As a recent inductee to the 35+ club (big yikes, that’s a different age bracket on survey responses now 😅) I have felt more and more out of touch with the younger generation in recent years. Like my Millennial cohorts, I remember the pre-internet era, was a pioneer user during the rise of social media and have weathered and adapted to the never-ending onslaught of new and improving technology.
But Gen-Z, who started entering the picture in 1997, don’t remember the thrilling twangs of a dial-up internet connection, having a dedicated computer room, or using brick-sized cell phones; they grew up with handheld devices, instant connectivity, and the inescapable necessity of social media.
With an experience unlike any generation before them, Gen-Z are somewhat of a mystery to most retailers. But with a purchasing power that’s expected to reach $12 trillion by 2030, it’s time to commit to better understanding Gen Z.
In his recent article for Retail Touchpoints, Rival Technologies CEO & Founder, Andrew Reid, explores four ways for retailers to connect with Gen Z.
Gen-Z isn’t One-Size-Fits-All
Gen Z represents a huge amount of diversity, both in life-stages and ethnic background. Born from 1997-2012, some have now entered the workforce, while others are still in school, which leads to very different purchasing behaviours. Older Gen Z’ers are looking for quality, sustainable products that align with their values, while the younger Gen Z’ers might prefer to prioritize trendy and affordable items.
Beyond the variance in their life-stage, Gen Z’ers are more ethnically diverse than generations that came before them. According to the Pew Research Center, only 52% of the group are non-Hispanic white, compared to 61% of of millennials.
“They're seeking authenticity from the brands with which they do business, and they're not afraid to speak out.”
It’s no surprise, then, that Gen Z expect their diversity to be reflected in marketing. Gen Z demands authenticity and messaging that speaks to their identities and values. In a recent webinar, Andrew shared insights that highlight the importance of diversity and reflecting real, varied experiences in their marketing.
No Hassle, No Problem
Andrew shares that Gen Z values convenience when shopping above all else. Platforms like Amazon and Etsy have set the expectation for seamless, one-stop shopping, and Gen Z isn’t willing to waste time searching or troubleshooting in the quest to make a purchase.
Our 2024 Gen Z Marketing & Engagement Report revealed that Gen Z shops just two or three times per month. They also prefer to use platforms where they can get everything they need at speed. Not to be overlooked, Gen Z’s preference for mobile shopping means that apps and optimized websites for mobile experience are critical in attracting Gen Z shoppers.
As someone who has grown to dread the mall over the years, I believe a painless and simple return policy is a must for winning my business when shopping online. Gen Z’ers agree; buying multiple items, figuring out what works and returning what doesn’t is one of their shopping behaviours, and developing policies that meet Gen Z’s demands for flexibility is a necessity for retailers.
Scroll, Save, Shop Later
Our research shows that 90% of Gen Z uses social platforms. But, contrary to popular belief, social media should be leveraged as a discovery platform rather than a purchasing tool.
"Treat social media as a chance to bring Gen Z into your world, showing them why what you do makes their lives easier."
In 2024, we engaged 750 Gen Zs in the US and Canada using our conversational research platform to find out more about their social media purchasing preferences. Instagram came out on top (70.3%) as the social media platform that Gen Z use to discover new brands, with TikTok (34.3%) and YouTube (33.1%) also ranking as top channels. These platforms serve as discovery hubs, where Gen Z explores new products and engages with branded content on their own terms. Only 18.4% complete a purchase directly through social channels.
Andrew recommends that instead of pushing for immediate purchase on social media, brands should focus on creating engaging, educational content that builds interest and connection. Winning Gen Z means drawing them in, not going straight in with the hard sell.
What about influencer marketing? Our research indicates that Gen Zs are becoming more skeptical of influencer marketing. Nearly 50% of Gen Zs are “not very likely” or “not likely at all” to buy something recommended by influencers. They’re firmly in their de-influencing era.
Discounts? Do them Differently.
I love a good deal and am 10x more likely to buy something if I see a markdown attached. Now, with inflation driving up prices, it’s no surprise that Gen Z’ers appreciate a good deal too. But discounts alone won’t win them over.
While price-conscious, Gen Zs are happy to pay a premium for brands they trust or whose products align with their values, Andrew shared. Authenticity matters more than a flashy sale, and Gen Z has a sharp eye for brands that don’t walk the talk. They’re vocal, they’re engaged, and they expect transparency. Fail to deliver, and you might find yourself on the wrong end of ‘keyboard warrior’ wrath.
"They're seeking authenticity from the brands with which they do business, and they're not afraid to speak out."
Retailers that balance competitive pricing with a clear, mission-driven approach-whether through sustainability, ethical sourcing, or social impact-will build lasting connections with Gen Z.
Keep It Real, Keep Them Coming Back
Gen Z’s loyalty won’t be won with gimmicks; it’s built on trust, convenience, value and authenticity. Retailers that have an up-to-date understanding of these core needs will be able to stand out in a crowded market. Tools like insight communities, which allow brands to get ongoing insights from Gen Zs, can help provide this understanding and deliver competitive advantage .
To learn more, check out Andrew’s full article or check out our 2024 Gen Z Marketing & Engagement Report.
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