Creating a Multi-Generational Retail Strategy to Meet Shopper Needs
As consumer demographics evolve, especially with multiple generations and an aging population in the mix, it’s essential for brands to understand the varying needs and preferences across these generations as well as their spending power. By recognizing and adapting to these evolving behaviors, brands can more effectively meet the needs of their diverse consumer bases and tailor strategies to best serve them. Below, we dive deeper into the generational divide in consumer behaviors and how retailers can better understand these trends to create a multi-generational retail strategy.
Understanding Generational Divide
Today’s consumer landscape spans across five main generations: Gen Z, Millennials (Gen Y), Gen X, Boomers, and the Silent Generation – each with distinct behaviors and preferences based on experience. Additionally, each generation has different spending power – Gen X with the most as of 2024. Each generation’s purchasing habits come from life experiences; older generations need a reliable source (friends, family, trusted review sites, etc.) while younger generations take to social media platforms for reviews. For brands, understanding the differences between generations is key to meeting their diverse needs and developing strategies to drive market growth.
Generational Trends
Another trend that has a significant impact on brands’ approach to marketing is the growing size of different generations. Millennials overtook Gen X in size in 2020; however, a lesser-known fact is that Gen Z is set to overtake the millennial cohort by 2034. Due to this, brands will have to drastically shift their strategy to match the demanding user experience expectations of Gen Z.
The number of adults over 60 has been increasing globally at a rapid rate. By 2030, the population of 60+ adults will increase from 1 billion (as of 2020) to 1.4 billion. It’s then predicted that the population will double to 2.1 billion by 2050 which, coupled with the extremely strong purchasing power of adults 60+, is an incredibly important aspect to consider. A study revealed that the cohort of adults 50+ contributes a staggering $8.3 trillion annually to the U.S. economy, demonstrating their significant financial impact.
With adults over the age of 50 contributing trillions to the U.S. GDP, and Gen Z on course to overtake the Millennial cohort in overall population size, brands that recognize the importance of reforming strategy will be more successful in properly serving each generation and their needs.
Consumer Behavior Traits Across Generations
Each generation does research on products and makes decisions on what to buy differently. For example, only 2% of the 55+ crowd used a social media platform like TikTok or Instagram, while of those aged 18-34, 32% used Instagram, and 36% used TikTok.
Older consumers tend to rely more on direct sources and trusted personal networks, while younger generations gravitate towards digital platforms and peer-generated content for influence. It was found that just over half of those over 55 do their research on retailers’ websites, and 36% look for referrals from friends or family. Similarly, 44% of those aged 34-55 do their research on a retailer’s website. These statistics further reinforce the vast differences in generational trends when it comes to consumer decision-making processes and behaviors.
Consequently, businesses must tailor their marketing efforts not only in content but also in channel delivery.
A strategy that resonates with Millennials, such as influencer marketing on Instagram, may not be effective with Boomers, who prefer clear and direct messaging along with traditional, easy-to-use website experiences. Moreover, Gen Z, even more digitally native, may prioritize platforms like TikTok, where entertainment and authenticity drive engagement. Understanding these behaviors is extremely beneficial in developing strategies that cater to the needs of different generations.
What Does this Mean for Businesses and their Strategies?
With evolving consumer bases, firms need to begin to adapt and tailor their strategies – whether they are marketing strategies or in-store tactics. From updating their digital strategies, to offering price scanners and store maps, it’s essential for firms to analyze and adapt their multigenerational retail strategy. There are many changes organizations are making, but to adequately serve varying customers, ensuring shifts in strategies to meet varying age group needs is critical.
Omnichannel shopping: A multigenerational and aging population highlights the need to shift away from “one-size-fits-all” marketing strategies and work towards omnichannel strategies to capture intended target markets. 80% of shoppers of all ages prefer shopping online, of which just over 50% utilize omnichannel shopping, most of which are Gen Z and Millennials.
Omnichannel shoppers spend an average of 4% more when they are in a brick-and-mortar store, and 10% more when online shopping. This underscores the importance of investing in omnichannel infrastructure – allowing for seamless switching between online, mobile, and in-person shopping, especially in a digital age where younger generations have grown up with technology. Investing in this infrastructure not only meets demand but also builds customer loyalty and allows businesses to stay competitive. One example of a firm that has successfully implemented omnichannel strategies is Sephora, who invested heavily into implementing an omnichannel payment strategy, increasing Sephora customers’ basket sizes by 7%.
Omnichannel strategies allow businesses to serve diverse consumer bases effectively, especially on account of the range of each generation’s technological preferences and expectations for service. While younger generations look for speed and mobile integration, older generations prioritize convenience and accessibility. By adapting to omnichannel strategies, organizations can adequately tailor the needs of each generation to better serve them.
Accessible design for aging populations: Consumer habits are constantly evolving, especially with multigenerational and aging populations. As older generations get older, their trips to shopping centers and grocery stores decrease. As their visits reduce, it becomes increasingly important that companies continue meeting their needs in the most effective way possible. This includes not only increasing basket size and encouraging return of older populations as much as they can, but also prioritizing convenience and accessibility, both of which build trust. This can be achieved through user-friendly technology, increased human interaction, community engagement, and ensuring their online platform is user-friendly and delivered with accessibility in mind.
Investing in user-friendly in-store technologies, such as price scanners or store mapping systems, while increasing personalized service and interaction, is a strategic approach to building trust, a key factor in older generations’ purchasing decisions. These efforts can help not only reduce physical strain for older shoppers but also align with broader goals of inclusive design and operational efficiency. As aging populations grow and digital equity becomes a competitive differentiator, enhancing accessibility through intuitive technology becomes a strategic imperative.
With digital platforms playing an increasingly central role in retail, providing an accessible and enjoyable online experience is essential for minimizing frustration and ensuring meaningful engagement among less tech-savvy users. Ultimately, companies should work to understand the needs and frustrations each generation faces with their current experiences, both in store and online, to adequately meet needs and best serve clients.
Moving Forward
With a multi-generational and aging population, firms must evolve their strategies to ensure they can cater to differing consumer bases. From understanding how different generations shop to implementing omnichannel strategies, firms must adapt their tactics to meet diverse needs and preferences across generations. To continue the discussion, connect with our team at Clarkston today.
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Contributions by Ishi Shekhar