Is Generation Z Loyal to Retailers?
We know all about Millennials, Generation X, the Baby Boomers, but how much do we really know about Generation Z - the generation born after millennials? This group of young adults is the next big thing for market researchers, cultural observers and trend forecasters as they try to determine just how much this group of influential young people will impact the retail world. With the oldest members of this group barely out of high school, the young ones of today are set to become the dominant youth influencers of tomorrow. Savvy in all things technological and modern norms, Gen Z is an incredibly valuable group of people that possess higher expectations when it comes to brand relationships.
A recent study established that four out of five of those who fall into the Gen Z category believe that retailers think their age group is important, and they’re not wrong.
Time to Rethink
The oldest members of the Gen Z’s are turning 21 this year. Many will soon be graduating and joining the workforce, which means they’ll be gaining financial power. Already, they’ve begun taking over the 22-36-year-old – also known as millennials – age range for marketers. This shift in customer demographics is one that should prompt retailers to start rethinking their approach to brand loyalty. From a very early age, Gen Z will have had access to technology and social platforms. This has allowed them to grow up with access to everything and anything with a simple click of a button. Growing up, their main method of communication would have been through mobile devices, which in turn, has left them craving a constant need for access to digital connectivity. Retailers must keep up with the continuous shifts in technology use – especially when it comes to the Gen Z group. Understanding that people now fundamentally have an attachment to the never-ending flow of information that is available at their fingertips means that it’s important for brands to be able to adapt in order to connect.
One Size Most Certainly Does Not Fit All
In this day and age, the need and want to be unique and individual is at an all-time high. Considering this, it’s important for retailers to understand that past methods of marketing, whereby a one size fits all approach has worked well, will no longer apply to the up and coming market. Brands must work hard in order to resonate with Gen Z. This means creating loyalty programmes and bonds that develop a personal relationship between the brand and the customer. To stay relevant, retailers must keep up with the fast-paced lives of the first digitally-native generation – the Gen Zs.
Stand Out from the Crowd
In an ever-changing world, brands must prove that they’re relatable to Gen Z. By breaking norms and working hard to target those who aren’t drawn in by traditional methods of marketing, retailers will be successful in forming long-term relationships with their next generation of all-important customers. For a retailer, one of the most important things to invest in is market research. In order to understand why customers act in the way they do, a solid level of research must be conducted. Personalisation is key, so it’s important to invest in understanding how to add value to a customer’s life, while supporting their unique lifestyle and experiences.
The Loyalty of Gen Z
As to whether Gen Z is loyal to retailers or not is not as simple as answering yes or no. Engagement from the new generation can only be achieved by engagement and adaption from retailers. If a brand isn’t willing to adapt in order to fit a new market, there more than likely won’t be any loyalty there from Gen Z. It’s so important that retailers learn from the mistakes of the past. In the past, retail struggled massively for over a decade because of economy, technology, and increased competition. However, another reason was that marketers didn’t know how to properly connect with Millennials at that time. Therefore, it’s essential that this time around, retailers don’t miss the opportunity for change as it can have detrimental effects on business. It’s unfortunate but true, but when the importance of forming relationships with a new generation is ignored, brands are doomed to fail. Generation Z is no longer the future; they are current, they are here, and they are ready. Are you?
Tranxactor has developed and implemented many different models of loyalty programs that produce tangible and positive results for our retail clients, including an increase in average transaction value. measurable customer lifetime value, improved customer retention and greater efficiency from marketing spend. If this is of interest to you, why not reach out to us today?