Why retailers shouldn’t neglect Gen Xers
Only a few years ago, marketers were hailing Gen Zers as the new big thing; now it’s Gen Alpha that’s making waves. It’s understandable – these generations challenge the status quo. However, retailers that focus uniquely on these younger generations are missing a trick.
Generation X, born between 1967 and 1981 (aged around 39 to 53), are homeowners and parents. They’re business leaders. They earn more than any other age group and therefore have the most spending power out of all generations.
With Gen Xers driving many purchasing decisions today, brands would be wise to invest in their needs. It’s hard work convincing Gen Xers to get on board, but when retailers do manage it, they can end up with customers for life. Because this generation is loyal – very loyal.
In fact, loyalty may be the supreme benefit for retailers when it comes to connecting with this generation. They’re the most brand-loyal of any generation with 82% of American Gen Xers participating in at least one loyalty programme.
Retailers are experimenting with revamped incentives to get this consumer group on board for the long-term. Ever pragmatic, discount remains the primary reason Gen Xers sign-up to loyalty programmes.
A Canvas8 survey conducted in collaboration with Toluna, found that 59% of Gen X Britons would sign up to membership programmes to score discounts on existing products and services – the highest of any of the age groups surveyed.
The challenge for retailers is often how to reach and connect with customers in the first place. It’s important for retailers to remember Gen Xers’ status as ‘digital immigrants’ – a generation old enough to remember growing up without the internet, but young enough to adopt it. As a result, they’re interested in shopping experiences that blend the digital and physical worlds.
Direct mail is still relevant to this generation. Retailers can use clever data analytics and targeting in their background operations, but the way they interact with Gen X customers can actually be very straightforward. This generation values in store interaction and staff expertise. They still want physical shopping experiences but have high expectations of customer service and will take their business away if they feel they’re not getting it.
While this generation is present on social media (77.5% use social networks), they prefer not to be bombarded with paid advertising content while scrolling – 56% of Gen Xers feel there are already too many ads on social media platforms. They will want to do their own research before buying rather than trusting ads, so retail brands would do well to increase the clarity and availability of their product information and brand presence across various channels to appeal to this information-savvy group.
This is true to form as Gen Xers still apply a hefty dose of their signature cynicism to their daily lives. Although Gen Xers are now leading the establishment, in their youth they were known for being anti-establishment, and there’s still an appeal with slightly anti-establishment brands and retailers. They remain attracted to the ‘alternative’ and therefore often prefer irreverent brand communication styles.
Just like other generations, Gen Xers want to see themselves and their interests reflected in the places they shop and the brands they choose. They will connect more with brands whose adverts and communications reflect their own identities and experiences.
Though it may seem like a quick win for retailers to focus on younger generations, brands can benefit in the long-term from building stronger connections with their Gen X audiences. Authenticity is a key quality this group is looking for in brands, so connecting to this generation in a genuine, relatable way will help retailers gain their trust and convert them to loyal customers and brand advocates.
Polina Norina, senior behavioural analyst, Canvas8
