"The First Decade of Millennials make up 18.4% of US Digital Buyer Share"
In this eMarketer study - we get insights into digital buyer share by age demographics.
We also see here and interesting hypothesis as to how the various age demographics will grow or shrink with affinity to digital purchasing by 2020.
3 Key observations:
1. Ages 25-34 dominate the digital buyer share and show slight growth to maintain that lead. This makes sense as millennials are well known for their affinity to mobile and digital purchasing. It also aligns with the age where people are making good money, building homes, and spending more.
2. The demographic of folks between 35-54 are hypothesized to shrink in usage share between now and 2020 (maybe the trend of wanting to go in-store for their shopping expeirneces? Check out some of our Retail Trends Snap Shots on that topic in our blog!)
3. The 65+ Age range makes the biggest jump in growth, as the generations that are comfortable with using technology to purchase age and find convenience in online ordering
It is key as a retail though, to note that ALL age ranges are purchasing digitally. This means, you need to ensure that your marketing efforts aren't just focusing on acquiring, but retaining customers through their life-cycle.
A Great example here is Lilly Pulitzer - featured in this Harvard Business Review Article - who has taken great care in ensuring that they personalize experiences for their customers.
Along with creating a seamless channel experiences - driving customers between their stores, eCommerce, and delighting them with direct-mail, Lilly Pulitzer has a unique focus on creating a seamless relationship with their customers as they age. They understand that although one generation might make up a majority of digital buyer share now, younger generations will soon be making up that demographic. From daughter, to mom, to grandma, to great-grandma, Lilly Pulitzer knows how to keep their customers loyal for life.
What do you think about this current and hypothesized break down of US Digital Buyer Share?
Now that you have the steps to be a customer retention master, make sure to browse the top headlines for this week!
Top Retail News & Insights
Every Friday we post top trending retail news for you and are now introducing a fun fact to help you benchmark your marketing efforts against peers. Get the articles here.
#STOREStrends is a monthly roundup of fresh retail ideas from STORES Magazine - this month includes trends like:
- "A Slice of Kindness" story on how a Domino's worker saved a loyal customers life!
- "Load It Up" covers innovations in supermarkets
- "A Crisis of Trust" touches on customer data security
- "Ungendered" - the rise of unisex apparel
- "Backroom Deal" how the Limited is investing in the off-price game
- "Personalization Principles" outlines how to personalize your customer engagement to stay genuine but impactful
- "Samsung's Unstore" is innovating their stores to be unique customer experiences
- "Customization Equals Differentiation" How top brands are preserving margins through offering customers more options
- And More!
2. Yahoo Finance: Why Salesforce.com's acquisition could be great news for retail
On Wednesday, Salesforce.com (CRM) announcedthe acquisition of Demandware (DWRE) for $2.8 billion, its biggest acquisition yet. Until the Demandware acquisition, Salesforce.com had a gap in its overall product portfolio—it didn’t offer the ability to transact with customers yet. This acquisition allows them to do that.
“This is a natural extension and within the customer management space,” according to Brean Capital’s Yun Kim. According to Gartner, worldwide spending on digital commerce platforms is expected to grow at over 14% annually, reaching $8.5 billion by 2020.
3. Retail Dive: Mary Meeker report dives into online trends impacting retailers
- Mary Meeker, partner at venture capital fund Kleiner, Perkins, Caufield & Byers, Wednesday presented her exhaustive study on internet trends at this year’s Code conference in Silicon Valley, with findings that have major implications for retailers.
- Internet sales in the U.S. have steadily increased since 2000, when they made up less than 2% of all retail sales, to about 10% of retail sales in 2015. While progress, that’s still way behind China, where mobile users divide 71% of their time between internet portal Tencent, e-commerce giant Alibaba, and web services Baidu. Some 31% of Chinese WeChat users buy from retailers.
- The report also found that major retailers are reaching $100 million in online sales in less time: Nike took 14 years after the launch of its e-commerce site, while Lululemon took nine, and Under Armour took eight, according to Meeker. Warby Parker, once an e-commerce pure-player, now makes more money per square foot in its retail stores than Tiffany’s, second only to Apple.
4. Forbes: Here's What's Wrong With Department Stores
- Consumers no longer shop the way department stores sell.
- A sea of sameness.
- Little to no value-add.
Are Department Stores Dead? Not yet. But they could kill themselves, under the weight of “we’ve always done it this way”. Tweaks in omni-channel strategy aren’t going to be enough to address the fundamental issues at department stores. Not with the way these trends are heading.
Read more to find out!
5. NRF: Mobile conversion woes and fixes
Though most retailers are past the point where mobile is an afterthought, many are still struggling to create a truly great mobile experience for customers. At the upcoming Shop.org Digital Experience Workshop, we’ve invited Linda Bustos, e-commerce strategist and Edgacent co-founder and managing partner, to discuss how to get over some mobile challenges. Before the event takes place in July, we tapped her for some quick tips on common mobile mistakes, who’s doing it right and how to prioritize projects.