- By 2020 Generation Z will account for 40% of all consumers.
- Generation Z are researchers, they self-educate and find information on their own.
- Generation Z uses, on average, five screens – a smartphone, a TV, a laptop, a desktop and an iPad.
- Generation Z influences $600 billion of family spending.
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.