Euclid Analytics revealed the results of its Evolution of Retail, 2017 Generation Z Shopper survey report, which highlights the shopping behavior of Generation Z (Gen Z) consumers, alongside other consumer shopping behavior and preferences. The commissioned survey polled over 1,500 consumers from the U.S., and found that digital touchpoints -- whether it's social media, a brand's website or targeted emails -- drive Generation Z to identify the products they want, before pushing them in-store to purchase. To capture this audience, physical retailers need to balance personalized, digital methods with compelling in-store experiences to engage with these mobile-first customers.
According to the Euclid Analytics survey, 53 percent of Gen Z shoppers shop in retail stores at least once a week, and the National Retail Federation indicates they hold an estimated $44 billion in buying power, creating a tremendous opportunity for retailers to attract and engage with a new set of customers. The Gen Z population, born between the late 1990s and the mid-2000s, is set to reach 2.6 billion by 2020 and is the first generation to have grown up alongside smart devices, social media networks, and fast-changing consumer messaging platforms. Gen Z shoppers are increasingly motivated by the convenience and personalization found online, forcing retailers to cater to new behaviors and expectations.
Euclid Analytics' study reveals what retailers should know about the Gen Z shopper versus other generations and how they can adapt their marketing strategies to engage with this mobile-first shopper.
Key findings from the survey include:
- Gen Z values the in-store experience: 66 percent of Gen Z still prefer to shop in store because they like to see, hold and try on products before buying and 28 percent of Gen Z shoppers want to engage with store associates while shopping, the most of any generation.
- Gen Z visits stores to find, not browse: Only 47 percent of Gen Z shoppers like to browse stores (tied with Baby Boomers for the lowest compared to Millennials and Gen X) and 31 percent of Gen Z shoppers believe it is hard to find items they are looking for in a physical store (the most of any generation).
- Personalization gains focus: 26 percent of Gen Z shoppers expect retailers to offer a more personalized experience based on their shopping habits and preferences, the most of all demographics, versus 22 percent of Millennials, 17 percent of Gen X and 11 percent of Baby Boomers.
- Snapchat provides social proof: 44 percent of Gen Z shoppers use Snapchat the most while shopping in a retail store, while only 16 percent of Millennial and 5 percent of Gen X respondents.
- Instagram wins for brand discovery: While Gen Z shoppers use Snapchat the most while shopping, they rely mainly on Instagram (45 percent) to find new cool products, followed by Facebook (40 percent).
"Retailers should reach out to Generation Z at this early stage to introduce their brands and forge enduring relationships," said Brent Franson, CEO of Euclid Analytics. "Our findings highlight some great opportunities for them to connect with this mobile-first population that's still very much interested in meaningful in-store experiences. Winning their loyalty will mean getting creative about using mobile and social marketing outreach in their physical stores."
To download report CLICK HERE.