As the holiday season quickly approaches, understanding the shopping preferences and habits of different generations becomes crucial for retailers aiming to capture a larger market share. From the tech-savvy Gen Z, who are embracing digital shopping trends, to the Baby Boomers’ continued preference for brick-and-mortar stores, each generation has its own unique approach to holiday shopping.

That’s why Celigo surveyed 4,000 consumers across generations to learn what they’re looking for this year. We found that while several age groups are adopting new digital technology, traditional tactics such as physical store promotions still resonate with older buyers.

Dive in to explore how to connect with each age group this holiday season.

Generation Z and Millennials: Pioneers of digital shopping

Generation Z (ages 18-24) and Millennials (ages 25-34) are at the forefront of embracing digital shopping methods. These younger consumers are tech-savvy and heavily reliant on their mobile devices for holiday shopping. An impressive 67% of Gen Z and 65% of Millennials plan to purchase gifts via their phones. Social media platforms like TikTok, Instagram, and Facebook significantly influence these age groups, with many considering these channels as primary shopping avenues.

Moreover, the concept of self-gifting is particularly popular among younger generations. Approximately 61% of Gen Z and Millennials indulge themselves with gifts while shopping for the holidays, showcasing a trend towards personal splurging. They also tend to have more dynamic return habits, with 54% frequently returning items. This indicates their preference for trial and selection before finalizing purchases.

Personalization is key for engaging these groups. Younger shoppers appreciate tailored offers and enjoy the interactive nature of social media ads and in-app promotions. Retailers focusing their marketing strategies on these platforms while leveraging data to personalize experiences can effectively capture their attention.

Generation X: Balancing tradition and digital convenience

Generation X, individuals aged 35-54, exhibits a balanced approach to holiday shopping. While they utilize digital channels, their reliance on in-store shopping remains strong. About 42% of this demographic plans to rely more on digital channels for shopping this year, yet their affinity for traditional mediums such as TV ads and physical store promotions is noteworthy.

Gen X shoppers value convenience and practicality. Although they might not be as aggressive as younger shoppers in using social media platforms, they appreciate the efficiency of online shopping. This generation often seeks out established retail brands known for quality, preferring reliable customer service and hassle-free return policies. Retailers should ensure that their platforms function smoothly, and customer services are up to par to win over this cautious and value-driven group.

Baby Boomers and Seniors: Embracing digital transition

Baby Boomers (ages 55-64) and seniors (ages 65 and older) have shown an increasing openness to online shopping, albeit at a slower pace than younger generations. Despite only 26% of seniors and 42% of Baby Boomers primarily using mobile devices to shop, there is an upward trend as more seek the convenience of online platforms during the holiday season.

These age groups exhibit more loyalty towards traditional means of shopping, such as email promotions and television commercials. However, they are not completely detached from modern conveniences. Buy online, pick up in store options and simple, effective shopping interfaces can attract these demographics. Retailers should prioritize educating and providing support to make digital shopping less intimidating for older shoppers.

Strategies for engaging each generation

No matter the generation you’re trying to reach, smooth operations can significantly influence whether their experience is positive or negative. Retailers aiming to cater to the diverse needs of these generational cohorts should consider implementing these strategies:

1. Targeted promotions: Customize offers to reflect the preferences of each age group. Younger shoppers respond well to mobile and social media advertising, while older generations appreciate email and TV promotions.
2. Enhanced shopping experiences: Implement seamless, intuitive experiences for online shopping, and ensure customer service is top-notch to handle any queries efficiently.
3. Leveraging AI: Utilize AI for personalized recommendations and virtual assistants to help guide consumers through their shopping experiences, catering to tech-savvy and traditional shoppers alike.
4. In-store events and promotions: Even in a digital era, brick-and-mortar stores remain relevant. Hosting events such as Black Friday sales and ensuring an engaging in-store experience can attract consumers across all age groups.
5. Streamlined returns: Address frustrations with the returns process by offering free return shipping and clear policies. A smooth return experience can enhance customer satisfaction and foster loyalty.

Understanding the nuances of generational shopping habits allows you to tailor your strategies effectively. By blending modern technology with traditional shopping experiences, businesses can create a comprehensive holiday shopping plan that appeals to consumers of all ages. Embracing this multi-faceted approach will not only enhance customer satisfaction, but also drive sales in the competitive holiday market.

Learn more about what consumers are seeking this holiday season with our Holiday Shopping Trends Report 2024.