Page 32 - RLI April 2019

RLI RETAIL INSIGHT

Time To PrioriTise

millennial shoPPers

DEREk O’CARROLL, CEO Of BRIGHTpEARL OffERS HIS
vIEwpOINT ON THE ImpORTANCE Of mILLENNIAL SHOppERS,
AND ARGuES THAT NOw IS THE TImE TO pRIORITISE THEm AS
THEy ARE wORTH THE ADDITIONAL EffORT.

e now exist in a world where technological familiarity iS a thing of the paSt
innovation is empowering customers to One way to actively build brand loyalty is through superior
expect more from the brands they deal with, customer experience. Shoppers will no longer stick with a
Wto switch when they’re not happy or satisfied, company that they know but delivers sub-par service. Just
and share their negative experiences online. because they’ve purchased from a brand for several years
Results from a recent study show that millennials can be doesn’t inspire the same shopper affinity it may have in the past
particularly hard to please. Over two-fifths (45 per cent) admit – particularly with younger age groups.
to being less loyal to brands when compared to a year ago, and This should give retailers and brands serious food for
are quicker to abandon companies that don’t meet expectations. thought – especially given that over three-fifths (61 per cent)
Customers today have a lot of choice and an array of products of consumers have encountered issues when buying goods
to choose from, and so it’s understandable that many brands are online in the last 12 months, and can be vocal and unforgiving
struggling to get customers to stick around for the long haul. An about poor purchasing experiences. In addition, eight out of ten
enormous 76 per cent of customers report that it’s now easier millennials will never buy anything without first reading a review,
than ever to take their business elsewhere whilst a quarter of which means brands are setting themselves up to alienate or
millennials would change where they buy goods, based on the lose customers if they’re not able to own the entire end-to-end
shopping experience. Millennials are also the group most unlikely experience to an appropriately high level.
to return to a brand if they have a bad shopping experience.
no-brainer technology
Shaping buying journeyS for the Great customer experience at every touchpoint, from
millennial audience discovery to delivery and beyond – including outstanding user
Brands must work harder to attract buyers and to encourage experiences, same-next day delivery options, real-time shipping
repeat purchases, particularly from the younger demographic. and customer-focused returns models – will be key to winning
The question is: ‘are millennials worth the effort?’ or losing customers – particularly millennials who are the most
The answer is undoubtedly ‘yes’. Millennials - typically aged sensitive to issues at any stage of the buying journey.
between 23-38 - are now all grown up. Millennials’ purchasing power This means brands need to identify and fix gaps in the buying
also continues to grow - they now make more online purchases journey that could negatively affect a customer’s experience
than Generation X or baby boomers and so an argument can – and damage brand loyalty. Long-term, this will be crucial to
now be made that brands should ensure the happiness of these boosting repeat sales, especially for fickler customers in the
shoppers as a priority over every other demographic. younger age segments.
The key to retail success really could lie in keeping millennials The good news? There are systems that can help brands make
happy. While it’s perhaps no surprise that online fashion the buying journey as smooth and effortless as possible. Key to this
purchases are dominated by younger shoppers, every sector, is an automated back-office platform that adds speed and efficiency
from home and DIY, to electricals, health and beauty or grocery into the retail operation and allows for enhanced customer service
has a significant and growing audience of millennial buyers - at every touchpoint. Brands should also use systems that record
with a set of behaviors, needs, and expectations that are very customer and product data from one single hub, in real time. These
different to other demographics. If brands want to capture the insights can identify pain points and guide the changes that will help
attention and long-term business of the younger shopper, the them to create more tailored and seamless experiences that are
way to foster and maintain loyalty needs to change. in-line with the expectations of younger shoppers.
Brands should also look to focus on the gaps that most frustrate
millennials, such as issues related to deliveries and returns. This is the
area where things are really going wrong, and this ‘last impression’
can do the most damage to a customer’s brand perception.
However, it’s worth noting that 10 per cent of millennial shoppers
are willing to pay more for products and services - if they’re
guaranteed a seamless transaction. So, brands that do get the end-
to-end experience right may benefit not only from increased sales
and loyalty – but also from increased wallet capture.
Finally, and to paraphrase Mark Larson, KPMG, Baby Boomers are
now appreciating the experience and convenience of buying online,
so, to a degree, there is a little millennial in each of us. By focusing on
superior experiences now, brands can meet the pressing needs of
their most demanding customers (Millennials) but get ahead of the
growing expectations of older demographics - meaning they can
keep all shoppers coming back to them time and again.

32 retail & leiSure international ApRIL 2019