IRVINE, CA—(October 2, 2019) – With the 2019 holiday season fast-approaching, Parcel Pending, the leader of package delivery solutions, is taking an in-depth look at generational shopping behaviors to help retailers better prepare for another record-breaking holiday shopping season.
“During the 2018 holiday season, retail sales rose 3.1 percent. This year, Deloitte predicts that U.S. retail sales will surge up to 5 percent between November and January to $1.1 trillion in sales,” stated Cynthia Aadal, VP of Retail Strategy at Parcel Pending. “Additionally, BOPIS spending increased 47 percent during the 2018 holiday shopping season compared to 2017 and this trend shows no sign of stopping. We’re seeing everyone from Baby Boomers to Gen Z taking advantage of the quickness and convenience of BOPIS so retailers need to be prepared to offer a seamless and premium BOPIS experience this holiday season.”
Parcel Pending’s Snapshot of Generational Shopping Behaviors:
• Baby Bommers Crave Convenience & Great Customer Service
o Convenience and superb customer service reign king and queen for Boomers. In fact, Boomers are most likely to turn their nose at a company after experiencing poor customer service or a negative interaction with sales associates.
o The majority of Boomers research products online. However, Colloquy reports that a whopping 84 percent of Boomers prefer to shop in-store, and 67 percent prefer to purchase an item that is both available online and in-store at their local retailer.
o That’s not to say that Boomers don’t make online purchases. In fact, Immersion Active reports that 66 percent of Boomers make regular online purchases.
o Colloquy also reports that 12 percent of Boomers prefer tapping others for help with their buying decisions.
• Gen X Is All About Online Research & The Physical Store
o Gen X loves to research their future purchases. They go to great lengths to conduct research leaving no stone unturned. They leverage search engines, online reviews and social media to gather information about an item before making a purchase.
o However, when they do make a purchase it is most often not an online purchase but rather a purchase in the physical store.
o They are not implusive shoppers but rather spend time researching and learning about products before making a purchase.
o Gen Xers communicate with retailers in a number of ways. Alliance Data reports that 18 percent of Gen Xers use mobile apps to follow retail stores, 44 percent visit a retailer’s website regularly, 40 percent subscribe to retailer emails and 28 percent receive direct mail.
o Finally, phenomenal customer is of the utmost importance to Gen X. Much like Baby Boomers, Gen X doesn’t have a problem with turning away a retailer after having a bad experience with customer service.
• Show me the Money! Millennials Value Price & Rewards Above all Else
o Price is important to millennials! In fact, Blackhawk Engagement Solutions reports that 88 percent of millennials would consider buying online and picking up in store to save $10 on a $50 item.
o In addition to price, millennials also are all about rewards! Bond Brand Loyalty reports that 68 percent of millennials would change where they shopped if it meant getting more rewards; 83% said value-added rewards and surprises inspire greater loyalty and 82% said when earned rewards come paired with a special offer it can encourage them to spend the reward (source: Swift Prepaid Solution).
o Similar to Gen X, Millennials are all about shopping in-store and enjoy touching, feeling and trying out products before making a purchase.
o However, millennials are also a big fan of mobile. A recent Accenture survey found that 23 percent of millennials use contactless payments at least once a week.
• Going Bonkers for BOPIS! Gen Z Ranks BOPIS as one of their Top Preferred Shopping Methods
o Gen Z is all about quick, easy convenience. They want the products they order online to be available immediately. That is why a recent survey of Gen Z consumers found that 58 percent had used BOPIS within the last month.
o Growing up with technology at their fingertips, Gen Z shopping habits are primarily driven by mobile and experiential shopping. It should come as no surprise that Gen Z taps their mobile devices to research products, engage with brands, discover new items and make purchases.
o However, Numerator reports that e-commerce only accounts for 7.4 percent of Gen Z spending, with many preferring to shop in physical stores.
o In fact, 81 percent of Gen Z prefers to shop in stores, and 73 percent like to discover new products in stores, according to a study by A.T. Kearney.
o Much like millennials, Gen Z is frugal when it comes to price. However, this is the generation that is most likely to make impulse purchases.
o It should also be noted that this generation is fickle and it is difficult to obtain and maintain their loyalty.
“It’s going to be another record-breaking holiday shopping season in terms of sales, which will be fueled by online and mobile shopping. Retailers can capitalize on consumer spending by arming themselves with our BOPIL retail locker solutions,” continued Aadal. “BOPIL helps retailers generate more revenue during the busy holiday shopping season by streamlining their BOPIS process. This helps to enhance their customer experience and improve retail staff efficiencies significantly. Bottom line, if you want to boost your revenue this holiday season then you need to invest in BOPIL.”
The way BOPIL works is simple. Once an online retail order is fulfilled – be it groceries, clothing, electronics, cosmetics and more – the items are placed into one of the Parcel Pending lockers located at the retail store. Customers are then instantly notified by text or email and provided with a unique numerical code that they can type or scan at the locker kiosk. They can then quickly and easily pick up their order at their convenience by going to the retail store and simply entering their personal code into the locker.