Manal Haddad

What Influences Shopper Decisions in the Younger Generation?

Every generation has a different set of purchase behaviors. This is probably due to income and life stage. For instance, a 25-year-old single woman will need to buy a very different set of things than a 60-year-old retired grandfather. This article aims to explore what influences shopper decisions in the younger generation, how they search and buy products, and what they expect from brands they interact with.

If you run a business targeting the youth, you need to know what they expect from a purchase experience. Understanding the factors that influence their buying decisions can help you tailor your strategy for catering to them.

1. Online Reviews

The younger generation is transforming how products are being marketed by staying unresponsive to conventional marketing strategies. They decide where to dine out based on Insta pictures, pick their hairstylists from Facebook, and have their groceries delivered to their doorstep based on a close friend’s suggestion.

The youth likes to chat and make plans with their friends. In fact, 68 percent say that they won’t make a major decision until they have discussed it with people they trust. Yelp is now an important information source for customers and businesses alike, along with Rotten Tomatoes and TripAdvisor.

2. Social Media Incentives

As per research conducted by Yahoo, 63 percent of millennials are more likely to “check-in” to a business on social media if it helped them get a discount or coupon. A 20 percent discount is an excellent incentive to encourage 50 percent of the respondents to visit a physical location.

3. Influencer Endorsement and User-Generated Content

A survey conducted in China and Finland revealed that respondents who follow social media influencers are highly influenced by them. In fact, 90 percent of the participants said they had either purchased a new product or visited a place because of an influence they follow. Plus, more than 50 percent of the respondents said they trust the recommendations of an influencer, and 80 percent said they are willing to try out new things that these influencers suggest.

Another research by Gartner revealed that 84 percent of millennials are likely to be impacted to buy something based on user-generated content, such as stories, reviews, images, etc., that are created by strangers. This is because watching a product in use or just reading personal stories from other users has a huge influence on the youth.

4. Loyalty Programs and Rewards

If it weren’t for the disastrous e.coli scandal at Chipotle, their newly-launched loyalty program would have surely been the most popular news of the summer. Chipotle checks all the boxes for the younger generation – vegetarian options, ethically sourced vegetables and meat, customizable food with excellent marketing campaigns.

The results of the Harris Poll revealed that 77 percent of millennials are open to or are already participating in loyalty programs and rewards. Moreover, 73 percent of smartphone users are open to using their smartphones to interact with brand loyalty programs. Some of the stores already doing this successfully include Starbucks, Boloco, and Red Mango.

The success of loyalty programs and rewards is primarily attributed to rising inflation, high levels of unemployment, and limited wages. These factors encourage the younger generation to search for economic and budget-friendly deals that often come in the form of loyalty programs and rewards.

Wrapping It Up!

The young generation related to brand differently and have different objectives when it comes to the shopping and purchasing experience. However, despite their differences, the youth does value easy brand interactions, transparent promotions, and payment security as the most important factors when deciding where to shop. And regardless of the generation, excellent customer service is always the most crucial thing!

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