How millennials are changing the face of consumer behaviour

Earning their loyalty will be rewarding given that they're also the most likely generation to shout out about a brand to their friends and family

2020 saw the world rapidly accelerating most of the digital consumer trends that were already underway prior to the crisis. From shopping and banking to entertainment and work, our lives largely moved online, and so did consumer behaviors. As a result, we're seeing millennials' digital-first habits becoming the norm, and slowly replacing their predecessors, Gen X, to represent the most common consumer behavior.

Despite numerous setbacks, millennials remain positive. This is a generation that more than any other has been set back by economic crises during their peak earning years. With 12 per cent being temporarily laid off or placed on furlough and 7 per cent having lost their job, millennials have been disproportionately impacted by the economic turmoil of Covid-19. However, they maintain a very positive mindset when it comes to their personal finances.

Even though nearly 4 in 10 say the outbreak has had a big or dramatic impact on their finances, globally, they're much more likely than other generations to think this.

They grew up gaming and it shows. Gaming shines through in every aspect of millennials' lives – from their interests and entertainment behaviors, to what influences them as consumers; and the pandemic has accelerated this. Our Zeitgeist research from October showed that 38 per cent in the UK/US are playing more video games since the outbreak began, jumping to 42 per cent among younger millennials. They spend longer on consoles than the average and are loyal to PlayStation.

They don't have negative views of social media but are conscious of its impact on mental health. Millennials are slightly more likely than other age groups to believe social media is good for society. But their relatively positive view doesn't mean they aren't aware of the time they spend scrolling through their social media feeds. They are more likely to have tracked their screen time and are also the most likely generation to say they're using social media less than they used to.

Building your brands goes hand in hand with building their brand. To appeal to millennials, brands need to prioritise their status and make them feel special in every step of the purchase journey. This cohort stands out the most from the average internet user in wanting brands to improve their image and reputation. They're a status-seeking bunch and are unlikely to be intrigued by brands that don't make them stand out from the crowd.

Earning their loyalty will be rewarding given, that they're also the most likely generation to shout out about a brand to their friends and family.

Millenial milestones

With the oldest millennials nearing 40 while the youngest are in their mid-20s, this consumer segment is an elusive and diverse bunch and a key target for brands. At the beginning of 2020 they represented the single largest generation in the global full-time work - force (65 per cent). However, with 12 per cent being temporarily laid off or placed on furlough and 7 per cent having lost their job, millennials have been disproportionately impacted by the economic turmoil of Covid-19.

Referred to as the "Recessionals", this is a generation that more than any other has been set back by economic crises during their peak earning years; and this has taken a toll on the major milestones of their lives. Compared to other generations they're more likely to postpone commitments like marriage, parenthood, and home ownership. Their debt is progressively accruing as they get older, while at the same time, their savings and investments decline.

In fact, they're the generation with the fastest-growing debt.

Despite this, millennials are all in for the cause; their support for charities increases with age, with a quarter of millennials today donating regularly or semi-regularly (more than any other generation). So, despite numerous setbacks, this consumer segment remains a savvy and woke bunch.

Before we move on to looking at millennials as consumers, it's important to recognize this cohort's influence in the B2B world. With over 4 in 10 describing themselves as career-focused, millennials are moving through the ranks and increasingly taking on leadership roles in the workplace.

They're most likely to be in management (19 per cent) or executive management roles (16 per cent) and nearly half of them are the ultimate decision-makers in their companies, with a particular influence over hardware and software products. This makes them a particularly appealing demographic for B2B brands.