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Gen X are catching up in digital media
Generation Y (birth date mid ‘80’s to mid ‘90’s) might be nicknamed ‘digital natives’ but according to the annual Sensis ‘e-Business Report’, it is members of Gen X (birth date mid 60’s to mid 80’s) who are embracing the convenience and ease of going online at the most rapid pace.
The 2011 report results, based on interviews with 1000 consumers across Australia, showed that people in their 30s, 40s and 50s are showing strong usage of social media, mobile webs, tablets and online purchasing.
In fact, Australian’s in their 30s are most likely to purchase online, with 87% either having bought something online before or have intentions to, followed by consumers in their 20s (80%) and 40s (79%).
 Interestingly, online shoppers in their 40s are the most unlikely to purchase from overseas sites. In fact, according to Christena Singh, author of the report, only 29% of online purchases are made with overseas businesses. “[The] majority of expenditure is still being spent locally.”
While Gen Y have grown up interacting with friends online via social networks (97% of 18 to 19 year-olds and 90% of 20-somethings using social networking) older online users are becoming well-versed with the likes of Facebook and Twitter as well.
According to the report, 82% of people in the 30s, 47% of people in their 40s, and 45% of people in their 50s-to-60s are connected on social media sites.
“The frequency with which social networking sites were used increased sharply during the year,” notes Singh. “Four in 10 Australians log on to social networking sites several times per day, up from less than three in 10 last year. Almost one in four Australians access them from their workplace as well.”
The use of mobile web usage is also on the rise with members of Gen X.
“We can see that mobile web use has grown in the older age groups, with almost half of Australians in their 40s connecting via mobile and a third of those in their 50s,” says Singh.
The number of mobile web users in their 40s jumped from 40% to 45%, while users in their 50s increased from 24% to 32%.
With the evolution of mobile internet, Australians are also using more applications when they logon. A range of activities, including downloading video and mobile apps, have become commonplace.
The most popular activities Australians are undertaking using mobile internet include:
- looking for maps and directions (74% up from 67%)
- looking for weather information (69% up from 64%)
- browsing news sites (68% up from 59%)
- looking for products and services (67% up from 56%)
- looking for suppliers (57% up from 45%)
- downloading a mobile application (57% up from 42%)
- using a satellite navigation application (47% up from 40%), and
- downloading video content (39% up from 35%).
Think you're a smart shopper?
By Martin Lindstrom | @MartinLindstrom | October 21, 2011 |
The global financial crisis of 2008 hit consumers hard. Two years later, and they’re still reeling. Spending is down across the board, and even the more affluent are watching their pennies. In this fearful climate, retailers are applying ever more scientific and psychological tactics to lure them back. This was made clear to me on a memorable day in 2010 when I visited the laboratory outside of Chicago of one of the world’s largest consumer goods manufacturers.
Akin to NASA operations
After driving for nearly two hours, I reached my destination: a huge, imposing warehouse, with no outward signage, and a vast parking lot full of cars. A friendly receptionist checked my identity, had me sign all sorts of paperwork, and directed me through a door labeled Control Room. It was massive, and resembled images I’ve seen of NASA’s operations area — row upon row of people staring intently at hundreds of screens, only they were monitoring shoppers pushing carts around the aisles of a supermarket that had been designed to test their responses to different marketing strategies. “Take a careful look at this lady,” said one of the monitors, pointing to a middle-aged woman on the screen. “She’s about to enter our latest speed-bump area. It’s designed to have her spend 45 seconds longer in this section, which can increase her average spend by as much as 73%. I call it the zone of seduction.
Flooring designed to slow the shopper down
This particular section of the market was different from the usual aisle. For a start, it had different floor tiles — a type of parquetry imparting a sense of quality. And instead of the cart gliding imperceptibly across nondescript linoleum, it made a clickety-clack sound, causing the shopper to instinctively slow down. The shopper’s speed was displayed at the top of the screen, and as soon as she entered the zone, her pace noticeably slowed. She began looking at a tall tower of Campbell’s soup, and then plucked a can off the top. Bingo! The sign in front of the display read: “1.95. Maximum three cans per customer.” Before the shopper slowly sauntered off, she had carefully selected three cans for her cart.
Sophisticated as we may be, there’s no getting away from our more primitive survival technique of hoarding food to see us through lean times. So when we come across a deal that appeals to this ancient instinct, dopamine is released in our brain, giving us an instant rush of pleasure. My guide explained the exercise: “Yesterday we ran exactly the same offer, with two distinct differences. There was a dollar sign in front of the price, and no ‘Maximum 3 cans per customer’ line. We also gave the shoppers smaller-sized carts and changed the floor tiles.” These seemingly small changes translated into big differences. On the first day of the experiment, only 1 in 103 purchased Campbell’s soup. Today, however, it seemed that 1 in every 14 succumbed — a sevenfold increase.
The dollar sign is a symbol of cost, rather than gain
Over several months of experimenting with signage, the team noticed that using a dollar sign in front of the price decreases our likelihood of making the purchase. The dollar sign is a symbol of cost, rather than gain. Removing the sign helps the consumer sidestep the harsh reality of outstanding bills and longer-term financial concerns. No doubt the larger cart and the changed floor tiles also played their part, but what was most surprising was our need to hoard. The dictum allowing only three cans per customer that sealed the deal.
The next time you go grocery shopping, take a look at the signs, the type of floor, and even the carts. Everything has been designed with an eye towards getting you to grab those three cans of something that was not on your list. The more attention you pay to the details, the more aware you’ll become of how you’re being manipulated. One thing is for certain; whoever made those three cans will be watching you just as closely.
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