It is nothing new in the world of business and marketing to have a target audience, a group of people who you want to benefit from your service or products. Today’s world, consumer market, and economy are always changing. The biggest difference today is the rise of a new generation of consumers: Gen Z. The oldest members of Gen Z are approaching 30, with the youngest wrapping up their high school years. The majority of this group have been in the workforce for more than a decade and are trying to find their way in the world both professionally and financially.
The older generations tend to see this group as rambunctious, social-media-addicted, ideological activists, and (coming from a member of Gen Z) they are not totally wrong. But, when it comes to consumer behavior, this generation is redefining and shaping a new era of consumerism. As this generation fully comes into the “real world”, it’s crucial you leave the stigma of them behind. Small businesses across the country are struggling, but Gen Z could be the target audience that brings them back to life.
Gen Z as a consumer
Despite what you may think, this generation is very cautious of how they spend their money. They watched their own families struggle through the 2008 recession, then watched the world shut down due to Covid as they were finally independently coming into it, and now are trying to navigate the post-Covid workforce while still making enough money to pay the bills. As a result, they are undeniably prudent when it comes to spending their money. According to a 2023 study by the ICSC, 41% of Gen Z respondents say they save more money than they spend, while just 36% say they spend more than they save.
Even though Gen Z was raised alongside the rise of e-commerce, 97% of the same study’s respondents prefer in-store shopping. One thing the internet can not give you is a physical experience, and that is the biggest appeal Gen Z has when it comes to in-store shopping. At the same time, they are heavily researching your business, products, and services before they decide to shop in person. This retail strategy is called omnichannel shopping, where digital and physical shopping come together. This way of shopping allows them to be more financially conscious while also making the most of the little time they do have to shop in person.
Every industry’s market is crowded. As far as online presence goes, bigger companies and corporations will always have the upper hand when it comes to marketing budget, social influence, media reach, and advanced, individual e-commerce tools. However, small businesses have the overwhelming upper hand when it comes to local, brick and mortar stores where consumers can take their products home the same day they purchase them (which is 30% of the reason Gen Z prefers to shop in person). There is no statistic on Gen Z’s apparent preference to the national big-box stores, but their accompanying store front locations across the more urban areas of the country seamlessly allow their omnichannel shopping experience to flourish.
For example, let’s say a twenty two year old woman is looking for a dress to wear to a wedding that is in a few days. She has already ruled out ordering a dress online; shipping takes too long, is too expensive, and without being able to touch the material and try the dress on, it may not even work for her once it comes in. She knows she will have to go to a store to find a dress, but instead of going to all twenty local boutiques and department stores in town after work, she is going to browse all her options from these same stores online. She will narrow down a couple pieces from a couple of different stores that are in her budget and have good reviews from other consumers, then go into those businesses to actually test (try on) the product, before finally making her purchase. If your small business isn’t online, either with an e-commerce website or active social media presence, you won’t have any chance of getting her business.
What does Gen Z value in a business?
Gen Z individuals have a high moral code, are socially and environmentally conscious, and when they spend their money, they want it to support brands that align with their values. When they research your business online, they want to see not just what your business sells but what it stands for. They value businesses that are active in their community; whether that is partnering with other businesses for a local event, hosting public fundraisers, or having a strong philanthropic identity. Whatever your personal values for your small business may be, share it with the world, Gen Z wants to know.
Since they have been raised alongside social media, a strong, consistent, and aesthetically pleasing (or lack there of) visual brand identity is the first thing a Gen Z consumer will notice when researching your business. When you have consistent branding, especially for a small business, they will see that as a sign that you and your business are professional, legit, and care about how you are viewed. Gen Z rejects AI more than they embrace it when compared to older generations, especially when they see it on social media. When they see AI graphics or captions on a business’s social media (and they can very easily tell the difference between AI imagery and human created content) they see it as lazy, ingenuine, and a sign that the business prefers ease and convenience over quality, individuality, and conscious decision making.
Gen Z has seen the fall of corporations, watched major companies partner with other companies that actively damage the environment, and have been exposed to the harsh truths of the way these companies treat their workers. They are growing more skeptical of these big chains and prefer not to support them when they can. That means that they want their money to go back to their own community, supporting people and families that they know they can trust and who they feel deserve their business: small businesses.
How to catch their attention & gain their business
The best thing a small business can do to attract Gen Z to their stores is having the omnichannel experience. No matter if your small business is a boutique, a restaurant, a lawn care company, or an exterminator, they are going to research you online very heavily before they consider giving you their business.
You need to have a website that explains your services or shows your products. Even if your business is not in a spot where you are ready to handle shipping your products off, having them listed, shown, and described online is all you need. Gen Z are ardent reviewers, with 54% of Gen Z consumers relying on product reviews straight from your website to help make their purchasing decisions. They also utilize Google Business Profiles for reviews, especially for small businesses in the service industry. Keeping an active and up to date social media presence is key. Always show your new products, post testimonies of your services, show them why they should give you their business. Don’t be scared to show your personality, it will always sell. It doesn’t necessarily have to look “good”, it just needs to look real and authentic to you and your business.
For many small businesses, it can be a very daunting feat to get your business online, especially on your own. There are hundreds of businesses and individuals across the country that, like us, specialize in digital marketing for small businesses. They can build websites, post on social media, manage your Google profile, and give you the digital footprint you need to attract this new target audience and ensure your business stays successful for many years to come. Don’t let your small business fall behind at the rise of a new era, invest in your business’s online presence today.