The world has changed a lot, even in the last year. We hit the one-year anniversary of Russia’s war with Ukraine in February, OpenAI launched ChatGPT in March, recapturing the public’s attention, and the world watched as King Charles and Queen Consort Camilla of the U.K. were crowned after Queen Elizabeth’s death and over 70 year reign. Oh, and the Federal Reserve raised interest rates seven times in 2022, and again in February 2023, to curb inflation. Nowhere have Americans felt the change of the last few years as much as in their pocketbooks. Some aspects of the economy are improving, but the reality is that inflation is rising and America’s financial stability has taken a hit.
And the generation that will be shouldering the economic recovery of this downturn? You guessed it: Millennials. This generation will have to bear the burden in their personal finances, but many are also responsible for purchasing decisions in their companies. So where does Millennial B2B purchasing power stand? While many are struggling on a personal level, their purchasing power as B2B buyers has also changed.
What Influences Millennial Buying Behavior?
We last talked about millennial purchasing power in 2019. At that time, Millennials were gaining purchasing power both as B2C consumers and B2B buyers. Companies discovered that the generation’s personal values, like sustainability and cultural awareness, blended into motivations for both B2C and B2B purchases. And integrating technology seamlessly with workflows was a tried-and-true way of reaching these digital natives.
So how did businesses attract the Millennial B2B buyer? Companies attracted and retained Millennial buyers when they supported common generational values, focused on emotional appeals, fostered a personal connection between salespeople and millennial buyers, built trust and commitment through delightful customer service interactions, and used technology to create efficient buying processes.
Reaching Millennial Buyers in 2023
In 2020, Millennials surpassed Baby Boomers as the largest living adult generation and in 2023 they’re the largest B2B purchasing group. The ideals and practices Millennials value, as discussed above, are still true today. But new technology, like advanced algorithms and artificial intelligence, can create a seamless experience that attracts and retains Millennial buyers.
Most Millennial buyers will discover products and services and compare pricing online, often before speaking with a sales representative. In fact, more buyers are using video and voice search than ever before. Coupled with advanced algorithms and artificial intelligence developments, the sales funnel for reaching millennial buyers looks different than it did a few years ago. And while elements like a delightful and cohesive brand experience will always be critical to reaching Millennial B2B buyers, businesses must focus on two other critical areas of the client experience: personalization and an integrated digital experience.
Integrated Digitization to Personalize
When I log onto the Starbucks app, I’m met with a personalized greeting, suggestions for what to order, ways to earn extra points toward my next free drink, and other customized suggestions. Then, when I order, the app suggests “my usuals” and pre-selects my preferred Starbucks location. From opening the app to the completion of my order, the Starbucks app experience is seamless and personalized. And while this is a B2C example, consumers have come to expect a beautiful, integrated, personalized digital experiences in all aspects of life.
Companies that do this from the top of the sales funnel to the bottom (and even into upselling and reselling) will be ahead of the game when trying to attract Millennial buyers. B2B has always been a bit more personalized, with dedicated sales reps who know their clients individually, but Millennial buyers nowadays expect that same personalization in every digital experience.
Companies can also used advanced algorithms and AI to more easily create highly personalized experiences. Just like the Starbucks algorithm tracks my purchasing decisions, interaction with gamification features, and other preferences to create a more personalized experience, companies can use their apps, website, and CRM system to track and customize client experiences. Coupled with quality customer service and excellent products and services, beautiful digital experiences will help carry clients through your sales funnel.
But with the state of the world, there’s more than just technology to consider.
The Economy’s Impact on Millennial B2B Purchasing Power
The current economic situation means that management and C-suite-level Millennials must balance long-term economic strategy with the bold business decisions needed to get ahead in many industries. But with prices on the rise, sourcing materials and maintaining facilities is more expensive than ever before.
The rocky labor market isn’t making things any easier, either. Millennials have more influence over hiring decisions, with 62% of them saying they manage direct reports. Now, Millennial managers must not only consider what they buy for their business, but also how much they spend on their workforce.
Economists predict that the market will continue trending downward, at least for the foreseeable future. So how can businesses harness Millennial purchasing power in these rocky economic times?
Patience (and Flexibility) is a Virtue
While Millennials certainly still value many of the same ideals as they did a few years ago, they also have human capital considerations to manage as well. And since the economy—and the world politics which affect it—are unpredictable, being patient with Millennial B2B buyers is more important than ever.
It’s doubtful that many buyers will make rushed decisions in this economy, especially on products or services that are new to them. Salespeople must be willing to grow a personal connection with the buyer, build trust, and consistently communicate the value of their product or service to the buyer. If sales wasn’t a long game before, it certainly is now.
Millennials also need customer service representatives and salespeople who are adaptable to rapidly changing needs. The ability to pivot at a moment’s notice, whether that be because of workforce changes, material shortages, or some other unforeseen roadblock, is paramount. Having a robust picture of your client’s business and their needs may help predict some of those challenges.
In addition to all the values and expectations that Millennial buyers hold, they now have even more to consider when making purchasing decisions. Everyone from marketing, to sales, to service needs to keep these values in mind, but also be flexible and patient with buyers as they juggle economic challenges.
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