Here’s a fun fact that might make you feel old: Many Gen Z members are already in their or mid-twenties, and the generation makes up around 40% of global consumers with a buying power of $143 billion. These are good enough reasons for businesses to take this age group seriously and pay extra attention to the elements driving their purchasing and loyalty decisions.
Luckily, we already know a few essential truths about Gen Z’s preferences and have the technology to harness them to form a better loyalty experience. If your target audience includes Gen Z customers (and it most likely does), these factors should be on your list:
- Pricing: Gen Z shoppers may be young, but they are also calculated. According to McKinsey, “They make decisions and relate to institutions in a highly analytical and pragmatic way.” Watching millennials struggle made Gen Z consumers more financially literate and 3x more likely to participate in a financial education class than the previous generation. Your Gen Z customers compare prices, do their research, and 60% consider price the biggest factor when deciding whether to make a purchase. Their financially savvy approach makes loyalty apps a must for businesses approaching this age group. Offer better prices and benefits to increase your chances of becoming a Gen Z favorite.
- Creative content experiences: Content is important to every generation, but each age group focuses on different elements. For Gen Zers, authenticity plays a key role, and such consumers would appreciate brands that create content around real shoppers. Offering content on various channels, including your loyalty app, is important as 88% of Gen Z consumers are interested in omnichannel branded experiences. Content that forms an interactive experience (which is often referred to as “gamification”) is another factor to consider, and according to Forbes, “Adding gamification elements to your content is a great way to keep Gen Z interacting with your brand.” Features like loyalty cards are excellent examples. Whichever elements you focus on, make sure to craft great, authentic content every step of the way.
- Values: The generation that brought us Greta Thunberg and climate change activism wants to give money to businesses that do good things with their earnings. 69% of Gen Zers are more likely to choose businesses that support social causes. What does this mean for your loyalty club? The loyalty app is a direct communication channel to remind customers what your business stands for. Let audiences know that their benefits include donations to social causes they are likely to find interesting. You can also share details regarding the process behind your product or service, ensuring customers that it is sustainable and socially responsible.
- Personalization: We keep addressing Gen Z as a group, but members of this generation want businesses to treat them as individuals. They expect personalized content, and 41% of shoppers in this age group will provide access to their data in exchange for a personalized experience. For business owners, this is both a lesson and an opportunity. Gather valuable data regarding shoppers’ personal taste by offering personalized benefits, recommendations, and content in return. Do your best to customize coupons and push notifications to fit specific audiences.
Gen Z is a digital-native generation from birth, and all of the above should be done in a mobile-first, seamless manner. Before you start personalizing content and sharing your values with customers, ensure that your loyalty club is available via a user-friendly app that can handle these features and bring added value without any added burden.
If you’re unsure how to make that happen, let Glue Loyalty handle the process and make the most out of the Gen Z opportunity to keep your business forever young.