For a while, we have heard companies and news raising the subject of millennials and the importance of focusing on the upcoming new generations. Today, the attention is all on GenZ or Generation Z. But who are they exactly, and why should we keep an eye on them?
Generation Z, iGen, or even digital natives are all different ways to refer to a demographic cohort of all individuals born between 1996 and 2012. Born surrounded by technologies, they behave and think differently, as part of their environment while growing up. Indeed, what makes them unique is that they were always surrounded by technology, even as toddlers.
In the next 5 to 10 years, they will turn into the major group of digital products consumers. While building your strategy, you should put a real focus on pleasing Generation Z. Let us explain why.
To start with, this generation is distinctive from a purely demographic perspective: they now represent 32% of the world’s population, surpassing both millennials and baby boomers, according to Bloomberg.
The GenZ is considered the generation who grew up on social media, with a tech-savvy profile and a real need to be constantly connected and engaged. They are part of a movement that disrupts businesses in terms of customer behavior, customer expectations, and experience.
Their preferences are characterized by simplification, personalization, and socialization.
In other words, GenZers are looking for a seamless experience during their entire online journey. Whether on mobile devices or desktop, the platform should be appealing enough to make them stay. That means an intuitive, user-friendly, refreshing interface where they can find what they are looking for in a click.
Content and experience must feel unique to the individual. This generation appreciates and values a tailored approach that takes into consideration their expectations and preferences.
The social, community aspect is a sought-after criterion to keep in mind regarding this cohort, as they have always benefited from the internet and social media. In this Spotify study from 2019, 62% of Gen Zers and millennials declared they believe brands have the power to create communities based on shared interests and passions, and that’s what they expect from them.
Naturally, such a significantly high number of the population has to be included in your overall business strategy. Your strategy can only be effective with a good understanding of your target’s predominant traits and preferences, which are numerous when talking about GenZ.
As digital natives, they tend to spend time on their phones and are always connected, almost like their smartphones are a part of their identity. And it’s no secret. Clickz asked GenZers in this study, and 64% of them answered they’re constantly online, with an average of 4h30 spent on their phone. That is why it is essential to have a responsive platform on mobile. If you miss that part in your strategy, these customers will slip through your fingers. Moreover, they don’t want to be talked to, they want to be engaged with. Engaging this generation means gamifying your processes. Gamification refers to the application of typical elements of game playing (e.g., point scoring, competition with others, rules of play) to other activity areas, typically as an online marketing technique to encourage engagement with a product or service.
A study from Deloitte has shown that adding interactive features to an online experience increases engagement and brand loyalty. This study from Rosetta Consulting found out that engaged customers are five times more likely to buy only from the same brand in the future and that highly-engaged customers buy 90% more often and spend 60% more per transaction. Here, we see the importance of creating a product, brand or service but a real community and how important it is for your strategy. You will only catch their attention and engage with this generation by adding a social dimension to your platform, including features such as live chats and profiles, among others.
In terms of business perspective, it is essential to stay focused on new generations as they clearly shape the economy’s future. Having your business strategy aligned with the current trends is a step toward a successful experience and engagement from your customers. Generation Z brings a whole new set of insights, especially when we understand how social aspects of a brand aspire brand loyalty. Therefore, it should be at the core of the experience you provide them with. Most companies have already understood the challenge and outcomes you can gain, meeting the expectations of this generation, so you should better be moving in this direction if you want to stay ahead of the competition.