Consumer needs are constantly evolving. While most retailers focus on meeting the demands of Millennials, Gen X, and Boomers, many overlook those of an emerging consumer — Gen Z. According to Forbes, Gen Z—also known as the “digital generation”—is growing up, and now holds over $44 billion in buying power. This means that for retailers, reaching this demographic is important now more than ever. Here are a few ways to attract their attention:
Although Gen Z may prefer the convenience of online shopping, 81% still visit brick-and-mortar stores; meaning that while they embrace technology, they also value experiences. Retailers can take advantage of this preference by offering new ways for Gen Z to explore and discover products in-store, such as using Artificial Intelligence (AI) to incorporate highly personalized product recommendations. For example, FashionAI, a technology built by Alibaba Group, allows customers to mix-and-match fashion apparel by standing in front of an AI device.
Compared to other generations, Gen Z tends to rely heavily on data when making a purchasing decision. From reading customer reviews to seeking out information about how products are made, Gen Z is all about transparency. Looking for an easy way to share this information? Consider installing Digital Smart LabelsTM . These labels allow retailers to display ratings and reviews on products, giving consumers the opportunity to make more informed buying decisions. Another option is to add QR codes that link to videos, vendor websites, or even customer testimonials.
Implementing smart payment solutions
Gone are the days when cash was king. According to Business Insider’s article, Gen Z Banking & Payments Trends for 2020, over 50% of Gen Z consumers use digital wallets monthly, while 75% use digital payment apps within that same timeframe. To keep Gen Zers coming back, it’s critical for retailers to provide these consumers with a frictionless checkout experience. Aside from implementing POS systems that allow for a variety of payment options—from Apple Pay to contactless credit cards— retailers should also consider thinking of ways to implement mobile payment apps that would allow consumers to skip payment terminals altogether. This could be as simple as implementing a Click & Collect program or the option to pay for their items directly through their smartphone opposed to waiting in line.
Integrating omnichannel strategy
Omnichannel strategy integrates online and offline platforms to ensure a seamless customer experience across all brand touchpoints. Given that technology is so ingrained in the lives of Gen Z, it’s no surprise that they interact with brands just as much on social media as they do in-store. Aside from engaging with them through personalized marketing campaigns, it’s important for brands to reach them with consistent messaging and pricing across all channels. Digital Smart Labels™ can help achieve the latter by ensuring prices can be updated from web to shelf in real time. For more tips on omnichannel retailing, check out Marketing Evolution’s article, Trend Analysis: Preparing for Omnichannel Success with Gen Z.