The Z generation consists of those born after 1997. The oldest members of this cohort are just over 20 years old, graduate from college and enter the workforce. This generation differs greatly from all previous cohorts in terms of savings, spending and general money management habits.
Here are some key features of this generation:
- Your ability to find answers quickly Accessing information online allows them to make informed decisions and become smart shoppers.
- Many have called this generation the most financially intelligent for his enthusiasm for saving and his entrepreneurial spirit.
- This sense of independence and self-reliance It is partly due to the digital world in which they grew up.
Read on for more information on the spending habits of Generation Z and its other financial patterns as we enter 2020.
How Generation Z buys online and offline
The Z generation is known as the first digital native generation and does not differentiate between online and offline channels. They expect the same quality and speed of an online channel to translate to stores. They are also much smarter with online shopping channels than their predecessors and are not easily influenced by tricks or influencers. Check out how to buy Gen Z.
Online shopping habits
Since this generation never knew a world without the Internet, they have high expectations for online channels and low tolerance for any slowdown or technical problem. The members of this cohort are also used to fast service, since 87 percent of the Z generation has high-speed Internet in their homes.
They are also skeptical about giving away their information, as they have grown up in an era of high profile data breaches for major brands. Read our statistics below to learn how Generation Z behaves online:
- 74 percent of Generation Z spends most of their free time online. (Source: IBM)
- 75 percent of Generation Z consumers use more mobile phones and smartphones compared to other devices. (Source: IBM)
- 60 percent of the Z generation will not use an application or website that loads slowly. (Source: IBM)
- Generation Z consumers are 60 percent more likely than the average consumer to hang up if the phone is not answered in 45 seconds. (Source: Marchex)
- Less than a third of Gen Z feels comfortable sharing personal details other than contact information and purchase history. (Source: IBM)
- Only 18 percent of Gen Z feel comfortable sharing payment information with their favorite brands. (Source: IBM)
- 20 percent of Generation Z is willing to share online public reviews of things like restaurants and products. (Source: IBM)
- 25 percent of Generation Z consumers spend more than five hours a day on their mobile phones. (Source: IBM)
Brick and mortar shopping habits
Contrary to what you might think, the majority of Generation Z prefers to shop in the store. One reason could be that they lack access to credit cards to make purchases online (although they do use debit cards). We can see this preference change over time.
However, it is important to keep in mind that members of Generation Z are not blinded by technological "bells and whistles" with any shopping channel. Their priorities are found in the basic retail experience: product availability, quality products and efficient service. They can be influenced whenever any addition improves the shopping experience. Read on to see what expectations Generation Z has for your physical shopping trips:
- More than 98 percent of Generation Z prefer to shop in physical stores. (Source: IBM)
- 66 percent of Generation Z consumers want very few products to be sold out. (Source: IBM)
- 65 percent of Generation Z consumers want to get real value for their money through discount and reward programs. (Source: IBM)
- 56 percent of Generation Z shoppers want the store experience to be fun so they don't get bored. (Source: IBM)
- 48 percent of Generation Z consumers expect to be able to exchange or return items purchased online at the store. (Source: Adyen)
- 66 percent of Generation Z consumers say they would visit one more store if they could check the availability of the item in advance. (Source: Adyen)
- 33 percent of Generation Z buyers expect to be able to shop online and pick up at the store. (Source: Adyen)
- 39 percent of Generation Z buyers expect “exit only” stores to be the norm in the next 12 months. These types of stores allow shoppers to pick up the items they need and allow the store to charge them automatically without having to interact with a cashier or pay. (Source: Adyen)
- Approximately one in three consumers of Generation Z wants the showrooms to be part of the shopping experience in the next 12 months. "Showrooming" offers buyers a physical place to examine products before buying them online. (Source: Adyen)
- 44 percent of Generation Z buyers want brands to use augmented reality or virtual reality to improve the shopping experience in the next 12 months. (Source: Adyen)
- 53 percent of Generation Z consumers use their smartphones in stores to see items that are not available in the store to see if there is anything else they prefer to buy. (Source: NRF)
- 51 percent of Generation Z buyers say that the ease of switching between channels is the most important thing for them when they buy. (Source: NRF)
- 52 percent of Generation Z buyers use their smartphones in stores to search for products in other stores to compare prices. (Source: NRF)
- Generation Z consumers had 14.6 billion visits to restaurants in 2018. (Source: NPD Group)
- Generation Z represents 25 percent of total food service traffic. (Source: NPD Group)
How Gen Z sees brands
Generation Z members expect brands to be transparent, ethical and responsible in all aspects of their business. If you do not, you may lose the opportunity to gather information or lose business completely from this generation.
The value of the product is much more important for Generation Z than brand loyalty, so brands must work harder to keep the Generation Z business around. Check out the different brand preferences that Gen Z has and what they expect from current brands:
- 46 percent of the Z generation say that the recommendations and opinions of their friends matter to them when choosing a brand. (Source: IBM)
- 66 percent of Generation Z buyers want brands to sell high quality products. (Source: IBM)
- 45 percent of Generation Z consumers choose brands that are environmentally and socially responsible. (Source: IBM)
- 61 percent of Generation Z prefer brands that offer protection and secure data storage. (Source: IBM)
- 43 percent of Generation Z buyers prefer brands that provide clear terms and conditions on how they will use their information. (Source: IBM)
- When asked to define what brand loyalty means, 38 percent of Generation Z buyers said it means that "sometimes they buy the brand, but … they would consider other alternatives that offer a lower price."Source: CrowdTwist)
- 41 percent of Generation Z consumers have been influenced by Facebook ads. (Source: Adyen)
- 60 percent of Generation Z consumers believe it is important for brands to value their opinion. (Source: Adyen)
- By giving feedback, Generation Z buyers are twice as likely to give positive feedback as negative. (Source: Adyen)
- About 65 percent of Generation Z consumers try to learn the origins of the things they buy, including where they are made and what they are made from. (Source: Mckinsey)
- About 80 percent of Generation Z refuses to buy products from companies involved in scandals. (Source: Mckinsey)
Despite its young age, Generation Z has $ 44 billion in purchasing power alone. In addition to their own dollars, they also exert a great influence on their homes. Your digital skill comes into play once again in this area. Their experience allows them to guide their families through different phases of purchase, including the evaluation of the product and the purchase itself.
Members of Generation Z also have financial knowledge and desire to earn money, even at their young age. Entrepreneurship is a key attribute of this generation and we will probably see them as owners of their own businesses and thriving in the economy of the concert instead of having traditional 9 to 5 jobs.
- 58 percent of Generation Z consumers prefer to pay by debit card. (Source: CrowdTwist)
- 29 percent of Generation Z spends most of their free time trying to earn extra money. (Source: IBM)
- More than 70 percent of Generation Z consumers believe they influence family decisions in the purchase of furniture, household items and food and beverages. (Source: IBM)
- 60 percent of the Z generation believe that they influence the cost of clothing and shoes for their families. (Source: IBM)
- 77 percent of Generation Z consumers believe they influence family spending on food and beverages. (Source: IBM)
- 75 percent of Generation Z spends more than half of its monthly income. (Source: IBM)
Gen Z vs. Millennials
Millennials have been the center of attention for many years. As that generation begins to age, Generation Z begins to capture the world's attention with its different spending, saving and profit habits. MillennIall spending habits They differ quite a lot from their Generation Z counterparts. This is partly because Generation Z is very price conscious and focuses on the overall value when making purchasing decisions. We can see these differences by comparing preferences and priorities with different products and services.
- Millennials are 50 percent more likely to consider brand alternatives that offer more compelling brand promises than Generation Z. (Source: CrowdTwist)
- The Z generation is 50 percent more likely to say that the presence of a loyalty program is a brand loyalty factor than the millennium generation. (Source: CrowdTwist)
- 43 percent of teens in Generation Z attach importance to car safety features when making a purchase compared to 25 percent of millennials. (Source: Kelly Blue Book)
- 34 percent of millennials attach importance to a car brand when making a purchase compared to 23 percent of the Z generation. (Source: Kelly Blue Book)
- 75 percent of millennials are willing to pay more for excellent customer experiences compared to only 69 percent of the Z generation. (Source: Salesforce)
- Only 63 percent of Generation Z trust companies compared to 71 percent of millennials. (Source: Salesforce)
The 2.6 billion members of this generation are a group to watch as they grow and enter the workforce. His financial management seems to have a good start thanks to his frugal mentality and business attitudes. They have shown so far that they are ready to make and manage their money responsibly to avoid the financial problems with which they have grown.
Teenagers and young adults should not only make plans to reduce debts, but also learn to build and manage their credit. This includes applying for credit cards, keeping payments low and checking your credit report often to make sure everything is correct. If you find any inaccuracies in your credit report as an account you don't recognize, you can call to find out how Lexington Law credit repair services can help you clean your credit report.