In today's marketplace, consumer shopping preferences and needs continue to fragment as a result of changes in demographics and value systems. These changes are making customers harder to define, categorize and reach. As population distribution shifts to the tail ends of consumer age groups, retailers face new challenges in satisfying these very diverse groups. Those retailers who gain a deeper understanding of select segments can more successfully address this fragmentation and the opportunities that exist. To provide insights into this complex marketplace, we studied the in-store and Internet-based shopping preferences of two very diverse segments – teenagers and baby boomers. Our research revealed teens as wired, social beings that rely on connections with and approval from friends and peers. These young shoppers live comfortably with technology and are highly informed consumers. On the other hand, boomers are deliberate shoppers who rely on brand trust and have very diverse value drivers. These experienced shoppers seek convenience and a good value and are working their way up the technology curve. As expected, the data revealed two diverse shopper segments who clearly occupy two ends of the consumer spectrum. For the most part, these groups are very different in attitude and style, though they do share some common needs pertaining to service. To discuss our research findings about each group, we have organized them into five broad themes (see Figure 1). 
Tailoring insights to specific segments In this world of extremes, some retailers specialize and address only teens, while others target only boomers. Still others may cater to both. By tailoring their customer strategies to their value proposition, retailers can tap into new and existing opportunities for growth and deliver more relevant shopping experiences. Here are strategies to consider: Aligning with teens - Create new marketing relationships online and in-store to enhance brand equity and capture the attention of teens
- Develop means to create community and social connectedness in-store and online to build better connections with teens.
Satisfying boomers
- Understand how shopping preferences vary by occasion to become part of core customers' consideration sets for a particular shopping trip
- Design in-store and online communications and interactions that support and strengthen the brand trust to build advocates among boomers
- Provide integrated and convenient cross channel services to help deliver the convenience boomers seek
- Develop means to build boomers' skills and comfort level with technology both in the store and on the Internet.
Addressing both teens and boomers - Improve in-store execution, adjust staffing models and develop motivated and empowered sales associates to help reverse the negative effects of service failures that can turn away both boomers and teens
- Bring technologies into the store that create convenience and newness in the shopping experience and keep both boomer and teen shoppers engaged.
How can IBM help? Business Consulting and Delivery Services – IBM helps retailers formulate, implement and operationalize programs to respond to changing customer buying behaviors, align organizational structure and metrics, and transform customer-centric processes. Retail Industry Solutions – IBM offers a comprehensive portfolio of Retail solutions comprising merchandising and supply chain management, multi-channel retailing, retail performance analytics and TotalStore solutions to help retailers deliver the fastest time to value at the lowest risk. Research – Eight IBM research labs are applying the latest science to retailers' most challenging business problems. To read the full report, download the PDF file at the top of this page. | 
