Implementing new point of sale and payment solutions requires planning for technological advancements like AI and biometric payments, and finding a platform that can scale with your growing business. However, when you’re planning your IT roadmap, you have to consider more than what technology will do in the future. You need to anticipate what customers will demand in the coming years. It’s time to get to know Generation Alpha.
Generation Alpha Facts and Stats
Generation Alpha is next in line behind Generation Z. Social researcher and demographer Mark McCrindle named this generational cohort of people born between 2010 and 2024 and points out it totals almost 2 billion, making it the largest generation in world history.
Retailers must keep in mind that this generation is young, from just turning 15 to just learning to walk, but they share certain characteristics, including:
- Materially endowed
- Screen viewers almost from birth
- High digital literacy
- Planning to live at home longer
Additionally, McCrindle points out that “they have brand influence and purchasing power beyond their years.” Projections put Generation Alpha’s economic footprint at about USD 5.46 trillion by 2029, a number every retailer should keep in mind as they plan new technology implementations today.
Emerging Generation Alpha Consumer Behaviors
Market research provides insights into this rising generation of consumers. GWI research focused on Generation Alpha consumers in APAC. These consumers rank as more opinionated and care more about other people’s perception of them than consumers in previous generations. Surveying them directly, GWI found that Gen Alpha’s top interests include animals, movies, music, television, and holidays/vacations. They routinely use mobile devices and social media, and about half play video games.
The Insights Family recognizes the growing influence of this generation across EMEA. For example, of the 40% of 10-14-year-olds in Germany earning their own money, the majority spend it online. Somewhat surprisingly, 79% are cryptocurrency owners, providing evidence of an entrepreneurial spirit in addition to tech literacy. This research also looked into what inspires Generation Alpha consumers and their parents to make purchases. For kids, it’s brands that make them feel special. However, 64% of their parents’ approval is important. For all decision-makers in the family, health and well-being, convenience, and value are top factors in shopping decisions.
A survey of U.S. parents by market research firm Numerator found that their Gen Alpha children’s spending is now primarily on toys (48%), snacks (42%), beverages (31%), entertainment (31%), and electronics (31%). However, retailers need to make sure they don’t overlook the influence that Gen Alpha consumers have on their parents’ spending. About two-thirds of parents say their children have asked for specific products they’ve seen in advertisements.
How Can Retailers Engage Generation Alpha?
Although Gen Alpha’s full impact on commerce won’t be apparent for some time, it’s essential to continued competitiveness to engage these consumers now. Meet their expectations to use technology in all aspects of their lives by offering digital experiences in-store. Gamification can help you capture the attention of this “screen generation” and start building customer relationships.
Also, give some thought to how you can enhance customer experiences for Gen Alpha. You may not be able to market to them until they’re a little older, but you can include messaging to parents that they can share with their children. Retraining sales associates to turn attention to young shoppers as well as their parents may give families a positive impression of your brand.
Last, but not least, stay on the leading edge with technology. Meet demands for modern digital experiences with tap-to-pay transactions, unattended devices that give shoppers autonomy, and payment solutions with the capability to accept alternative payments. Young, tech-savvy consumers and their interest in cryptocurrency, biometric authentication, and other emerging payment methods could take commerce in new directions.
Grow Your Business with Generation Alpha
Retailers who want a successful future will follow Gen Alpha consumer trends as these young people mature into one of the most powerful consumer groups in history. These consumers are engaging with you now, either on their own or with their parents’ help, and forming opinions about your brand. Adapt processes to meet their expectations and make a lasting, positive impression that will help your business grow.
To learn more about trends to help you optimize experiences today and adapt in the future, follow Ingenico Signals
