The Changing World of Generational Buying Habits

As the world evolves, so do the buying habits of consumers. Understanding the unique shopping tendencies of different generations is crucial for businesses in today's fast-paced, digital environment. However, one cannot look at generational buying as a single purchase funnel. Retailers need to consider a spectrum of content and commerce to adapt their strategies accordingly.

For baby boomers, offline shopping is their go-to method of purchasing. They're heavily influenced by content but follow a more traditional funnel. When they're at the bottom of the funnel, they may search for a product and get a search ad — following a familiar path to conversion. Boomers represent one end of the spectrum.

Millennials and Gen Z, on the other hand, are inspired by content to make a purchase. They're likelier to click on an Instagram ad and convert right there. Generation Alpha takes it to the next level, where content and commerce are the same thing. They purchase more virtual goods and are more likely to be active in the metaverse.

Boomers are on one side of the spectrum, while Gen Alpha is on the opposite side. Millennials and Gen X are somewhere in the middle, with the gravity of commerce pulling them closer and closer toward Gen Alpha. To manage generational buying tendencies, businesses must reconsider this generational buying spectrum alongside their marketing strategies.

In this new landscape, retailers like Amazon.com are in trouble. Searching for anything on Amazon now results in thousands of knockoffs for the same product. The reviews are all gamed, and people are starting to gravitate toward more authentic discovery through social media. Creating authentic discovery for younger generational buying is essential.

It follows, then, that search isn't the future of buying journeys for a significant subset of the millennial generation and those that follow. Many marketers put too much emphasis on the top of the funnel, but being ready to be discovered is crucial. If you want to court the audience on the up-and-coming end of the spectrum, you can't just be on Amazon or Google search. You have to be available in the moment they discover on TikTok and make the purchase seamless.

To achieve incremental gains, businesses need to consider how they show up in people's lives and make the purchase experience frictionless from discovery to checkout. For example, if a mascara product suddenly blows up on TikTok, it quickly sells out and people become disappointed because they can't get it. This raises the question of how to spend media and whether it's time to spend on a new channel.

Nowadays, we've embraced the cognitive model by ISPD, which is connecting mental availability with "phygital" availability. Phygital availability is all about showing up where people are purchasing, online or offline. Therefore, to court the audience on the left of the spectrum, businesses need to be available where people discover products, making the purchase seamless and removing friction.

To manage generational buying tendencies effectively, businesses can conduct webinars, podcasts, and seasonal and event-based outreach. Highlighting alternative social buying channels can also help with incremental gains. Finally, businesses must be real with their audience, as authenticity is another key to the younger generation.

Understanding generational buying habits is crucial for businesses to adapt their strategies to meet their customers' needs. There's a generational spectrum of content and commerce, and businesses must consider it when creating their marketing strategies. Being available where people are discovering products, making the purchase experience seamless and frictionless, and being authentic is the key to succeeding in today's fast-paced, digital environment.

Seinn Schlidt is vice president strategy at Anagram, a full-service media agency.