Consumer confidence hit an all-time low in 2008, back at the worst of the recession. Q1 of 2014 finally showed the first upturn in the average consumer’s confidence level since that recession began, and according to Susan Viamari, the editor of Thought Leadership, consumers are now more comfortable with their finances. While college kids have always been relatively willing to spend their money, this past quarter’s Shopper Sentiment Index (SSI) of 121 shows that they don’t feel like they need to sacrifice as much in order to scrape by.
The SSI shows the typical consumer’s perspective on price sensitivity, brand loyalty, and the necessary changes in spending in order to maintain a certain lifestyle. Compared to this time last year, the SSI is up from 103, and 100 the year before that, indicative that price is less of a factor. While this is the highest number since the index was put to use, it’s important to remember that consumers are still very much used to their conservatism, so it’s the job of marketers to find pockets of opportunities for them to spend.
In millennial shopping strategy, deal seeking plays a huge role. They actively look for those aforementioned pockets of opportunities in the form of in store promotions as well as print and digital advertising. Marketers are responsible for communicating these deals to the college demographic who often engage with store loyalty programs. This will often dictate where they shop and what they buy.
This job has gotten easier now that the SSI is on the rise. College kids are historically brand-loyal, so this is great news, it just reinforces the need to start the buying conversation early with this demographic. Sentiment may be increasing, but marketing to 18-25 year olds is important as ever. They need reassurance that they are getting solid value, allowing them to live well, while still feeling conservative about spending their (or their parent’s) hard earned cash.
