If you’ve spent any time online, you’ve probably scrolled through the endless debates about Millennials and Gen Z. While the internet loves poking fun at this generational divide, for business owners, understanding Millennial shopping habits and what drives their purchasing decisions is no laughing matter—especially with the holiday season, Black Friday, and Cyber Week fast approaching.
Millennials aren’t just the avocado-toast-eating, industry-killing caricatures we’ve come to know from social media. They’re now the driving force behind major U.S. retail and e-commerce sales. In fact, during last year’s Black Friday, U.S. online sales hit a jaw-dropping $9.03 billion, and guess who was largely responsible for that spending spree? That’s right—Millennials.
So, if your business wants to win big this holiday season, it’s crucial to understand what motivates them and how to meet their expectations. In this post, we’ll dive deep into Millennial shopping habits and break down the sales strategies that can help your business connect with this influential generation. Ready? Let’s jump in!
Millennial Shopping Habits and Buying Trends in 2024
Millennials, born between 1981 and 1996, are now in their prime spending years. These are the folks who remember life before the internet (shocking, right?) but have fully embraced the digital age. Often called the “experience generation,” Millennials prioritize meaningful connections and thoughtful purchases over quick, materialistic buys.
They’re the generation that values memories over things—and they’re driving the rise of experiential retail and premium services. However, don’t let that fool you—Millennials are still bargain hunters, especially during Black Friday and Cyber Week season. So, how exactly do they buy?
Experiences Over Things:
Millennials are known for prioritizing experiences over material goods. They’d rather spend their money on dining out, traveling, and upgrading their homes with stylish decor than splurge on yet another gadget. This generation is driving the trend toward experiential retail—where the shopping experience itself is part of the appeal. Offering services or products that add to their lifestyle, rather than just selling a commodity, can make all the difference.
Who Do They Trust?
If there’s one thing that guides Millennial shopping decisions, it’s the opinions of others. 60% of Millennials rely on online reviews before making a purchase, meaning that platforms like Yelp, Google, and social media reviews hold significant sway. Additionally, they expect a seamless, tech-driven shopping experience that offers convenience and instant information.
How Does Millenials Follow Brands?
For Millennials, emotional connections and brand loyalty are huge. And they are fiercely loyal to brands that align with their values—whether it’s social responsibility, sustainability, or transparency. Brands that build trust through authentic engagement are more likely to earn long-term support.
Millennials’ Food and Beverage Shopping Preferences
Millennials are serious about their food choices, and for them, it’s not just about what’s on the plate—it’s about the story behind it. Growing up with documentaries like Super Size Me and constantly bombarded with health and environmental messages, this generation is hyper-aware of what they’re putting into their bodies.
So, taste alone won’t win them over; you’ve got to meet their values. Health, green food & sustainability, and convenience are three key factors driving their food decisions.
Health & Sustainability:
- Millennials are at the forefront of the health-conscious movement. From green smoothies to yoga classes, this generation prioritizes wellness in all aspects of their lives, and their spending reflects that.
- According to a USDA report, 80% of Millennials care deeply about the health and nutritional content of their food, and 60% are willing to pay extra for sustainably sourced ingredients.
Food Trends Affecting Millenial Shopping Habits:
For Millennials, food is more than fuel—it’s an experience. They’re drawn to organic, farm-to-table, and fair-trade options, but they also want the full backstory. Where did this food come from? Was it ethically sourced?
Consequently, Millennials are happy to spend more on locally sourced, eco-friendly, or ethically produced meals. Biodegradable packaging is also appreciated for them. In short, if your food is both delicious and planet-friendly, you’re speaking their language.
Convenience:
Millennials love a good in-store dining experience, but convenience is king. So they expect that food businesses offer online ordering experience. Actually, according to a PYMNTS survey, 50% of diners aged 25 to 40 prefer ordering directly from a restaurant’s website. So, providing easy online ordering, a mobile-friendly website, and contactless payment options isn’t just a bonus—it’s essential.
And don’t forget the power of online reviews! Millennials are big on crowdsourcing their decisions. That’s why managing your online reputation—whether Yelp, Google reviews, or social media—can make or break your success.
Retail: What Matters to Millennials When Making a Purchase?
When it comes to retail, Millennials’ buying decisions are shaped similarly by those three factors discussed before: health-consciousness, social values, and convenience.
Millennial Customer Loyalty:
Unlike Gen Z (born between 1997 and 2012), who tend to be more pragmatic and trend-driven, Millennials are more likely to stick with brands they trust and feel emotionally connected to. They’re also willing to pay a premium for exclusive services or high-quality products, in contrast to Gen Z, who are often more financially cautious.
Brands that can build emotional connections through authenticity, storytelling, and shared values will see stronger customer loyalty from Millennials. In fact, 73% of Millennials are willing to spend more on products from brands that support social causes like eco-friendly packaging, cruelty-free production, or ethical labor practices (Nielsen).
Online and Hybrid Sales:
Millennials appreciate the convenience of online shopping but also value in-person experiences. This makes them big fans of hybrid sales models that blend the best of both worlds, like “buy online, pick up in-store” (BOPIS). During major sales events like Black Friday, more than 60% of Millennials prefer to shop online, yet many still enjoy the tactile experience of shopping in-store when possible.
Millennials Main Retail Purchase Categories:
- Technology & Electronics:
Millennials are deeply embedded in the digital age and prioritize spending on gadgets that improve convenience and connectivity. Items like smartphones, laptops, wearable tech, and smart home devices are highly valued. Their strong affinity for digital innovation makes them eager adopters of the latest technology. - Health & Wellness:
Millennials are heavily invested in their health and wellness. According to a Nielsen survey, 76% of Millennials are willing to spend more on brands that promote wellness, including organic foods, clean beauty products, and fitness gear. Health-conscious brands that emphasize transparency, sustainability, and authenticity resonate strongly with this audience. - Home Goods:
As more Millennials enter the home-buying phase, their spending on home décor, furniture, and appliances has risen sharply. 38% of homebuyers are Millennials (National Association of Home Builders), and this generation is focused on making their homes both stylish and sustainable, with a preference for eco-friendly and energy-efficient products.
Social Media Influencing Millenials Buying:
Millennials are highly influenced by social media, with platforms like Instagram, TikTok, and Pinterest playing a key role in their purchasing decisions. Influencer marketing, especially from micro-influencers who promote authenticity, has become a powerful tool in driving Millennial buying behavior. According to a study by Deloitte, 47% of Millennials report that social media helps inform their purchasing decisions
Subscription Services:
Millennials are increasingly turning to subscription-based models for products like clothing, meal kits, and grooming products. The convenience of automated delivery, coupled with the ability to personalize their purchases, aligns with their desire for curated, hassle-free shopping experiences.
Effective Sales Strategies for Millennials’ Buying Preferences
Millennials are a generation that values experiences, convenience, and flexibility. To successfully capture their attention and win their loyalty, businesses need to go beyond traditional sales tactics. Here are some sales strategies tailored to meet Millennial expectations and spending habits:
1. Create Interactive Experiences:
Millennials are all about memorable experiences, so why not make shopping more engaging? Pop-up shops, immersive in-store events, and interactive experiences like DIY product stations or workshops are great ways to appeal to this generation. For example, hosting a “build-your-own” event or offering live demos of new products creates a sense of community and fun that resonates with Millennial values.
2. Leverage FOMO (Fear of Missing Out):
Millennials hate missing out, so use FOMO to your advantage. This generation thrives on limited-time offers and exclusive deals. Whether it’s a flash sale, early access to new collections, or VIP-only events, creating a sense of urgency is a great way to boost engagement and drive sales. Tapping into their love for exclusivity with countdown timers or social media teasers can build anticipation and excitement around your brand.
3. Offer Buy Now, Pay Later (BNPL) Options:
Millennials value flexibility in their spending, especially when it comes to bigger purchases. By integrating embedded finance strategies such as “Buy Now, Pay Later” (BNPL) services like Klarna or Afterpay into your checkout process, you allow customers to make larger purchases more manageable through interest-free installments. BNPL options can lead to higher conversions and an increase in average order value.
4. Embrace Buy Online, Pick Up In-Store (BOPIS):
Millennials expect seamless shopping experiences across online and in-store channels. Offering a “Buy Online, Pick Up In-Store” (BOPIS) option is a great way to meet their need for convenience. Make sure your online store is well-integrated with your physical locations, providing easy pick-up options. Keep customers informed on their order status via text or email updates, and offer perks like exclusive discounts or free items when they use BOPIS.
5. Develop Easy Online Ordering for Restaurants:
For Millennials, convenience is key. To meet their expectations, create a user-friendly website or mobile app that offers intuitive navigation, customization options, and secure payment methods.
6. Manage Google Reviews and Yelp Profile:
Customer reviews play a huge role in Milenial’s decision-making process, so encourage satisfied customers to leave reviews to boost your restaurant’s credibility. Nearly 50% of Millennials are more likely to visit or order from a restaurant after reading positive online reviews, while 29% are less likely to order after seeing negative feedback.
7. Create Subscription Models:
Millennials are drawn to subscription-based services because they offer convenience and personalization. Consider creating subscription boxes or membership plans for your products, where customers receive regular shipments based on their preferences. Subscription models work well for beauty products, food, wellness, or even fashion items, offering recurring value while increasing customer retention and brand loyalty.
Technologies to Capitalize on Millennial Customers this Black Friday
With the holiday season right around the corner and Black Friday and Cyber Week fast approaching, now’s the perfect time to implement these strategies and set yourself up for success! Whether you’re a retailer or a food business, it’s time to tap into Millennials’ love for exclusive offers, sustainable products, and seamless digital experiences.
Make everything run as smoothly as possible by integrating the right tech tools. Millennials will appreciate an optimized website, a fast online purchasing experience, and VIP perks across loyalty points.
Ensure peak performance with every transaction using the iPos POS System. When all your tools are connected directly to your point of sale, that’s where the magic happens!
From contactless and digital payments to gift cards, loyalty programs, online ordering, and efficient delivery options, iPos POS has all you need in one place, and at one flat price. Contact our team to learn more about how we can support your success this holiday season. Nail it now, and who knows? This could be your most profitable Black Friday, Cyber Week, and holiday season yet!
