Generation Z is revolutionising the face of retail as we know
it: in order to survive, let alone thrive, retailers must embrace Gen Z and
adapt to its wants and needs. As the first generation born with the internet,
Gen Z turns to technology, but this doesn't mean that they have abandoned the
in-store experience: the great news for retailers is that Generation Z craves
the experience of bricks and mortar stores.
So then, the challenge faced by retailers is not to convince Generation Z to shop: the challenge instead is to get them to shop in your store and then to keep them coming back, again and again. By understanding how Generation Z interacts with your business, you can ensure that you are at the forefront of this revolution rather than missing out and losing your market position.
Innovative already, you appreciate how
technology is changing retail, and you embrace retail technology services.
However, to fully exploit the offerings of retail technology companies, there
is the need to know what makes Gen Z tick. With Generation Z, it's all about
getting personal and personalised marketing is key.
So what is Generation Z, and why does it matter?
It is generally accepted that Gen Z is the name for those born between 1995 and 2010. Unlike Millennials and every generation that has come before, Generation Z was born into a world where the internet already existed. A world where only instant is fast enough, and a world where, whether for better or worse, social media is the go-to outlet to share and to vent. Gen Z isn't just about social media though: long before any of us had even heard of social media influencers, this group was already influencing family buying decisions.
With retail information suggesting that Generation Z accounts for around 40% of consumers, and the fact that it influences strangers and family alike, it is a force to be reckoned with. For any retailer looking to increase market share and to stay ahead of their competitors, Gen Z is the holy grail.
The good news is that
Gen Z wants to shop. Not only does it want to shop: it wants to shop in your
store, and it's willing to give you a chance. The thing with Generation Z is
that it is made up of what can only be described as a demanding and somewhat
impatient lot. They will enter your store, but you'd better give them first-class
service. Once inside, they're going to expect access to your wifi to keep them
in touch with their world. Once you think you have them, they don't want
bombarding with meaningless, generic offers: they want offers relevant to them.
They want personalised marketing, and you need to know how to achieve and
deliver what they are seeking.
Harnessing technology to attract Generation Z
There was once a time where a company would think that quickly throwing up a social media presence was enough: after all, Gen Z is driven by technology, and social media seemed the place to be. It quickly became apparent that Gen Z didn't just want to see some meaningless presence: they expected interaction. If they had something to say, social media became the place to say it. With how technology is changing retail, there is now a greater need for something more than just a social media page.
Gen Z is seeking the
personal approach. They want to know you, and they want to feel that you know
them too. Beyond the warm fuzzy feeling of being known, it is also about those
in Gen Z not wasting their time: if you know them, you will only reach out with
something relevant to them. Personalised marketing shows Gen Z that not only
are they known, but that their time is respected too. Whichever way you seek to
appeal to Gen Z, they demand seamless UX and refuse to interact with services
that are disjointed and cumbersome.
The loyalty of Generation Z
Gen Z likes to keep retailers on their toes: born in an era where they will remember their parents dealing with the financial crash of 2008, Gen Zers are price savvy. Conversely, Generation Z is also the generation that is eco and socially aware, meaning they will happily pay a premium for a product that aligns with these values. What does this mean for retailers? In short, Generation Z's loyalty isn’t just there for the taking.
A recent study by YouGov shows that
Generation Z is in love with the idea of loyalty schemes, yet only 49.1% of
males and 56.7% of females are signed up to any. The reasons given for such low
take-up rates? Generation Z wants loyalty programmes tailored to them as individuals.
They want personalised marketing: marketing that is relevant to them.
How Recash can bring Gen Z to your business
As a retail technology innovation hub[1] [2] , Recash can allow you to meet the wants, needs, and desires of Generation Z. As a disruptive Fintech, Recash has tapped into the power of Open Banking, allowing you insights into exactly how your potential customers are spending. The advantages of this are clear: by analysing the spending habits of Gen Z you suddenly have the ability to provide exactly what they are asking for. Personalised marketing.
Recash allows anyone to upgrade their standard bank card to a cashback card.
The user is rewarded when they shop but gone are over-complicated loyalty
points and award schemes: within 6 hours the shopper receives cash directly
into their Recash wallet. As soon as their Recash wallet balance reaches £20,
with one click the shopper can transfer this money directly to their bank
account. Consumers are able to earn money in an instant while retail partners get access to valuable
data: an insight into where consumers are spending as well as how much.
Retailers can suddenly
directly target their ideal customers. Unlike loyalty schemes of old, our
innovative approach means that you are not just retaining existing customers:
you are actively attracting new ones to your business.
For Generation Z, it is
given the personalised marketing it desires. It is given a reason to remain
loyal through the opportunity to earn cash back, and it is given the seamless
UX that it demands.