Gen Z is ready to spend this season. Millennials may be a bit cautious. YouTube is the place to go if brands want to get on Gen Alpha’s radar. And for older consumers, trust is the key to getting them to spend.
Here’s how retailers can appeal to each generation as the holiday season readies for Cyber Five.
YouTube plays a major role in both entertainment and product discovery among Gen Alpha.
Knowing that creators are essential for success, YouTube has added new features to help make it easier to market products on its platform.
The holiday strategy: Brands that want to reach Gen Alpha must have a presence on YouTube, potentially using creators to help increase product awareness.
Unlike other generations, Gen Z is ready to shop this holiday season.
The holiday strategy: Gen Zers may be looking for reasons to spend, but they appreciate a good deal. Use small perks like buy one, get one free gift cards or sample freebies to encourage them to treat themselves and their loved ones.
Millennials may be a little more cautious about their holiday spending this year.
Millennials aren’t the only ones who will be taking advantage of alternative payment services this year. As consumers struggle to balance holiday spending with everyday costs, BNPL spending will help drive a record $17 billion in online spending this holiday season, per Adobe.
The holiday strategy: To cater to cost-conscious consumers, brands should lean heavily on deals and discounts while also offering flexible payment options both in-store and online.
Knowing and trusting a brand is the top factor influencing purchase decisions for US adults, particularly among those ages 55 and older, per an August 2023 CivicScience survey.
Brands that over-rely on AI during the holiday season probably won’t earn that trust.
The holiday strategy: It may be tempting to use AI to keep costs down during the holidays, but don’t forget about the consumers who are still wary of the technology. Make sure that customers have a variety of ways to interact with your brand, including a good old-fashioned phone call.
This was originally featured in the Retail Daily newsletter. For more retail insights, statistics, and trends, subscribe here.
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