Things Marketers Need To Know About Generation Z

Transcription

1 13 Things Marketers Need To Know About Generation Z January 2018

2 1. This generation of teens is unlike any other. This is the first generation born with access to the Internet, and to grow up entirely in a seamlessly connected world. They are the first generation to truly need the internet, and they depend on the social-validation feedback-loop that social platforms like Instagram, Snapchat, and Facebook provide. In addition, these young consumers are challenging some long-held retail truths. The idea that the more people were employed, and the more money they made, the more they would spend on stuff is no longer ringing true for this generation. 1 Marketers, accustomed to adapting to the differing needs of each generation, will face many challenges as they adapt to the first generation to be hardwired into the digital world. 1 ( 2. Teens value experiences over possessions. Teens value experiences, and 62% prefer to spend their money on an experience over purchasing something material. When it comes to shopping, it s unsurprising that 75% prefer to shop at retailers that provide an engaging in-store experience. 1 Top 5 Things Teens Value in an In-Store Shopping Experience 2 1. A clean store 2. Friendly and knowledgeable store associates 3. A positive checkout experience 4. The use of technology in the shopping experience 5. Availability of customer feedback channels

3 3. Teens only do a small share of their shopping online. Surprisingly, 98% of teenagers still appreciate shopping in real life. The ability to try things on, and have tactile experiences, is still important for teens. 1 While most teens spend a larger portion of their time online, teens only use 17% of that time to shop and browse. They prefer using their online hours to text and chat, watch Netflix, play games, and even study Teens love Amazon, and Amazon loves them. Not unlike older people, teens like to visit Amazon. It is the favorite website for both males and females, capturing 43% of Internet share. 1 Now, looking to hook new customers at an even younger age, Amazon recently announced that teens ages 13 to 17 can shop on Amazon using their own login. Parents receive an showing the order details, and have the option to approve all purchases or pre-set spending limits

4 5. Teens place the greatest economic value on looking good. Teens spend 37% of their money on clothing, accessories and shoes, not including the apparel purchased for them by parents which accounts for about half of the clothes they wear. Teens are willing to pay a premium on quality items, and while they are brand conscious they are not brand loyal. 1 In-store shopping still dominates apparel purchases: Despite all the buzz about millennials living their lives online, less than 11% of them said online purchases account for more than half their new clothes. According to William Blair analysts cash is still king when it comes to this age group s shopping habits Teens want products and experiences that are as unique as they are. Teens are fickle as always, but while being unique is highly valued, sporting well-known labels is no longer derives the same status it once did. In fact, 77% of prefer unique products over popular ones. 1 Brands that are able to help teens reflect what unique people they are will appeal to Generation Z. Personalization, predictive analysis, and one-to-one engagement with teens is well received - 50% of teens said they wouldn t return to a site that didn t anticipate their needs or wants. 2 It won t be enough to simply sell products, brands and retailers must make Generation Z customers feel unique and heard

5 7. Teens are willing to pay for the experience of eating out with friends. Though teens spend a sizable portion of their money on what they wear, they value experiences over possessions. Their preferred experience is food-based, so teen-friendly restaurants are getting a bigger share in their budgets. Food accounts for a whopping 23% of teen spending. 1 According to the Generational Consumer Trend Report, 68% of Generation Z consumers (ages 13-21) and 73% of older Generation Z consumers (ages 18-21) already eat out once a week Teens want visual content from brands, preferably on Instagram. When asked What is the best way for a retailer/ brand to communicate with you about new products or promotions?, 52 percent of teen respondents said Instagram. 1 What makes Instagram so popular with Generation Z? Millennials and Generation Z are both highly visual - Instagram, Snapchat, emoticon language, these generations have short attention spans that are best captured with interesting visual content

6 9. Teens prefer brands that provide relevant social media engagement. Visual content photos, videos, and emoticons is now the language of choice online. So it s no wonder that when teens use social media they flock primarily to Snapchat and Instagram. Generation Z makes up the core of Snapchat s 150 million strong userbase 1, Plus, 81% of teens visit Snapchat at least once a month and 79% visit Instagram. 2 Today it is expected that brands also engage with their customers, and 62% say that if a brand engages with them on social networks, they are more likely to become loyal customers Teens want to shop at stores with digital selfcheckout. Most teens, 66%, like using self-checkout and anything else that can make the boring parts of a shopping trip more efficient and enjoyable. In fact, most adults (62%) said the same thing. While shopping can be a leisure activity and retail stores have come to be recreational destinations, most shoppers will happily take every opportunity to speed up the more mundane parts of shopping, like waiting in line or paying for a purchase. Furthermore, 22% of teens and 28% of adults said that they would like more kiosk-based convenience services like shopping list management, product locators, and price/inventory lookup kiosks_journal/articles/teens_want_a_faster more_enjoyable_retail_experience-298. html 5

7 11. Teens like to eat at restaurants with mobile ordering and payment options. Digital technology presents an opportunity for restaurant marketers looking to stay afloat and gain new customers, especially casual and fast-casual restaurants which have declined in recent years. The top 5 most popular restaurants with teens all boast an impressive digital and social media presence, and several among them provide digital tools such as mobile ordering, as well as ordering and payment kiosks. 1 Taking cues from these teen hot spots could give restaurants the edge in appealing to new younger consumers Teens expect digitally seamless experiences from brands. Properly marrying digital channels and tools into one immersive experience is the holy grail in marketing to teens. Despite the cited death of malls, teens are seeking out retail stores that position themselves not only as sellers but also as destinations. Clothing, accessories, and video game retailers, among others, have a huge opportunity using digital channels to gain and keep teens business. 6

8 13. The best way to communicate with teens today is through their mobile devices. Each new younger generation is bound to rebel against things that are static, and the values of older generations. As Generation Z is the next big thing, if brands want to keep up, they ll have to update their marketing strategy across multiple and potentially new channels and devices. Generation Z teens love shopping in real life, with little life experience it is not wonder that they appreciate the ability to see and touch before they buy. All of this means a well thought out mobile strategy at the point of decision is a must. Mobile is the preferred channel and a seamless mobile experience is of the utmost importance. Master the art of the personalized visual communication, and you ll have their attention. Leverage influencer marketing, and they will trust you. Impress them with a retail experience that is fun and truly helpful, and they will come back again and again. Generation Z might not be your customers just yet, but they are coming. Be prepared, and you will prosper as this new generation comes of age. 7

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10 Impress consumers with branded digital experiences delivered by Connected Products and Displays. TUKU Connected Marketing Platform provides a unique opportunity for brands and retailers to maximize dwell time and purchase probability. FOR MORE INFORMATION PLEASE CONTACT: Mark Baldwin, President & CEO TUKU Inc. mark.baldwin@tukuinc.com tukuinc.com