Research: Lifestage and lifestyle play big roles in consumer path to purchase
Family, childhood experiences and external influences all play a role in the consumer's path to purchase, according to new Alliance Data research.
For example, as millennials came of age during the social media boom, they are likely more trusting than generations prior when it comes to online reviews and a retailer's recommendations. For Gen Xers, a fast checkout experience is a big factor as they have busy lives in balancing work, family and personal commitments, noted the research.
For the baby boomer generation, brand connection is less intense than other generations as they've never felt a deep connection with any specific brand or products, given that they grew up in a time when an infinite number of products were available.
The oldest generation, those who grew up during the Great Depression, prefer to shop brands they know and trust as they've had to be very prudent with purchase decisions.
"Retailers and brands are constantly looking to attract customers and keep them loyal, which can be challenging when brands have customers that range greatly in life experiences. For example, one customer may respond very differently to a marketing campaign than another, simply based on his or her past. This is why utilizing data to understand how buying habits are influenced by the social and economic factors of one's upbringing can help to increase customer engagement," said Rodney Davenport, vice president of strategic insights at Alliance Data, in a press release.
"The key takeaway for retailers is that all generations ranked customer service first over payment security, brand interaction and promotions when it comes to factors that affect their purchase decisions. While technology and innovation are important, success in retail still comes down to understanding who your customers are, being responsive to their needs, and catering to the way they like to shop."
Topics: Consumer Behavior, Customer Experience, Customer Service, Digital Merchandising, Loyalty Programs, Marketing, Merchandising, Online Retailing, Shopper Marketing, Stats and Facts, Trends / Statistics