SOURCE: Radius Global Market Research

Radius Global Market Research

September 23, 2013 08:00 ET

Study: Some Brands Are Finding That Millennial Females Aren't Buying It

Radius Global Market Research Study Shows Marketers May Benefit From a Segmented Strategy When Engaging Millennials

NEW YORK, NY--(Marketwired - September 23, 2013) - The potential buying power of Millennial consumers (younger adults up to age 32) has led many marketers to develop strategies and programs designed specifically to engage the group as a whole. But a new study from leading market research firm Radius Global Market Research (Radius GMR) shows that in some cases Millennial females are making purchases at a markedly lower rate than their males counterparts, and it may be time for brands to consider a segmented Millennial marketing strategy to make sure they are maximizing engagement.

The gender gap in Millennial consumer purchasing is most apparent in the financial services category. Millennial females are significantly less likely than Millennial males to have obtained a bank account (26% among Millennial males vs. 17% among females) or insurance (23% to 14%) in the past six months. In addition, Millennial males are three times as likely as females to have made a personal financial investment in the past six months (15% vs. 5%).

In consumer electronics, Millennial females purchases are also comparatively lower. While Millennials overall are key buyers of electronics/computing devices, Millennial females significantly trail Millennial males in the purchasing of tablets (36% vs. 25%), smartphones (52% vs. 39%), PCs (44% vs. 34%), and TVs/home entertainment systems (54% vs. 40%).

"Brands need to consider developing strategies to better engage Millennial females who in some cases seem to be tuning out communications even as they mature professionally and begin to start families-milestones that typically get consumers thinking about major purchases," says Radius GMR director Jamie Myers. "If a marketer is approaching Millennials as a single group, they may be leaving females out of the conversation and missing an opportunity to increase sales."

The Radius GMR study also identifies media channels that best reach Millennial females. Word of mouth is by far the key resource impacting purchase decisions with half of respondents saying it is the most influential. It is followed by review websites like Yelp (11%), search engines (8%), and advertising, both traditional and online (7%).

Company websites and social networking sites are also influential. Nine in ten Millennial females research purchases online using a PC. In addition, over half use a smartphone and nearly a third use a tablet demonstrating the need for marketers to ensure consumer touch points are optimized for mobile devices. Use of email, texting, and Facebook is nearly universal among Millennial females, and over half use Twitter (55%) and fewer Instagram (44%) and Tumblr (38%). Other notable factors impacting Millennial females' purchase decisions include advice from sales representatives.

"Blogs/online chats and online shopping sites such as Amazon or eBay are relatively more influential for Millennial females in categories like apparel and personal or household items where purchase rates are highest," adds Myers. "All marketers should consider utilizing these types of platforms in order to more effectively reach this group."

Radius GMR's study surveyed U.S. households in July 2013. The firm's proprietary Know More™ internet panel represents over 3.4 million households, with over 6 million consumers in the U.S. and over 1.5 million consumers in Canada, the U.K. and Europe, Australia and Scandinavia.

About Radius Global Market Research

Radius Global Market Research (www.radius-global.com) is one of the largest independent market research companies based in the U.S. The company provides unique insights, effective processes and unmatched experience resulting in proven return on investment for leading global marketers. The firm is No. 36 on the Honomichl listing of the top 50 U.S. market research organizations. Headquartered in New York, Radius employs more than 100 people in key markets throughout the U.S. and Europe.

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