Nour Suliman, DHL Express CEO, Middle East & North Africa.
It’s no secret that the pandemic has been one of e-commerce’s biggest drivers, and 2020 saw growth rates accelerate at record levels. Store closures, social distancing and lockdowns forced even the previously reluctant, to shop online, initially out of necessity and later out of convenience.
While online shopping has generally been considered a territory for the young millennials and Gen Z-ers, Covid constraints have given rise to an older generation of shoppers with a healthy amount of disposable income.
According to global data from the NPD Group, consumers aged 65 and older are now the fastest-growing demographic of online buyers.
These baby boomers, or ‘silver surfers’, generally aged between 57-75, are fast catching up and present a burgeoning and lucrative market for e-commerce businesses looking to tap into new customer segments.
What started off as obligatory online spending for staple items, such as food delivery, groceries, cleaning supplies and personal hygiene products, has now evolved into voluntary purchasing of non-essential items such as books, toys, games, footwear, clothing, consumer electronics and appliances; all product categories that have witnessed the biggest increase in global online spending share.
And while the pandemic may soon be over, consumer research stipulates that a large percentage of baby boomers will not be returning to their old in-store shopping habits, but are instead planning to increase their online activity. What this means is that e-tailers need to shift their considerations to be able to capitalise on the trend.
There are three main factors that will influence the purchasing decisions of these new shopping coverts – trust, simplicity and convenience.
Online security is a big issue for silver surfers – in contrast to the younger, digitally-native generation who are more accustomed to sharing aspects of their lives online. Security concerns are big deterrents to the older generation doing business online and e-tailers need to make every effort to build that trust and assurance that theirs is a safe shopping space, be it through promoting their website’s safety protocols or being very transparent with their data handling policy.
Baby boomers, generally aged between 57-75, are fast catching up and present a burgeoning and lucrative market for e-commerce businesses looking to tap into new customer segments
As many silver surfers are new to online shopping, they naturally gravitate to online marketplaces where searching and browsing for products is user-friendly. E-commerce websites need to be tweaked to optimise the customer experience for them with easy navigation, how-to guides and video tutorials.
Customer service is a decisive factor in making a purchase for all customers, but baby boomers are most likely to abort an online shopping activity if the customer service is subpar. They still prefer human-to-human contact and are more inclined to opt for e-tailers with a human agent instead of an automation tool such as an AI-powered chat bot.
Transparency throughout the delivery process will also go a long way in converting new-joiners into loyal customers. Boomers new to the online shopping process want to be kept in the loop more than their younger counterparts; they appreciate full tracking and notifications of their order as a means of reassurance.
They are also more likely to appreciate the convenience of having choice in last mile delivery options and in how their shipment reaches them, considering many older people are still self-isolating or taking extra precautions against Covid. Fulfilment is therefore a crucial differentiator.
Which means a dependable logistics partner takes on added importance. Especially seeing that in an e-commerce sale, the only actual human interaction between the seller and the customer is the delivery person and they will leave a lasting memory in the customer’s mind.
Though there are some identifiable trends in boomers’ online shopping habits, it’s important not to use an umbrella strategy when targeting this group. Today’s boomers are experiencing a unique combination of life events so age is an oversimplistic way to treat this generation.
There are diversities in their needs, habits and motivations when shopping online so e-tailers eager to tap into this new demographic should do their research to find gaps in the market where older consumers are not being catered to, and then diversify or expand their product line to meet that need.
By Nour Suliman, DHL Express CEO, Middle East & North Africa
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Baby Boomers: The changing face of the online shopper
There are three main factors that will influence the purchasing decisions of these new shopping coverts – trust, simplicity and convenience
Nour Suliman, DHL Express CEO, Middle East & North Africa.
It’s no secret that the pandemic has been one of e-commerce’s biggest drivers, and 2020 saw growth rates accelerate at record levels. Store closures, social distancing and lockdowns forced even the previously reluctant, to shop online, initially out of necessity and later out of convenience.
While online shopping has generally been considered a territory for the young millennials and Gen Z-ers, Covid constraints have given rise to an older generation of shoppers with a healthy amount of disposable income.
According to global data from the NPD Group, consumers aged 65 and older are now the fastest-growing demographic of online buyers.
These baby boomers, or ‘silver surfers’, generally aged between 57-75, are fast catching up and present a burgeoning and lucrative market for e-commerce businesses looking to tap into new customer segments.
What started off as obligatory online spending for staple items, such as food delivery, groceries, cleaning supplies and personal hygiene products, has now evolved into voluntary purchasing of non-essential items such as books, toys, games, footwear, clothing, consumer electronics and appliances; all product categories that have witnessed the biggest increase in global online spending share.
And while the pandemic may soon be over, consumer research stipulates that a large percentage of baby boomers will not be returning to their old in-store shopping habits, but are instead planning to increase their online activity. What this means is that e-tailers need to shift their considerations to be able to capitalise on the trend.
There are three main factors that will influence the purchasing decisions of these new shopping coverts – trust, simplicity and convenience.
Online security is a big issue for silver surfers – in contrast to the younger, digitally-native generation who are more accustomed to sharing aspects of their lives online. Security concerns are big deterrents to the older generation doing business online and e-tailers need to make every effort to build that trust and assurance that theirs is a safe shopping space, be it through promoting their website’s safety protocols or being very transparent with their data handling policy.
As many silver surfers are new to online shopping, they naturally gravitate to online marketplaces where searching and browsing for products is user-friendly. E-commerce websites need to be tweaked to optimise the customer experience for them with easy navigation, how-to guides and video tutorials.
Customer service is a decisive factor in making a purchase for all customers, but baby boomers are most likely to abort an online shopping activity if the customer service is subpar. They still prefer human-to-human contact and are more inclined to opt for e-tailers with a human agent instead of an automation tool such as an AI-powered chat bot.
Transparency throughout the delivery process will also go a long way in converting new-joiners into loyal customers. Boomers new to the online shopping process want to be kept in the loop more than their younger counterparts; they appreciate full tracking and notifications of their order as a means of reassurance.
They are also more likely to appreciate the convenience of having choice in last mile delivery options and in how their shipment reaches them, considering many older people are still self-isolating or taking extra precautions against Covid. Fulfilment is therefore a crucial differentiator.
Which means a dependable logistics partner takes on added importance. Especially seeing that in an e-commerce sale, the only actual human interaction between the seller and the customer is the delivery person and they will leave a lasting memory in the customer’s mind.
Though there are some identifiable trends in boomers’ online shopping habits, it’s important not to use an umbrella strategy when targeting this group. Today’s boomers are experiencing a unique combination of life events so age is an oversimplistic way to treat this generation.
There are diversities in their needs, habits and motivations when shopping online so e-tailers eager to tap into this new demographic should do their research to find gaps in the market where older consumers are not being catered to, and then diversify or expand their product line to meet that need.
By Nour Suliman, DHL Express CEO, Middle East & North Africa
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