Consumer Spending Insights Every Retailer Should Know Ahead of Peak 2024  

Knowing how customers spend their money isn’t just helpful – it’s crucial. As we gear up for busy seasons and beyond, understanding what drives shoppers, like Gen Z’s love for splurging or how those flashy product videos sway buying decisions, is key. And with more people skipping cash for cards or digital wallets, the way we pay is changing, too.   

Join us as we dive into these trends and stats so you’re armed with the know-how to thrive among the competition.  

Here’s what you need to know ahead of peak season 2024:   

Did you know that nearly 9 out of 10 households bringing in $175,000 to $199,999 a year use online coupons? That’s right! According to SimplyCodes’ latest data from June 2024, these high earners are just as savvy about saving bucks as anyone else. This tells us something important: digital coupons aren’t just for bargain hunters anymore. Even the well-off are all about snagging deals that offer value and convenience.  

During peak season, when demand spikes and shopper expectations reach new heights, retailers face the challenge of balancing profitability with delivering an exceptional customer experience. Insights like these about high-income coupon usage can be revolutionary. By tailoring promotions through digital channels, retailers attract a broader customer base and gain insights into what drives purchases.   

Generation Z, known for their tech-savviness and experiential mindset, is leading a significant trend in consumer spending. They buy what makes them happy but are also more cautious shoppers compared to Millennials, often waiting a few days before making a purchase, especially online.  

While Millennials tend to buy almost equally on their phones or in-store, they rarely purchase through their computers. On the other hand, Gen Z shoppers typically require more information before feeling confident about spending over $50 online or $100 in-store, even though McKinsey & Company’s survey found that 63% of Gen Z consumers plan to treat themselves in Q3 2024.

These trends are significant for retailers looking to capture the attention of younger consumers during peak season. By crafting campaigns that not only showcase product features but also emphasize the lifestyle and experiences associated with them, marketers can tap into Gen Z’s preferences effectively.   

Understanding the nuances of consumer behavior among Millennials and Gen Z is crucial for retailers partnered with Radial, especially during peak seasons. By leveraging insights into these demographic preferences, retailers can tailor their strategies to attract and retain younger shoppers, driving both immediate sales and long-term customer loyalty.  

Social media isn’t just a platform for sharing updates; it’s a significant driver of consumer behavior, even for Generation Alpha, the children of Millennials. According to HostingAdvice, 65% of Gen Alpha parents increase their spending based on their children’s online and social media activities. This shift underscores the importance of organic content strategies for marketers aiming to engage this digitally-native generation.  

For Gen Alpha and their parents, social media plays a pivotal role in discovering and purchasing products. This works the same way it does for other generations. Nearly 75% of Gen Z follow influencers hold substantial sway over their buying decisions, far more than traditional advertising methods. This generation often learns about new products through influencers and peer-shared content. In 2023, a significant 33% of Gen Z shoppers bought items from influencer-founded brands, and Generation Alpha influences their parents’ buying decisions based on the same social media trends and recommendations. 

Retailers looking to capitalize on these trends should prioritize personalized shopping experiences that resonate with the desire for social sharing and interactive content. By offering curated unboxing experiences and facilitating easy sharing on social media, retailers can tap into the intrinsic value that these generations place on digital interactions.  

Learn more about Millennial and Gen Z shopping trends. 

The rise of cashless transactions is fundamentally altering consumer spending habits, especially when it comes to impulse purchases. According to Forbes Advisor, consumers are twice as likely to make spur-of-the-moment buys using card payments compared to cash.  

This shift is driven by the convenience and immediacy of cashless transactions, which eliminate the tangible reminder of spending money.  

For retailers, optimizing the checkout experience is crucial in capitalizing on this behavior. By offering seamless, user-friendly checkout processes, retailers can encourage impulse buys through streamlined payment options and intuitive interfaces. Features like mobile app incentives, loyalty programs tied to card usage, and frictionless payment methods all contribute to enhancing the overall customer experience.  

These insights into modern consumer behavior underline the importance of retailers adapting their strategies to meet evolving preferences and expectations. By leveraging digital coupons, understanding generational spending habits, optimizing visual content, and embracing cashless payment trends, retailers can not only attract but also retain a loyal customer base in today’s competitive market.  

Understanding these trends is the first step towards crafting targeted marketing campaigns and enhancing the overall shopping experience for consumers.  

For retailers partnered with Radial, these strategic insights highlight the importance of seamless logistics and customer experience solutions to delight your customers – from click to delivery. Radial’s expertise in efficient order fulfillment and innovative payment solutions aligns perfectly with these consumer-driven trends, enabling retailers to maximize their peak season performance and sustain growth year-round.  

Follow Radial on LinkedIn, Facebook and Twitter.