Generation Z refers to the group of consumers that follow the market segment that is the Millennials. Generation Z was initially easily overlooked, but now studies predict that they have the spending power of over $200 billion. Also, by the end of 2019 Generation Z will successfully surpass Millennials as the most populated target segment for retailers.
Generation Z is very technologically savvy; studies predict that retailers can target this segment through customized services and rewards. Forty-one percent of shoppers watch an entire video advertisement if firms offer a reward towards the end of it. Video advertisements prove to increase customer engagement by 34 percent and thus retailers must incorporate in a company’s advertisement strategy.
According to a recent survey, more than 50 percent of Generation Z shoppers prefer to share their experiences. Moreover, they provide feedback to receive better experiences; thus it is essential to monitor online and offline review platforms constantly. As a result, retailers can introduce new strategies to increase customer satisfaction and customer retention rates.
Generation Z is very active and put a lot of effort into researching better offers and deals before conducting purchase transactions. Moreover, 65 percent of shoppers rely on mobile phones to gain information on the product before proceeding with the final purchases.
Fifty-five percent of the Generation Z customers consider themselves as a very price conscious segment. As a result, these customers research for discounts and other price reductions through both online and offline channels.
According to research, 60 percent of shoppers prefer purchasing from retailers that support social causes or raise awareness towards issues. Therefore, it is crucial that business implement socially responsible and optimal customer relationship management strategies to connect better with their audiences.
Generation Z – Preferences
According to market research, around 85 percent of Generation Z customers gain information about new products through social media. Moreover, approximately 50 of the Generation Z customers tend to visit more than one channel before conducting purchase transactions. Therefore, retailers must invest in premium omnichannel retailing practices to improve communication with their current customers and attract potential ones.
A rise in the social media features will benefit retailers as they can sell products on their social media channels. For instance, the purchase pages on Facebook and Instagram buy button enables firms to sell their products via social media.
More than 65 percent of Generation Z customers prefer shopping from Brick and Mortar stores. However, the shoppers prefer these stores to include the current technological advancements such as Virtual Reality in the store layout. For instance, 73 percent of Generation Z shoppers prefer to use voice-activated ordering features in the physical stores.
Influence of Technological Advancements
The rise in technological advancements such as artificial intelligence, data analytics and other fourth revolution technologies boosted significant market trends. For instance, retailers incorporated updates in their offline stores to offer features such as cashier-less counters purchase online and collect instore.
More than 45 percent of Generation Z seek personalized products and services. Developments in the technological industry, such as 3D printers make it simpler for retailers to target Generation Z customers.
As the purchasing power of the Generation Z customer rises, it is crucial that retailers include new and improved strategies to capitalize on this consumer segment. According to a recent study, the purchasing power of Generation Z customers is currently over $150 billion and steadily rising.
In conclusion, the Generation Z shoppers currently hold a lot of power in influencing purchase decisions across different age groups, with constant access and use of social media this generation can become strong brand advocates, if targeted right.
Written By: Saad Khan Choudhary