You've probably read a lot about the shopping habits of millennials and Generation Z and how to win them as customers. As growing segments of the population, they're the coveted audiences that everyone seems to be talking about.
But thinking about customers solely in terms of generations doesn't tell the whole story. By cross-referencing demographics with attitudinal and behavior indicators, research by RetailMeNot has revealed a new segment of consumers with impressive spending power. Meet the Household Enthusiasts. They span both millennials and Generation X. And learning who they are and how to appeal to them can help retailers drive higher sales.
Household Enthusiasts Hold Spending Power
Who sounds like a better customer?
Shopper 1: An impulsive 18- to 34-year-old who buys things she desires.
Shopper 2: A busy, responsible spouse and/or parent who loves deals and who primarily buys what her family needs.
If you picked Shopper 1, guess again. Shopper 2, who fits the profile of a Household Enthusiast, will actually spend 51% more in the next six months than impulsive Shopper 1 will.
What's behind this big difference? Household Enthusiasts generate 15% more income than the average US consumer. More importantly, though, they are in charge of shopping for other people. In their households, they're the final decision-makers on purchases that range from groceries and clothing to travel and electronics.
That's a lot of influence—and a lot of purchasing. The RetailMeNot research found that Household Enthusiasts shop an average of 3.6 times per month online and five times per month in-store. That's why it pays for retailers to understand how Household Enthusiasts decide what to buy.
Deals Drive Their Decisions
There's one key question in whether a Household Enthusiast makes a purchase: Is a discount or special offer available? More than three-quarters of Household Enthusiasts say a discount or offer is the deciding factor when they're on the fence about buying something.
The impact of scoring a deal goes beyond a single purchase, though. Ninety-two percent of Household Enthusiasts say that deals greatly influence how positively they feel about a brand.
Personalization Wins Their Loyalty
Besides deals, there's another way to a Household Enthusiast's heart: personalization. More than half say personalized shopping experiences would help a brand or retailer earn their loyalty. Two-thirds say they are more likely to buy from sellers that use their preferences to create this personalized experience. And 31% like emails about products they viewed on a brand's website.
While headlines may continue to focus on the way millennials shop, research on Household Enthusiasts shows there are rewards for retailers who look beyond millennial age targeting this influential audience. For more statistics and insights, view RetailMeNot's full report on Household Enthusiasts.