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Digital vs. Traditional Consumers: How Generational Gaps Define Shopping Tendencies

eMarketer – Younger, digitally engaged consumers love to use almost any technology that might make their buying process more self-sufficient, whereas traditional consumers are driven more by cost and ease of use.

According to a December 2018 report from BRP, retail consulting firm, “digital consumers” (defined as those ages 18 to 37) look for the availability of self-checkout, mobile payments or same-day delivery when choosing retailers. In comparison, “traditional consumers” (ages 38 and older) care less about technological offerings, with most being driven to retailers by free delivery. (It should be noted that per BRP, the only defining factor of digital vs. traditional consumers was age.)

After they’ve made a purchase, 61% of digital consumers are likely to share an exceptional shopping experience on social media, vs. just 29% of traditional consumers who said the same, according to BRP. This trend holds true for unsatisfactory experiences: Fifty-six percent of digital consumers said they’d post on social about a poor experience, compared with 27% of traditional consumers.

Survey respondents were not asked about sharing experiences via word-of-mouth—something that digital and traditional shoppers likely do. But there is one thing both cohorts agree on: Following an unsatisfactory shopping experience, nearly two-thirds of all digital and traditional consumers would not return to that retailer.

Above all, marketers must recognize core consumers and meet their needs accordingly. But as digital and traditional consumers often shop at the same stores, retailers should be prepared to offer a wide range of simple and value-driven experiences—as well as those that are more technologically cutting-edge.

Read Full Article: Digital vs. Traditional Consumers: How Generational Gaps Define Shopping Tendencies

The Store Still Matters

Despite what the media and industry analysts want us to believe, the store still matters. 79% of the consumers in our recent Consumer Study indicate they purchase merchandise in a store frequently. So, the store is not likely going away any time soon. In fact, this is likely to rise as 27% of consumers indicate their in-store shopping frequency will increase over the next 24 months.

With the store still a major part of the customer journey, the point of sale or commerce platform plays a critical role in shaping the customer shopping experience.Since the checkout process in stores is often the most frustrating aspect of an in-store shopping experience, it is important for retailers to ensure that this technology is efficient to make the process quick and easy. Most consumers (96%) feel that the ease of checkout and payment is an important factor in choosing where they shop so getting it correct is important.The right technology foundation is essential to support the best in-store customer experience and allow it to continue to evolve.

Instead of a simple checkout device, your commerce platform needs to serve as the link to customer information, shopping history and purchasing behavior across channels, not just in the store. Unfortunately, many retailers are utilizing old, outdated hardware and software that can’t support today’s requirements. This leads to associate and customer frustration because of slow transactions, lack of accessible information and potentially, increased theft and fraud. The challenge for retailers is to identify and implement a new holistic commerce platform across channels that addresses these issues and avoids being obsolete in a year or two.

More than half (53%) of the retailers in our 2019 POS/Customer Engagement Survey are focused on adding capabilities to their current POS with 41% focused on implementing a unified commerce platform so retailers are heading in the right direction. But we challenge retailers to look at cloud-based solutions to enable real-time capabilities and create a scalable and agile platform that supports your evolving business needs.

A cloud approach enables you to significantly reduce infrastructure, improve security and increase operational effectiveness by centralizing data management and processes. This allows you to be more agile so you can continue to meet your ever-changing customer needs and make sure that your store still matters.

I encourage you to download the BRP SPECIAL REPORT: The State of Store Technology for more information on what today’s store environment requires.

Brian

Report unveils consumer shopping preferences based on generation

Refrigerated and Frozen Foods – While the shopping journey varies depending on the customer, product and even season, there are similarities within generational groups. It is essential for retailers to understand the shopping preferences of their target audience to design the right shopping experience that appeals to their customers, according to the “2019 Consumer Shopping Habits – The Generation Gap” report, produced by BRP Consulting, Boston.

While the shopping journey varies depending on the customer, product and even season, there are similarities within generational groups. Digital consumers (ages 18-37), for instance, have higher expectations for the retail experience than traditional consumers (ages 38-plus) and embrace the use of technology to make their research and buying process more convenient. Traditional consumers are more focused on the basics of finding their desired product at the right price.

“It is interesting to see what drives consumers’ shopping habits and the differences between generational groups,” says David Naumann, vice president of marketing. “As retailers plan their in-store, online and mobile shopping experience strategies, it is imperative that they align with the desires of their target audiences. Making every experience a positive one is also key, as nearly two-thirds of all consumers will stop shopping at a retail brand after one unsatisfactory experience.”

Read Full Article: Report unveils consumer shopping preferences based on generation

BRP Report: ‘Digital Consumers’ Want Personalized Recommendations

Convenience Store Decisions – BRP’s 2019 Consumer Shopping Habits – The Generation Gap report identifies how and where consumers prefer to shop and which factors — such as generational differences — influence their shopping. The report is based on findings from a BRP survey of 1,298 U.S.

‘Digital Consumers’ (ages 18-37) have higher expectations for the retail experience than ‘Traditional Consumers’ (ages 38+) and embrace the use of technology to make their research and buying process more convenient. Traditional Consumers are more focused on the basics of finding their desired product at the right price.

“It is interesting to see what drives consumers’ shopping habits and the differences between generational groups,” said David Naumann, vice president of marketing, BRP Consulting. “As retailers plan their in-store, online and mobile shopping experience strategies, it is imperative that they align with the desires of their target audiences. Making every experience a positive one is also key, as nearly two-thirds of all consumers will stop shopping at a retail brand after one unsatisfactory experience.”

Read Full Article: BRP Report: ‘Digital Consumers’ Want Personalized Recommendations

Study: Personalization Important To Young Retail Shoppers

MediaPost – Younger retail shoppers are driven more by personalization than older people, according to Consumer Shopping Habits—The Generation Gap, a study by BRP, retail consulting firm. They also are more attracted by a retailer’s technology.

BRP refers to the younger group as digital consumers, and to the older cohort as traditional consumers. During the customer journey, digital consumers want knowledge, personalization, self-sufficiency, speed and influence.

Traditional consumers look more for discounts, product availability, ease of use, cost and satisfaction. Of those in the older group, 64% compare prices, versus 59% of the younger people. At the same time, 62% of the digital consumers will build a shopping list, versus 49% of the traditionalists. But only 44% of the juniors will look for offers/coupons, compared to 57% of the older people.

Shoppers in the younger cohort are also much more likely to be attracted to mobile point-of-sale (59%), self-checkout (75) and the ability to pay by mobile app or retailer app (65%). They also want same-day delivery.

Read Full Article: Study: Personalization Important To Young Retail Shoppers

65% of Digital Consumers Choose to Shop at a Store that Offers Personalized Recommendations, According to New BRP Report

2019 Consumer Shopping Habits – The Generation Gap Report Highlights the Differences in the Shopping Journeys of Younger and Older Generational Groups

Boston, MA – April 16, 2019 – According to BRP’s 2019 Consumer Shopping Habits – The Generation Gap report, it is essential for retailers to understand the shopping preferences of their target audience to design the right shopping experience that appeals to their customers. While the shopping journey varies depending on the customer, product and even season, there are similarities within generational groups. Digital Consumers (ages 18-37) have higher expectations for the retail experience than Traditional Consumers (ages 38+) and embrace the use of technology to make their research and buying process more convenient. Traditional Consumers are more focused on the basics of finding their desired product at the right price.

“It is interesting to see what drives consumers’ shopping habits and the differences between generational groups,” said David Naumann, vice president of marketing, BRP Consulting. “As retailers plan their in-store, online and mobile shopping experience strategies, it is imperative that they align with the desires of their target audiences. Making every experience a positive one is also key, as nearly two-thirds of ALL consumers will stop shopping at a retail brand after one unsatisfactory experience.”

BRP’s 2019 Consumer Shopping Habits – The Generation Gap report is based on findings from a BRP survey of 1,298 U.S. consumers fielded in December 2018 to identify how and where they prefer to shop and which factors influence their shopping journey. Below are key findings based on generation groups.

DIGITAL CONSUMERS (ages 18-37)

As Digital Consumers research products, they seek out consumer reviews to make more educated purchase decisions. When choosing a store, 65% want the ability to receive personalized recommendations and 65% prefer the ability to pay via a mobile wallet or retailer app. Receiving merchandise quickly is important with same day delivery a reason to choose a store for 77% of these consumers. Digital Consumers are more likely than Traditional to share feedback on social media for both exceptional and unsatisfactory shopping experiences.

TRADITIONAL CONSUMERS (ages 38+)

Traditional Consumers focus on the basics when they shop – product availability and competitive pricing. While shopping for products, 63% choose a store based on the associates’ ability to order out of stock products. While they are more tolerant on the timing of deliveries, 86% will choose a store with free delivery over one that doesn’t offer this service. Traditional Consumers rarely share feedback on social media for any shopping experience, but for unsatisfactory experiences, 64% will contact the retailer to share their dissatisfaction.

For more information on the generation gap between Digital and Traditional Consumers, download the 2019 Consumer Shopping Habits – The Generation Gap report:

https://brpconsulting.com/download/2019-consumer-shopping-survey

This report was sponsored by Manhattan Associates.

About BRP

BRP is an innovative retail management consulting firm dedicated to providing superior service and enduring value to our clients. BRP combines its consultants’ deep retail business knowledge and cross-functional capabilities to deliver superior design and implementation of strategy, technology, and process solutions. The firm’s unique combination of industry focus, knowledge-based approach, and rapid, end-to-end solution deployment helps clients to achieve their business potential. BRP’s consulting services include:

Strategy | Business Intelligence | Business Process Optimization | Point of Sale (POS)
Mobile POS | Payment Security | E-Commerce | Store Systems and Operations | CRM
Unified Commerce | Customer Experience | Order Management | Networks
Merchandise Management | Supply Chain | Private Equity

For more information on BRP, visit http://www.brpconsulting.com.

Survey: Older, younger consumers shop brick-and-mortar differently

Chain Store Age – Customer expectations of the in-store experience depend on whether they are older or younger than 38. According to a new survey of 1,298 consumers from BRP, retail consulting firm, “Consumer Shopping Habits – The Generation Gap,” digital consumers age 18-37 approach brick-and-mortar stores very differently than traditional consumers age 38 and up.

For example, digital consumers tend to want in-store technology that enables personalized shopping. Sixty-five percent want personalized recommendations, while 61% want a curated selection of products from stylists and 60% want recommendations based on what is in their closet.

Meanwhile, traditional consumers are more interested in technology that helps ensure product availability – 63% want associates to have the ability to order out-of-stock products and 60% want the ability to search in-store inventory availability.

Digital consumers are also more interested in having technology-enabled control of their in-store shopping experience – 87% say self-service options allow them to control their own experience and 71% like automated pickup and returns processes. In contrast, 60% of traditional consumers say self-service options allow them to control their own experience, while 49% say automated returns are nice but not necessary, and 41% say automated pickups are nice but not necessary.

Before entering a store, both digital and traditional consumers will use technology to research and prepare for the trip. However, digital consumers are more focused on prioritizing their purchases, while traditional consumers zero in on discounts, as demonstrated by differences in likelihood to perform the following activities:

• Compare prices (59% digital vs. 64% traditional).
• Look for offers/coupons (44% vs. 57%).
• Build a shopping list (62% vs. 49%).

Read Full Article: Survey: Older, younger consumers shop brick-and-mortar differently

Delivering an Elevated Customer Experience Requires an Agile Retail Technology Platform

Marketing Outlook – Retailers that are thriving – and there are lots of them – anticipate and react to consumers’ demand for an enhanced and continuously changing retail experience, according to Perry Kramer, SVP and practice lead at BRP, retail consulting firm.  Retailers that have successfully anticipated the changing customer experience have created a technical platform, with the supporting process changes, that allows them to react quickly enough to stay ahead of a new set of customer expectations in an increasingly competitive digital retail environment.

Increasing Pressure on the Retail Model

One of the greatest hockey players ever, Wayne Gretzky, said “A good hockey player plays where the puck is. A great hockey player plays where the puck is going to be.”  The retailers who are profitable and continuing to grow are executing this same philosophy.

The pressure on physical stores continues, as more than 7,100 retail locations have closed this year and additional closures are expected after the holiday season. With an estimated 15% of holiday shopping moving to digital this year, the competition for share of wallet has become more intense than at any point in the digital retail era.  As retailers shift more of their sales online, additional pressures are exerted as retailers deal with the lower margin generally associated with digital sales and the need for modified business process, organizational and technology changes to remain competitive.

Read Full Article: Delivering an Elevated Customer Experience Requires an Agile Retail Technology Platform

Survey: Customer in-store experience depends on age

Drug Store News – Customer expectations of the in-store experience depend on whether they are older or younger than 38. According to a new survey of 1,298 consumers from Boston Retail Partners (BRP), “Consumer Shopping Habits — The Generation Gap,” digital consumers age 18-37 approach brick-and-mortar stores very differently than traditional consumers age 38 and up.

For example, digital consumers tend to want in-store technology that enables personalized shopping. Sixty-five percent want personalized recommendations, while 61% want a curated selection of products from stylists and 60% want recommendations based on what is in their closet.

Meanwhile, traditional consumers are more interested in technology that helps ensure product availability – 63% want associates to have the ability to order out-of-stock products and 60% want the ability to search in-store inventory availability.

Read Full Article: Survey: Customer in-store experience depends on age

UX: What’s In Store For Next-Gen Retail

TWICE – With all the focus on e-commerce and websites, it’s easy to forget that online sales still only accounted for about 10 percent of all retail transactions last year, according to the U.S. Census Bureau. Meaning that 90 percent of sales took place in stores.

While no one’s suggesting that retailers let up on the digital gas pedal — in fact, just the opposite — neither should multichannel merchants neglect what remains their core asset: brick-and-mortar showrooms.

“The reality is, the store is still the foundation of retailing,” observed BRP, a retail consulting firm, in its 2019 Special Report: The Future Store. “It is where the tactile and sensory experience comes together for the consumer.”

But in the age of AR, AI, IoT and all other techno abbreviations, the online and offline worlds are beginning to merge, as digital disciplines filter into physical showrooms and shoppers, particularly of the Z Generation, come to expect it. “The store is not dead,” BRP declared. “It’s digitized.”

Some of those experiential ways include AR, VR and videoconferencing. According to BRP’s Future Store report, 36 percent of consumers said they would shop at a store offering virtual mirrors to envision themselves in different eyewear, garments or cosmetics, while 32 percent of respondents said they are likely to shop at a store offering an augmented reality experience. The research also showed that 29 percent would patronize a retailer with an element of virtual reality in their stores, and 27 percent would frequent a showroom that offered video conferencing from home with an in-store sales associate.

Read Full Article: UX: What’s In Store For Next-Gen Retail