The future is hard to predict, but by understanding the youngest consumers; Generation Z, you have the opportunity to lead your company in the right direction.
Generation Z describes people born in year 1995 and forward. They learned to use technology at an early age, which has made them more knowledgeable and self-reliant when it comes to deciding which products to buy and brands to support.
But what does the youngest generation define as a good purchase experience, and how can you meet their needs?
Below, parts of the report, made by IBM Institute Business Value and National Retail Federation, will be highlighted, giving you an insight into the 3 characteristic tendencies of Generation Z and how you can implement them into your company.
Don’t have enough time to read the entire article?
Scroll down to our infographics, which will give you an overview of the future generation.
1. INVEST IN TECHNOLOGY
Given the fact that Generation Z has grown up with a range of technological possibilities, they are harder to impress than the older generations.
One of the most used technologies among Generation Z is the mobile phone, which play an integral role in their buyer journey. The young consumers do, to a high a degree, use their phone to i.a. find information about products, compare prices, find offers or discounts and pay for their products in the stores.
While Generation Z expects that stores in the future will use robot technology, augmented and virtual reality, they also show a low amount of patience towards technology suffering from a large number of errors. This is why it is crucial to invest in technology that is well-tested and user-friendly.
2. MAKE THE SALES CHANNELS CONSISTENT
Compared to the older generations, Generation Z has clear expectations of their purchase experience.
Firstly, they expect that the purchase experience is consistent and reliable – whether it is in-store, on the mobile app or website – that way they can easily switch between the sales channels.
Generally, they expect that the purchase experience is seamless, so they can locate the product quickly without difficulty, find product information and use their preferred payment method.
3. FOCUS ON THE INDIVIDUAL CUSTOMER
The unique purchase experience is essential for Generation Z, in which the individual needs and wants are taken into consideration.
In fact, an individualized purchase experience is so significant for Generation Z that 64% believe that loyalty programs with prizes customized for each customer are important. And 65% of the respondents’ choice of store is affected by whether they offer a loyalty program.
In order to offer a customized purchase experience, it is important that you know your customers and their buying habits. By registering your customers’ purchases you can customize offers and discount – according to their previous purchases.
EMBRACE THE THREE TENDENCIES IN ONE SYSTEM
Even though, the three tendencies may seem extensive, one does not exclude the other. With the right technological foundation, you have the possibility of embracing all areas and be ready for the future generation.
Ae you still unsure how to adapt your business to future requirements? We have compiled a check list, where we go through five area you CANNOT compromise if you want to ensure efficient operations and good purchase experiences across the sales channels. One of the areas is exactly about making sure that your sales channels are consistent. We also raise questions you should ask yourself in order to find out whether you meet this requirement and thereby ready for the future.
If you need an overview of Generation Z’s buyer behavior, then take a look at our infographics below.