How do Millennials shop, and how do older generations shop? Salesforce’s 2016 Connected Consumer Goods Report presents findings from a study of consumer behavior—how people search for products, their preferred shopping locations, and the factors influencing brand loyalty.

Online shopping vs. traditional shopping

According to the report, all consumers use the internet when searching for products, browsing websites of suppliers or manufacturers. All age groups agree that the lowest prices are found in online stores, but the best customer service comes from traditional brick-and-mortar stores. During the actual shopping process, however, clear generational differences appear. These differences are also visible in how shoppers express loyalty to brands. The youngest generation publicly criticizes brands more often (33%), but also participates in loyalty programs more than other generations (44%).

Do Millennials shop the most?

Millennials – the strongest buying power

Millennials (Generation Y) are currently the world’s strongest buying force. If consumer goods producers want to cater to them, they should leverage customer experiences and product usage data to shape online advertising messages. Loyalty programs should be built less on discounts and more on personalized communication.

“Today, there is much talk about how significant customer experiences with products are in sales. For manufacturers, consumer attitudes toward brands have always been crucial, but this dynamic has changed significantly in recent years. Thanks to various tools and technologies, people find it easier to share opinions with large audiences. Meanwhile, companies have far greater opportunities to influence and manage the customer experience, including optimizing service through all possible communication forms at every stage of the customer relationship. Over the years, companies have gained more ways to communicate with the market. At the same time, many events significantly impacting brand image happen in real time, often beyond corporate control—such as in social media. Therefore, today’s top priority for companies is recognizing these events to understand customers’ current expectations and respond effectively.
  • One key insight from the report concerns shopping preferences between generations: 63% of Baby Boomers prefer buying in physical stores, compared to 40% of Millennials who favor online shopping.
  • Consumer goods producers should adapt marketing strategies to generational differences. Millennials are five times more likely than the oldest generation to seek brand information through social media (25% vs. 5%). Online advertising works better for younger audiences, for whom it is less irritating. At the same time, companies should avoid media saturated with ads, since 56% of users actively avoid such platforms.
  • Loyalty programs should target all generations, but for younger consumers, values such as prestige, communication with the brand, belonging, and high-quality service experiences are more important. For older generations, price and additional benefits are the key drivers. However, communication with Millennials must be handled carefully, as they are more likely to publicly express negative opinions about products.
  • Younger consumers of consumer goods prefer brands that leverage their personal experiences and purchase history in their interactions.
  • As many as 41% of Millennials are willing to share personal data with companies in exchange for more personalized service and better prices.

 

Summary

Salesforce’s ‘2016 Connected Consumer Goods Report’ shows that all generations seek product information online (69%), but differ in their shopping methods and how they express brand loyalty. Millennials most frequently publicly criticize brands (33%) and are more eager to join loyalty programs (44%), with 41% willing to share personal data for better service and benefits. Baby Boomers more often choose physical stores (63%) and are significantly more irritated by contextual advertising (65% vs. 48% among the youngest). Key takeaway: producers of consumer goods should tailor communication and channels based on age group.