Imagine a baby-boomer aerobics enthusiast planning a Club Med getaway in the 1980s. Now, imagine a millennial “yogini” signing up for a luxury yoga teacher training in Bali. They both want the same things: health, relaxation and adventure. But due to their unique generational programming, they satisfy their wants in different ways. As an e-commerce entrepreneur, understanding how each generation decides to spend money online helps you present the right products and services to the right people.
Answering the question of “What do they buy?” is easy. Sell bullet journals to millennials, home furnishing to baby boomers, and search through market trends and purchase statistics for the rest. What requires a little more psychology to address is the question of “How do they decide to buy?”
Let’s look at how each generation decides to spend money online.
Baby Boomers Don’t Like Shopping (Birthdates: 1946 – 1964)
Out of all the generations, baby boomers seem to dislike shopping the most. Only 27 percent described shopping as “relaxing” in a Colloquy survey. Moreover, 63 percent said they wouldn’t browse for new products in a physical store.
It seems that shopping is just too stressful for the average boomer. According to DMN3, 92 percent of baby boomers prefer shopping for products and services via the internet rather than physically visiting shopping malls. Perhaps it’s the hustle and bustle, the lines and the crowds of people that make the experience so distasteful.
All this would be a tremendous advantage for online retailers, but a Colloquy survey revealed something else. Boomers want human-to-human interaction before they make a purchase. This need for a human sales touch is enough for many boomers to skip the online purchase and try their luck at a real department store.
How do e-commerce entrepreneurs appeal to boomers? Online sales environments that include a human element and high-quality customer service—through live chat and phone assistance—might have more success with boomers. Also, brand reputation is more important to boomers than other generations, so make sure your products are popularly known for their quality and utility when marketing to this generation.
Generation X-tra Skeptical? (Birthdates: 1964 to 1980)
Generation X represents 25 percent of the U.S. population while earning 31 percent of the income. It’s a massive, untapped market demographic—but it’s not untapped for lack of trying. Gen Xers have a reputation for being conservative spenders. You might say they’re tight-fisted, but in reality, Generation Xers are savvy spenders who don’t fall prey to marketing tricks.
Gen X is also terrified of buyer’s remorse. They will research a product to the end of the earth—going into the darkest nooks and crannies of the web—to dig up dirt that reveals your product isn’t what you say it is. Negative reviews are your enemy, and positive reviews are your friend when dealing with Xers.
How do e-commerce entrepreneurs appeal to Generation X? Instead of appealing to the “cool factor” or using sex and emotions to sell, speak to the natural skepticism of Gen Xers by referring to scientific studies in your marketing literature. Honesty and authenticity are key, so pay attention to customer reviews. Finally, scour the web to ensure that positive reviews can be found in places other than your own website. Once you show a Gen Xer you can be trusted, you’ll gain a loyal customer for life.
Millennials: The Smartest Consumers Ever? (Birthdates: 1981 to 1997)
If you thought Gen X was savvy, you haven’t seen anything until you go shopping with a millennial, also known as Generation Y This generation grew up using the internet and smartphones—so naturally, they make expert use of them while shopping online and in person. Want to buy a product at Walmart? Whip out a smartphone and do a price comparison with Amazon and Target before making the purchase. That’s what a millennial would do.
Millennials enjoy the brick-and-mortar experience a lot more than boomers. They see shopping as a social opportunity to be enjoyed with friends. Also, if millennials spend time shopping for a product both IRL (in real life) and online, they’re more likely to make the purchase in a physical store. Finally, they want opinions from others about new purchases. They readily ask friends on social media or scour through online reviews of products that interest them.
How do e-commerce entrepreneurs appeal to millennials? Like Gen Xers, millennials are wary of traditional marketing. If the sales approach isn’t authentic or if it’s too pushy, they’ll respond with skepticism or reject the brand completely. Instead, try to get your products into the hands of bloggers and YouTubers for an honest promotion. Also, your prices need to measure up, or a millennial will sniff you out in a heartbeat with a price-comparing smartphone app.
Trends Change: Generational Programming Stays the Same
Remember the 1980s aerobics enthusiast? She hasn’t worn an aerobics leotard in years. Instead, she’s at the Balinese yoga teacher training with her millennial daughter. More likely than not, however, she decided to buy that training in a way that reflects her unique “generational programming.” Consumer trends will change from year to year—and those changes will affect each generation differently—but “how they decide to buy” will always stay the same for each generation.
References:
https://www.youtube.com/watch?v=1TW9-njzOpo
https://www.youtube.com/watch?v=eSUycfxsbTY
https://www.vox.com/the-goods/2018/10/22/17996604/bullet-journal-control-planners-bando-appointed
https://www.microdinc.com/blog/online-buying-habits-baby-boomers/
https://www.marketingcharts.com/industries/retail-and-e-commerce-72909
https://www.dmn3.com/dmn3-blog/3-most-effective-channels-for-marketing-to-baby-boomers/
https://www.loyalty.com/home/insights/article-details/shopping-by-generation
https://www.bigcommerce.com/blog/ecommerce-apps-competitive-pricing/
https://www.forbes.com/sites/richardkestenbaum/2017/06/14/this-is-how-millennials-shop/#274538ec244c
http://resources.bazaarvoice.com/rs/bazaarvoice/images/201202_Millennials_whitepaper.pdf
