Generation Z (born between the mid-1990s and the early 2010s) is driving significant changes in online sales. Fifty-six percent of this digital generation prefers to shop online rather than in physical stores.
If you thought they would find your webshop through a search engine, you were mistaken; they will learn about your products on TikTok. Therefore, carefully consider investing in promotion on that social network. Gen Z is the first true generation of digital natives and typically bypasses traditional media, as 60 percent of the news they consume is created by influencers and content creators. According to a study by the e-commerce platform Jungle Scout, 32% of Gen Z consumers shop online once a day compared to 25% of Millennials, 15% of Generation X, and 7% of Baby Boomers. This is an extremely important fact if you plan to increase sales in the coming years. Now you know who the customers are that will drive your growth. And to attract them, you need to learn a lot about them.
Members of this generation are ambitious, nostalgic souls who balance work and their well-being. More than any other generation, they are money-oriented; although they love to shop, they also know how to save.
Why is this frugal demographic group so crucial for digital marketing professionals? Because they are growing up quickly and have greater purchasing power and digital experience than all previous generations. Many of them have been saving over the past few years while living with their parents and are now at a life crossroads, such as moving out, getting engaged, and taking their first serious career steps. This brings an increased demand for products and services that support their new, financially independent lifestyle.
What do Generation Z members like, what is important to them, and how do they shop?
This generation behaves very distinctly and shapes trends in e-commerce, so below I present several key trends that are important to them when it comes to online shopping.
- First, Generation Z prefers mobile devices for online shopping, so make sure to offer them mobile applications and mobile-friendly websites. Many global brands are developing applications specifically for them, with simple user experiences and fast page loading times.
- They often make purchases directly through social media platforms such as Instagram, TikTok, and Snapchat, so I suggest integrating a “shop now” option on social media or engaging influencers to promote your products.
- They highly value authenticity and transparency in brands. They prefer brands that embrace open business practices, including ethics, sustainability, and social responsibility. Brands that share stories about their origins, production processes, and efforts to preserve the environment resonate with them, so they are more likely to shop on their web shops.
- Personalized shopping experiences are key to attracting and retaining Generation Z. They value product recommendations tailored to their interests and behaviour. Therefore, if you want to attract and retain them on your platform, consider the benefits of artificial intelligence for personalized product recommendations or personalized email campaigns.
- Video content is extremely popular among Generation Z. They prefer video reviews, unboxings, and tutorials. Join other merchants who have recognized this trend and use TikTok and Instagram Reels to promote products by creating short, entertaining, and informative video clips.
- Generation Z expects fast delivery and straightforward return processes. Flexible delivery options and free returns are extremely important to them. Consider implementing fast delivery options (such as same-day delivery) and a simple, clear product return process.
- Sustainability is also crucial for Generation Z. They prefer brands that use sustainable materials and practices. Cater to them by introducing eco-friendly packaging, products made from recycled materials, and other sustainable initiatives.
- They find shopping more enjoyable with interactive and gamified experiences, so consider using AR (augmented reality) for product trials before purchase, interactive campaigns, or games.
- It’s also important to note that they rely on user reviews and community opinions when making purchasing decisions, so if you haven’t already, definitely integrate user reviews on your website and encourage users to share their experiences on social media.
- Remember that Generation Z prefers simple and quick payment methods, including digital wallets and options like “buy now, pay later” (BNPL). So, in collaboration with CorvusPay, offer them various payment options.
I hope this blog will help you better understand current and future customers and adapt your business to the needs and expectations of Generation Z, which can significantly increase the success of your online business.
I wish you a nice day,
Edgar