Nobody likes statistics, but if you pay close attention to it and know what data to look for, you might actually increase your sales. That’s why we decided to pull one interesting statistical topic related to the segmentation of your customers. This time, we’re segmenting your eCommerce audience by generation in order to boost your sales.
Want to see how the generation gap functions in eCommerce and how understanding eCommerce audience in 2023 can be your ticket to the future? Keep reading!
Who is your target audience?
Yes, that’s the most crucial question. By answering this question, statistics can help boost your business in 2023. You need to know who your buyers are and who your product is for, and then adjust your offer to the generation’s preferences. (Yes, we’re talking about the age of the buyers that mostly buy your product.)
I know it sounds boring, and you’ve probably read thousands of articles on this topic, but bear with me here; some interesting facts you might need to learn, which are easy to fix or adjust, and see the results very quickly.
So, find out who your audience is. If you already know that, good for you; you’re ready to use this statistical insight to increase your sales.
How to get insights about your eCommerce target audience
If you have insufficient information about your buyers or don’t know anything about them, it’s time to change that! Here are some helpful tricks and tools to get the needed information, especially regarding demographics.
Through demographic data, you can see the geographic location, age range, gender, education level, income level, and other statistical data.
In this particular case, we’re interested in age range. And it’s easy to see the age range of your audience if you use social media or Google Analytics.
Social media stores
For example, if you have your eCommerce store on Instagram, you can find out what’s the age range of your followers by following the steps:
- Navigate to your Instagram profile
- Tap the three lines located at the upper right corner of your display. From there
- Select “Insights”
- Under the “Audience” section, you can see the demographics of your followers, including their geographical location, age distribution, and gender ratio.
The same goes for most social media accounts, so you can save time searching for this data.
eCommerce Website
Regarding your website, the best thing you can do is tap into Google Analytics. It offers a wide range of data regarding your site’s audience, including location, language, age range, and gender.
Shopify Store
If you’re using one of the most popular eCommerce platforms, such as Shopify, the best (and easiest) strategy is to integrate Google Analytics with your Shopify store.
For those utilizing Shopify Plus, you can implement a Google Analytics 4 tracking code throughout your website, including the checkout pages. However, if you’re operating on the common Shopify platform, you can integrate Google Analytics 4, albeit it will not apply to the checkout pages.
Understanding eCommerce Audience in 2023
Yes, don’t be surprised; the audience’s preferences are changeable. It’s not something that is fixed. And according to Statista.com, the first quarter of 2023 shows that each generation has some choices regarding innovation in the eCommerce industry.
Depending on the age group that constitutes most of your audience, you can introduce innovations more likely to appeal to individuals in that age bracket.
If the majority of your audience is
Generation Z
If the majority of your audience is 18 to 24 years old, that means your target audience is Generation Z, and when it comes to innovations in eCommerce for 2023, statistics show that they appreciate the most
- Frictionless payment
- Personalized product recommendation
This makes sense because they don’t like complicated processes and don’t have a strong focus, meaning you will lose them if you show them three wrong product recommendations in a row.
If the majority of your eCommerce audience is Millennials
If you’re product targets those who are 25 to 40 years old, that means your eCommerce audience is Millennials. And what do we know about them?
Well, just like the younger generation, they dislike complicated payment processes, and they like personalized product recommendations.
That means you can hit the jackpot with the age range of 18 to 40 if you fix your recommendation system and ease your payment process.
If the majority of your audience is
Generation X
Okay, we’re slowly moving up on the age leader. If your audience age range is between 41 and 56, most of your eCommerce audience is Gen X.
And what can you do to grab their attention and increase sales? Well, for a start, fix your payment process, make it as easy as possible for them to buy what they want with just a few clicks, and (here’s a surprise) implement AR/VR.
I bet you didn’t expect that! 🙂 According to statistics, Gen X loves augmented reality and virtual reality. What’s the difference? To make a long story short, augmented reality can reflect digital components in the real world, while virtual reality allows you to walk through a digital world.
We can say that Augmented Reality (AR) and Virtual Reality (VR) are two distinct technologies revolutionizing eCommerce, each offering a unique customer experience.
AR integrates digital elements into the real world, enhancing the customer’s existing environment. For instance, with IKEA’s AR application, customers can visualize how furniture would look in their homes before purchasing.
On the other hand, VR involves the creation of an entirely immersive digital environment that often requires specialized equipment like VR headsets. For example, in eCommerce, VR could allow customers to virtually “walk” through a digital clothing store, “try on” clothes and make a purchase, all from the comfort of their homes.
While AR allows customers to make informed decisions by merging digital products into their physical surroundings, VR provides a complete immersion that transforms online shopping into an interactive, lifelike experience.
If Boomers are those who purchase your product the most
If those above 56 and under 75 are most often your customers, your target audience is Boomers, and they have their own expectations of 2023 innovations in eCommerce.
Like the youngest generation, they expect their payment processes to be straightforward and want personalized product recommendations.
Since this is the third large group focusing on product recommendation, I suggest reminding you how that functions. Based on previous purchases or search, you display personalized product recommendations similar to that specific person’s previous search.
What’s important here is that you have developed a data management system to display the proper recommendations. You can use various tools and integrate them to function as one. You’ll need an integration tool for that, and if you’re not that tech-savvy, you can always reach out to the integration expert and set your system to function as expected.
Personalization and customer segmentation
No matter the generation you aim for, one thing has shown as a rapper here; personalization is the key to your success in the eCommerce industry.
We must recognize that people (regardless of their age) don’t have time to read or watch advertisements or recommendations totally detached from what they really want. If you miss the chance to interpret data you already have correctly or ignore determining your e-commerce audience’s needs, it’s a red flag for your business.
Understanding eCommerce audience in 2023 might be your ticket for the future.
