Shopping habits: Gen X, the overlooked generation

With the retail landscape constantly evolving, it’s easy for retailers to focus on spotting new trends and attracting younger shoppers. We’ve investigated the shopping habits of the ‘overlooked generation,’ who are older than Millennials but younger than Baby Boomers, to find out what they expect from retailers.

We found that there’s less research conducted on their shopping habits in comparison with older and younger generations, yet they have significantly different shopping habits which shouldn’t be ignored. Especially when you consider that Gen Xers have the largest disposable income.

Having grown up surrounded by technology, Millennials and Gen Zers are known to freely hit the buy button, but the generation above them, roughly born between 1965 to 1980, shop far more conservatively. So, what do retailers need to know about their shopping habits and how to cater to them?

1. Honesty is the best policy

Gen Xers won’t be won over by flashy advertising or celebrity endorsements, as they are more skeptical about marketing techniques than the younger generations. They prefer honesty and personalization. To win them over, retailers should make sure their marketing efforts are authentic and honest.

2. Emails are appreciated

Having just missed out on growing up in the social media era, Gen Xers regularly use email and regularly check it. They are likely to respond well to personalized offers based on their previous purchases and are impressed by the brands that make this effort. By making use of personalized email offers, retailers will be able to establish a relationship with this generation. According to a report by GlobalWebIndex, Gen Xers are the most loyal generation, so putting in the effort to create this relationship will be beneficial for retailers.

3. Importance of customer service

While Gen Zers are online shopping natives, Gen Xers rely on quality customer service in-store for brand loyalty. Having spent a lot of time relying on shop assistants and face-to-face interactions, they value assistance without an upsell. That’s not to say that value-add technology in-store isn’t welcome.

4. Similarities with Gen Z

It is not only the younger generations who are researching online and then shopping in-store to get their desired product straight away. This tactic is also favored by Gen Xers, perhaps even more so than their younger counterparts: they tend to shop more predictably than other generations, and to avoid regretting new purchases will research a product extensively online via reviews and social media networks before handing over their money.

Retailers need to pre-empt this and be aware that although both Millennials and Gen Xers will be researching products beforehand, they will conduct this research in different ways. The younger generation will likely conduct research on their phones in-store, whereas Gen Xers will be more likely to do the online research at home before heading into the store.

5. Their digital ability

The assumption that Gen Xers aren’t digitally savvy and rely on Millennials to teach them how to use tech is an outdated stereotype. GlobalWebIndex found that 86% access the internet via smartphone, and 76% via laptop. Many assume that the younger generation drove the upswing in e-commerce, but Gen Xers are actually a key driving force in this move as they were among the first to adopt online shopping behaviors.

6. Fans of cash?

Although Gen Xers aren’t as keen to adopt mobile payment methods and apps as younger shoppers, as big fans of the credit card they are still up for the move towards going cashless. In fact, some of this generation are open to moving towards newer digital payments with almost half of Gen Xers willing to use mobile payments to make a purchase. While Wirecard research shows that paying by credit card in-store remains a popular way to pay (preferred by 60% of respondents), contactless card and mobile wallets were still among the top 3 preferred payment methods.

As we move into a world where digitalization is becoming more popular and increasingly common, it is likely that this generation will be looking to throw out their physical credit cards and adopt the new trends. For this reason, it is key that fintechs and financial institutions are ensuring that their apps and services are user friendly and don’t just appeal to Millennials.

7. The overlooked generation

Gen Xers should no longer be the forgotten generation. In fact, Gen Xers produce 31% of total US income, for example, despite representing only 25% of the population. They are also the most loyal generation. With 3 in 5 agreeing that once they find a brand they like, they will stick to it, retailers should definitely start paying more attention to them.

Consumer shopping habits are constantly changing, and retailers would be smart to keep an eye on this generation. Gen Xers, though often overlooked, have different shopping habits to Millennials and Baby Boomers. With significant disposable income, they are a key generation to keep an eye on and will be crucial in evolving the way we shop and pay. Retailers must adapt to these changes as the power doesn’t only lie with Millennials.