News • 11.07.2019

"Digital natives" value brick and mortar stores …

… more than their parents or grandparents

Woman looking at clothing in a store and taking a picture with her smartphone;...
Source: PRNewsfoto/Oracle NetSuite

Despite clear differences in expectations among shoppers of different generations, almost half of retailers (44 percent) have made no progress in tailoring the in-store shopping experience according to a recent study conducted by Oracle NetSuite, Wakefield Research and The Retail Doctor. The global study of 1,200 consumers and 400 retail executives across the U.S., U.K. and Australia dispelled stereotypes around generations and found big differences in generational expectations across baby boomers, Gen X, millennials and Gen Z.

"Retailers have fallen behind in offering in-store experiences that balance personalization and customer service but there's an opportunity to take the reins back,” said Bob Phibbs, CEO, The Retail Doctor. “The expectation from consumers is clear and it's up to retailers to offer engaging and custom experiences that will cater to shoppers across a diverse group of generations."

Retailers struggle to keep stride with generational shoppers

The in-store shopping experience remains an important part of the retail environment for all generations, but the progress retailers are making to improve the in-store experience is being viewed differently by different generations.

  • Despite the stereotypes of "digital natives", Gen Z and millennials (43 percent) are most likely to do more in-store shopping this year followed by Gen X (29 percent) and baby boomers (13 percent).
  • Gen Z and millennials (57 percent) had the most positive view of the current retail environment feeling it was more inviting, followed by Gen X (40 percent). Baby boomers (27 percent) were more likely to find the current retail environment less inviting than consumers overall.
  • Gen Z valued in-store interaction the least with 42 percent feeling more annoyed from increased interaction with retail associates. In contrast, millennials (56 percent), Gen X (44 percent) and baby boomer (43 percent) generations all noted they would feel more welcomed by more in-store interactions.

Retailers view emerging technologies through rose-colored glasses

While more than three quarters of retail executives (79 percent) believe having AI and VR in stores will increase sales, the study found that these technologies are not yet widely accepted by any generation.

  • Overall, only 14 percent of consumers believe that emerging technologies like AI and VR will have a significant impact on their purchase decisions.
  • Emerging tech in retail stores is most attractive to millennials (50 percent) followed by Gen Z (38 percent), Gen X (35 percent) and baby boomers (20 percent).
  • Perceptions of VR varied widely across different generations. Fifty-eight percent of Gen Z said VR would have some influence on their purchase decisions, while 59 percent of baby boomers said VR would have no influence on their purchase decision.

Insta-famous brands reach Gen Z and millennial consumers, but not as much as retailers think

While almost all retail executives (98 percent) think that engaging customers on social media is important to building stronger relationships with them, the study found a big disconnect with consumers across all generations.

  • Overall, only 12 percent of consumers think their engagement with brands on social media has a significant impact on the way they think or feel about a brand.
  • Among those who engage with brands on social media, Gen Z (38 percent) consumers are much more likely than other generations to engage with retailers on social to get to know the brand compared to millennials (25 percent) and baby boomers (21 percent).
  • Gen Z (65 percent) consumers and millennials (63 percent) believe their engagement with brands on social media platforms have an impact on their relationship with brands.
  • More than half of baby boomers (53 percent) and 29 percent of Gen X consumers do not engage with brands on social media.

"After all the talk about brick and mortar stores being dead, it's interesting to see that 'digital natives' are more likely to increase their shopping in physical stores this year than any other generation," said Greg Zakowicz, senior commerce marketing analyst, Oracle NetSuite.

Source: Oracle NetSuite

related articles:

popular articles:

Thumbnail-Photo: Product ratings: customer-centricity is important...
29.05.2019   #customer relationship management #marketing

Product ratings: customer-centricity is important

Global product ratings study: companies being pushed toward increased customer-centricity

Globally, 54% of companies consider product ratings to be very important to their business. For another 29%, they are somewhat important, while 17% think ratings are not important at all or that they don’t play any role yet. U.S. results ...

Thumbnail-Photo: Implementing new ideas: Design thinking in the retail world...
29.04.2019   #customer satisfaction #trend research

Implementing new ideas: Design thinking in the retail world

Focus on customer expectations

It may be uncomfortable at times – but a change in perspective can help businesses to implement new ideas and successfully complete ongoing processes. Design thinking is a customer-centric approach that can help in this endeavor.“What do ...

Thumbnail-Photo: Over fifty retailers demand chancellor fix business taxation...
20.08.2019   #brick and mortar retail #financial accounting

Over fifty retailers demand chancellor fix business taxation

High Street chains and shops sign a letter over business rates

Over fifty major retailers have come together to demand the Government takes action to fix the broken business rates system. In a letter to the new Chancellor, Sajid Javid, retailers called on the Government to put business rates at heart of the ...

Thumbnail-Photo: Award-worthy product presentations – Point of purchase displays...
08.05.2019   #pos marketing #displays

Award-worthy product presentations – Point of purchase displays

The 2019 POPAI Awards finalists in our photo gallery

This year’s POPAI Awards finalists prove that retail displays can do more than just grab the attention of consumers.Today’s displays not only reflect the overall customer journey, but also focus on storytelling and digital elements.The ...

Thumbnail-Photo: Beware of price promotions: “Don’t teach your customers to be...
27.05.2019   #sales promotion #price labels

Beware of price promotions: “Don’t teach your customers to be bargain hunters!“

Neuroscientist Kai-Markus Müller tells us about the impact of pricing

In a conversation with iXtenso, Professor Kai-Markus Müller, CEO of The Neuromarketing Labs gives great insights into how products and prices affect the brains of shoppers. How does he know? He is a neuroscientist and can look inside the ...

Thumbnail-Photo: Creative Retail Awards shortlist announced at RetailEXPO...
24.05.2019   #displays #design

Creative Retail Awards shortlist announced at RetailEXPO

Innovative, inspirational and forward-thinking retail display and design

The Creative Retail Awards, which recognise and reward innovation and excellence in worldwide retail design, released the shortlist for their 2019 Awards at RetailEXPO, Olympia London last week.The Awards received hundreds of entries from around the ...

Thumbnail-Photo: 91% of SMBs think customer reviews are critical...
25.07.2019   #customer satisfaction #customer relationship management

91% of SMBs think customer reviews are critical

Survey about online customer reviews on platforms

Uberall, Inc., a location marketing solution for businesses, released new data on how small- and medium-sized businesses feel about online customer reviews across platforms like Yelp, TripAdvisor, Facebook, Instagram, Google and more. For the ...

Thumbnail-Photo: Innovation in sustainable packaging design and materials...
08.07.2019   #sustainability #packaging

Innovation in sustainable packaging design and materials

Bosch Packaging Technology and BillerudKorsnäs intensify collaboration

The demand for sustainable packaging among consumers and brand owners all over the world is growing at an exponential rate, which in many cases drives a strong need to replace plastic packaging. Strong partnerships are required to bring about the ...

Thumbnail-Photo: Consumers demand sustainable fashion but won’t pay more...
28.06.2019   #sustainability #fashion

Consumers demand sustainable fashion but won’t pay more

Top five demands for the industry to become more sustainable

New research suggests over half (52 percent) of consumers in the UK and US want the fashion industry to become more sustainable, with calls for reduced packaging and fair pay for workers among their top demands. But only 29 percent of these ...

Thumbnail-Photo: 5 essentials for customer experience leaders...
18.07.2019   #customer satisfaction #customer relationship management

5 essentials for customer experience leaders

Gather customer feedback and analyze it

Customer experience is fundamental to your business and needs to be in your company’s strategy.However, CX leaders are challenged with what it means to spearhead these efforts. To improve their influence, and subsequent results, CX leaders can ...

Supplier

POS TUNING Udo Voßhenrich GmbH & Co KG
POS TUNING Udo Voßhenrich GmbH & Co KG
Am Zubringer 8
32107 Bad Salzuflen
CCV Deutschland GmbH
CCV Deutschland GmbH
Gewerbering 1
84072 Au i.d.Hallertau
HappyOrNot
HappyOrNot
Innere Kanalstraße 15
50823 Köln
iXtenso - Magazin für den Einzelhandel
iXtenso - Magazin für den Einzelhandel
Celsiusstraße 43
53125 Bonn