Why are millennials so desirable for smes?

Lain McMath
CEO, Sodexo Exchange

Small business owners’ buying patterns have consistently shown a preference among millennial for patronizing small businesses, as compared with other generations. This generation has made it clear that why millennial are so desirable in small businesses.

1. Millennial Like to Shop Local - Millennial have a strong sense of community and like to feel connected to the products and services they buy. Because of this, they’ll consider spending more at the store down the street than they may with a large corporation or chain.
2. Millennial Are Drawn to Personalization and Customization - Millennial don’t want to feel like they are one of the masses. Instead, they want to feel unique and “heard” when shopping. They want customized products and personalized experiences that smaller businesses are much more likely to provide.
3. Millennial like Casual Cultures - Gone are the days of suits and ties for this generation. When millennial walk into a small business, they want to feel at home. The more relaxed they are, the more likely they’ll be to buy from you. Millennial don’t want to feel pressured in a purchasing situation. They want the casual, comfortable ambiance that small companies can more easily provide.
4. Millennial like to Give Back – Millennial have a soft spot in their hearts for giving back to the community and for rooting for the underdog. If they had it their way, Small Business Saturday would be every day. Spending their dollars with smaller mom-and-pop shops makes millennial feel better than if they spent the same money on products and services from a larger business.
5. Millennial like Sharing Experiences - for millennial image matters. They’ve grown up with social media and have a love of sharing the many details of their lives with friends and family. Because they want to share content that showcases their own unique personality and experiences, sharing a new find from a local boutique is more appealing to their audiences than a selfie at a department store that you can find in Anywhere USA.

 6. Millennial Want to Work for Small Businesses - A big reason that millennial support small businesses is because they want to work for small businesses. This generation seeks opportunities that small businesses can provide more easily than larger companies such as taking on bigger responsibilities sooner and working on their own terms.
7. Millennial Want to Be Small Business Owners - Not only do millennial want to work for small businesses, they also want to start their own small businesses! Seventy-five percent of millennial want to work for themselves someday, so when they see a small business in the making, they want to support it as an act of comradely. 
8. Millennial Want to Shop with People They Trust - The recession made a huge impact on millennial, who were just starting to enter the workforce, causing many to find large businesses and corporations untrustworthy. Small businesses are more likely to come off as real and authentic to their consumers, which aligns with the ideals of this generation.
9. Millennial want to know the Origin of their purchases - The growing farm-to-table trend in the restaurant business, the idea of knowing where your products and services are coming from is becoming an increasingly hot topic that millennial are interested in. 
10. Millennial want to Be Brand Loyalists - Millennial like to be a part of something. If your small business grabs their attention and offers a product or service they’re passionate about or perhaps support a local cause or community effort, a millennial will become not only a customer but a brand advocate as well.
 “The future of our economy depends on SMEs and having a productive workforce. Millennial have captured the interest of academics and business leaders alike, but this is the first time we can definitively say that SMEs are their natural home and in fact, their preference. The results show that the demands of this generation match the expectations of what life in an SME is like. On the other hand, businesses face a reputational challenge to prove that those seeking a friendly company culture and ability to lead a more flexible lifestyle can do so in corporate giants.”
                                                                                    
How to Win a Millennia’s Business: It’s clear that millennial love small businesses, so how does your business go about attracting these customers? Consider the tips below:

  • Offer Customer Wi-Fi and Other Amenities. Millennial are always connected, so make sure it’s easy for them to stay connected from within your business, sharing their buying recommendations with friends and family.
  • Get Social. Millennial live on social media. To get their attention, make sure your brand has a presence on the platforms where your audience frequents the most. Don’t just post about your company.
  •  Engage with these millennial and respond to their comments. Have conversations with them and build relationships. The more emotional they feel towards your business, the more likely they’ll be to buy from you.
  • Use Discounts and Coupons. Millennial are always looking for a good deal. Since millennial love personalization, make sure the coupons and discounts are relevant to their wants and needs.
  • Do Something Buzz worthy? If your business does something eye-catching, such as a flash mob or a YouTube-worthy stunt, millennial will want to get involved with your business. They love being associated with something that others are talking about.
  • Embrace Your Brand’s Personality. Be authentic. Know who your brand is so millennial know who you are as well.
  • Embrace Customization. Invest in technology that allows you to monitor millennial’ purchasing habits and interests so you can provide them with personalized experience every time they engage with your business.
If you’re a small business that hasn’t tried to reach the millennial market, you may be missing out on a number of opportunities and benefits this generation can provide for you. Follow the steps above to get started and see how this audience can help your small business grow.