![Millennial consumers have diverse motivations for shopping](https://americanmarketer.com/wp-content/uploads/2016/06/Millennial-shopper-consumer-185.png)
Luxury retailers are failing to transition the customized, high-service experience that big spenders have become accustomed to from the store to their digital channels. A study from Cue Connect looked to get inside the mind of millennial shoppers through a survey of 1,000 individuals within the generation, identifying five top consumer profiles in the process. With shopping being an emotional activity, having psychographics on the luxury clientele of tomorrow can help retailers strategize their marketing to prepare for the future.
"In a world where almost anyone can have what they want, when they want, how they want it, loyalty is the ultimate currency," said Berkley Bowen, CEO/founder of Cue Connect. "By fully utilizing shopper intelligence gleaned from important solutions, such as wishlist technology or social sharing tools, retailers can provide a luxury experience to every shopper.
"Unlocking new value from existing shopper behavior leads to higher satisfaction levels, increased site traffic, improved conversion rates and larger basket size and average order value," he said. "It also allows retailers to employ engagement strategies that put their customer’s feelings first in order to be more empathetic to their wants and needs.
"People respond to people and retailers can create meaningful and loyal relationships with consumers by pulling insights from these tools and solutions to understand their habits and preferences, while also adding a layer of humanity to each personalized touchpoint. Retailers with this strategy are ready and prepared when consumers shop, knowing what consumers care about, sharing inspirations and ideas and responding to questions in real-time."
Psychographic profiling Key for luxury stores, the “Elite Shopper” is said to be the individual with immaculately styled hair and on-trend attire. These consumers are willing to spend for the right one-of-a-kind product, but they expect a high level of service from the brands they shop with. Invite-only events, personalized messaging and hospitality such as Champagne upon their arrival in-store can make them feel special.![Dior](https://americanmarketer.com/wp-content/uploads/2016/05/Dior-South-Coast-Plaza-400.jpeg)
"The Elite Shopper lives for exclusive offerings, invite-only flash sales, Champagne upon arrival, and isn’t afraid to shell out money for one-of-a-kind products," Mr. Bowen said.
"However, because they are spending money for exclusivity, they expect to be treated differently than the average consumer in store and out," he said. "By providing one-to-one marketing through personalized touchpoints across all channels, retailers can develop meaningful relationships with these customers to ensure they keep them coming back for more.
"Unique ways that retailers can reach these Elite Shoppers include, 'invite-only' messages for first-looks at new products or opportunities to shop and buy straight from the runway. These shoppers also respond to loyalty points and trunk shows on in-season products.
"Given that 66.7 percent of respondents wish that their retailer’s online site had the capabilities to keep track of their favorite brands and sales, retailers should align their personalized activities with customer preferences to avoid early markdowns and shopping cart abandonment."
The majority of shoppers, 47.6 percent, say that earning loyalty points make them feel most valued, beating out invites, sale alerts or knowing their name. On the opposite end of the spectrum from the Elite Shopper is the “Bargain Hunter,” who is most focused on getting a good deal for the item they want. These shoppers want notifications when something from their wishlist goes on sale, and it is a way for retailers to foster loyalty among this audience. When shopping online, millennials most desire the capability to follow their favorite brands and sales, with 66.7 percent identifying that feature as their top wish. Sale messaging is a way to prompt purchases from millennials, as 57.4 percent say that receiving a discount code from a retailer makes them more apt to buy. Additionally, 55.5 percent say that the perceived value of a retailer goes up if it has the best price for a particular item online.![Nordstrom Anniversary Sale](https://americanmarketer.com/wp-content/uploads/2015/10/Nordstrom-Anniversary-Sale.jpg)
![Neiman Marcus CUSP shopper](https://americanmarketer.com/wp-content/uploads/2016/06/Neiman-Marcus-CUSP-shopper.jpg)
"Although some millennials’ budgets might be small, their aspirations are high, and while they continue to grow in the careers and personal lives it is important to build a relationship with these shoppers, which will continue to grow and prosper," Mr. Bowen said.
"If retailers have insights into what their key shoppers' interests are both explicitly and implicitly, based on preferences, past purchase history, click-through, social shares and wishlists, they can better personalize each touchpoint and begin to build that meaningful, loyal relationship," he said.
"The biggest opportunity for a luxury brand to attract millennial customers is to showcase a personalized luxury experience as a special circumstance and, while it may not be something they can afford all of the time, it serves as a meaningful occurrence when they can get it.
"Burberry and other successful luxury brands have huge millennial followings because they meet these digital customers through the channels they prefer, like Instagram or Snapchat."