The Gateway To Gen Z Consumers (And How It Differs From Millennials)
By Zach Morrison, Tinuiti
Millennials and Gen Z consumers have over $200 billion in buying power, but to effectively market to both generations it’s important to know how they differ from each other, including what they buy and how they shop.
Gen Z: Shopping And Buying Behavior
Generation Z ranges in age from 4 to 22 years old. They have never lived in a world without computers (a.k.a. instant access to vast information at all times). Forget three-way calling; they have never used a landline. Instead, they Facetime friends in video group chats after school. My own son, who at the age of six falls into this demographic, conducts research on everything from the solar system to Transformers on his iPad to creating his birthday list on the Amazon app, not to mention watching others play video games on the Google hub in our kitchen (note, he’s never heard of Twitch).
But more than being tech savvy, Gen Z consumers (especially those with buying power) are savers and bargain shoppers who also value convenience and efficiency.
Today, Gen Z shoppers are looking for the things that a high school or college student needs most, like casual apparel or inexpensive basics for a dorm room or their first apartment.
The rate of innovation is rapidly moving for this age group, and retailers looking to reach Gen Z would be wise to invest in digital advertising, as many Gen Z consumers actually like online banner ads and appreciate the proactive and personalized experience they bring to advertising.
What’s really interesting is that Gen Z consumers shop in different ways from previous generations, and many of these ways do not include technology. Surprised?
Instagrammable Experiences For Gen Z At Brick-And-Mortar Stores
That’s right; Gen Z likes to document everything in their lives — from what they eat for lunch to where they buy their shoes — leading Gen Z consumers to return to the physical retail locations that Millennials left for online shopping. As they shop, they take photos of cool sightings around the store and hold polls on social media for what to buy. They also Google for coupons, check their email for promotions and read reviews about products as they consider buying them in the aisle.
Gen Z Strongly Prefers Amazon And Brand Name Web Sites Or Online Shopping.
Although they enjoy physical stores, they also really like to shop on Amazon and brand name web sites for fast and free shipping and apparel basics. And when compared to other age groups, Gen Z consumers purchase from name brand web sites like Chubbies and Bombas instead of multi-brand web sites like JCPenney by a 10% margin.
Millennials: Shopping And Buying Behavior
When you think about a Millennial, you may picture an entitled intern taking selfies and wasting their paychecks on $5 designer lattes and avocado toast; I’m here to tell you that you’re wrong. Millennials (ages 23-38) span 15 years that include college grads with one to two years’ work experience all the way up to homeowners with two children and a C-level title. That allows for a fairly diverse range of shopping habits and needs.
Shopping trends often follow the consumer through their life stages. As such, Millennials are buying work clothes and baby products in increasing numbers over casual attire. But beyond life moments, these shopping habits also can be attributed to digitally native brands that sell those types of products, like Etsy and Bugaboo for strollers.
The rise of digital shopping experiences and services has fueled the love affair Millennials have with online shopping and e-Commerce. Above all else, they shop online and free, fast shipping is the new expectation, not the value-add service it used to be.
Millennials Are Buying Clothes On Instagram, Snapchat And Other Online Channels
According to a recent study, over 70% of participants self-identified as Millennials have made a purchase from one of two social media outlets in the past couple of months — compared to less than one third of Gen Zers. This is important for e-Commerce retailers to note as up-and-coming generations are leaning on technology in this way, as well as a nudge to invest in visually appealing digital media to attract buyers in these age groups.
If Millennials Must Shop In A Store, They Will Go To Big Box Brands Like Jet And Target
These legacy brands are still trusted by Millennials, presenting an array of options as well as an online and mobile experience. These stores also offer convenience in location and a variety of clothing, housewares and groceries all under one roof.
Although Amazon may be the apparel web site of choice for younger shoppers, most age groups are browsing and buying clothing across multiple shopping channels, which speaks to the need for brands and retailers to invest in a strategic multi-channel strategy to engage with apparel shoppers across multiple touch points.
To reach Gen Z consumers (and their growing wallets), brands must be willing to build visibility across multiple channels. That could mean improving the functionality and features of an e-Commerce web site on desktop and mobile, investing in premium content (if that brand is selling on Amazon), creating unique physical store experiences like pop-up shops and implementing a paid media strategy to scale traffic to each.
Zach Morrison is the CEO of Tinuiti, the new name for Elite SEM. His “tell it like it is” approach to business, culture and client success has translated to exponential growth for the agency and its clients’ businesses. Through recent successful acquisitions and the management of key client relationships, Morrison has led Tinuiti through periods of 100% YoY growth while maintaining steady 20% YoY growth and doubling the agency’s business every three years. This growth and diversification of services are allowing Tinuiti to offer clients a holistic agency that uses integrated media strategies, analytics and marketing science to revolutionize how companies use data to influence marketing strategies.