Of the seven generations alive today, the Baby Boomer generation has the most influence over the economics of this country.
Boomers hold a substantial portion of the nation’s wealth and continue to be significant consumers. Their spending habits drive various industries, from travel and leisure to healthcare and retirement products.
As Baby Boomers retire, their decisions regarding retirement savings and investment strategies have a profound impact on financial markets. Their preferences can influence investment trends and the overall health of the economy.
However, while Boomers still dominate overall annual spending, other generations spend more at the retail level.
It is clear that other generational consumers also contributed to the economy. In addition, each generation responds differently to marketing and has different preferred shopping methods.
As a local business, how do you key into these generational customers?
Which channels do consumers prefer to shop on? According to polls, 80% of consumers in each generation have recently visited a brick-and-mortar store, and half consider it their preferred method for shopping. Some other interesting statistics when comparing online to offline:
- Going to stores is preferable for almost every generation except millennials, who shop in-store and online equally.
- Older generations prefer in-store shopping to experience products and for easy returns.
- Gen Z prefers in-store shopping for purchase speed and the social aspect of shopping with friends.
- Millennials prefer shopping online for the convenience of shipping, which also appeals to boomers.
- Amazon is favored by all generations, with millennials as its most significant users (65%). Gen Z is 2x more likely to use an online-only store or brand website than any other generation.
- About 75% of Gen Z and millennials use smartphones to shop online—more than any other generation.
- 63% of Gen Z use laptops to shop online, significantly higher than any other generation.
With different spending habits, lifestyles, incomes, and so forth, marketing tactics to reach consumers in different brackets will vary. Here’s a look at some top tactics for different age segments.
Boomers
This generation is more social than you may think. About 82% of Boomers belong to at least one social media site, with Facebook being their most popular site of choice — and where you should focus your marketing efforts when trying to reach this group. Unlike the younger generation, which favors Instagram and X (formerly Twitter), those continuous streams of information are less popular with Boomer shoppers.
But they do spend 27 hours per week online, and on average, people ages 50 and older spend $7 billion per year online. More than half of Boomers who use social networking sites visit a company website or continue their research on a search engine after seeing something on social media.
A robust online presence is necessary to encourage their in-store shopping.
Boomers also like to be rewarded. Simple, straightforward loyalty programs work best. Approximately 26% are active in all of the programs in which they are members, as opposed to only 19% of Millennials. They also place a high value on program simplicity, with 78% saying they will continue to participate in a program because it’s easy to understand.
Gen X
About 80% of Gen Xers prefer email marketing. Busy with careers and families, they don’t always have time to read long copy, so keep it short with a clear call to action.
This generation also tends to be more loyal than other generations. They love freebies and coupons, so show them some love, and they will return the favor with long-term loyalty to your brand.
Facebook is their favorite social platform, so reach out with engaging posts and entertaining content.
Millennials
Of course, Millennials are individual people. The problems one person cares about will not necessarily be the same as the problems the other person cares about. Millennials are very conscious of climate change, the well-being of animals, and helping the underserved. They want to know that their life will make the world a better place.
Social media is strong with this group as well. It is true that Millennials tend to have shorter attention spans than prior generations; however, if you can craft content that they are interested in, you will hold their attention for a long time.
They enjoy interacting with brands on social and using social platforms for customer service. A study by Com conducted a study that analyzed 219 millennials’ e-commerce behaviors on social media platforms. Findings included:
Thirty percent of millennials purchase products directly on Facebook.
Facebook, Instagram, and Pinterest foster brand trust and help young adults find and discover products they can actually use.
Snapchat is irrelevant for e-commerce and branding—only 5 percent of millennials believe it creates the most trustworthy relationship.
Sixty-one percent of millennials trust a friend’s endorsement the most, followed by their own experience with a brand (51%) and website reviews (48%).
Thirty-one percent of respondents said social media influences their purchases. However, they complete the transaction elsewhere.
User-generated content is also appealing to this group. Millennials enjoy co-creating content, entering contests, participating in activities, and feeling they are part of the community.
Gen Z
This generation does not trust advertising, so communications must be authentic and your brand trustworthy. This is a generation that is known for influencer marketing. They will identify with an influencer they like with similar values and interests, motivating them to make a purchase. If you can align your message with that of an influencer’s message, your sales will increase.
This generation grew up with social media, but typical channels such as Facebook and X (formerly Twitter) will not have a significant impact. However, channels that showcase videos and images, such as Snapchat or Instagram, are very effective.
Unlike prior Generations, which tend to prioritize travel, home goods, and furniture, Gen Z appears to be more interested in health, wellness, electronics, and technology.
Gen Zs are all about the present and instant gratification. Therefore, they respond to products and services that are helpful for them right now. They will worry about the future when it arrives.
In life, the best experiences are exuberantly varied. This is why we are encouraged at all ages to know as many of these “labeled” generations as we can. It enriches. So, too, your own business’s well-being depends on a varied financial plan.
At Business Finance Corporation (BFC), we help businesses manage their operating revenue by converting accounts receivable into available cash. Call 702-947-3800 or visit https://bfc.vegas/ to learn how BFC can benefit your business.
Your Partner in Success,
David Cabral