From brand and product options to the methods to purchase, consumers have more choices than ever in how their shopping experience comes to life.
The most recent shift in consumer mindset and shopping preferences happened as a result of the COVID-19 pandemic. Because so many retailers were forced to shift to online-only during this time, we saw heavy investment in improving online shopping experiences. As we shifted to our post-COVID “normal,” many consumers became so accustomed to the comforts and ease of online shopping that they haven’t rushed back to in-store shopping. Some retailers have become so invested in optimizing their online service that they’ve let in-store experiences take a back seat, resulting in unstocked shelves, long lines and limited staffing.
But people have vastly different preferences, especially when we look across generations. For brands looking to be truly human-centric, it’s important to understand the nuances of their customers’ preferences and invest in strategies both virtual and in-person as a way to drive loyalty.
In this article, I’ll share solutions retailers can consider to inspire consumer closeness by bridging online and in-store shopping experiences.
Identifying Generational Shopping Preferences
In addition to the COVID-19 pandemic and the aftermath, a consumer’s generation is one of the most influential factors in retail shopping preferences. Depending on a person’s life stage, their reason for shopping is different, their needs are different, etc. Let’s dive into how those differences come to life:
- Gen Z: This generation is a digital native, having grown up with the ability to purchase anything through the click of a button. Despite this knowledge, we’re also finding that Gen Z still likes shopping in physical stores just as much as online. A new ICSC survey found that although 95 percent of Gen Z like shopping online, just as many (97 percent) still like shopping in a mall setting.
- Millennials: Counter to Gen Z, this generation values convenience, ease and efficiency of online shopping over in-person. In fact, a consumer survey in early 2023 revealed that 73 percent of millennials stated they planned to spend “the same or more” online in 2023 than in the year prior, and only 15 percent stated they planned to shop online less than the year prior.
- Gen X: This generation is just about as digitally savvy as millennials, yet according to a HubSpot survey last year, 73 percent still prefer to purchase products in-store. While older generations are turned off by digital ads and targeting, 55 percent of Gen X say ads are their biggest source of product discoverability for which they then go in-store.
- Baby Boomers: With ample savings and buying power, this generation can afford to spend on discretionary items and also have the highest expectations when it comes to what they want from online shopping experiences. They realize the necessity of shopping online but want their e-commerce experience to replicate the information they get in-store — accurate imagery, pictures of every angle, product specifications, reviews, etc.
How to Create a Seamless Bridge Between Brick-and-Mortar and E-Commerce
While the examples above paint a great picture of the different preferences among consumers, age is just one of many factors we could look at. Retailers looking to build truly human-centric strategies should invest in building deeper connections with consumers. Then through that closeness they can develop strategies that feel authentic across digital and physical experiences.
3 Tips to Build Consumer Closeness
- Missions: Go through the experience for yourself and explore the in-store and digital shopping journey for you, your competitors and leading-edge brands. Dig deeper and step away from your desk to observe people’s behavior in the wild.
- Challenges: Take things up a notch and more deeply immerse yourself in the consumer perspective. Buy groceries for a week on a limited budget in person and online, complete a deprivation or forced use exercise of different shopping channels — identify ways to respectfully immerse in consumers’ lived experiences or pain points to create personal associations with their needs.
- Consumer Conversations: Leverage consumer conversations as part of an empathy-building socialization of learnings. Leverage one-on-one conversations or panels in a pointed and purposeful way to identify consumer needs and help shape a better future.
A great example of a brand that created a seamless experience both in-person and online for its customers is Abercrombie. After undergoing a massive rebrand in 2017 followed by the 2020 pandemic, this brand has been challenged with learning and re-learning the experiences and preferences of its customers.
To enhance its online experience, Abercrombie is continuing to invest and expand its organization in the space of digital analytics and user experience. The retailer also believes that all employees — not just the tech team — should have knowledge of its online storefront and how to assist with clothing fit, browsing, etc., to serve its new customer base.
And for shoppers looking to visit the store in-person, Abercrombie is continuing to make enhancements that improve that experience as well, including adjustable music and lighting in dressing rooms, expanded in-stock sizing, and faster checkouts.
The Road Ahead: What Does This Mean for Brands and the Future of Consumer Shopping Experiences?
Despite what we hear about emerging technology and artificial intelligence advancements, we know for sure that brick-and-mortar shopping isn’t going anywhere. And while the investments that brands placed on digital CX in 2020 is valuable, balancing investment in areas that yield consumer closeness across digital and in-person landscapes will ensure seamless retail experiences and bridge the gap between in-person and digital shopping.
The retail landscape looks different than it was five years ago, and it will surely look different five years from now. It’s for that reason that remaining adaptable to changing consumer preferences and being open to continuous innovation will enable you to thrive in the retail space.
Crystle Uyeda is vice president, growth strategy at Human8, a human-driven consultancy that connects your brand with people and culture to drive positive change.
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