 percent earn more than $59,000 a year, compared to 53 percent of other parents; 20 percent have more consumer confidence than parents surveyed in 2008.
In stark contrast with other generations, Millennial parents use their phones at every point of their shopping process with 78 percent using their phones to research products, compared with 58 percent of other parents; 75 percent use their phones to check prices or availability, compared with 58 percent; and 71 percent use their devices at checkout. In addition, 71 percent leave a review, process a return or chat with customer service after purchasing, compared with 43 percent of other parents.
The group is also interested in convenience, with 86 percent using same-day shipping, compared to 67 percent of parents from other generations; 53 percent expecting free shipping on small orders under $50, compared with 66 percent of other parents; and 40 percent using subscription services, compared with 18 percent of other parents.
“To keep parents of any generation happy, brands and retailers must deliver on both price and quality,” says Katherine Cullen, director, retail and consumer insights, NRF. “But Millennials are very concerned about good customer services and are twice as likely to back out of a purchase for lack of it. For Millennials, service ranks ahead of convenience, selection and loyalty programs.”
Millennial parents are also more inclined to shop according to their belief, with 44 percent only shopping at brands that reflect their social or political values, compared to 23 percent of parents from other generations.
In addition, Millennial parents are invested in brand loyalty with 9 percent reaming loyal to a brand despite cheaper options, compared to 30 percent of other parents; 52 percent remaining loyal despite more convenient options, compared with 35 percent of other parents; and 64 percent shopping at a brand they are loyal to before looking at a competitor, compared to 54 percent of other parents.
Consumers born between 1981 and 1994 are parents to approximately half of today’s children and more than 1 million Millennial women give birth each year.
“The Millennial generation has at turns confounded, inspired and challenged researchers and analysts with their spending habits,” says Cullen. “As many Millennials move into parenthood, we are beginning to see how their expectations and shopping preferences compare with those of previous generations. Whether it’s using a subscription service to make sure diapers don’t run out or going online to research the best crib or car seat, Millennials shop differently than other parents.”