‘Grey pound’ consumers, aged 55 and over, hold substantial buying power that is only going to get bigger.

In a fast-paced home retail market attuned to quickly capitalize on the next big trend, all eyes are on what the young and emerging generations of buyers will do next. Millennials and Generation Z are a major strategic focus, but home retailers must take care not to overlook or alienate an older generation of shoppers in the process. ‘Grey pound’ consumers, aged 55 and over, hold substantial buying power that is only going to get bigger; it is predicted that, by 2035, people aged 65 years and older will outnumber those under the age of 18 for the first time in the US, while one in five US residents will be of retirement age by 2030.

The problem is, when home retailers do look to capitalize on the grey pound, there are many misconceptions regarding how the older generation approach product research and make purchases. There is often confusion as to whether they favor online or offline channels, whether they are digitally apathetic or more traditional in their tastes. This confusion can, in turn, lead older shoppers to believe a retailer’s products and services are more geared to a younger generation, not recognizing their needs.

Only by investing in a true understanding of the buying behaviors and preferences of the over 55s, can home retailers tap into the huge revenue potential of the grey pound.

The shopping habits of the older generation

While often associated with favoring traditional in-store shopping experiences, this is simply not the case. The older generation are, in fact, increasingly opting to shop online instead. A report by the Office for National Statistics showed that more than half of over 65s (54 percent) now shop via the internet. However, the largest increase seen in adults making online purchases was amongst the 55 to 64 age group. 30 percent more consumers in this demographic have shopped online since 2008, reaching 75 percent adoption of online shopping in 2017. This makes online channels absolutely crucial when looking to appeal to the high spend potential offered by grey pound shoppers.

When analyzing the cross-device preferences of older generations, a Pew Research report found that 40 percent of seniors now own smartphones – more than twice those who did in 2013 – and further growth is predicted over the coming years. In addition, 41 percent said they owned tablet computers.

A demographic that presents huge buying power and potential for home retail

In the UK market alone, the grey pound represents an estimated £320 billion of annual household spending, demonstrating a significant buying power within the retail market as a whole. The over-50s also hold more than three-quarters of the nation’s financial wealth and the majority own their own homes.

According to research by The Pensions and Lifetime Savings Association, homeowners over 55 are looking ahead and planning how homes can be optimized to better accommodate their needs. Projects may include entire home remodeling for accessibility or simply refreshing old décor for a new and updated look and feel. Home retailers will need to cater for both major and minor improvement projects, offering guidance and flexibility if they are to appeal to this demographic.

Utilizing 3D planning solutions to appeal to older buyers online

With online channels serving as the preferred experience for grey pound shoppers, home retailers need to ensure their websites are optimized for this audience. Customers of all ages want an easy online shopping experience, and when frustrated will simply move to another channel or retail website, heightening the importance of intuitive, informative features and services.

By incorporating tools such as the HomeByMe for Home Retailers 3D planning solution, home retailers can overlay value added and easy to use functionality that allows shoppers to confidently and easily navigate through their purchase journey, from design inspiration through to transactions. With automated business rules, accuracy remains key to all design projects and users are alerted immediately to any potential design errors, offering useful reassurance as users work through their designs. Further validation is also available in-store, where sales consultants can simply access projects through the user’s online profile.

When carrying out purchases, customer autonomy is now extremely important for all shoppers, who often prefer to research at home at their own pace. This means home retailers need to place the information customers need at their fingertips. By offering detailed product listings, hyper-realistic 3D rendered images and live access to extensive product back catalogs, home retailers can provide all of the information required to make decisions and kick start remodeling projects.

However, this information exchange goes both ways. On the flipside, home retailers can access key insights into customer buying behaviors through the data stored within the HomeByMe for Home Retailers platform. With information such as average basket values, most popular products and conversion rates, home retailers can build a much more accurate profile of the different customer segments and use the information to adapt and improve future product offerings and brand communications for the most appeal.

The final factor for home retailers to consider is that, at the point of purchase, customers are often switched off by pushy sales techniques or incoherent pricing structures that are difficult to understand. By offering transparent pricing that intuitively updates as users work through their projects and add products into their designs, the user can feel in complete control and have visibility of discounts or promotions for greater incentive.

Creating informed retail strategies and customer experiences

Ultimately, the key to resonating with grey pound shoppers is information; being able to understand their motivations, buying preferences and behaviors, and then tailoring all interactions accordingly to build closer relationships. By offering transparent, value focused shopping experiences that give them what they want and need in the easiest possible format, home retailers can encourage better confidence in decision making and sales conversions. The revenue opportunities are huge for the home retailer that recognizes the true value of the grey pound, unlocking a largely uncapitalized buying demographic and growing customer base.