What retailers should know about selling to the various market segments?
Now that we’ve identified the three major segments that makeup the market place let’s define them more finitely.
They were born between 1946 and 1964 and represent 80 million people. They tend to more traditional and have greater loyalty to the stores where they shop. As a demographic group they have enjoyed a significant increase in both the quality and longevity of their lives. They want to be recognized as loyal customers and want salespeople who are knowledgeable.
Were born between 1964 and 1980 and they represent 35 million people which is the smallest market segment. As a group their average expenditure using e-commerce is significantly greater than any other market group. They do a lot of research before buying and seek word of mouth confirmation before making a major purchase. They also want retailers who have expertise in the products they sell.
This group is the 2000 pound gorilla in the room. They were born between 1980 and 2000 and represent the same market share as Boomers, 80 million. By 2015 they will have a purchasing power of 2.45 trillion dollars and will make up 75% of the workforce worldwide. This is the most mobile enabled segment of the market and social media is the way they communicate their likes and dislikes to their peers. They seek the affirmation of where they shop and what they buy through Social Media. So how do you tap into and stay relevant to Millenials. Here are a few suggestions.
– Communicate with them through social media, Facebook, Instagram etc.
– Offer them personalized discounts based on their past purchases
– Hold special events specifically for this age group
-Tailor your offers to them to move into new areas in your store
– Provide relevant product information and product reviews
It’s absolutely crucial to your future growth that you address the millennial segment of the market using the devices and modes of communication they use.