Gen Z’s influence on small businesses: Winning over the next generation of consumers
Photo by Microsoft 365 on Unsplash
While Gen Alpha isn’t quite strongly in the market yet for small businesses to target, at this time, it’s still Gen Z. Today’s business landscape, both in the UK and on a global scale, is ever-evolving. Needing to reach and engage with Gen Z audiences is becoming increasingly crucial for both big and small businesses. While yes Millennials are still a crucial demographic to target, this current generation needs to have a strong focus. Gen Z represents a powerful consumer force with distinct preferences and values different than any generation so far. Actually, Gen Z is so different than other generations with buying power that many are turning to brands for financial products rather than banks.
In fact, Gen Z made up 40% of global consumers in just 2020 alone, and this number has been increasingly rising over the last couple of years, not to mention the fact that Gen Z is the biggest generation to make purchases on their phones too. To remain competitive, small businesses must understand and embrace these preferences. So, how can small businesses win over this generation of consumers?
Embracing authenticity
While Millenials also care about authenticity, Gen Z customers aren’t afraid to call out brands publicly (their social media channels) if there’s a lack of transparency or authenticity. This generation greatly values authenticity in the brands they support. To connect with this generation, small businesses are encouraged to be genuine in their branding, messaging, and interactions. More large and smaller businesses have opted to share behind-the-scenes content as well as create and engage in open communication channels, which have been fostering more trust which has been resonating with Gen Z’s authenticity-centered mindset. So this isn’t so much about creating a parasocial relationship as it is about giving out the right information that Gen Z audiences want to see with a brand.
Mobile optimisation
It’s not enough for a business to only have a website, fewer online shoppers are using desktops and are opting to use their mobile phones for shopping purposes instead, and this is true for Gen Z. Gen Z is a mobile-first generation, and businesses of all kinds will need to optimise their online presence accordingly if they haven’t already. This means ensuring that websites are mobile-friendly, offering mobile payment options, and even exploring SMS marketing campaigns for direct and convenient communication.
More and more website templates (such as for WordPress) have become mobile friendly; the same can be said for website builders such as Squarespace, too; even companies such as Baldwin Digital are now putting a greater emphasis on mobile optimisation for websites. In general, mobile shopping is now the future of shopping, and soon, Gen Alpha will be next in line for being future online mobile shoppers.
Putting ethical and sustainable practices first
Currently, Millennials and Gen X are the two generations that intuitively prioritised sustainable and ethical practices for clothing, especially due to the rise of Fast Fashion, fast homewares, and the rapid changes within the environment over the last couple of decades on a global scale. With that said, over 82% of Gen Z consumers express their concerns with the state of the planet, protesting climate change, deforestation and supporting brands that focus on sustainable and ethical practices for both the enviroment, animals, and humans.
In fact, one of the biggest defining features of the Gen Z market isn’t their strong digital upbringing but it’s their strong concern for the environment and the treatment of workers. Since both large and small brands are seeing this demand and the ever-increasing expectation of eco-conscious practices, this is a practice that will most likely continue that future generations will expect.
Unique and personalised experiences
Past generations focused on conformity, blending in, and having similarities, but the “bread and butter” of Gen Z would be their focus on uniqueness and individuality. Gen Z focuses on an array of “aesthetics” and a multitude of brands, which helps bring out their individuality. While more large brands are doing this, smaller brands can also benefit by providing a unique and personalised experience to their Gen Z customers. It could be something like personal product recommendations, customizable products, limited edition products, and even crafting an interactive experience online or in-store.
Two-way conversations
While parasocial relationships in marketing have been leveraged for decades now, Gen Z is the strongest when it comes to this. Influencers and their brands leverage parasocial relationships with their Gen Z audience, and small businesses can do the same- something that even large businesses can’t do. It’s about having a two-way dialogue, such as responding to comments, generating surveys, using polls, holding a Q and A, direct chat, live stream, and so on. Not more than ever, small businesses can bridge the gap with the connection they have with their customers.
