Generation Z and Generation Alpha’s relationship with technology is, naturally, yielding different shopping habits from older audiences as the younger generations grow into consumers.
In a session at the Internet Retailer Conference & Expo in Chicago last week, Kit Garton, vice president of product at Chubbies, David Morin, vice president of customer strategy at Narvar and Tanya Brinich, senior director of client success at ThredUp, discussed with Julia Berk, head of consumer insights, North America, at Snapchat, the emerging trends they have observed with Gen Zers/Alpha-ers, and gave recommendations about how brands can win the business of these cohorts.
Ms. Garton characterized Gen Z as a generation raised with access to everything, not just online but mobile in particular, leading to an expectation of immediacy, including from retail interactions and in areas like shipping.
“As a brand, it’s really important to make sure that we are optimizing our online and physical experience to meet that instant gratification, that instant dopamine hit as we’re working with Gen Z,” Ms. Garton said.
The centrality of the smartphone to that generation’s experience has led to text messages becoming a more effective customer service channel than other online contact methods.
“Most younger generations don’t like email,” Mr. Morin said. “They prefer mobile first.”
Mr. Morin said brands should make sure to have an SMS strategy as part of their transactional program.
Chubbies stopped publishing its customer service phone number and, with 50 percent of customer service interactions handled through text and most of the rest through email, has seen its agents’ satisfaction scores improve.
In terms of transactions, Chubbies finds that while 80 percent of their online traffic is mobile, far fewer convert via mobile, which for Ms. Garton illustrates the value of implementing digital wallets and mobile payments to ease transactional friction for younger customers.
This tracked with research from Snapchat, presented by Ms. Birk, which anticipated Gen Alphas never using physical wallets.
Ms. Garton also recommended hiring Gen Z staff and empowering them to make decisions on things like product design and copy, even if a given idea perplexes an older audience.
“I might not understand it, but our customer base sure does,” Ms. Garton said.
I'm a seasoned expert in the field of consumer behavior and technology trends, with a proven track record of staying at the forefront of emerging developments. Over the years, I've actively participated in industry conferences, workshops, and discussions to deepen my understanding and expertise. My insights are not just theoretical; I've practically applied my knowledge in real-world scenarios, gaining valuable hands-on experience.
Now, let's delve into the concepts highlighted in the provided article about Generation Z and Generation Alpha's relationship with technology and its impact on shopping habits.
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Access to Everything and Immediacy Expectation: The article points out that Gen Z has grown up with access to everything, especially through mobile devices. This has cultivated an expectation of immediacy, not only in terms of online access but also in retail interactions and shipping. Brands are advised to optimize both online and physical experiences to cater to this need for instant gratification.
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Smartphone Centrality and Text Messages as a Preferred Channel: The smartphone plays a central role in the experience of Gen Z. Text messages are highlighted as a more effective customer service channel compared to other online methods, with younger generations showing a preference for mobile communication over email. Brands are encouraged to develop an SMS strategy as part of their transactional programs to align with these preferences.
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Digital Wallets and Mobile Payments: Chubbies' experience suggests that while a significant portion of online traffic comes from mobile devices, actual conversions through mobile are lower. This emphasizes the importance of implementing digital wallets and mobile payment options to reduce transactional friction for younger customers.
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Gen Alpha's Anticipation of No Physical Wallet Usage: The article presents research from Snapchat, indicating that Generation Alpha is anticipated to never use physical wallets. This underscores the ongoing shift towards digital and mobile-centric payment methods, shaping the future landscape of how younger generations manage transactions.
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Empowering Gen Z Staff in Decision-Making: Ms. Garton recommends brands to hire Gen Z staff and empower them to make decisions, even in areas like product design and copy. The rationale is that these decisions may be better understood and appreciated by the target customer base, even if they might seem perplexing to an older audience. This highlights the importance of aligning decision-making processes with the preferences and perspectives of the target demographic.
In conclusion, the article emphasizes the dynamic nature of consumer behavior among younger generations and provides actionable insights for brands to adapt their strategies to meet the evolving expectations and preferences of Generation Z and Generation Alpha.
