How can businesses and employers attract Gen Z consumers and staff? Our guide outlines the psychology of Generation Z and what appeals to them.
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Buying behavior changes from generation to generation. While brand and quality were still in the foreground for the baby boomers, for young people today shopping is not just about inspiration, sustainability and digitalization. But why have these values changed completely? What exactly does Generation Z’s buying behavior look like? And what influence does that actually have on employer branding?
The generations and their values in comparison
How do the values and needs of the different generations differ from each other?
- Baby boomer (approx. 1950-1965): Status, care, loyalty, community
- Generation X (approx. 1965-1980): Success, productivity, goal orientation
- Generation Y (approx. 1980-1995): Variety, search for meaning, self-actualization, transparency
- Generation Z (from 1995): Everything on demand, security, networking, practicality
How do values change over the course of the generations?
A generation spans approximately 15 years. However, they differ significantly by a different value system, which they develop in their youth (between the ages of 11 and 17). Everything that occurs in this generation in the youth of the generation, both socially and familially, has a massive impact on the world view and, of course, how you feel about work, consumption and much more.
At a glance it is certainly understandable that the youth of a baby boomer, especially when it came to consumption, was completely different from that of a teenager today. Therefore, other values and needs are important.
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How to attract Gen Z consumers
What does this mean for generation Z buying behavior? How do you attract Gen Z consumers compared to previous generations?
Baby boomers, Generation X and Generation Y are used to waiting for great things. Even the early 30s had to wait months for the DVD release or for the blockbuster on Sunday evenings at 8:15 p.m.
The young generation Z grows up so that almost everything is available immediately and on different “channels”: films, food, furniture (such as at IKEA ), knowledge in different formats and much more. Having to wait six to eight weeks for a kitchen today or not having all the groceries imaginable in the supermarket is a real stress factor for the young generation.
Digitization and sustainability determine everyday life and media – and thus the needs of the young generation. Can companies that don’t follow these trends survive?
When it comes to digitization, we are already seeing the first companies to pay the price of this ignorance. The young generation is busy with the smartphone around the clock and only gets information about it. Online trading will continue to increase in the future, as will digital experiences using AR and VR. For example, I would like to be able to look at the product like a piece of furniture from home and compare how it looks in my apartment before buying it online. Online shops that are not optimized for mobile devices are therefore unusable for young people.
Sustainability plays a bigger role in youth than it did in previous generations. However, it currently plays an even greater role in more educated parents’ homes. This is contradicted by the trend, for example, of shopping for less wealthy young people from clothing chains that have more questionable business models. The topic of sustainability is therefore particularly important for companies that have a “sustainably oriented persona”, but in a few years it will become increasingly important to review all processes related to sustainability and fairness. Especially since there is transparency to quickly find out about the integrity of the company.
The most important to-dos for retail
How can manufacturers and retailers now specifically address the purchasing behavior of Generation Z – what should they offer?
It is particularly important to combine individual advice and product quality with fast delivery (one-click). This means giving the customer an opportunity to decide on the quality and selection, which he receives promptly (immediately!).
Now suddenly not only younger or only older people shop. How does the point of sale create the right customer approach in balancing the needs?
The needs of young people are also nice-to-have for the older generations, it must be available quickly and easily. Even older people don’t feel like waiting for a sofa for six weeks. Therefore, the balancing act is usually not that big. I would rather have a closer look at my personas and then address my customers. There may be differences, but it does not have to be.
What does it mean for employers?
Employer branding means … what do I offer as an employer. It’s not just about a job, it’s also about what I associate with the brand and think I get when I work for this company. Employer branding is particularly important in areas where there is already a shortage of skilled workers. Again, I would specifically deal with the personas of my desired candidates and see how I address them and what I have to offer you. That can be money, but for the young generation it is more about security, development opportunities and fair treatment of rights and duties of an employee.
