Deal spotters—Millennials prove to be more frugal than spendthrift
Vantiv, now Worldpay-Socratic February data calls out the deal-seekers.
Despite rampant criticism by older generations when it comes to spending and saving, new data from Vantiv, now Worldpay, and Socratic Technologies suggest that millennials are one of the biggest deal-seeking groups of consumers. This comes on the heels of the recent 2018 Better Money Habits Millennial Report from Bank of America, which pushes back on the stereotype that millennials aren’t savers. That report suggests that 16% of millennials, those aged 23 to 37, have savings of more than $100,000. The new Worldpay-Socratic data might shed some light on why that’s so. Data from their new Shopping for the Best Deals survey suggest that millennials are counting their pennies more than some are giving them credit for.
Asked to describe their habits when it comes to deals, 55% of millennial consumers described themselves as “enthusiastic bargain hunters,” taking advantage of deals whenever possible. What’s more, a quarter of millennials would label themselves as “power bargain hunters,” who believe they take bargain hunting to new heights. Comparatively, younger Gen Z consumers are less enthusiastic bargain hunters, with nearly one third labelling themselves “amateurs” with more to learn.
The new Worldpay-Socratic survey also shows that younger generations aren’t afraid to be bold when hunting for deals. In fact, millennials are most likely (62%) to ask a business or retailer to match a competitor’s price. And, millennials (56%) and Gen Z consumers (60%) are the most likely to use a brand’s “satisfaction guarantee” to get a refund or replacement product. All generations, save for Gen Z, cite “convenience” as the biggest reason for asking for a price match. Simply put, they want to get the best price where they’re currently shopping for other things. Gen Z on the other hand might appear more brand loyal. They cite “comfort” as the biggest driver of their ask, preferring to get the best price from the same retailer time and again.
Who speaks up loudest across the generations? It is ahem, men. When it comes to price match and satisfaction guarantee, men are more likely to ask for them (64% and 49%, respectively). And, the impact of a positive satisfaction guarantee experience appears to be most profound with older Gen X and boomer consumers, who show a stronger commitment to telling others of their mostly positive experiences.
Finding new ways to uncover the best deals
Led by millennials and Gen Z in many instances, consumers are pooling their resources to unlock deals, utilizing a range of tools available to all of us. Among all consumers, live-auction bidding sites (62%), travel comparison sites (48%), and Groupon (47%) are the most common deal-seeking tools identified by survey participants. Millennials and Gen X are heavy users of Groupon+, smartphone push notifications, price comparison sites, and Honey (a web browser add-on). Digital coupons scanned from a phone at checkout are most commonly used by Gen Z (52%), millennials (44%) and Gen X (38%). In addition, millennials are more likely to use digital coupons that are applied at checkout when shopping online and with discounts that are applied through a debit/credit card.
Vox populi underscores they’re committed to the tried and true
Brand loyalty is still paramount. Shopping for the Best Deals uncovered that discounts tied to loyalty memberships are the most frequently used type of discounts, with 55% of consumers saying they use membership deals always or most of the time. And from the what’s-old-is-still-good book, paper coupons scanned at checkout come in a close second among consumers, with 45% of them saying they use them always or most of the time to utilize savings.
Would you like to dive in to the survey a bit deeper? You can request the full survey/download the survey tabs here.