Understanding how to market appropriately to generations is a critical success factor for today’s businesses. Targeting messages and refining technology to suit your target audience will make all the difference to the bottom line.
Millennials are buying from Amazon at a higher rate than their older or younger generational counterparts, with 79 percent reporting a purchase within the past month, according to a new report from Yes Lifecycle Marketing.
When Amazon Prime Day arrives July 11th, the survey reveals millennials are most likely to take advantage of the exclusive offers. For its generational consumer behavior report, A Marketer’s Guide to Reaching the Generations, Yes Lifecycle Marketing surveyed over 1,000 consumers of all ages in March 2017 and found that more than half (55 percent) of millennials choose to buy from Amazon for its Prime benefits and more than three quarters (76 percent) do so because of its prices.
“Amazon Prime benefits draw in millennial shoppers more than other generations by aligning with their preference for loyalty messaging and programs,” said Michael Fisher, president of Yes Lifecycle Marketing. “By segmenting their customers by generation, marketers can pinpoint customer preference for elements like messaging, channel and timing, and define distinct strategies that resonate with those audiences. And in turn, marketers will create long-lasting relationships with their customers.”
When compared to other generations, the report found that baby boomers are more likely to value Amazon for its convenience and product selection, while Centennials are more likely to shop in-store. The e-commerce giant proved popular across the board, with 63 percent of consumers having made a purchase on Amazon in the past month.
However, despite the high adoption of e-commerce, the report also shows shoppers of all ages measure the in-store experience to be equally important as the digital one, a promising sign for brick-and-mortar retailers. In fact, the report found nearly one in five Centennials (18 percent) and millennials (19 percent) say the in-store experience is one of the top three factors that drive brand loyalty. In contrast, only 11 percent of baby boomers say the in-store experience is a top factor in brand loyalty.
“Amazon has done a good job of delivering cross-channel communications that speak to millennials’ preferences and behaviors, reaching them where they want and how they want, and other brands should take note,” said Michael Iaccarino, CEO and chairman of Infogroup, parent company of Yes Lifecycle Marketing. “As Centennials enter the job market and gain buying power, all brands, Amazon included, need to adapt their marketing communication strategies to speak to these digital natives.”
Additional findings from the report include:
- After millennials, members of Gen X were the second most likely to buy from Amazon, with 69 percent reporting a purchase in the past month.
- Centennials shop in store during the holidays more so than any other generation (45 percent).
- More than 80 percent of Centennials and 74 percent of Millennials say social media influences their shopping.
- Four out of five respondents in all age groups report that they find a brand’s website important when making purchase decisions.
- Almost a third of Centennials (31 percent) shop at non-Amazon retailers because they enjoy the in-store shopping experience, more than any other generation.
To download A Marketer’s Guide to Reaching the Generations, please click here.