The shift towards digital commerce has been monumental, with the rise of Generation Z as a pivotal consumer force. This demographic will reshape the retail landscape with its substantial purchasing power and distinct preferences. As they become the primary consumer base, understanding and tailoring experiences to their needs isn’t just beneficial—it’s essential.
Studies show that in 2021, Generation Z already makes up 40% of the consumers in North America, with $44 billion of direct buying power. So, it is high time to start understanding this demographic and design and deploy a CX strategy that involves in-store and through customer service call center experience.
Understanding Generation Z: The New Digital Natives
Generation Z, born between 1996 and the 2010s and raised predominantly by Generation X, is the first generation to grow up fully immersed in a digital world. With an upbringing shadowed by economic uncertainty, they are pragmatic and financially cautious, yet they are definitive digital savants who navigate through an array of social media platforms with unprecedented ease.
- Born between 1996 and the 2010s
- Raised by Generation X (in most cases)
- Grew up during a recession
- Tend to be realists
- Focused on saving money
- True Mobile natives
- Prefer more visual social media platforms like Snapchat and Instagram
- They love video
- Expect email for important communication
How are they different from Millennials?
Gen Z is the first generation born in this digital age and is far more digitally savvy than others. They are often described as a screen-addicted, social media-obsessed, zero-attention-span generation. However, that is not true.
Being the first true digital natives, they had video and social media at their fingertips from the very first day, and that shaped their habits. Also, with countless information and stimuli sources available on the web and very limited time, Gen Z tends to filter information effectively and not take every piece of information at face value. They tend to switch to other information sources if something seems unauthentic or uninteresting. Also, they are a generation that has seen financial and health crises as they grew up.
And that has a significant impact on their expectations and experiences. While Millennials went through similar situations, they did not affect them similarly.
This generation’s unique characteristics significantly influence their shopping behaviors and expectations. Unlike Millennials, Generation Z is less impressed by mere digital presence and more by engaging, seamless, and highly personalized online experiences. Here’s how businesses can evolve their customer service to meet these demands: