People born between the years of 1980 and 2000 are considered the “millennials.” In the United States, that consists of over 83 million individuals, which is more than one quarter of the overall U.S. population. While much has been said and written about this generation, from their so-called entitlement to their innovation, it doesn’t change the fact that they represent the largest generation demographic in the U.S. right now. Put whatever feelings you have about them aside because, as a small business owner, this should be good news.
Why? Besides the fact that they are the largest demographic, buying patterns have consistently shown that millennials love small businesses. A millennial study done by Forbes shows that this generation show a lack of interest in traditional advertising and big companies, and would more likely be inclined to purchase from small brands. Millennials have serious buying power and it’s important for small businesses to recognize that.
If this still doesn’t convince you, here are some facts about millennials’ behavior towards small businesses that further prove that you should be targeting them and if you haven’t yet, you’re well behind in the game:
- The Shop Local Mentality
For millennials, shopping isn’t just about what the famous brand is anymore – and it hasn’t been for a while. Their strong sense of community drives them to give preference to businesses they have a connection with, and more than likely, these are the businesses they see while driving to work every day. About 40% of millennials prefer to shop local, and it’s just smart to use this connection.
- The Small Business Experience
Millennials make shopping an experience and for them, a good story to tell about the purchase is sometimes just as important as the purchase itself. Compared to big companies, small businesses are more rooted on personal relationships with their customers, thus giving them a more enjoyable experience. For example, small businesses would be more likely to customize products – and that right there is way to get to a millennial’s heart (and wallet).
If there is a stereotype about most millennials that even them can attest to is the influence of social media. Millennials share content online about their unique experiences and they are way more inclined to talk about the small business they’ve recently been to than a big corporation. Small business tip: Never underestimate the power of a well-written Facebook post about your business from someone who probably has thousands on their friends list.
- The Giving Back Factor
Say what you want about this generation, but because to their strong connection to their community, they’re more inclined to help out and give back than most. For them, shopping in small businesses mean they can help out the underdogs in the business world. Most millennials would rather spend money in a local mom and pop shop than a faceless corporation.