By 2025, Generation Z will represent the largest market segment and the most significant consumer group worldwide, and they pose completely new challenges for brands and marketing. Only those who understand the desires, visions, and needs of this generation, those born between 1997 and 2012, will be able to attract and retain them as customers.
We have gathered some recommendations for customer relations with Gen Z for you.
Physical buying experiences are secondary
While for Millennials, i.e., those born between 1981 and 1996, shopping in stores is still highly important to experience an immediate stimulus, this motivation has decreased significantly for Gen Z.
Convenience and speed are central elements in the expectations of this generation. They’ve grown up with the “on-demand” economy, which has been shaped by international players such as Uber, JustEat or sharing scooter providers, for example.
A study by Salesforce reveals that around 30% of Generation Z want food or alcohol delivered within an hour.
In addition to the logistical challenges, however, this desire for convenience and speed also offers an interesting starting point in marketing: learn to pick up specific wishes – and fulfill them!
Personalization and simplicity are key factors
Fifty-seven percent of Gen Z say they will be motivated to sign up for a loyalty program if it’s easy to understand and use. For example, they want rewards to be activated automatically and to be able to be used across brands if possible.
27% of budget-conscious Gen Z would even be willing to join a paid program if they received a higher level of benefits in return. A successful example of this is the loyalty program offered by fashion mail order company ASOS, which guarantees free deliveries for a year for a one-off payment of £9.95.
Over 60% would be willing to join a loyalty program if the incentives were personalized. So, for almost two-thirds of the most important consumer group in the future, personal appeal is one of the most important criteria for interacting with a brand in the long term.
Bonding through gamification
Gamification offers a target group-affine opportunity not only to collect personal data as zero-party data, but also to query personality traits and individual preferences at the same time without being intrusive or insensitive.
Clever marketing games like spin-the-wheel and scratch card can be used to transform advertising messages or a “call-to-action” into interactive experiences that generate sympathy among players and promote brand loyalty.
The fun factor and many chances to win are of great importance to Gen Z (33%) and are needed for a successful campaign.
A dropper game or a personality test also activate and motivate the participant. In this environment, valuable information can be gathered that allows you to customize and personalize the offers and features of your loyalty program to the maximum.
Nonetheless, always emphasize and prove that the data collected is secure and used only with best intentions. 92% of Gen Z want to be assured that their customer data is being used responsibly.
Gen Z wants to be targeted on their favorite social media channels. At the same time, they reward brands that have gained their likes with free additional reach through re-posts and their own contributions to a favorite campaign.
Buy now – pay later
More than half (55%) of Gen Z will ordered a product through an account or by installment this year. The freedom to try-out or try-on a product and return it without cost if they don’t like it is extremely popular.
Within the loyalty program, payment discipline can be rewarded in addition to sales, loyalty, and regularity. Fast payers can be rewarded with “cash back” option, which they can donate to a charitable organization. An attractive use case for gamification. We know our customer’s preferences and choose an affine NGO to hide behind a scratch card, for example.
The element of surprise and the simultaneous positive confirmation of being understood and heard are valuable interactions.
Gen Z expects you as a brand to listen, to serve individual wishes and to share their decided visions. What seems complex and cost-intensive at first glance can be achieved creatively and efficiently with the scientifically confirmed methods of gamification in a method and language that is acceptable to the target group.