Not every channel leads to your customer.
An interesting research done by yes lifecycle marketing brings light into the holiday shopping behavior of each consumer generation. According to the survey which is based on more than 1.000 consumer feedbacks the buying habits of each generations vary considerable due to the evolution of technology over the last decades. Each generation, the Baby Boomers (ages 53-71), the Generation X (ages 38-52), the Millenials (ages 22-37) and the Centennials (under the age of 21) holds a different set of expectations for what marketers should deliver.
As the potential of each consumer generation is changing, the entire reportoir of playing the different shopping habits has to be revised.
Contrary to common belief the Baby Boomers spendings are declining as they are retiring. The biggest spenders nowadays is Generation X and also the Millennials are building careers and families and hold much more spending power now. The digital channels play an increasing role. At the same time marketers have to take care about a seamless in-store experience, especially it they want to address Centennials and Millenials.
The yes survey found out who is expecting what and can be targeted by which channel:
Baby Boomers are not motivated by mobile, social or personalized online experiences, but by discounted prices and wide product selection. The primary marketing channel is the direct mail and the secondary Email. According to the yes survey they don’t want to go to multiple brands or retailers to get what they need. therefore it might be appropriate to promote your product selection and recommend other product categories these shoppers might be looking for.
Generation X can be primary reached by Email und secondary by Direct Mail. Besides that they are looking for quality products at a fair price they are also expecting an easy and intuitive path to purchase. It is very likely that they follow good deals.
Millennials expect special perks in exchange for loyalty and personalized interactions that encourage their loyalty. If this id done right they are brand’s most loyal shoppers. Primary marketing channel is Email and secondary Facebook. Nevertheless these customers put an emphasis on that all channels are aligned and consistent.
Centennials require a profund expertise from marketers. They are looking for quality experiences and authenticity across the board, including in-store and direct mail. Above that they are more likely to use social media and mobile when shopping. This requires the creation of a consistent and cohesive cross-channel experience with messages that focus on product or service quality and not on price. They can be primarily targeted by Instagram and Snapchat, followed by Mobile App or Website.
The precondition for addressing your customers as individual as possible by using these channels is getting hold of their digital data. Although customers are increasingly willing to give their data voluntarily, the data management is still not perfected by many brands.
According to the NRF National Retail Federation in USA, especially centennials know that personal information is valuable to retailers and they want to know how brands are using it and how the information will be protected. But the majority sees the advantages in a strong technology presence of a brand, especially with those brands that create an interactive environment where customers can shape their own experience. This fact is also proven by a survey done by the marketing company Interactions Daymon, it reveals that 84% of shoppers expect retailers to successfully utilize technological features to improve their shopping experience. Nearly 60 percent of consumers spend more money at stores that send phone notifications while they shop or while they’re at home. Retailers have the opportunity to influence purchase decisions through a consistent stream of communication, leading to unplanned purchases and motivation to visit a physical store or website.
Therefore it is up to the marketers to find the right arguments and rewards that consumers leave their data.