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Virtually every brand we work with is trying to win Millennials, and it’s not surprising why. Eighty million shoppers

and a trillion dollars in buying power are hard to ignore. In almost every category, shopper marketers recognize that

Millennials represent an opportunity to drive results today and generate decades of profit to come. But as important

as this emerging generation is, a question remains:

Are Millennials engaging with—and influenced by—most brands’ shopper marketing?

NEW RESEARCH INTO HOW MILLENNIALS ENGAGE

Shoptology set out to answer the question with a first-of-its-kind study that looked at how different generations

engage with shopper marketing when buying weekly needs like groceries and CPG products. We conducted

a national online study of 1,503 shoppers who were digitally connected with internet and smartphones. Our goal?

Speak with shoppers who had the opportunity to connect with all types of shopper marketing, and assess what

they really used and why.

millennials matter

Making The Most of This Massive Generation

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We looked at 30 specific types of marketing interactions across the path to purchase and across media.

We evaluated paper media (like circulars and FSIs), passive media (like in-store elements that don’t require overt

engagement) and pixel media (all things online, mobile, social and digital). We didn’t just measure usage, but

explored the style of how shoppers engage. Are they heavy or light users of shopper marketing? What do they hope

for from the experience? And especially for Millennials, what gaps can we close to create a tighter bond to brands?

shopper marketing: hit or miss?

Our research revealed seven distinct styles of how people engage with shopper marketing. What we discovered

with Millennials is a surprising polarity: a third (35%) of Millennials are “Hyper-connectors” who use a wide

variety of shopper media with high frequency. But a sizeable number (24%) are “Detached,” meaning they

almost never use shopper marketing to support buying weekly needs like groceries and CPG.

I know what you might be thinking: How can some Millennials be big consumers of shopper marketing while other young

stimulus-hungry shoppers are disconnected? The answer lies with the strategies that many of today’s marketers use.

We discovered that Hyper-connector Millennials were the group that most resembled their older cohorts—they

were on the upper end of the Millennial age spectrum, married and with kids.

7 Styles of How Shoppers Engage

11% simple

shopper

detached

cautiousRarely engage with any

marketing or tools

savvy, genuine, independentClear pattern for what they use most

often (form, content)

adventurous, competitive, trendySeek marketing based on

want or need

ConsistentStay with

tried-and-true

traditional agenda driven all in

13%

divideddabblers

10%

value seekers

10%

retailpurists

14%

infoseekers

35%

hyper- connecters

7%

old schoolers

we

ek

ly s

pe

nd

range of marketing engagement

LISTING DEals RETAILER INFO PRODUCT INFO PURCHASE

PURCHASE JOURNEY ACTIONS

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30SHOPPING ENGAGEMENTS

RESEARCHIDEAS

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As you look at that data, you might share one of our suspicions—that these Hyper-connectors aren’t

specifically targeted, but are simply enjoying spillover marketing intended for upper generations. Because they

share some lifestyle traits, younger shoppers may find relevance in what they see. But that spillover marketing

may not fully capture the unique values of emerging Millennial families.

Plus, shopper marketers may be leaving even more money on the table with the Detached shoppers—typically

younger, childless Millennials. The marketing literature is filled with data that shows these Detached Millennials

feel disenfranchised by many brands, a fact they may remember for years to come. Given that many are

likely to stay unmarried, unparents, un-whatever longer, shopper marketers need to make the effort to meet

them where they are in life. It may be difficult and costly to win them later when their brand buying habits are

already established.

NOW’S THE TIME TO GET RAMPED UP

Hopefully, you were convinced that Millennials are a worthy

target before you started reading this. And hopefully after

seeing some of the data, you see there’s a lot of incentive

for shopper marketers to get this right; to get a first-

mover advantage with this valuable audience.

But your question may be “how?” Especially since (as a

whole) shopper marketing efforts haven’t always connected

in the past. The good news is that Millennials in our study

told us what they want and marketers can enjoy quick wins

just by reapplying a few familiar tenets and embracing a few

new ones.

66% 18-24

57% single

43% married

58% no kids

42% kids

34% 25-34

millennial hyper-connectors resemble older peers

Millennials in our study told us what they want.

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FIRST, LET’S TALK ABOUT THE FAMILIAR.

The number one thing Millennial shoppers want is value. Seven in 10 Millennials in our research said the

top reason to engage with shopper marketing (especially a new digital tool) is to save money. And it shows in the

value-driven media tools they use often. They are still growing their incomes, so value is a legitimate need. But

this generation also embraces the gamification of everything — and that includes getting a win while shopping.

Consider discounts, of course, but also look at other types of content that can help Millennials feel a sense of

savings accomplishment. For example, rewards and exclusive access also ranked as important in our study.

In-store is still the most-used vehicle.

Millennials aren’t just uber-digital; they

appreciate engaging physical experiences,

too. In-store displays were the most-used

medium among the 30 marketing activities

we measured, and proved to be an important

source of information for everything from deals

to new products. The key for marketers is

to make displays rich experiences—the kind

that really tell a story and compel younger

shoppers to buy.

76% READ A STORE

CIRCULAR TO SEE WHAT’S ON SALE

71% USE A COUPON

SENT TO ME BY MAIL

64% USE A

COUPON OR DEAL APP

63% USE COUPON

FROM A BRAND’S WEBSITE

60% USE IN-STORE

COUPON MACHINES

54% DOWNLOAD OFFERS FROM A RETAILER’S

WEBSITE

0%

20%

40%

60%

80%

value-driven media millenials use to save money

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83% look at in-store displays for new

products or deals

78% look at in-store

signage at the shelf, end cap, etc.

0%

40%

20%

60%

80%

100%

MILLENNIALS RELY ON IN-STORE VEHICLES

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Brand and retailer media are both relevant resources. Perhaps to the surprise of some marketers, Millennials

are known for generally trusting of big corporations. Content from both brands and retailers is important to

Millennials when making shopping decisions. Make certain your brand assets (like your website and social pages)

are working hard to convert shoppers. And remember that in the minds of Millennials, retailers are brands, too.

Leverage those vehicles to promote your brand under the umbrella of a favorite store.

A majority of Millennials consider themselves hybrid shoppers. Like their Gen X brethren, Millennials

sometimes use digital tools and sometimes go with tried-and-true methods—whichever is easier. When focusing on

Millennials, it’s easy to fall into the all-digital, all-the-time trap. Instead, focus on developing tools and content that

are engaging and valuable whether paper, passive or pixel. A media mix is still the right approach.

LET’S ALSO TALK ABOUT HOW MILLENNIALS ARE DIFFERENT.

They’re the most mobile and digital-centric generation by far. Nearly 90% regularly access the Internet from

their smartphone (compared to 74% of Xers and 59% of Boomers). Their mobile devices help them with many

aspects of daily life, including shopping. They’re already mobile-reliant for things like store locators, reviews and price

56%

millennials’ brand and retailer website usage

look at a retailer’s website for recipes/solutions/ ideas

52%

look at a brand’s website for recipes/ solutions/ ideas

51%

hybrid shoppers by generation

millennials49%

xers

paper passivepixel

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checkers—tools that provide both information and deals. Marketers must continue to stretch mobile capabilities

to simplify Millennials’ other routine shopping tasks, and make mobile a gateway to help younger shoppers adopt

new shopping behaviors.

Millennials have surprising barriers to growing their

digital usage. Older generations generally cite issues like

“learning curve” or “lack of value” as reasons for not using

digital in shopping. But because Millennials embrace digital

mediums to the extreme, their chief obstacles are clutter

management (too many sites/apps) and simply remembering

to use all the tools. Many say it’s a case of too much to

process and not enough value to make a difference. Marketers

need to ensure the digital tools they create for Millennials offer

real, time/money value and are distinctive enough to standout

in a crowded space.

Millennials aren’t just about one type of content. Millennials are multi-functional when choosing tools to

help them shop. Only a small percentage fell into our Agenda-Driven segment profiles of strict Value Seekers

(10%—heavily focused on tools that offer financial value), Retail Purists (10%—heavily focused on tools that are

specific to an individual retailer) or Info Seekers (14%—heavily focused on tools that make them more informed

shoppers). Millennials tend to be all-in, looking for a bundled solution; a guided experience versus a one-touch

engagement. They’ll likely respond to being sold with a variety of content. Give them a rating and review, offer a

coupon, provide the store location, etc. Make your experience a package deal.

66% 51% 41%

call, email, text home

64% 52% 47%

use coupon or deal app

63% 43% 33%

use mobile to locate

store

59% 41% 27%

use mobile to compare

prices

55% 36% 26%

read ratings/ review/product info on mobile

0%

20%

40%

60%

80%

value-driven media millennials use to save money

millenial xer boomer

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because Millennials embrace digital mediums to the extreme, their chief obstacles are clutter management

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FINALLY, LET’S CHALLENGE OURSELVES ON THE WHITE-SPACE OPPORTUNITY.

Yes, Millennials are mixed on their usage of today’s most common shopping tools, and there are some ways

to increase adoption of what’s in the market. But our research also revealed some bigger strategic gaps—well-

grooved media habits that Millennials do almost daily, but that just aren’t being applied to shopping for

weekly needs. For the bravest marketers, innovating here could provide the biggest gains of all.

Millennials are primed to use more social in shopping. Nearly three in four Millennials (73%) visit social media

sites daily. However, their usage of social in shopping for weekly needs is shockingly low: nearly every social media

metric we evaluated fell near the bottom of the rankings. That means there’s ripe territory to turn this favored

channel into a selling machine. Marketers need to make sure their brand social sites are connected to the shopping

experience. Plus, they need to innovate along with the biggest platforms (Instagram, Pinterest, Facebook) to create

new “social assists” all along the purchase journey.

Detached Millennial shoppers need tools that fit. For a variety of reasons, 1 in 4 Millennial shoppers remain

Detached, and haven’t yet found value in the shopper media that’s out there. While they shun most old-school

tactics, these digital natives have dabbled some with mobile and online shopper marketing, and that may be the

best route to get Detached shoppers engaged. The key is content. Shopper marketers need to create offers and

tools that fit this younger, single and childless segment. And they need to go the extra step to demonstrate how

their content (enabled by great technology) provides value, ease and usefulness in shopping.

Millennials need brands and retailers to adopt of new technology faster. Millennials embrace new tech

constantly, but get frustrated when the shopping experience isn’t ready to receive it. Take mobile pay as just one

example. Only a third (37%) of Millennials in our study have made a purchase with mobile pay. While the number

46% look at social sites for ideas on what to buy

36% use social

media to comment on a purchase

35% use social

media to ask for advice or

a purchase

33% use mobile phone to find where an

item is located inside the store

30% create a shopping

list from a website

0%

20%

40%

60%

social tools are near the bottom of all tools used

almost always/sometimes use

is nearly double that of other generations, it still feels low for such a mobile and digitally-savvy group. It’s a vivid

picture of missed, upside opportunity that happens too often when Millennials get ahead of the brands and

retailers who are supposed to serve them. Marketers need to catch up, continue to keep pace, and with some

determination, begin to lead Millennials to new innovations.

mattering to millennials

Winning with Millennial shoppers is essential for driving brand growth in today’s environment. So as you market,

think beyond the stereotypes and get in tune with what Millennials really want. Use both physical and digital--

especially mobile. Create an array of content that delivers real value and decision-making help. Retool some existing

approaches to make them more relevant, but don’t be afraid to truly innovate to answer the needs of these new-to-

market shoppers.

Understanding which Millennial shoppers are buying your brand--and developing shopper programs to reach them

based on their engagement style--will increase consideration and sales. Even more importantly, it will create the

bond your brand should be building with these important, younger shoppers. Win them now and your business will

thank you for years to come.

NEED HELP CRACKING THE MILLENNIAL CODE?

Curious about how Millennials engage with your shopper marketing? Want to know the right marketing mix for

your top retail customers? Or simply how to grab your share of the Millennial shopper’s growing wallet? Shoptology

can bring the right combination of science and art to help you build immediate sales—and lasting bonds—with this

massive shopping cohort. Email us. Call us. We’ll help guide the way.

contact usCharlie Anderson | CEO

charlie.anderson@goshoptology.com

p: 469.287.1172