RSS feed Get our RSS feed

News by Topic

BizReport : Social Marketing : October 12, 2021

Study: Social key to engagement

While there is a long history of people purchasing both large and small items via credit card, the plethora of new options to 'buy now, pay later' (BNPL) is especially enticing to younger shoppers. According to some new data more than half of Gen Z and Millennial shoppers are choosing BNPL options when shopping online.

by Kristina Knight

From SplitIt to Klarna to any number of retailer-specific payment plans, the 'buy now, pay later' behemoth continues to grow. According to new StitcherAds data about 60% of Gen Z and 57% of Millennial shoppers have used BNPL offers; this is compared to fewer than on half of Gen Xers and Baby Boomers.

"Recently, we've seen 'Buy Now, Pay Later' options grow in popularity as a way to keep up with the rapid shift to online shopping during the pandemic," said Bryan Cano, Director of Strategy, StitcherAds. "Our analysis discovered that consumers of all generations use BNPL tools, but Millennial and Gen Z shoppers are doing so at much higher rates. This is likely because BNPL provides younger consumers - whose cash flow tends to be more limited - better financial flexibility, especially for larger-ticket items."

One more interesting facet to younger generations' shopping habits is that more and more are being influenced to finalize purchases based on social media. More than half (63%) of Millennials, 56% of Gen Xers, and 52% of Gen Zers say they've been influenced to buy a new product because of an ad on social media. The key, of course, is in the offer.

Ads on social media are shown to be more effective when they include a promo code or coupon, with more than 90% of shoppers from all demographics saying they were more likely to buy a new product this way if a promo was included.

Other than a promo, what is it that shoppers in social are after?

• All demos are 'more likely to click' video based ads
• 79% of Millennials and 71% of Gen Xers are more likely to click personalized ads via mobile
• Instagram, TikTok, and Facebook are the most likely sites to influence purchases

One other important aspect of the social buying is the recommendation. While fewer than one-third of Boomers or Gen Xers were likely to recommend products found on social media - even products they liked - younger shoppers were much more likely to make those recommendations.

More data from StitcherAds report can be found here.

Tags: ecommerce, social commerce tips, social commerce trends, Social Marketing, social shopping trends, StitcherAds

Subscribe to BizReport



Copyright © 1999- BizReport. All rights reserved.
Republication or redistribution of BizReport content is expressly prohibited without the prior written consent.
BizReport shall not be liable for any errors in the content, or for any actions taken in reliance thereon.