Retailers often make assumptions about consumer behavior that may not necessarily be true. When it comes to technology, a widespread belief concerning baby boomers is that this generation is reluctant to learn new concepts and typically prefers to shop in-store. Additionally, with the intense focus on Millennials, the buying power of Gen X shoppers is also frequently overlooked. These could be why some small-to-medium-sized establishments are slow to fully embrace using digital platforms as sales vehicles or establish a robust e-commerce presence.
Owners who use the theory that older generations primarily shop in physical stores and account for a significant percentage of their overall sales may concentrate solely on the in-store customer experience rather than developing a comprehensive sales strategy incorporating the online journey. At the same time, more than half of consumers like shopping in brick-and-mortar stores, which leaves almost 50 percent of consumers shopping online. The results of a 2021 Pew Research Center Study indicate:
Shoppers are Using Smartphones
Statistics indicate that one in four people who shop on mobile devices is over 55, and 24 percent of adults ages 45-54 are online shoppers. Whereas millennials (18-34) spend $2,000 annually online, more money than any other group, Gen X shoppers (35-44) spend about $1.930.
This information is essential for home improvement retailers who may wonder if eCommerce is a good investment that offers their current and potential customers a convenient option to shop for their business.
Promote E-commerce to Customers
Since a significant segment of home improvement customers shops online, it’s surprising that many independent retailers make little effort to promote their eCommerce business. Customers may be unaware that they can order products online 24/7 and have merchandise delivered to the store for pickup. Communication is key to a successful eCommerce business. Why should you make an effort to grow online sales?
Additionally, e-commerce revenue in the U.S. reached $431 billion in 2020, a 20 percent increase from 2019. It’s difficult to predict how rapidly sales will grow. Statista anticipates sales in 2022 will exceed $500 billion and top $563.4 billion by 2025.
Consumers Prefer Having Options
Consumers want their shopping experience to be convenient, easy, and hassle-free. Online shopping keeps growing because people don’t need to leave home comfort to buy products or services. In a 2018 Marist Poll, participants highlighted a few reasons they prefer purchasing online.
Additionally, a BigCommerce and PayPal consumer spending report conducted in 2021 shows that people have no clear preference for where they buy. Almost 55 percent of the people who responded enjoy shopping in person, and 12 percent didn’t care one way or the other.
Catering to Older Shoppers Can Grow Sales
Retailers can be so focused on promoting products to millennials that they fail to leverage the buying power of older adults. Missing this sales opportunity can prove to be costly in the long term. According to market research firm NPD Group’s Checkout Tracking, People 65 and older spent an average of almost $187 per month online last year, up 60% from a year earlier. While this is less than the average $238 per month spent by the total population, this age group is the fastest-growing segment of online shoppers. Gen X (ages 35-44) is the biggest group of online spenders. They spent $306 per month—up 40 percent since 2020.
Independent Retailers know it’s crucial to understand what their customers want and need. In recent years, shopping habits have drastically changed, and older consumers are rapidly adapting to the new reality. Similar to younger generations, they are buying online. Retailers who make the journey seamless and continue to offer high levels of service will be those who benefit from the patronage of boomer and Gen X consumers.