There has been a lot of buzz in the news lately with regard to the
habits of millennials when compared to baby boomers. It is undeniable that
generational trends dictate market trends, and so keeping up with change is
critical. That being said, it is important not to alienate one generational
group in exchange for another, and it is crucial to cater to all groups while
recognizing that baby boomers continue to represent a large segment of shoppers
who regularly visit bricks and mortar stores and continue to exhibit a higher
level of brand loyalty when compared to younger generations.
By marketing to the baby boom generation properly, customer retention and
brand loyalty can lead to increased profitability. But how?
Baby boomers are apt to exhibit brand loyalty – you just have to hold
onto it. Baby boomers remain the most loyal generation, especially when it
comes to CPG brands. A recent marketing study done by Jefferies and Alix
Partners found that 61% of baby boomers said that brands were important in
their purchasing decisions for groceries (compared to only 47% for millennials).
Those products that baby boomers have continued to favour over the years are
not disregarded easily, making customer retention and brand loyalty much easier
with this generation.
At the same time, it is important to acknowledge that baby boomers are
more likely to have higher expectations, so things like making sure that
product is on the shelf, in the correct place, or that employees can provide
assistance when necessary are all key factors in customer retention. A
merchandising company can help with this by providing the support necessary to
ensure that retailers conform to your expectations.
Furthermore, the study found that
millennials are far more price sensitive than boomers, and less likely to buy
the more expensive brands. 62% of millennial participants responded that they
focused more on lower prices than brands, compared to 46% of baby boomers.
Clearly those with the buying power are spending the money.
That doesn’t mean though that
product demonstrations or promotions are not well received – they are. Baby
boomers are willing to try a new product if the quality is there, and although it
takes far more to get them to switch, these tactics can increase shifts in brand
loyalty. They also represent a great customer retention opportunity when
providing that added incentive to get them to continue purchasing your
products.
The study’s results indicate just how important it is to continue
marketing to baby boomers in order to retain their brand loyalty. Make sure
that your merchandising plan attempts to reach all viable customers. A
merchandising company might be just what you need to ensure that this plan
considers all markets. Rely on a company that has the expertise necessary to
meet your needs no matter what your target demographic is.
For more information about customer retention and brand loyalty among
the baby boom generation, or to find out how our merchandising services can
contribute to increasing these, please contact Storesupport by calling
1-877-421-5081 or visit www.storesupport.ca
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