Gen Z is seen to be the hardest generation for retailers to please, consistently scoring lower in satisfaction levels than other older groups on every aspect of the consumer experience. They’ve grown up with technology and always having everything at their fingertips – instant gratification – making them a cohort that’s hard to impress and easy to lose. It is a generation of digital natives, commonly identified by shorter attention spans coupled with the desire to achieve results q
s quickly. The Digital Life Index shows digital natives report higher levels of dissatisfaction with the ability to do things online, including finding information, researching products, and returning items. Overall, Gen Z’s customer satisfaction scores were 34 per cent lower, on average, than other generations’.
Data shows that their priorities are generally aligned with the other groups’, so maybe they aren’t the drastically different generation we always assumed. If that’s the case, how do we ensure we capture this emerging demographic?
1. Nail the basics first
Companies need to get the basics right, because first impressions really do count. Gen Z consumers want improvements in their digital experiences. They want everything optimised and on mobile apps (66 per cent of their purchases are made on smartphones). Their biggest current frustrations are slow loading times, poor search functions, unclear site navigation, unappealing visual appearances, and apps not formatted for mobile devices.
As such, the foundational elements of a company’s digital presence – search functions, loading times, easy navigation of a website or mobile app – are what is going to win over Gen Z consumers or lose them forever. Deficiencies in these areas will cause immediate brand disloyalty; this generation knows there are so many options out there and won’t stand for subpar. Bank of America research found Gen Z shoppers to be less price sensitive when buying products, prioritising quality over price and placing high importance on sustainability.
2. Personalise it, for starters
If a seamless digital presence is how we avoid losing Gen Z consumers, how do we keep them? Gen Z has a greater appetite for in-store digital experiences, such as augmented and virtual reality. They also want retailers to provide personalisation.
Some of the other top preferences were for cash-back partnerships tied to favourite products or brands and shopping advice. Unsurprisingly – given the Gen Z need for speed and instant gratification, the most important factor in satisfaction when shopping online was fast shipping.
3. Step into the future
Above all, a better consumer experience for Gen Z requires an optimised digital offering. But this cohort is still interested in physical retail as well – even more so than older demographics. Forrester research found that while Gen Y and Millennials don’t see a need to return to in-store shopping, and interest in it has dropped sharply among Gen X, Gen Z consumers “express the highest levels of excitement around shopping sprees with expanded groups of friends and family”.
The kinds of in-store experiences they expect, however, are digitally enhanced, such as with augmented and virtual reality. As Gen Z consumers become accustomed to seamless digital experiences, they will shun brands that do not meet or exceed their expectations.
It is important to note that key elements are relatively consistent across the age groups. For example, among all demographics, the majority visit retailers’ websites to purchase. This supports the foundational elements of human-centric design that state we should segment customers based on their behavioural traits not their demographics.
Despite this, Gen Z is a new and different generation. The youngest Millennials are now 25, long out of their teens, and the oldest ones are turning 40. Many of them are now parents of Gen Z children themselves. Gen Z’s collective income is set to overtake Millennials’ in 2031, partly due to the ‘great wealth transfer’ from older cohorts, Bank of America states. It predicts they will be the “most disruptive generation ever”. Born into an online world, they are “compelling other generations to adapt to them, not vice versa”.
Brands and organisations wanting to appeal to Gen Z should heed this. In our globalised, digitised, virtualised world, Gen Z consumers enjoy more options than previous generations ever have. They can afford to be exacting and selective in their choices.