April 10, 2013
In order to keep millennial customers in the store, finish the sale and bring them back for more, brands should follow three key principals. In our previous articles, we have addressed the importance of both convenience and respect in appealing to Generation Y consumers. Product value is an important trait that brands should provide if they are looking to convert Gen Y consumers into brand loyalists.
After talking with millennials from across the country, the best thing a brand can do to attract these consumers is to sell a superior product. Products should be high quality: durable, reliable and easy to use. The higher quality of product, regardless of its price, gives it more value — something millennials look for before any purchase.
Ben Pelz, a 22-year-old from Memphis, Tenn., enjoys playing basketball and chose Nike sneakers over the competition when first looking for basketball shoes years ago. Now Pelz not only continues to purchase Nike basketball shoes, but he’s extended his Nike loyalty to shorts, T-shirts and other gear.
This passion for Nike products, Pelz says, happened by first trusting the brand with basketball shoes. Because the shoes fit better than other brands, he subconsciously assumed everything else fit better, too.
In the eyes of millennials, value comes in two forms: product superiority and product originality. To Pelz, Nike’s products are superior to the competition. To Natalie Wagner, 22, Trader Joe’s uncommon grocery selection offers originality. “It’s healthy and affordable,” says Wagner, of Baltimore, Md. “They sell unique things you can’t find in other stores.”
When a brand’s product is unique, such as the groceries at Trader Joe’s or the taste of Coca-Cola, it adds quality in the eyes of millennials.
“Subway sandwiches are pretty basic. I don’t like its food,” says Carl Brendan, a 23-year-old from Minneapolis, Minn., who enjoys Quiznos sandwiches. “Quiznos sandwiches are a bit more interesting and have a unique taste.”
It’s also important to keep up a good reputation to attract millennials. Many are willing to do their homework on product quality: 44 percent said they are likely to seek third party reviews before purchasing a product, according to a study from Bazaarvoice and Kelton Research.
“When I shop I look for quality and value,” Brendan says. “I want to make sure it’s not going to fall apart, the food is made with good ingredients and make sure I’m not getting ripped off.”
Millennials want to be certain the money they will be spending will not go to waste on a mediocre product. “Quality is a big thing,” says 23-year-old Marie Conley, of Pasadena, Calif. “If it is high quality, you know it is going to last you a long time and not going to fall apart the next time you use or wear it.”
For millennials on tight budgets, such as Valery Del Castillo, a 23-year-old from Mexico, purchasing any product is an investment. Every dollar must count, she says.
But even though some millennials are pressed for the dollar, it does not mean they will avoid expensive products. Zara, a Spanish clothing and accessories retailer, sells pricey yet high quality clothing. Both Castillo and Carmen Ballarte, a 22-year-old from the Bronx, said they admire the brand and love the apparel.
“I went shopping with my godmother for the first time and their clothing is really pretty and the quality is amazing,” Ballarte says. “The price is a little expensive, but you pay for what you get.”
Key insight: Offer high quality products and millennials will purchase, no matter the price.