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Online Shopping Trends: A Guide to Generational Shoppers

96% of people in the US now say they shop online. 80% of them have made an online purchase in the last month. Regardless of age, income, education or where they live, more people today are buying online. That includes furniture. From Baby Boomer online shopping to Millennial shopping habits to Gen X caught in the middle, the online experience is changing for everyone and each generation engages online in their own special way. To attract more people in a given generation and make more sales, you have to understand their unique online shopping trends. We’ve got the goods for you right here. Here’s your extensive look at online shopping trends by generation.

Who Is Gen X

Born between the mid-’60s and early ’80s, this generation came of age in the ’80 and ’90s. Being children during the days of hyperinflation, gas shortages and fast-changing social values, they found themselves reaching adulthood in the era of MTV, hyper-commercialization and Wall Street excess.
Often given a bad rap by the Silent Generation, they were called the MTV generation or even slackers. But Gen X quickly came into its own. They showed the world what they had to offer, diverse music and entertainment interests, a strong entrepreneurial spirit and a desire to work hard for what they want in life. They paved the way for the fast-advancing technologies we all enjoy today as the Boomers paved their way.
Gen X wants to enjoy the beautiful home and life that hard work affords them. And, historically, they’re also not afraid of “putting it on plastic” versus saving for what they want, although that has changed a bit over the last 5 to 10 years.
When it comes to home furnishings, it may seem that selling to this generation is a piece of cake. But there’s probably a lot you don’t know about this generation. For example, they often have the money to spend. But they’re selective about where they spend it. If you don’t understand what they’re looking for, you may be passing up a lot more Gen X business than you think.
Gen X is retail-savvy. They’ve lived through a generation of misleading ads, overzealous salespeople and manipulative sales ploys, so they’re not likely to fall of gimmicks. They value honesty and authenticity in advertising. They’re naturally skeptical. They don’t trust you just because you own a business or live in their community. They want proof.
Let’s take a look at some other things you need to know about this generation.

Gen X by the Numbers

Gen X currently only makes up about 25% of the US population. But they make up 31% of the income. Their average individual annual salary is $51,000, which is solidly middle class in most of the country. Among two-person income households, the average is $93,000.
This is a go-getter generation that wants it now. And they’re willing to do what it takes. 55% of the startups this year will be started by a Gen Xer.
According to the Department of Labor, Gen X also outspends all other generations. They spend most of it on housing, clothing, eating out and entertainment. 35% of Gen Xers have college degrees, making them the most formally-educated generation today.
But do they spend money on furniture?

Gen X Furniture Spending Trends

Xers have recently lived through some crazy times, including the dotcom and real estate bubble bursts, insanely rapid changes in technology, a recession and the expense of aging parents. All of this and more impacts on how and when Gen X buys furniture. Let’s take a closer look at some of these factors.

Gen X Debt

Recent events have brought on insurmountable debt. People who thought they were making all of the right moves with money, found out that it can be gone in a flash. All of this impacts where they are right now and how they spend money both online and off.
Because of this, they’re exhausted by high-pressure salespeople who only think about padding their bottom lines without consideration that maybe the Xers just can’t afford something right now. They may be able to in the near future. But many businesses lose that opportunity by forcing a hard sell now.
To really understand furniture trends, you can look at Gen X’s current home buying status, as follows.

Gen X Home Buying Status

There are only around 79 million Xers, compared to 80 million Boomers and 88 million Millennials. But still, Gen X leads the way in new home purchases. Despite the supposed tiny house trend, Xers are still buying bigger and newer homes that need large furniture to fill that space. 4 out of 10 new construction homes were purchased by Gen X last year.
Homeownership among Gen X dropped from 71% to 62% during the housing crisis, so Gen X is now in recovery mode. They’re working to get their homes back to where they were before 2007.
That’s great news for a home furnishings retailer. But it’s not all rainbows for Gen X right now. You’ve another major economic impact right now and that’s their aging parents.

Gen X and Their Aging Parents

According to Pew Research, 21% of Gen Xers are providing financial or material support to their aging parent who is likely an older Boomer or someone from the Silent Generation. If their parent is from the Silent Generation, those who were children and young adults during the Great Depression, chances are they need significant financial help.
48% of Gen X are either caring for a child or an aging parent right now.
In many instances this means they are:
But it can also mean they are:
In these cases, the furniture purchased is more likely to be smaller, practical and a good value.
Gen X is a business-oriented generation. But this doesn’t mean they don’t have time and money to spend online. Let’s take a look at their online shopping trends.

Gen X Online Shopping Trends

If you just think of Millennials when you think social media, you’d be way off. Actually, Gen X was very quick to adopt social media and everything that comes with it. 81% of Gen Xers have a Facebook account and check it several times a day.
The place where Gen X differs in Facebook usage may be the reason that we think of Millennials when we think of social media. Gen X primarily uses social media to stay informed and connected. They rarely use it to self-promote their lives, which we associate with Millennials. This puts Gen X more on the consumption end of social media.
They buy through social media. They buy a lot!
60% of Gen X like and regularly engage with online brands. 40% of Gen Xers stick to a brand that they like even if it means spending a little more money.
They put a lot of work into choosing their brands. But once you earn their affinity for your brand, they rarely consider other options. 70% of luxury retail brands polled said Gen X is the most brand loyal of generations.
But how can you use knowledge like this to make more sales with Gen X? You do this by giving them the experience they want from your business. As we further break down Gen X online shopping trends, it becomes clearer how you can leverage this information.

What Gen X Wants from Your Business

54% of Gen X are frustrated with brands today. They think that businesses ignore them to either cater to Millennials or Boomers. 27% think that brands don’t advertise in a way that reflects their lifestyles and experiences. They feel taken for granted.
Around 48% of Gen X live between worlds. Unlike most Millennials, the Internet is not almost 100% integrated into their daily lives. They still watch regular TV, listen to the radio and read magazines along with spending substantial time online. Often they’re double screening while doing it.
Gen X wants value and recognition for their loyalty. Gen X is willing to spend more and buy more often if you make it worth their while with bulk discounts when they buy multiple items or a whole set. Arrange promotions in such a way that you show the value in buying more and Gen X will follow suit.
If the deal is good enough they may even be willing to put it on credit if you offer them a generous no interest period to do so.
And speaking of how to attract Gen X…

How to Attract More Gen X Shoppers

So… if Gen X is still watching TV and listening to the radio can I just keep running traditional ads to attract Gen X?
We’re so glad you asked. Here’s what’s happening to retailers who are applying that strategy.
Every retail business today must have an online presence to survive. People simply don’t buy like they used to.
So… I just need to be online, right?
Once again, great question. Here’s why that doesn’t work so well with Gen X either.
Gen X is looking for trust and authenticity. They’re still more likely to trust a brand that has a physical presence in their community.
So going with completely one or the other loses Gen X business. To attract Gen X, use a combination of traditional and online advertising. The traditional advertising builds trust because it’s familiar to them. It makes you seem like a more “legit” business in a world where so many online businesses aren’t what they seem.
Online advertising closes the deal because it makes it easy for them to buy now online. But in order to seal this deal, you must be visible, so let’s explore how to get found by Gen X online.

How to Be Visible to Gen X Online

Gen X spends over 34 non-work hours a week online, mostly on social media, news sites, and financial websites. Reaching Gen X online means being in these places. And, yes, this includes mobile. You didn’t think we’d leave that one out, did you?

Invest in Mobile-Friendly

85% of Gen Xers have smartphones and use them regularly, so being mobile-friendly and incorporating online tools into your shopping experience is important for Gen X shoppers.

Incorporate SEO

It’s critical that your brand be visible online through search engine optimization (SEO) because a lot of that mobile time is spent searching for companies, browsing through reviews and buying things.

Utilize Paid Advertising

SEO takes some time to increase website visibility so it’s very important to supplement it with social media and search ads. Display ads are most effective because you can actually show Gen X what the furniture looks like.

Build a Social Media Brand

Build a community on Facebook. Remember, Gen X is very brand loyal and actively participates with brands they like on social media. Leverage this love to both solidify that loyalty and encourage them to share your brand with others.
Consider the values and trends related to Gen X and craft your advertising message around it to demonstrate that you value their business and their loyalty.

How to Increase Gen X Lifetime Value

To increase lifetime value among Gen X, the most important thing you can do is be visible where there are. But there are also some specific strategies you can use to get them to spend more and buy more often.
These you’ll find very interesting…

Getting Gen X to Spend More

Personalize the website experience to cross-promote items based upon their preferences, style quiz results, and searches. With automation today, they’re no reason someone who visits your site multiple times has to see generic hit or miss advertising. Gen X wants this more customized experience.
Gen X loves interactive tools like a room design tool that allows them to mix and match furniture and virtually see what it will look like in their home. Tools like this encourage Gen X to stay on your site longer, exploring their options. Then they can instantly build a shopping list from that tool.
But in addition to selling more, it’s important to get them back in your store more often.

Getting Gen X to Buy More Often

Here are some of the top ways to get Gen X to buy more often:
That’s Gen X. Are they a bit more complex than you thought? Just wait until you meet the Baby Boomers.

Who Are the Baby Boomers

Baby Boomers were born in the mid-’40s to early ’60s. Compared to the other generations, they’ve been through a lot, the aftermath of the Great Depression, several major wars, recession, civil rights, and a cultural revolution. Known for rejecting the traditional values of the generations before, they’ve paved the way for greater freedom, equality and national prosperity.
Often labeled, hippies, yippies, or yuppies, they rarely get the credit they’re due for all that they accomplished with so little to work with.
Boomers have always self-identified as a “special generation”. Because a huge population bubble has followed them as they aged, the US has constantly had to adapt as they reached a new stage. Schools had to increase capacity when they were children. The job market had to grow and expand as they began working. That’s not unlike what we’ve now seen with the Millennials, another especially large and impactful generation.
And while many Boomers have entered retirement age, they continue to be a strong economic force in the US.
Let’s take a look at what you need to know about Baby Boomers online shopping and furniture buying trends.

Baby Boomers By the Numbers

Making up roughly 20% of the US population, Baby Boomers are the wealthiest generation, with an estimated net worth of $31 billion. They control 70% of the US’ disposable income. 90% of Boomers are married and most have two-person incomes.
They’ve spent long hours on the job, invested well and have largely avoided debt. Many have benefited from high corporate, state and federal pensions in addition to social security padding their monthly incomes. In all but the cities with the highest costs of living, as a whole Boomers are doing very well.
They have money to spend on themselves, their children and their grandchildren.
Boomers are largely spending on travel. AARP estimated that Boomers will spend $120 billion on it this year. But Boomers are also spending on healthcare, mostly proactive because they want to stay healthy and active. And, in 2014, Boomers spent almost $30 billion on their pets, roughly half of total pet spending in the US.
Are you selling crystal encrusted dog bowls? A Boomer will likely be the one to buy it.
But Boomers are also spending a lot on home improvements. They’re building on rooms, expanding home recreation space and making their homes more accessible for the future. From pool tables to patio furniture, this is great news for furniture retailers who know how to attract this generation.
Older Boomers are now downsizing. They’re moving out of their large homes into one-level, smaller spaces. The number of families living in ~1,400 sq ft, single floor homes jumped from 17,000 to 21,000 in 2017 as Boomers made the move.
They’re consolidating. But this also means they’re spending more time at home. And they may have more to spend on others, for example, helping a Millennial grandchild furnish her first apartment after college. Working this angle as a furniture business can be similarly rewarding.
But where are Boomers? How do you reach them? Surely, they’re not online?

Baby Boomers Online Shopping Trends

Baby boomers online shopping may seem like an oxymoron to those who don’t know the truth. Here it is. Boomers spend more money online than Millennials do. 82% of Boomers have Internet. 66% of Boomers make regular online purchases. And when they buy, they spend a lot more, which helps them outrank the spending of other generations.
Considering the fact that profit margins are generally higher on larger orders, that’s great for retailers who understand and can leverage this truth about Baby Boomers’ online shopping habits.
70% of Baby Boomers own a smartphone. But 67% of Boomer online purchases are made on a desktop or laptop computer and only 14% are made on mobile devices like a tablet or smartphone. Voice search is growing among this generation faster than any other. Using soft keys or a keyboard becomes more challenging with age.
On top of that, this next Baby Boomers online shopping trend may shock you. 51% of Boomers spend over 15 hours of leisure time a week online. Only 41% of Millennials spend this much time online.
You may also be surprised to find out that the average Boomer has 4.6 social media accounts. They use YouTube (68%), Facebook (65%) and Pinterest (26%) most frequently.
They’re online and they’re spending money. But are Boomers buying furniture online?
Yes. Household goods and appliances rank #2 among the most commonly Boomer-purchased items online, second only to healthcare and wellness products.
While it’s true that Boomers do buy furniture online, there are some things you need to know about how they prefer to buy and what they want out of the online experience.
After all, they are a special generation.

What Baby Boomers Want from Your Business

Boomers value convenience and they think that technology should “just work”. If a website is hard to use, slow or complicated, they’ll actually lose interest faster than Millennials. They won’t bother to try to figure it out. They want a seamless online experience. Search. Add to cart. Pay. And they’re done. They’ll write you a great review.
Baby Boomers also want to be able to walk into your physical store to see the merchandise before they buy. Even more so than Gen X, they see a physical store as a sign of trustworthiness. Once they see the item in person, like Gen X they often return to the Internet to make that purchase. So having an online presence is just as important here as it with younger generations.
Leverage these Baby boomers online shopping trends to generate foot traffic from your online presence. And then, close the deal online if you don’t close it in your store. Not closing the deal in-store isn’t a failure for your salespeople. Make sure they have the tools to close deals both online and in-person to keep customers from slipping through the cracks.
But first, how do you reach Baby Boomers in the 21st Century? Let’s take a look at where Baby Boomers online shopping trends lead us.

How to Attract More Baby Boomers

Like Gen X, they view traditional media. But unlike Gen X, they don’t need as much traditional advertising to know you’re legit. They’ve seen your business in the community for years and probably remember the day your parents broke ground on that showroom.
To attract Boomers, you’ll want to invest in traditional and digital advertising. Contrary to popular belief, Baby Boomer shoppers are spending time online as well as the traditional channels like TV and print. So make sure to keep running social media ads on Facebook but this generation won’t be a big section of your impressions on YouTube or Pinterest. Be careful on conversion traps with this generation. Create easy-to-use landing pages that reduce the number of steps between click and buy.
Also, be very visible in searches utilizing SEO and search ads for platforms including Google but not limited to only that search engine. Baby Boomers are likely to use Google as much as Bing and other less dominate search engines. So test a few varieties until you find the space that fits the best with your market and demographics.
Consider the above truths about Boomers, why they buy and for whom they buy and build your messages around this generation. On social media, you can target certain age groups with ads designed for that group. Use this feature to get the right message in front of the right generation.
Congratulations! You’ve attracted a Boomer. Now, how do you make the most of it?

Getting Baby Boomers to Spend More

To get Boomers to spend more, make your website easy to navigate with straightforward listings and stunning pictures. Furniture draping technology allows a Boomer to click a color and see the sofa, chair or patio umbrella in its many colors and styles. Tools like this keep Boomer shoppers engaged and on your site longer.
Similar to Gen X, personalize the ads they see so that they reflect their browsing and purchase history. Ask Boomers to complete a style quiz so that you can quickly learn more about them and customize their online experience.
Many Boomers will also use room design tools if they are easy to use and helpful in their search for the perfect new set.

Getting Baby Boomers to Buy More Often

To get Boomers to visit and buy more often, start these online shopping trends:
Now that we’ve demystified Gen X and Baby Boomers online shopping trends, let’s move right along to Millennial shopping habits.
We’ve saved Millennials for last because they are the future of furniture sales. But, ignore Gen X and Boomers at your peril because they’re the ones with most of the disposable income.
Millennials may be buying less furniture today than their parents, but they’re still a strong driver of the online shopping trends that Gen X and Boomers have adopted. In many cases, both Boomers and Gen X look at what the very vocal Millennials share on social media to understand what furniture trends are in and what’s “so uncool”. They still drive buying decisions even when they’re not the ones with the money.
You know who they are. They won’t let you forget it. So let’s jump right into Millennial shopping habits.

Millennial Shoppers By the Numbers

Today there are roughly 80 million Millennials in the US. They make up one of the most diverse and largely inclusive generations the US has ever had.
Millennial-run households make around $69,000/yr according to current Pew Research data. Even adjusted for inflation, that’s more than any young adult run households in the past 50 years. The average individual salary is $39,000.
But there’s a flipside to this. Millennials are also the generation most burdened by student loan debt as they saw the cost to get a higher education skyrocket just as they were entering college.
In the ’80s, college students could expect to get a 4-year degree at a public university for around $12,000 in total. But in 2018, that same degree would cost $40,000, adjusted for inflation. While Boomers and even Gen X could work their way through school with part-time jobs, Millennials didn’t have this luxury. They had to turn to lenders and hope they’d land a good job to pay it back after school.
Collectively, Millennials owe a lot of student loan debt, to the tune of $1.56 trillion. And, for many, this has caused them to put off their dreams of homeownership. This, of course, strongly influences Millennial shopping habits.

Millennial Shopping Habits Online

Despite the debt, Millennials are buying furniture. They spend around $27 billion each year, compared to $32B and $34B for Gen X and Boomers, respectively.
But Millennials do spend their money differently. They’re more selective and streamlined with their purchase. They care about where that furniture came from and what it’s made of.
For example, do your manufacturers use environmentally-friendly sources? How do you treat your employees? Does your business give substantial support to a local charity? These kinds of factors can encourage them to spend more.
They also do their homework to make sure they’re getting the best price and getting exactly what they want. This is important because they have very little disposable income. If they buy the wrong thing, they’ll be living with that decision for years.
To this end, they really pay attention to reviews and consume a lot of online content like videos, blog posts, and interactive media that helps the decision process.
You also won’t be shocked to find out that 92% of Millennials have a smartphone, and social media viewed largely on their smartphones influences a lot of their decisions. They’re on Facebook, Youtube, Instagram, and Pinterest. But they use these platforms differently compared to their parents.
After reading this, you won’t be surprised to find out what Millennials want.

What Millennials Want from Your Business

Millennials want content and interactivity. Their trust meter goes up as they consume more of your branded content.
Millennial shopping habits align well with a more interactive way of connecting. They appreciate brands that integrate the real world experience with the online one.
Tools like product draping, room design, and augmented reality serve this purpose. But also having a more interactive social media presence is important.
Understand that they are educated and not likely to fall for sales ploys. Unless your business has a strong social cause, they’re going to shop around every single time they buy. They want to do business with companies that demonstrate honesty and legitimacy.
They want to engage with your brand online and they want to support local businesses. But they may feel that you don’t want to engage with them because you haven’t adapted to newer ways of doing things.
According to Forbes, 60% of Millennials actively interact with brands they like on social media. They love to show their love for brands and share their opinions to help the business be better and do better. They want to feel like a part of the brands they support.

How to Attract More Millennials

To attract Millennials, first, understand what they want and where they are in life. Many have money and are willing to spend it if you deliver the right experience. They’re not willing to spend money on inferior products that will break in a year or two. And they won’t be back if they get bad customer service or an inferior product.

Social Media

Use social media not only to share offers and online content. Also, promote contests with nice prizes and events in your physical showroom. Millennials are very experiential. They will come to your showroom if you give them a fun reason to do so.
But the online experience can be just as powerful.
Millennials love to promote themselves and the brands they love, so solicit User-Generated Content (UGC).
For example, run a themed contest in which they take a selfie of themselves enjoying a piece of furniture from your store. Give them a hashtag to go with it when they share it on Instagram and reward the best photo.
Encourage Millennials to share their room designs with their friends online to not only get their opinions but also an encouragement to complete the purchase. On top of this, these posts attract more people onto your website.

Online Reviews

Online reviews are incredibly important to Millennials, as well as personal recommendations. They don’t want to part with their money to buy a new dining room set unless they can see that others have already bought it and love it. They look at what people are sharing on social media and say about it to form their opinions.
To attract Millennials, pay attention to your online reputation and address unhappy customers online in a positive way. Always make things right.
But know that Millennials have another side. While this may seem contrary, they also like to be the first to try new things.

Millennials Love Adventure

Attract the Adventurer Millennial by demonstrating through a strong online reputation and social media engagement that your brand is worth the risk. You care about customer experience and provide high-quality products. So they know if they buy something from you, you stand behind it.

Using Omnichannel Marketing for Millennials

Picture these online shopping trends! A millennial is standing in your showroom right now. They’re tapping and swiping away on their phone. They’re ignoring the sales-person who just offered to help them. You probably think they’re disengaged and even rude. Why would they come to your store just to “play” on their phone?
But here’s what they’re really doing. They’re checking online reviews. They’re sending a pic of this table they like to their friends on Facebook to see what they think.
Or they may be using your online room design tool or loading up their online cart as they walk around feeling fabrics and sensing textures. They may even be buying the sofa they’re sitting on online instead of walking up to the counter. This behavior may seem odd to earlier generations. You may have been ready to call them a loiterer or other choice names. But they’re really very engaged. And they are paying customers.
It’s important to remember that Millennial shopping habits are the future of online shopping trends. This is the omnichannel experience, a fully integrated online-real life experience.
To attract Millennials, offer them this omnichannel experience by making your website easy to find and use with SEO. And add online tools that Millennials can use while in your store or at home.
Advertise these tools both online and in displays in your showroom. The key to getting Millennials to buy more and buy more often is employing these kinds of interactive experiences.
We’ve covered all of the online shopping trends for the generations currently buying furniture. Now, let’s briefly look at where the most online buying is taking place.

Top 10 Cities Where People are Shopping Online

As you’ve seen throughout this article, online shopping is far from a Millennial thing. 25% of online shoppers in the US are over 55. And despite the fact that cities have great amenities, it’s often the cities where the most online shopping takes place. See how the top cities for online shopping have changed by checking out our previous article on this topic.

Honestly, do you like battling the traffic in metropolitan areas these days? Most of your customers don’t either. Here are some of the places where people really prefer to stay at home and buy online.

10. Dallas, TX – The city ranks among the top wholesale markets of the United States. These markets include apparel, gifts, and furniture, and hosts a larger number of tradeshows each year.

9. Las Vegas, NV – Working in the home furnishings industry, Las Vegas should be no stranger. Las Vegas Market is the only major market in the West. It offers a unique cross-section of manufacturers spanning the furniture, home décor, and gift industries.

8. San Francisco, CA – Home to 36 of the best design and furniture stores.

7. San Diego, CA – 88% of households in San Diego have the internet.

6. Miami, FL – Established in Miami, El Dorado Furniture is considered one of the most innovative furniture retailers in the United States.

5. Austin, TX – Austin is one of the fastest-growing metro areas in the country.

4. Los Angeles, CA

3. Chicago, IL

2. Houston, TX

1. New York, NY

Online Shopping Trends

From the Baby Boomers online shopping obsession that may surprise you to Millennial shopping habits that leave you scratching your head, it pays to understand how the generations shop online. When you know, you can more effectively target each generation with the right message and experience.
Are you sending the right message to the right generation? Are you creating an omnichannel experience they appreciate and giving them what they want to become your loyal customers? MicroD can help you upgrade to an omnichannel, multi-generational, conversion-optimized online and in-store experience.

Schedule a demo to find out how.