Part-1 of this article discussed the “Technical Disruption” of digital and the internet. In Part-2 we covered the “Demographic Disruption” and Part-3 we will explore the massive changes in the purchasing behavior of your Next New Customer across 5 different demographics.
Just like us, our Next New Customers always want to have more control over the purchasing process rather than less to ensure they are receiving the value they desire which is different across demographics. The purchasing behavior of different demographics are an important consideration when creating your marketing strategy and developing content to attract your Next New Customer.
The Common Thread Across Demographics is Digital
The technical disruption of the internet has created a tsunami of information our Next New Customers are using, in fact demanding to educate themselves before they even reach out to a vendor. They will search online especially when selecting a new provider to discover information important to them whether you publish or not. Whoever has the most (soon to be the best) information online wins more sales.
The Generation that Saved the World
The Silent Generation or “Generation that saved the World” has downsized and settled into retirement mode. They are living longer, using more health care but as a whole were hit hard by the so called “Great Recession” and historically low interest rates.
The mid-point of the Baby Boomer generation celebrated their 60th birthday in 2017. Unless something dramatic happens in 3 to 5 years the Boomers as a whole will dramatically change their purchasing habits as they reach retirement age. Boomers appreciate brands that offer a convenient path to purchase a wide variety of selections. As their purchasing power percentage continues to decline their use of digital continues to increase with over half of Boomers now making online purchases.
Generation X is heading to the peak of their purchasing power. They value quality, unique products and convenience over brand loyalty. They are willing to pay for quality but absent a differentiator discounts may require discounts to drive sales to GenXers. This is the first generation that can imagine a 100% digital economy. GenXers predominantly use search engines and email in their purchasing journey.
Millennials overtook the Baby Boomers as the single largest demographic by population in 2015 according to Pew Research. They consider themselves “quality-first” shoppers and tend to stay loyal to brands especially brands with loyalty programs. Loyalty rewards are important and regularly influence their purchases. Millennials favor blogs and social networks during their purchasing journey.
The moniker for the generation currently under 21 still seems to be in flux. Names we have heard discussed include Gen-Z, 2Ks, Screeners to Tweennials and iGen. We will go with iGen for now because this group was born after internet use exploded in 1995 and they are being raised by parents that were heavily influenced by the internet. This group is of course digital all the time and will begin entering the workforce in a couple of years so be ready.
Although different demographics have different priorities, it is no surprise they are all influenced by content, ratings, reviews and more online. So whoever has more and appropriate information online will win sales.
Keep those calls and emails coming, I look forward to hearing from you.