By: Melinn Phifer
The retail industry is invested in marketing to millennials but it’s time to rethink the strategy. As Generation Z grows older, they become a key segment that retailers need to pay attention to. Gen Z has grown up with mobile phones so they are tied to technology. It’s time to learn their habits since they are the newest generation of high-tech shoppers.
Adyen, the payment platform, created a survey on consumers ages 18 to 55 to understand “perceptions of shopping payment experiences currently and in the future.” Generation Z is still young, the eldest in that category being 22, and they are “even more frugal and price-conscious than their immediate predecessors.” Their findings report more than half of Generation Z still relies on an “allowance for spending money and nearly, 20% work full time.” Consumers marketing products to this generation need to allow Gen Z to perceive they are getting their money’s worth.
Retailers must understand social media is a part of every aspect of Gen Z’s lives. It’s how they communicate, shop and check out brands. 26% of Gen Z admitted to buying a product based off of an Instagram post. The generation still prefers hearing their friend’s and family’s advice and doing their own research over social media posts before making a purchasing decision.
This generation is independent, only 7% want a sales representative to help them in-store. 49% of Gen Z ranks going to the specific store’s website as their preferable way to research new products, 45% word of mouth, and 43% searching megastore apps. Let them make up their own mind, don’t try to sway their decision once they walk in the door. Just be there for them at checkout because “paying with an associate” was still their preferred checkout experience. They still want the traditional sense of shopping in a store but they want it quick, painless and to be there for a purpose.
Generation Z has grown up on technology so they aren’t foreign to the newest trends. Biometrics, the ability to scan your fingerprints and retina for security purposes, seems to be where security is heading in the future. But, 35% stated that even this was too much technology for them when it comes to shopping. When it comes to technology such as texting, it’s easy and the main way to communicate for Gen Z. This generation utilizes the ability to communicate with a brand through chatting apps more than Millennials. Both generations haven’t fully embraced this technology trend though, because most aren’t willing to purchase a product straight from a messaging app.
These money conscious, young consumers, want to make the most out of their shopping trip and make every dollar count. Retailers must have up-to-date websites with the availability to check if the product is in store, online. These shoppers want to be in and out of the store with the product in hand. More than a quarter of them once inside the store, want to have the product automatically charged to their account. Retailers that provide showrooms give consumers an opportunity to get these individuals to check out their product in store. This allows shoppers to view the products in person in the traditional sense of shopping but with the opportunity to buy them online. Uncertainty isn’t an option for this generation, whether it’s showrooms or virtual reality, they want to be able to try before they buy. Augmented reality and virtual reality is something this generation expects in the future so retailers can prepare now. Gen Z wants to visualize the product before they buy, just seeing it online isn’t enough but with AR/VR and showrooms, retailers can provide this promising experience.
If retailers can understand what Generation Z wants, they will set themselves up for success. Most of Gen Z might still be on a parent’s allowance for now, but this generation will soon grow up and have the ability to shop and spend their own money. Retailers need to allow Generation Z to shop how they want, when they want and then the opportunity is there.
Adyen is a payments platform for some of the world’s leading companies. The only provider of a modern end-to- end infrastructure connecting directly to Visa, MasterCard, and consumers’ globally preferred payment methods, Adyen delivers frictionless payments across online, mobile, and in-store. With offices all around the world, Adyen serves more than 4,500 businesses, including 8 of the 10 largest U.S. Internet companies. Customers include Facebook, Uber, Netflix, Spotify, L’Oreal and Burberry.