Article

Retailing to the digital native

A new type of shopper requires a new level of engagement.

August 10, 2008 by James Bickers — Editor, Networld Alliance

Every generation thinks that the one that comes after it is different, but Gen X-ers might be correct when they point to the youth of today and say that a fundamental change has taken place. Previous generation gaps may have indeed been gaps, but it is a yawning chasm that separates the "digital natives" from those who came before.

Educator and game designer Marc Prensky coined the term "digital native" in 2001 to refer to people who had never known a world without immersive and pervasive technology — "they are native speakers of technology, fluent in the digital language of computers, video games, and the Internet." They rapidly adjust to new communication methods, having come of age in a world where downloading digital content trumps a trip to the store, where a quick check of a wiki trumps a conversation with an expert.

Digital natives are increasingly using their technologies to take retailers to task. In April, bloggers at Gizmodo and The Consumerist slammed Dell for wasteful practices, like shipping a tiny USB drive in a large cardboard box. Company officials caught wind of the uproar, implemented several changes in shipping practices, and then took the matter to their own blog ("Our sincere gratitude goes out to everyone who pointed this irregularity out to us").

All of that spells both opportunity and trouble for retailers, who need to figure out how to reach these people in the mind space they inhabit daily — and they need to figure it out quickly.

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Definitions and delineations

While previous generational tags like Gen X and Gen Y have focused on age, the digital native concept is more focused on behavior — after all, not all people born in the mid-1980s or later necessarily grew up around or even enjoy using technology. But it is for that very reason that the digital native concept is so useful to marketers, as it identifies a group with largely similar attitudes and attributes.

When it comes to shopping, digital natives do an intense amount of research, and it is almost all online, according to social media consultant and self-professed "quintessential digital native" Ben Grossman.

"Increasingly, they have access to a world of information, but they take their cues from their peers first and other customers second," he said. "Most are savvy enough to merge and analyze information released by companies and user-generated information without putting much effort into the process at all. Online research is second nature (for them)."

Because of their constant immersion in the online realm, digital natives are far less tolerant of "stale content" than other users. As a result, they are drawn to online retailers that offer Web 2.0 functionality such as user-contributed reviews and chat, as the content on these sites constantly changes.

Digital natives can be intensely brand-loyal, Grossman said, often turning into evangelists with no real effort on the part of the brand. But according to Shawn Gurn, associate media director for ad agency Moroch, the loyalty stakes are raised given the ease with which opinions both positive and negative can be shared.

"There is less room for error," he said. "A disgruntled customer can easily escalate their frustration to a wider audience if not managed carefully. Brands that embrace the empowered consumer and give them the tools to harness their opinions — both good and bad — will appear more 'real.' Transparency is now a priority, when the expectation is open communication versus being told what to think."

Gratification and communication

One thing the Internet excels at is providing instant gratification, and digital natives have been trained their entire lives to expect immediate return on action.

"Digital natives want what they want and they want it yesterday," said Kate Clark, who heads up e-commerce product development for AT&T Hosting and Application Services. "Impatience thrives in a world where you can connect to anyone at anytime, anywhere, on any device."

All that instant access to product information has resulted in a demographic that is far more demanding when it comes to quality, which means retailers and brands need to diligently watch the online chatter surrounding each and every product.

"Retailers should make absolutely sure they are selling a quality product," said Grossman. "If it's not quality, digital natives will tell or yell about it and sales will take a nosedive. If there are problems along the way with a product, do not ignore their complaints. Respond to them and find a way to convert a negative brand experience into a positive one."

That means tasking one or more staffers with the duty of monitoring Twitter, Amazon and product-specific blogs daily, and getting involved in the community when problems arise.

What digital natives want from a retail Web site

Jon Provisor, CTO of e-commerce provider Guidance, lays out seven things digital natives want from an online shopping experience: