There are currently 80 million Millennials in the U.S. – nearly one-fourth of the total population. Considering that they spend more money online than any other age group, it’s no wonder they are a sought-after demographic. Marketing to the tech-savvy may seem like a difficult task, but in reality, the best way to reach them if likely to be on them at all times.
What is a Millennial?
The term itself usually applies to individuals who reached adulthood around the turn of the 21st century, born between 1980 and 2000. Since the World Wide Web has been around for most of their lives, their generation is more in tune with an online and socially-connected world. As a result, marketers vie for their attention and try to appeal to this tech-savvy audience by marketing via using various social mediums.
The most successful way a company can hope to connect with this generation is by becoming more tech-friendly. After all, 92% of people aged 18-34 are likely to own a smartphone.
The Impact of Mobile Purchasing.
Since the release of the iPhone in 2007, smartphones have made an impact on mobile spending. One study, conducted by comScore, showed that mobile commerce spending accounted for $11.1 billion dollars for the first quarter of 2015.
Their 2016 study showed that mobile spending was still on the rise, as mobile commerce adoption increased by 40 percent. The study revealed that total expenditure on mobile increased to 19%. Mobile spending had shown a consistent 3 percent increase in the last few years. In terms of spending, mobile spending is far outpacing brick and mortar businesses by 36 percent.
Why does this trend seem to vary from one category to the next? ComScore’s study showed a couple of reasons for this.
First, it’s due to the nature of what the customer is purchasing. When it comes to things like movie tickets or video games, people will be more likely to purchase on their mobile phone. Other items like office supplies or computers may require more research. Therefore the likelihood of someone buying those items via desktop increases.
However, this is only part of the story and once again Millennials are shaking things up. When it comes to some items like Apparel, or Consumer Goods they are more likely to purchase an item on their mobile phone than on a desktop. In the case of home furnishings, 40% of 18-34-year-olds are willing to buy them on a mobile device compared to 26% on a desktop.
The Problem with Apps
So if more consumers, year after year, make purchases using their mobile device accommodating them would make good business sense. However, it depends on how your company does it. Some companies even make their own apps to help drive business.
This may not be the best idea.
The fact of the matter is, people may not want to download the app your company puts out. Either because they want to save their phone’s memory, or they just don’t see any reason how they would get much use out of it.
Not to mention, your company would need to app to be as secure as possible. Target had to pay victims $10 million for those affected by a hack. Last year, Starbucks customers fell victim when malicious hackers exploited the company’s mobile payment system.
Don’t make payments risky
Perhaps people will be likely to remember these cyber attacks and associate them with a company. If that is the case, it could lead to distrust and make customers less likely to use their app. According to the 2015 comScore study, consumers that didn’t make mobile payments said they would be less liable to do so because they did not feel secure providing payment information to a mobile device.
Your clients should be able to make payments without worrying about whether or not personal information is secure.
Millennials want to make mobile payments.
In a recent survey, 50% of millennials said they wanted to be able to make a mobile payment for goods and services. Investing in a secure pay by phone host and call tracking will help give your company a competitive edge.
IVR Technology Group understands this and dedicates itself not only to providing mobile payment solutions for your customers, to data security. Our mobile payment solution, Compass Pay, was developed in agreement with PCI compliance standards. Any information that is processed, stored or transmitted through Compass Pay is done so on a secure server.
When a customer makes a payment, the information is protected and encrypted to keep it confidential and secure.
We regularly submit to third-party audits to maintain both HIPAA and PCI compliance. We also maintain security controls and enhancements to NIST 800-53 guidelines, which protect against advanced cyber threats.
Entice your customers with Text messages
If Millennials are willing to make mobile payments, how can your company attract them? How can your company also attract the rest of your customer base? By telling them of offers, sending a coupon, or providing a discount. Don’t have an outside firm design an app your customers may not download. Instead, get your message through a text.
Text messages are different because 97% of American smartphone users send texts once a day. IVR Technology Group can help with our an SMS Blast service called nResponse. Now your company can send coupons, offers, or information about future offers to your customers.
If you Text them, they will come.
Accenture surveyed nearly 4000 Consumers across the U.S. and Canada. When asked what would entice them to make mobile payments
- 54% said that if a company offered them, a discount or coupons would provide they would be more motivated to make a mobile payment.
- 53% of respondents said that if offered loyalty, or reward points, they would be more likely to use a company’s mobile payment solution.
- 35% of respondents stated they if a business sent them regular notifications for upcoming events, they would be more likely to visit that business.
Loyalty as a commodity.
Building customer loyalty is an important factor in any business. Companies can attain this by meeting customer expectations of service which is both fast and reliable, as well as options that satisfy the needs of a customer.
A good company will use communication to maintain customer loyalty, such as by sending an email to a customer base. It is a great company that will go one step further, and meet the needs of their customers by providing offers based on their individual preferences.
IVR Technology Group can help. With our mobile payment and text notification solutions, your company can attain customer loyalty. Our services are a cost-effective method of providing information that your customers want. Our solutions lead to greater customer satisfaction, and an increase in loyalty.