Latest News
Retailers underestimate spending power of millennials
In less than five years, members of Generation Y - or millennials – are expected to overtake Generation X as the dominant spenders in the United States, according to a new study from Berglass + Associates, Chain Store Age stated.
Despite the fact that millennials boast an annual spending power of nearly $200 billion, research show retailers fundamentally misunderstand the spending habits and potential of 25- to 34-year-olds. For instance, most retailers believe millennials respond best to online advertising; however, they are actually much more likely to make purchases based on suggestions from friends.
"Millennials have different motivations, attitudes and behaviors than previous generations, and retailers need to adjust their business strategies accordingly in order to thrive," said Les Berglass, CEO of Berglass + Associates. "For the first time in several decades, we will see a new member of the C-suite, who will be responsible for driving two-way communication between the millennial customer and the brand and for developing initiatives that will deliver long-term growth."
To capitalize on the approximately 72 million millennials still undervalued by retailers and advertisers, companies can invest in mailing software that can assist in streamlining highly targeted, direct mail marketing campaigns. By automatically presorting mail and generating required postal reports, businesses can not only take advantage of an underdeveloped market, but also maximize mailing discounts and eliminate redundant labor costs.
