Knowing where and why they spend their money is critical for business growth. If your business isn't taking strides to go digital, the chances are that your Millennial consumer numbers will drop.

Here are five points to consider when attracting these consumers:

1. They have bleak expectations of the economy

One of the key findings of the recent 2019 Deloitte Global Millennial Survey was that economic pessimism is at an all-time high in this generation. Consequently, millennials have bleak expectations of the economy and this greatly impacts how they handle their money.

There is difficulty in committing to any purchase or investment when there is a constant state of limbo and fear. Retailers will have to work hard to instill a sense of trust. They need to tempt millennials out of their inertia and back into buying mode.

2. Millennials say no to debt

South Africans are overindebted with total outstanding unsecured borrowings of around R225-billion — 40% of whom are in arrears, while 48% of borrowers are in default. This is according to the Differential Capital Report.

With these numbers, it's no wonder that this generation is so debt adverse. However, they are still carriers of instant gratification, which sees them finding solutions to continue buying without the risk of harrowing debt. The question that needs to be asked is: How can you help them do this?

Ultimately, retailers need to be providing alternative payment methods, besides credit, if they want retained business from Millennials. Simply put, if you want the buying power of this age group, you're going to have to actively solve their credit pain points.

3. Millennials care a lot

This generation of consumers wants to know that they are doing business with ethical organisations. Companies are being asked to prove that they themselves are putting their money where their mouths are.

These consumers are asking:
  • If your business has sustainability policies, how are you practicing this?
  • If you claim to make a positive impact on society, what are you actually doing?
Call it fickle or admirable, but this generation is sticking to its guns and it is calling out businesses that they feel are unethical. 

Companies that make a positive impact in their communities and directly on the lives of Millennials are more likely to stand the test of time with this new consumer-savvy generation.

4. They actively pursue the work/life balance

With time-strapped lifestyles, this age group is constantly looking for ways to positively impact their work/life balance. One of the solutions to perfect this balancing act is convenience.

Therefore, it's no surprise that there is a colossal demand for convenience among millennials. While we have a long way to go, a growing number of businesses in South Africa are offering an online shopping alternative to in-store purchases. Retailers should consider online shops as a means to reach out and effectively attract these consumers.

5. Millennials want to be engaged all the time

Engagement, as well as a positive shopping experience, are other important factors for this market. E-commerce platforms need to be on top of their game, providing a helpful and frictionless shopping experience.

Unlike other generations, Millennials are also happy for you to engage with them on many platforms. Unlike older generations, they understand that your messaging and marketing can add value to their lives.

According to PwC's Consumer Spend Online Report, 46.5% of South African consumers say they are more likely to buy a product/service after seeing positive reviews on social media.

Retailers can increase their impact on this generation by leveraging social awareness, innovative payment options that don't involve credit and an active engagement approach to messaging. Moreover, with regards to taking a shop online, it shouldn't be a question of if but when.