Optimising your e-commerce strategy for more mature spenders
By Jim Herbert, VP and GM, BigCommerce EMEA
The Covid-19 pandemic has reshaped the habits and behaviours of even the most resolute shoppers. One significant shift is the adoption of online shopping by older generations.
According to Statista, in 2020, 65% of UK shoppers aged 65 and over made a purchase online. Research from Waitrose also revealed that 23% of over 55s are now regular online shoppers, compared to 8% in 2019.
With people in their 60s representing the wealthiest demographic in the UK, there is a significant economic opportunity for brands that cater to their needs.
In this article, I share my thoughts on how retailers should look to tap into the economic power of this demographic following the shift to e-commerce over the past year, and how retailers could cater to several generations simultaneously.
The shift in consumer habits and behaviours
Covid has had a huge impact on shopping behaviours and habits. With many stores forced to close due to the pandemic, the focus quickly turned to online shopping.
According to the Office for National Statistics (ONS), in January 2021, the proportion of online retailing increased to a record level of 35.2%, compared to 19.5% during the same period in 2020, as consumers turned their attention online following the pandemic.
As the pandemic hit, many older shoppers were also forced to use the internet to order groceries due to Covid shielding and lockdown measures, often for the first time.
Kantar Worldpanel reported that over 65s spent 94% more on supermarket deliveries in April 2020 than they did in 2019.
Similarly, research from Mintel found 37% of over 65s increased the amount of online shopping they did when the outbreak started.
Optimising your e-commerce strategy for older shoppers
According to research from Global Web Index, 34% of shoppers aged 57-64 said they will be shopping online even after the pandemic, with 83% of people aged 65 to 74 also reporting that they use the internet more than in the past.
From a commercial perspective, catering to the needs of these shoppers presents an opportunity for growth, as these shoppers tend to have more spending power.
As online continues to become increasingly popular among older shoppers, brands need to focus on the overall usability of their e-commerce platform.
Research from PWC suggests the less friction there is in the purchase journey, the more often consumers will shop and the more they will spend.
Therefore, brands should look to provide a frictionless shopping experience for these more mature shoppers to enhance their shopping journeys.
In order to create a frictionless online experience for these mature shoppers, brands should look towards making their e-commerce website both easy to navigate and read, making it easier for customers to find what they are looking for.
Also, providing a simple checkout experience with multiple payment options that cater to different shopper preferences can improve the overall online shopping experience.
How to cater to several generations at the same time
The consumer landscape today is made up of different generations, each with its own habits and behaviours. It’s not just younger generations driving the shift to e-commerce; now their older counterparts are embracing it.
With older generations typically spending more, it has to become a greater area of emphasis for retailers looking to make headway with online sales.
Brands need to understand their target markets and these patterns of consumer behaviour.
One way to effectively cater to several generations is by implementing an omnichannel approach, which allows consumers to shop across multiple channels, such as social media, websites, marketplaces and in-store.
Also of key importance is to ensure that your store complies with accessibility guidelines that allows for the use of larger fonts/ screen readers to ensure all audiences can buy your products.
Taking your e-commerce strategy forward
The right combination of sales channels can help expand customer reach, improve brand recognition and the overall shopping experience for consumers.
With younger people doing more shopping online, having both bricks and mortar stores and online shopping features ensures that you can cater to several generations at the same time, as older shoppers still tend to do the least amount of online shopping.
For example, offering a Click and Collect option provides faster access to orders for shoppers who might prefer the ability to pick up an item immediately.
As the customer journey continues to become more dynamic, an omnichannel approach allows brands to target customers across all the channels and touchpoints they frequent.
Therefore, it presents an opportunity for brands to reach their usual e-commerce audiences, as well as cater to these older shoppers who typically have more spending power and are increasingly embracing online shopping.
