The Purchasing Power of Generation Z

Who is Generation Z?

Generation Z, also known as the iGeneration, Centennials, Post-Millennials, and the Homeland Generation are the demographic group after the Millennials. While there is no definitive starting or ending date for Generation Z, most were born between 1996 and 2010. Generation Z is predominantly the offspring of the Gen X group.

The most significant characteristic of this group is their usage of the internet from a very early age.  Generation Z has grown up online.  They are comfortable with technology and do most of their socializing on Social Media websites.

This is definitely the iGeneration.

Why Generation Z Matters

While this group is still relatively young, they currently influence $600 billion of family spending, they receive $16.90 per week allowance, which translates to $44 billion a year, and by 2020 they will make up 40% of the world’s consumers.

Generation Z as a buying group has outpaced Millennials by $3 million a year, and they are a different kind of shopper.

Members of Generation Z cannot remember what it was like not to have access to the Internet — no matter when, no matter what, no matter where.

Generation Z’s Online Habits

About 74% of Gen Zers spend their free time online, around five or more hours a day. They are spending that time texting and chatting with friends and family and they are also looking for engaging conversations involving brand relationships

Generation Z prefers collaborative engagement.  Collaborative engagement is an integrated communications approach that leverages information and knowledge to support individual ‘buy-in’ and ownership. Peer recognition, monitoring and evaluation, and reporting are essential ingredients for success, adoption, and use.

Generation Z wants to and needs to engage and they are looking to their peers when making decisions, and applying what they learn when making their own personal decisions.

Generation Z’s Purchasing Habits

Generation Z wants to shop with brands that allow them to interact with the business.  They want personalized and interactive purchasing experiences and they want those experiences to reflect the latest digital developments.

Ease and speed of navigating a website or an app while researching purchases or shopping is important.  Nearly half of the Z’s say the most important thing while shopping is to find things quickly.  If an app or website is too slow over 60% say they will not use it.

What This Means for Business

Retailers and businesses that want to grab the attention of the always on, mobile focused Generation Z crowd and turn them into loyal customers, they need to provide interactive and personalized experiences that are current with the latest digital advances.  Businesses need to be tech savvy and if they want to reach this generation they need to be online and easily accessible.

Laura Donovan Written by:

For nearly 10 years I have been helping businesses of all types use the power of social networks to achieve their marketing and sales goals. As a Social Media Director, Content Manager and Digital Media Marketer I have used a variety of platforms including Facebook, Pinterest, LinkedIn, Twitter, Google Plus, Instagram, Snapchat and YouTube. I focus on developing and executing a strategy that best fits each client while measuring and monitoring analytics and metrics to ensure benchmarks are met, researching industry trends as well as social influencers, working toward achieving SEO and branding through the appropriate social platforms, blogging, paid acquisition and email. I have a Bachelor’s Degree in Communications, experience with management, customer service, creativity and vision with strong analytic skills. I understand the platforms and their differences and know how to help a business succeed on Social Media and keep current on social marketing trends and best practices. I have enjoyed working with many different companies including Sharp Electronics, Mary Kay, Inc., Re/Max, Nationwide Insurance, State Farm, Northern Insurance and many more across the country. See more about the services my company offers at http://www.socialmediamarketing-help.com and connect with me: @LauraDonovan or @TheWordPro on Twitter, @TheWordPro on Instagram and like my Facebook Page at /TheWordPro Thanks for stopping by to read my blog!