Millennials are the frugal generation: hardworking, underpaid, and still hampered by the realities of graduating college in the midst of an economic recession. This has impacted their spending habits, leaving them with “cheap” tendencies that are driving some companies crazy.
As a result, Millennials love getting a good deal, and much of their purchasing decisions rely on this. However, there’s one thing that sweetens a deal even more: a great coupon. While 57% of Millennials describe themselves as highly satisfied when getting a good deal, that number goes up to 64% when they get a good deal with coupons. So what’s driving the Millennial coupon train?
Those Cheap Millennials Love Their Coupons
Millennials might be as socially liberal as a generation can get, but when it comes their wallets, they show their conservative side with flying colors. In fact, their experiences growing up in a recession has left them as the most financially conservative generation since the Great Depression.
So really, their love of coupons isn’t such a surprise. Millennials actually use coupons more than their parents, with 90% saying that they use them to plan their shopping lists. Not just any old coupons, though: Millennials won’t cough up money until they find a coupon that’s 25% to 32% better than the sort of deals that Gen Xers and Boomers would want, and this impacts the sort of businesses they buy from.
Personalized Coupons?
One of the holy grails for companies today is getting customers to fill out forms and offer up their personal information. When it comes to Millennials, it seems that the trick to getting them to do this is all about coupons, as 70% say that they’re OK with revealing personal information if it gets them personalized coupons.
Millennials have been warming up to the idea of giving away personal details for the sake of personalization, and this is exactly the market that coupon companies should tap into. They’ve grown up with personalized websites that display where they’ve shopped and where their digital shopping basket is parked, so they see these things as a value instead of an intrusion.
And Keep It Digital, if Possible
Millennials are slowly doing away with paper cash. They don’t want to carry it, they find it inconvenient, and they’d rather just use their phone. And when it comes to coupons, their priorities are no different, as 34% of Millennials prefer to use coupons that are loaded onto their smartphone.
However, this doesn’t even take into account how Millennials receive their coupons, which is largely digital. While Millennials are less likely to pounce on coupons received through social media, 42% of them jump for email offers. Thirty-six percent (36%) rely on companies that provide discounts through mobile apps. On top of that, 39% say that they rely on coupon code sites for their online shopping.
The Bottom Line
One thing that companies should never underestimate is the value of their online store, even when it comes to their physical storefront. Smartphone-carrying Millennials know about a store’s online prices, and aren’t happy if the physical store’s prices are higher. But they are all too happy to walk out of the store if they get there, they haven’t printed out the coupon, and they can’t use it on their phone. A fully, digitally-integrated storefront isn’t just a benefit for Millennials, it’s a necessity. Otherwise they’ll just shop on Amazon.
Millennials don’t see a need for separation between in-store and digital shopping. Before they even step foot in a store, they’ve usually used the Internet to research and compare prices, so by the time they get there—probably with a coupon app preloaded onto their smartphone—they’re ready to buy. Integration is key.
The G Brief is the digital magazine published by Urbaneer Creative. We’re a boutique consultancy focused on helping clients better understand and engage the Millennial generation. Reach out to see what we can do for you.