Six Savvy Buyer-Types Retailers Need To Know

With 79 million millennials (young people between the ages of 16 and 34) spending money, wouldn’t retailers like to know not only what they’re spending money on but also why?   Behind the scenes, companies gather data on what customers purchase for every online purchase, web browsing, and point-of-sale purchase.  The why is another ballgame.  Finding out the motivation behind the spending could be the key to more effective advertising, marketing and social media campaigns.

According to an article on Learnvest.com, “The 6 Gen Y Spending Types: Which One Are You?,” The Boston Consulting Group surveyed 4,000 Gen , also referred to as millennials, to find out what motivated them to spend money.  They also learned a bit about their attitude toward money as a whole.  It also offered advice on how to hold the line and even save some money.

One group of millennial spenders is called Hip-enniels.  These aren’t the savviest shoppers or those up on the latest trends.  They are, however, very socially conscious and willing to spend on high-end products whose companies donate a portion of the profits to charities.  They are more concerned with helping a good cause than staying within their budget.  Hip-ennials need to hold the line on the purchases before they become a charity case themselves.

Millennial moms are just like other moms.  They love to spend money on their children.  These millennial moms are helpless against the latest clothing styles, nursery items and equipment.  The problem is all this spending early sets up a deficit for future important expenditures for braces, tennis camp, music lessons or college.  Millennial moms need to set up savings programs early to be sure saving keeps pace with spending.

There are also the “anti-millennials.”  These are the hard-driven workaholics who, like their Boomer parents, prize hard work, climbing the corporate ladder and putting in lots of time on career.  To achieve some balance, they spend money on convenience---maid service, time saving devices, the latest technology and toys and entertainment to keep the family occupied and cared for while they are busy reaching the top.  Anti-millennials need to set aside money for fun.  All work and no play does make the anti-millennial dull and boring.

Another spending type is the gadget gurus.  They have to have the latest technology, and that doesn’t come at a low price.  The quest to have the latest in technology, like the newest version of their IPhone or tablet, can cost a lot in purchases, fees and penalties switching from one plan and gadget to another.

The “clean and green” millennials  are all about causes to save the planet, resources and the environment. They go for natural products, farm-to-table eating and dining.  They will pay top dollar for the latest eco-friendly clothing, cleaning products, personal care products and home furnishings.  The clean-and-greens need to choose a cause and stick to it, instead of trying to save the entire planet.

Old School millennials round out the six spending types.  They spend more time talking to their friends over coffee or entertaining at home than posting status updates on Facebook.  They like real books, and would rather play tennis or golf on the courts or course than on a videogame.  They like real life as opposed to virtual anything. 

Knowing the different spending types is key for the future of retail.  After all, this is the group that is quickly replacing the Boomers with spending power, savings accounts and more credit cards than ever.  Future retailers need six ways to target marketing and social media campaigns to attract the different categories of buyers.  

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