How to Sell to Gen Z
Generation Z is becoming one of the most popular generations. They are tech-savvy individuals that appreciate simplicity and being in control of their environment. Let’s explore who they are and how you can start adopting solutions to increase conversion for this generation.
Who is Generation Z?
Generation Z is the newest generation. They specifically include those born from 1997 to 2012. This means that Gen Z is between the ages of 7-22 years old. This generation follows Gen Y (referred to as Millennials), Gen X and Baby Boomers.
Why should your business consider Gen Z?
Generation Z might be young, but some of them have recently graduated from college and, even more recently, they are entering the workforce. This means that this generation is on track to earn money that they can spend on your goods and services.
Gen Z is the next group of consumers looking for new products and services to suit their needs and lifestyle. Businesses that neglect this new group of buying power will eventually get left behind. This generation is already impacting the global economy and they plan on growing even more. According to the US Bureau of Labor Statistics, Gen Z is expected to make up about 30% of the workforce by 2030. During this time, their population will have grown to about 78 million by 2034. This means Gen Z will be the largest generation, surpassing Millennials.
With a population that size, Gen Z could easily have the buying power of about $143 million. With purchasing power that size, this is a generation that shouldn’t be ignored. Their habits are defining our modern economy and encouraging businesses to recognize their needs.
What are Gen Z’s habits?
As mentioned before, Gen Z is by far the most tech-savvy generation. Millennials are still highly engaged in developing technology, but Gen Z is making this technology part of their lifestyle. According to a survey conducted by MorganStanley.com, it was reported that nearly 60% of Gen Z have used smartphones before the age of 14. It was then determined that they could spend up to 7 hours a day online. Most assumptions would believe that they might be spending their time on social media platforms. However, around 72% of Gen Z have bought something online in the past month. This means they are beginning their financial journeys where they now have money in their pocket, looking for where to spend it.
It’s more important now than ever to include this generation's preferences in your business strategy. Whether it’s through marketing channels or product pages, ignoring this group can cause your business to miss out on major upcoming sales.
How to earn Gen Z's business….
Your business needs to be online.
As mentioned above, Gen Z spends a majority of their time online. If your business isn’t online, you should consider making this a priority. Online presence is what’s going to get these shoppers to engage with your brand and products.
To start, focusing on a user-friendly, modern website. Keep in mind, having a basic website isn’t enough for this demographic. Gen Z enjoys easy accessibility, sleek designs and interactive elements. Making sure websites are current and up-to-date can bring this generation closer to your brand, allowing you to sell to them directly.
Having an online presence goes much further than just a website. This could mean posting regularly to social media channels with posts that are relevant. Or it could be through blogging and hanging out online where your ideal customer is. Generation Z is online, therefore, that’s where you need to be.
You need to understand that Gen Z is frugal.
Gen Z consists of financially savvy individuals. However, just because they are savvy doesn’t mean they like to overspend. Finances have been introduced to this demographic earlier than generations before them. Attempting to fool them with high pricing or useless features at a higher rate isn’t going to cut it.
Gen Z has proven that they enjoy comparing different products across different brands prior to purchase. They are also known to go for the cheaper item with fewer features or quality if it means they can save a buck. According to Business Insider, price makes up 60% of Gen Z’s purchase decisions. Whereas, the generation before them (Millennials) prefer buying the higher priced item as long as it’s the brand they prefer.
Keeping pricing in mind will help your business engage with this audience. This doesn’t mean you need to lower your price to the point where you make no profit. This means you need to make sure your value matches your price and that you're competitive with others in your industry.
Start advertising online.
Can you tell that online presence is highly important to this generation? Going one step further, you should consider online advertising. This can be through ads, search engines and sometimes even through social media influencers who have high engagement.
Advertising through channels like Google Ads can get your products in front of more consumers, faster. The great thing about advertising online is that any budget can participate. When advertising through social media, you have the power to set limits and specific dates that you want your ad to be visible. This means even the most humble of budgets can get their products or services in front of this generation.
Make paying easy.
One industry that has been rapidly changing recently due to Gen Z is the payments industry. Gen Z is quickly moving away from credit cards and cash. Around 73% of the Gen Z population do not have a credit card and about half don’t plan on opening one. This means alternative payment methods are highly important to this generation and in order to win them over, the right payment solutions need to be considered.
How can Redde help?
We have the right technology to help you impress this new generation! Whether your business operates online or in-person, we offer the newest payment technology fit for all audiences. Accepting all cards, mobile wallets and contactless payments can be easily done with our equipment. For those of you who already have an existing online store, we can integrate! With our integration options, we can help you create simple checkouts with higher conversion rates. Payment options are extremely important to Generation Z, not having the right payment provider can cause you to lose out on sales.
Switch to Redde and start converting more customers today!
Generation Z is quickly on their way to becoming the biggest demographic of buying power in history. Ignoring their wants and needs can be catastrophic to your business. It's important to understand all audiences and try to appeal to them the best you can. Generation Z is full of smart, savvy shoppers and they are waiting to discover a brand just like yours. So take full advantage of it!
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