Millennials, those born between 1981 and 2000, have become the largest living generation in the US with 75.3 million people, surpassing the Baby Boomers who now number 74.9 million according to Kids Today. There are 53.5 million Millennials in the workforce compared with 52.7 million Gen Xers and 45 million Baby Boomers.
As the Millennial population continues to grow, it is important to understand them so that you can market to them appropriately. There are two major factors that need to be looked at when dealing with Millennials. First, Millennials are waiting longer to get married and have babies than previous generations. In the last ten years birth rates for mothers between the ages of 20-24 have dropped by 20.6% and ages 25-29 have dropped by 9%. However, birth rates of mothers between 35-39 have increased by 13%.
Since Millennials are waiting longer to have kids, this means that they most likely will have more money to spend once they do have kids. They also tend to be better educated as they've had more time to get their bachelor's or even master's degrees. This is resulting in consumers who are willing to pay more for a product if they can get more out of it. Very often these consumers might just being willing to pay more for a higher quality product, but they also may be willing to pay a little bit more for a product that can grow with their families.
An excellent example of a product that can grow with a family are convertible cribs. 75% of moms under the age of 30 have either bought or plan to buy a convertible crib, compared to 71% of moms age 30-34 and only 62% of moms age 35-39. Of those who have bought or plan to buy a convertible crib, 71% of them are willing to pay more for a convertible crib than a standard crib, with 34% willing to spend as much as $100-$200 more for a convertible crib.
The other important factor is the internet. 61% of Millennials will rate products and services on the web, while only 46% of the older generations will do this. In fact 35% of mothers under the age of 35 purchase their children's furniture online. Of the 65% who still purchase their furniture at brick and mortar locations, most of them will do their research online before going into a store, with many of them buying exactly the product that they chose online.
For this reason it is very important for both manufacturers and retailers to provide lots of details about their product line on their web page. But a static web page with features and specifications isn't enough. Companies need to offer dynamic web pages that allow for questions, reviews, and link to social media. Over two thirds of Millennials that use social media rely on friend's posts to influence which products they will purchase. If your company only offers a static web page, it may be difficult to sell to this young generation of educated consumers with large incomes.
As this younger generation is quickly becoming America's largest group of consumers, it is important that you target your products and marketing towards them. You need to offer high quality, adaptable products, and take advantage of the internet not only for online sales, but also for marketing via social medias. This is a big change from traditional sales methods you may have used in the past. If you find yourself short on time to adjust your products and marketing to your customer's needs, let DSA Factors help. We can manage your receivables and collections while eliminating the need for you to run credit checks, allowing you to focus on more important issues such as product line, marketing, and sales, while at the same time improving your cash flow. Give us a call at 773-248-9000 and ask about our accounts receivable factoring program today!