Over the past decade, Baby Boomers have been a shopping force of 65 million, and have driven “the strategy, merchandising and marketing for many retailers today,” says Synchrony Financial. But Millennials are quickly becoming their own shopping force, with 80 million of them now entering their peak shopping years. In a new whitepaper, Synchrony Financial breaks down the best strategies retailers must consider to cater to a multi-generational consumer base – and keep in touch with their future core shoppers.
BABY BOOMERS VS. MILLENNIALS
According to 2010 US Census data, the population of Millennials (those born from 1976-92) is equivalent to that of Baby Boomers (born 1943-64), yet Boomers significantly outspend Millennials, according to Synchrony Financial sales data on retail store branded credit cards,.
While GenX is not a specific generation of focus for retailers because their numbers are not large, says Synchrony Financial, strategies that are transparent, value-based and delivered to mobile devices will capture all generations.
More specifically, a strategy that focuses on a wider population – taking into consideration academic studies and customer research done on Millennials – is necessary. But Boomers still have the most disposable income and make up 50 percent of retail sales, compared to 10 percent for Millennials.
“Retailers who do not fully understand and engage the Millennial customer may eventually find their strategies out of touch with their future core shoppers,” says Synchrony Financial.
UNDERSTANDING MULTI-GENERAL MARKETING
So how can a retailer provide a seamless and engaging experience for both Baby Boomers and Millennials? It all starts with embracing both the similarities and differences between the two, says Synchrony Financial.
Similarities: Data shows that Baby Boomers and Millennials both love coupons, bargains and sales. Women are the overwhelming majority of both generations who do the shopping in apparel and department store, and talk about their expenses on social media. Both generations are also very comfortable with online shopping and browsing – 55 percent of Millennials and 68 percent of Baby Boomers have visited a retailer’s mobile site on a tablet, for example.
Surprisingly, Millennials are also only moderately more likely than Baby Boomers to own digital devices – 12 percent more own a smartphone, and 15 percent more own a tablet.
Differences: Despite the likeliness of them owning a digital device, the two generations use these devices differently. Millennials, says Synchrony Financial, are much more likely to use their mobile phones for a “wide variety of shopping related tasks,” but Boomers are much less likely to use them for interactive shopping.
Millennials also rely heavily on word of mouth, social media and mobile influences. Eighty-two percent of Millennials, in fact, say word-of-mouth is a key influencer of their purchase decisions.
Furthermore, both Boomers and Millennials want different in-store experiences. Boomers look for good customer service, while Millennials want technology to make their experience frictionless.
HOW RETAILERS GET STARTED
Understanding both similarities and differences between Millennials and Baby Boomers, says Synchrony Financial, will lead to new strategies to attract and retain both generations in one brand experience.
Below are some of the ways retailers can get started:
For a complete, detailed list of components to the ideal multi-generational retail strategy, download the full whitepaper below.
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