DDi - April/May 2010 - (Page 12)

12 | Consumer Insights Mining the U.S. generation gaps Older segments more frequent, deal-prone; Boomers and Gen X are the greatest overall spenders Generation: group of contemporaries; all of the people who were born at approximately the same time, considered as a group, and especially when considered as having shared interests and attitudes. • Greatest Generation: born prior to 1946 (64+ years of age in 2009) • Boomers: 1946-1964 (ages 45 to 63) • Gen X: 1965-1976 (ages 33 to 44) • Millennials: 1977-1994 (ages 15 to 32) with monthly or quarterly cash-back savings programs that reflect spending levels. Pursue the up-sell into prescription medications, insurance, gifts for grandkids and children, entertainment, travel, even discount wines by the case. Comprising more than one-third of the Internet population, Boomers are big online shoppers, who are comfortable using e-mail and messaging to stay in touch. Twitter is a huge untapped outlet for reaching Boomers, who increased utilization 469 percent during 2009. Reach one, and you reach their entire follower base with product info and special offers. Gen X: Time is a precious commodity for these busy young families, so reduce deadline pressure by offering meal planning and deals, school supplies and little indulgences—like lattes—to make shopping less onerous. Childcare activity centers or computer kiosks keep kids engaged while parents shop. In-store cooking or craft classes offer family fun and a reason to increase the trip count. More than 80 percent of Xers are online checking out Facebook, MySpace and Twitter, shopping and price-checking, and texting or e-mailing friends. Deliver quick-hit info and offers using new media for fast results. Millennials: Consider upgrading piped-in music to current hits to attract contemporary shoppers. Coffee stations with battery chargers and in-store WiFi let them kick back and review Internet or mobile coupons and shopping lists. Convert their need for immediate gratification into impulse-buy sales with enticing end-caps and front-of-store bins. These visually oriented shoppers will Tweet and text about special deals—real time from the store aisles—about what looks good today, where to meet up and anything cool that catches their eye on-site. If you’re lucky, you’ll hit a quirky Millennial sweet spot, and they’ll YouTube or Hulu a video of a helpful employee or unusual in-store promotion. —Todd Hale is senior vice president, consumer & shopper insights for The Nielsen Co. (the parent company of DDI) and will be speaking at the DDI Forum in Santa Rosa, Calif., Sept. 23-25, 2010. For more information, visit www.ddimagazine.com/forum. Generational Differences Shopping Trips Per Household Greatest Gen Boomers Gen X Millenials 0 50 100 150 200 O bservers of popular culture have long known that, in large part, generations look alike, think alike, dress alike, vote alike, live alike and share a similar attitude toward life and leisure activities. That theory certainly holds true for shopping. A recent Nielsen analysis of the four key generations revealed generationally consistent shopping habits that reflect diverse lifestyle preferences and economic habits. The Greatest Generation members, shaped by the Great Depression and World War II frugality, are the most frequent shoppers and more dealprone than other age segments. High-earning Boomers have the largest annual dollar spend per household of any group, followed by Gen X. Millennials don’t like to waste time in-store, shopping less often than other age cohorts, but buying more per trip as a result. Millennials today represent the largest population segment—more than 76 million strong—just slightly larger in number than the Boomer segment. The two groups together represent half of the U.S. population. So what is the best way to reach each generation and capitalize on their unique shopping interests and needs? Here are some suggestions: Greatest Generation: Add freebies and senior discounts to appeal to their value orientation. Consider special products addressing aging issues, such as special packs for smaller households. Better signage, more forgiving package design, on-shelf or on-cart magnifying glasses are a plus. These savvy shoppers spend most of their online time using e-mail and message boards, providing two ready avenues for delivering targeted offers and initiating value-add discussions about health issues and special wellness programs. Boomers: Keep these big spenders happy Basket Ring Dollars Per Trip Greatest Gen Boomers Gen X Millenials 0 10 20 30 40 50 60 Basket Ring Dollars Per Household Greatest Gen Boomers Gen X Millenials 0 2000 4000 6000 8000 % Dollars on Deal Greatest Gen Boomers Gen X Millenials 0 5 10 15 20 25 30 Source: The Nielsen Company, Homescan®; Total U.S. 52 weeks ending 9/12/09 for total; excludes gas retail channels or Rx-only trips. | April/May 2010 www.ddimagazine.com http://www.ddimagazine.com/forum http://www.ddimagazine.com

Table of Contents for the Digital Edition of DDi - April/May 2010

DDi - April/May 2010
Contents
From the Editor
Newsworthy
Consumer Insights
Greentailing
Editor’s Choice
Design Snapshot
Channel Focus: Department Stores
Sporting Authority
Lighting Super Section
Lighting the Way
Viva Mexicano
Right Light
Product Spotlight
GlobalShop Show Coverage
Calendar
Advertisers
Classifieds
Think Tank

DDi - April/May 2010

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