Age. Location. Family make-up. Ethnicity. Region. While it’s tempting to ask which matters most, the real question is how brands and retailers can tailor their offerings at the intersection of multiple characteristics. Life Stages and Segmentation, the fourth installment of the Advantage360 Shopper Study, moves beyond singular demographics to uncover the motivations driving today’s shoppers across a large cross-section of distinct groups.
“People are more than the sum of their demographics,” says Nico Cattaneo, who leads Enterprise Analytics and Insights at Advantage Solutions. “By taking a more holistic approach, Advantage doesn’t just understand where people are, it anticipates where they’re going.”
Looking at Life Stages
Demographics may provide a quick shopper snapshot, but it doesn’t tell the full story on preference. Life stages, which are primarily impacted by age and the presence of children, reflect a shopper’s lived experience and have implications far beyond segments and channels. Are they making use of online platforms? Are they looking for inexpensive options, specialty items, or both? Is their biggest goal simply saving time?
As one might expect, the answers to the questions above are heavily influenced by the presence of children. For example, Millennials without kids are primarily price hunters (37%), while their peers with children identify as quality seekers (35%). Gen X with children are almost split between price and quality, while empty nesters show a huge swing back to price after their kids have moved out.
That is further complicated by a growing trend of having adult children living at home. These multigenerational families tend to look a lot more like empty nesters who are still working than Millennials without children.
Understanding these nuances helps brands and retailers meet shoppers where they are, not just who they are.
A holistic view of Hispanic Shoppers
What sets Hispanic households apart from the broader Millennial demographic? Almost half have children.
This young and growing demographic brings an international perspective to grocery shopping, willing to try new products and favoring price over familiarity. When it comes to value and quality, Hispanic shoppers tend to have a higher affinity for Club than Millennials without kids.
Compared to their peers, Hispanic shoppers also exhibit increased purchase rates, often 10+ points higher than average. Understanding which categories and how to effectively market them presents an opportunity to tailor offerings to this growing segment of shoppers.
“Whether it’s multilingual packaging or authentic flavors, brands and retailers need to be intentional about how they’re bringing products to shelf for Hispanic shoppers,” said Nick Sabala, VP of Analytics & Insights – SMART Consulting at Advantage Solutions. “The data as well as the conversations we’ve been having for years confirms that shoppers want more than just an aisle. They’re looking for an experience that reflects their tastes and lifestyle.”
Meeting shoppers where they are
Like the intersection of generation and children, region and population density significantly influences choice. Does a shopper in Los Angeles more closely resemble their neighbor down I-210 in Big Bear City or someone in Chicago? It depends on the ecosystem of stores available and what they value.
In general, rural shoppers tend to have fewer options and are more concerned with price than people living in metro areas who are more likely to make multiple trips to different stores and shop in the natural channel. At the same time, Pacific shoppers across the board tend to value natural and ethically sourced products while the central region is more focused on the classics than anywhere else.
“Product claims will resonate differently throughout the country. But if manufacturers focus exclusively on natural, club and online they risk potentially leaving entire demographics of shoppers behind,” says Katie Rigby, Sr. Director of Analytics & Insights – SMART Consulting at Advantage Solutions. “One of the reasons Advantage Solutions invests in the Shopper Study is to ensure that we’re able to provide actionable insights to manufacturers, advise retailers on assortment and ensure that we’re helping connect people to products.”
Considerations for greater connection
Whether you’re targeting small-town shoppers on the Atlantic Coast or major metros on the Pacific, being inclusive and intentional in your approach is essential. Are you using location-based targeting to customize your message in different regions? Have you offered affordable foods in bulk or test promotions outside of stock-ups?
Download the full Life Stages and Segmentation report to get into the mind of your target demographics and start customizing your approach with actionable insights.
Looking for even more context on what drives shopper choice. Download these recently published studies from Advantage360:
Advantage360 Manufacturer & Retailer Outlook.
What Matters to Grocery Shoppers
