Millennials are killing the one-day holiday shopping event. It won’t be this year or the next, but it’s coming.
The fact is, Black Friday and Cyber Monday aren’t really even one-day events anymore. “Holiday” has evolved in to a season of rolling discounts and events, with Amazon and other major retailers setting the pace by publishing their entire promotion schedule and lowest set seasonal prices right after Halloween.
The holiday season will always bring an element of shopping craziness, but the path to win the sales holiday sales war is changing. It’s no longer rock-bottom prices and doorbuster sales. Black Friday and Cyber Monday are great tools for retailers to get shoppers in their stores and not their competitors, but this model won’t hold up as millennials take center stage.
Millennials have shopped online their entire adult lives. In their eyes, Black Friday incentives rarely outweigh the hassle and frustration of setting foot in a crowded store, rolling the dice with limited options and inventory. They may take in the decorations with a gingerbread latte, and want a hands-on experience for select gifts, but the reality is they steer clear of the mall for holiday shopping.
Cyber Monday is more appealing to millennials, but it is still a one-day event that doesn’t excite them as much as it does older generations. Managing Cyber Monday sales and sitting at the computer in the early morning hours is becoming the new, stressful Black Friday sidewalk campground. Outside of being part of the competition and excitement, Millennials know they can get deals after Black Friday and Cyber Monday. They don’t want to be pressured to make buying decisions with certain retailers and certain products on specific days. Most of the population doesn’t have their act together in the days after Thanksgiving – and frankly, they don’t need to. In 2014, more shopping was done December 20th – 24th than during the hyped-up shopping days, and the deals continued to come right up until Christmas Eve.
As more and more Boomers gravitate to online shopping and Cyber Monday numbers continue to climb, retailers need to think three steps ahead to how they will address the next wave of shoppers - millennials (and it goes way beyond price).
The Millennial Shopper: Super Efficient, Lots of Expectations
What do millennials want during the holiday shopping season? Fewer of them are braving the stores to shop, so they take to screens. Millennials are mobile research experts/addicts. They get lots of targeted emails (an incredibly effective way to reach them) and know they can get deals on an ongoing basis. They’ll wait for sales. They’ll research all of their options. They’re not in a rush.
Millennials expect a deal. They expect free and fast shipping, which takes the pressure off to get gifts early in the season; they can screech in to the curb waiting for the right products and prices. 7-10 day standard shipping may as well be an eternity (or a non-starter if they’re shopping the week before Christmas), so shipping options must be fast, and pick up in store (if applicable) should be available. They also expect free returns. Many millennial shoppers over-buy with the intention of returning much of it. Managing this along with shipping is a major challenge and roadblock to innovation for many in retail ecommerce – but it’s critical to compete.
Millennials use technology to do their legwork. If they are price-conscious, they’ll use an app like Shopsavvy to crawl the Web.
They also tend to purchase large amounts of holiday gifts from a smaller number of retailers to simplify things and to get cleared for free shipping thresholds or tiered discounts.
Millennials love to discover new brands and new products through social media like Instagram, Pinterest and Facebook and word-of-mouth. As creative gifts and niche brands become widely available through sites like Etsy, hitting the perfect gift bull’s-eye with something unique can be more appealing than getting a deal.
These demanding shoppers will spend the most in the coming years. Standard retail tactics like discounts, sales, and events won’t guarantee success. It will become more about building relationships with brands that are easy to do business with.
Engaging Millennial Shoppers During Holiday (and Year Round)
How can retailers start selling to the millennial shopper now to get a jump-start on competitors? While discounts and coupons excite shoppers of all ages, think outside of pricing alone.
Be fast. If you can get the products shoppers want the fastest (at a fair price) – you win. Shoppers will spend more to get something the next day (or even same day in some markets) with a hard stop like December 25th. Checkout is still a huge barrier to conversion, so make the process painless – one page, few steps, limited questions (especially on mobile).
Over communicate. Email reaches a fever pitch in December, and while inboxes get flooded with noise, use this influential tool to differentiate your brand. You don’t need to extend rock-bottom prices, but keep an active email conversation to stay top of mind. Offer deals of the day. Integrate with social media. Extend exclusive VIP offers. Experiment with opt-in texts. Retailers like Target, Best Buy and JCPenney are have been collecting emails and phone numbers to send exclusive alerts.
Give options. Get ahold of your supply chain and make the digital customer experience frictionless. Millennials expect flexible fulfillment options (buy online pick up in store, fast shipping). Make returns simple (and free if you can). Be present on social media with an authentic brand message that allows shoppers to discover products.
To win millennial business, retailers must be easy to do business with during holiday and year round. Retailers must deliver a painless customer experience and lots of options. The days of retailers setting up their holiday Web sites and freezing code in the summer won’t be around forever. Brands should invest in solutions that grant them the agility to adapt versus curating static experiences. Experiment. Tell your brand story in an authentic way in an engaging, efficient shopping experience. Millennials expect it.