Millennials As Consumers!
Much has been said about Millennials—American youth sandwiched between the ages of 18 and 34. Currently 80 million strong, they are on the cusp of taking over the workforce. In 10 years, three out of every four global workers will be a Millennial. Mortgage companies on a growth path will need to recognize the effects Millennials are having on their workforce, and on the products this generation will consume.
Just as Millennials are not the same types of employees as their Boomer counterparts, they follow a different set of rules when it comes to consuming products and services. Mortgage companies and others need to consider the following facts, according to Next Generation Catalyst, about Millennials’ purchasing habits when planning their selling strategies:
- 60 percent of Millennials “rate” products and services;
- 59 percent say friends influence their purchase decisions;
- 81 percent care more about fast, than friendly service;
- 84 percent report that user generated content on websites influences what they buy; Millennials are 247 percent more likely to be influenced by blogs or social networking sites than their older counterparts.
According to the NAR study, the Internet was the top source millennials used to find the home they purchased, but 90 percent of them used a real estate agent to purchase the home. At Plaza, we conclude that Millennials will seek the help of professional mortgage brokers when they need a loan, but will use friends and technology to vet their broker, rate them online, and share their purchase experience with others using a variety of means. Surely, Millennials are changing the way that every generation uses media and consumes products. It would be wise for all of us to watch Millennials’ habits closely, and adapt our businesses to meet their needs as we position ourselves for future business growth.
-Mike Fontaine, Chief Financial Officer, Plaza Home Mortgage