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Amazon: Marketing to Target Millennials

In general, Amazon has been utilizing the online market for some time to generate revenue for its product sales. The decision to use this tactic has largely been the response to a growing trend in which consumers are increasingly using the web in order to conduct most of their purchases. However, while there are many consumers who are turning to the web to shop, there is also data that points to a different phenomenon.

While consumers are buying online, they are only purchasing certain products or they are browsing products online and then going to a brick-and-mortar shop to buy what they see. It seems that Amazon has recognized this move and as a result, it has decided to market to the needs of the consumer. To do this, Amazon is planning on opening its first ever retail store. The retail store is mainly targeting millennials.

The Needs of the Millennial

Millennials, with their tech savvy attitude and their strong online use, would seem to be the perfect target market for online purchases. It seems though that this truly isn’t the case. Millennials enjoy shopping at brick-and-mortar shops just as much as the older consumer, which means that Amazon has changed its marketing tactics to suit their needs.

Amazon’s online store isn’t as traditional as you would think though. Rather than establish a store that is used solely to sell products, it has found a way to combine technological use with its sales tactics. Millennials can order online on Amazon’s website and then stop by the store to pick up their purchase.

Generally, the store will sell products such as laptops, textbooks, and even easy-to-make foods such as mac-and-cheese. The golden element about Amazon’s new marketing tactic is that it is not only targeting a group that is looking for convenience, but it is also selling the exact products that millennials are into purchasing.

The Convenience Factor

It should be noted that Amazon’s brick-and-mortar store isn’t like any average store. The store is situated on a college campus and with Amazon’s proposed expansions, there may be one on nearly every campus in the country within a few years.

Understanding that it is the college student who will purchase their products, Amazon has found ways to create a much more convenient and easy environment. The first convenience allows students to have a “Student Only” Amazon account. Through their account, students can browse products, purchase what they need, and pick it up at the brick-and-mortar store.

A second point of convenience has to do with the communication element. When a student purchases a product online, they’ll receive constant notifications to their phone. The notifications tell the student when their product has been shipped, when it is ready to pick up, and what to do in case they need to return the product. This is not only a great way to create a strong relationship with the customer, but it also signals to buyers that the company does care about the individual’s purchase.

Gauging Success

Amazon has a history of opening brick-and-mortar stores, a history which is not as successful as many markets would think. This time though, Amazon is clearly doing things differently. Amazon’s past efforts have been concentrated not on college campuses, but in regular areas that consumers shop at. The new shift to target millennials is a strong move on behalf of Amazon for a number of reasons.

To begin with, it is important to note that millennials have largely grown up with Amazon. Amazon itself has been one of the most popular and frequently used brands of their generation. For the most part, this is due to Amazon’s ability to keep consumers happy and also its constant care about consumer trust.

Statistics show that when consumers trust a brand, they are likely to conduct repeat business, they remain loyal to the brand, and they also use the brand more frequently than others. Amazon realizes this point and by tapping into the consumer trust it has built with its millennial market, it is poised to become very successful when it comes to its campus stores.

Amazon Staff

The main difference between an online store and a traditional brick-and-mortar store is that online stores do not have the same staff and customer service interaction. Therefore, customers may not get as much out of a brand as they could. Amazon’s move to a traditional location is going to change the dynamic that Amazon has with its customers.

By creating solid locations, Amazon is also going to staff those locations. Staff will serve as a touch point between the brand and the consumer, which means that Amazon is going to be able to get more input about its services and it will also be able to provide consumers with a positive and useful experience when they shop at the regular store.

There is also a long-term effect to this. Millennials are relatively young, and by building a positive relationship with its consumer at a young age, Amazon is able to increase the chances that it will have repeat business from millennials for a long period of time.

The New York Location

Finally, Amazon isn’t only creating stores for its millennial group, but it is also targeting New York and the hundreds of tourists who visit the city every single year. By creating a New York location, Amazon is able to push its brand to a large concentrated population and foreigners who may be curious about how the brand works.

In general, the product sold at this location are also going to be technology based, as consumers are most likely to browse technology products online and then purchase them in the store.

Conclusion

Overall, there has been a great deal of buzz in terms of Amazon’s new marketing efforts. Considering the data and the trends, Amazon is making a highly beneficial decision for its brand. However, whether that is completely true or not is going to depend on time.

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About Sean Donahoe

Sean is one of the most recognized industry leaders in business and marketing. As a popular speaker, author, consultant he has helped over 50,000 students world wide find success in their businesses and has consulted with Fortune 500 companies and businesses of every size grow and thrive...

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