In less than three years, Gen Z will become the world's largest group of consumers, accounting for just under 21% of the world's population and their spending power will make up 40% of all consumers. Born in the late '90s to 2010, their expectations are wildly different than the majority of Baby Boomers who, according to the Pew Research Center need someone to assist them in the process of learning new technologies. Even millennials, who grew up with the introduction of modern technology and have watched it evolve, have much more forgiving expectations than Gen Z has on digital. But if you can show Gen Z a good customer experience, 75% say they are more likely to buy a product if they can customize it according to an international study of Gen Z, conducted by The Center for Generational Kinetics. With that in mind, upping your digital game should be a top priority to capture your piece of the market.
Gen Z interacts in very different ways than previous generations. Have you heard someone in their teens or 20s reference IRL, short for "in real life?" It's part of their world, because they jump from digital to physical, juggle the two and expect the brands that serve them to do the same regardless of digital or physical touchpoints. They value digital first impressions over face-to-face, and 60% say what happens online is more important than in-person when it comes to first impressions, according to Hootsuite.
Researchers from an IBM survey concluded, "companies that don't meet Gen Zer's performance expectations risk falling behind and leaving the way open for the competition." Over half of Gen Z respondents said it was either important or very important to be able to switch among channels easily when researching, browsing, or shopping for goods and services. The same survey found Gen Z has very little patience when it comes to technology.
Gen Z also isn't keen to throw all their information at a brand but expects that brand to know who they are and be able to personalize their experiences, whether on a website, app, or the Metaverse. They could care less about the physical location of a store or service. They only need to be able to immediately access it digitally.
Social media has become a real tool for communication and shopping; it's no longer the novelty it was a decade ago. Brands must connect interactions on social platforms to their IRL world to earn and keep brand loyalty with a group that is more likely to jump ship because of how easy digital has made it to move to the next brand.
So what are brands to do? Here are a couple of ways to better engage your Gen Z customers.
When Gen Z interacts with a site, whether it's to view, research or buy, you need to know what it is they are doing at that moment. Waiting to speak to this group on their next visit or by email hours or days later won't suffice for a good experience. They expect interaction and a very real experience upon arrival in the digital space.
A Data Axel survey in 2010 found 87% of Gen Z expect a personalized shopping experience, and while this number has remained relatively the same for decades, the concept of personalized has transferred to the digital space. Make sure you as a brand have your information connected, delivered, and actioned live or it's too late to deliver that personalized experience. Gen Z very much expects instant answers, solutions, and offers.
If you thought the change in the digital transformation of the past few years was quick, what is required to impress this next generation of consumers will need to transform at the speed of light.
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
