During the recession, many people became very good at looking for coupons. When money is tight, people look for ways to save, pinching every penny and squeezing every dime. While the economy has improved greatly since the worst days of the recession, consumers haven’t forgotten the cost-cutting skills they learned. According to a recent study, this is especially true of Millennials, who use coupons as part of their online and offline shopping experiences.
With spending reaching more than $600 billion annually and poised to inherit $30 trillion from their Baby Boomer parents, Millennials are quickly gaining massive purchase power and influence. For this reason, CouponFollow produced a Millennial Shopping Report to see how adults 20-35 years old choose where to shop and what to buy.
“By understanding why, when, and how this savvy generation of empowered consumers choose to spend, retailer and brands, retailers and brands will be able to better position themselves for success, despite recent industry struggles their peers have been facing,” explained Michael Parrish DuDell, Chief Strategy Officer at CouponFollow.
The survey of 1,000 Millennial consumers in the U.S. produced results that showed coupons and discounts are very important to shoppers. Nearly four out of five (79%) Millennials say that finding the best deals will impact their purchasing decision when shopping online. Business owners and marketers need to make it clear to consumers why their product is the best value (even if it’s not the lowest price).
It also makes sense for marketers to use discounts, coupon and special offer codes in their online campaigns. The survey suggests people are searching for deals as much as they are searching for the product they need. According to the survey, when shopping online, about seven in 10 (69%) Millennials search for coupon codes. Furthermore, the majority of Millennials will spend at least 3 minutes searching for coupon codes.
The amount of time Millennials spend searching for coupons underscores why discount offers should be a key part of search marketing strategy. Three in five (60%) Millennials search for coupon codes before shopping. CouponFollow suggests that “younger consumers are feeling the challenges of adulthood and are actively looking for ways to preserve resources.” Regardless of the reason, the data shows that waiting for the customer to reach the site to tell them about an offer is counterproductive, because it’s the offer that brings many people to the website in the first place.
The importance of coupons extends to social media marketing. According to the study, 56% of Millennials follow brands on social media to gain early access to deals and savings
CouponFollow summaries the meaning of their survey data by saying “The future of retail requires a hybrid approach – in order to make a tangible impact, retailers must bridge the gap between online and offline experience.”
Couldn’t put it better myself.
For more recent research that can help business owners create better campaigns, read this article on how consumers respond to branded video content on Facebook.