Millennials have entered the workforce with a boom, leaving a wake that is reaching businesses of all sizes. The influx of younger, fresh-minded workers is not only changing the workforce and the market, it is also increasing their buying power. Companies of all sizes should take note to the purchasing power of this generation, as their spending habits and strong brand loyalty can greatly impact their bottom line. Simply put, millennials are impacting businesses in just about every industry out there. This Balboa Capital blog article explains.
They can make or break brands.
It’s no secret that millennials are the most electronically-connected generation. They share pictures of their purchases on social media, check-in to share their geographic location, and engage with brands on their social media pages. Social networks allow the younger generations to publicize their experiences with a brand in a matter of seconds. Word-of-mouth is one of the fastest, most powerful marketing tools that exist, so this can be either extremely beneficial or catastrophic to a business.
Their buying power is $200 billion.
More millennials enter the workforce each year while older generations exit, altering the share of buying power between generations in the millennial favor. A leading industry publication states that millennials currently have about $200 billion in annual buying power, and that number is only going to increase in the next few years. Translation: correctly targeting millennials is a smart business decision that can reap great financial reward, especially during the busy holiday shopping season and Black Friday.
Millennials are loyal to brands they love.
Millennials value their relationship with brands and rarely stray to competitors, even when provided opportunity and reason. Industry experts report that over 60% of millennials are loyal to brands that they already purchase and will continue to be loyal now and through adulthood.
As you can see, business owners have many reasons to work towards attracting the millennial generation to their brands. In doing so, they will see an increase in sales that will likely continue for years to come.