Generation X, or ‘Gen X’, refers to people born between 1966 and 1980. Today, they’re in their mid-forties to mid-fifties. According to the 2021 census, Gen X makes up just under 20% (19.3%) of Australia’s population.
This article explores some key demographic trends among Gen X consumers. We’ll discuss how you can create a customer experience that may appeal to them.
Many Gen X consumers have established careers, family lives and relatively stable finances. At this stage in life, convenience and flexibility are often valued more than ever by many buyers. It could benefit your business to consider how to offer a more hassle-free shopping experience that fits into the busy schedules of Gen X customers.
Let’s look at some distinctive traits of the Gen X demographic. These are based on market research. However, remember not to make any assumptions about your audience. Everybody has different tastes.
Generation X have lived through a big change in the concept of the ‘working family.’. McCrindle’s Generation X research describes how this was the first generation to make dual-income earners the norm. The Australian Bureau of Statistics reports that the number of families with both partners employed increased by 1.9% between June 2022 and June 2023. About 1.6 million of these families had kids under 16.
The oldest Gen Xs have spent more than thirty years in the workplace. Many of them may be holding or moving into senior management roles with significant responsibilities. This means that many members of Generation X may be at the busiest, but also wealthiest, stage in their lives.
However, they may also have big financial responsibilities. They might still be paying mortgages. Their older children might be entering university. On top of that, they may also be looking after their elderly parents. The InfoChoice State of Aussies' Savings Survey July 2024 found that Gen X is feeling the squeeze from the rising cost of living. They often have less savings in the bank than Baby Boomers or Millennials.
Gen X grew up in the 20th century and lived their adult years in the 21st century. This means that most of them have participated in the major shift from analogue to digital technologies. For example, moving from rotary phones to smartphones. Or handwritten letters to emails and social media.
As a result, the majority of Gen Xs are likely to be comfortable with technology and the internet. They’re likely to have adapted to using it as part of their everyday lives. For example, according to Roy Morgan, 87% of Gen X in Australia use Facebook.
According to the Australia Post eCommerce Industry Report 2024, Gen X consumers spent $17.5 billion on online shopping in 2023. This was an increase of 1% from the previous year. That may not sound like much, but it translates to an extra $270 million spent online.
Gen X customers had the highest average basket size for online purchases of all demographic groups. They spent an average of $110 in one online shop. Gen X shopping habits indicate that they tend to spend more generously on home and garden items. The Australia Post report found that 66% of Gen X customers also want to shop from brands that align with their sustainability values.
Below are some tips you can consider to help you develop a Gen X marketing plan and create a better customer experience for these shoppers.
The Telstra Tech State of Play 2024 report found that 92% of 45-54 year-olds value an easy-to-use website when buying from a small business online. 89% are looking for comprehensive information about products, making informative FAQ pages an essential element of any business website.
Gen X customers are likely to place high value on convenience when shopping online. And, according to the Publicis Sapient Digital Commerce Survey 2024, over 56% of Gen X consumers would switch to another brand if they are not satisfied with their digital commerce experience.
So, it’s a good idea to make sure that your online customer experience is up to scratch. This could include updating your website regularly. Make sure your product descriptions are clear and compelling. You could also introduce digital tools for more efficient communication with your customers such as customer service chatbots. Consider digital strategies that will help you meet customer expectations online.
With so many Gen X shoppers on social media, you could also consider ‘social selling’. This is when you sell your products on social media platforms like Instagram Shops. Explore resources to help you effectively use social media for your business.
If you’re introducing new digital tools, you may need to assess your cyber security. The Telstra Tech State of Play 2024 report showed that 88% of Gen X customers want data protection from cyber security threats. Consider following these simple steps to help protect your customers’ data and consider how to deliver a secure shopping experience.
It’s true that many Gen X customers are happy to browse and buy online. Still, the Hubspot State of Consumer Trends Report found that 73% of Gen X prefer to make their purchases in-store. Focusing on how to offer a positive in-store customer experience may benefit your business with this group of customers. You might consider how to make your store environment more pleasant or how to offer great customer service. You could also include more convenient payment options like contactless payments.
It's worth exploring how to deliver an omnichannel customer experience. This is when you create a consistent experience across your digital and physical channels. Gen X customers might appreciate this consistency and convenience when engaging with your business.
According to the Telstra Tech State of Play 2024 report, 88% of Gen X customers want a clear returns or cancellations policy when buying from a small business. The Australia Post eCommerce Industry Report 2024 report found that 34% of Gen X online shoppers return items.
Discover how to create a clear ecommerce returns policy and build trust with Gen X customers.
The ‘Generation Pay’ study by Worldpay found that 72% of Gen X consider loyalty programs an important factor when deciding where to buy. This generation is increasingly willing to share financial data with apps and digital platforms to receive tailored experiences.
A loyalty program can be a win-win for your business and your customers. It can help build loyalty and boost your reputation. Learn how to create a loyalty program to improve the Gen X customer experience without cutting your prices.
The Gen X demographic is a unique and influential customer group. They may be at their peak earning potential. Yet many will also balance busy careers, family responsibilities and financial commitments. This means that these customers may value convenience and flexibility in their shopping experiences. This is true both online and in-store.
Clear communication and clever loyalty programs could be effective Gen X marketing strategies to consider. By making life a little easier for Gen X customers, you not only meet their expectations, but also help improve your reputation. This can help build long-term loyalty with this important part of the market.
Disclaimer: This article does not necessarily reflect the views of Telstra or its staff.
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