How your business can build a loyal Gen Z customer base

Gen Z consumers are redefining how people like to shop, which makes them an important audience for small businesses to pay attention to and consider engaging with, writes Harry Lowes, Director of Mid-Market ANZ, Meta.

Gen Z are highly skilled with technology, value both online and in-person shopping, and want the businesses they engage with to be diverse and trustworthy.

So, how can your business connect with Gen Z and motivate them to consider your products and services?

Interact with your customers

Research shows half of Gen Z (55 per cent)^[1] feel it’s important that the businesses they are buying from directly connect with them on social media, and are almost twice as likely to find it important that a business acknowledges their social media posts about their shopping experience.

This need for connection, representation and engagement comes from the willingness of Gen Z to share their shopping experiences online within their network, connecting over purchasing decisions and exchanging opinions about different businesses.

They don’t want to be seen endorsing a business to their social network, if said business is misaligned to the values, beliefs, and personalities of their network.

Personalisation is key!

Just over half of all Gen Zers Ipsos spoke with^[2] wanted to receive personalised recommendations from the businesses they choose to engage with, so sending them ads that have little to no relevance is a major turn off.

They are also looking for an enhanced in-store experience, with Augmented Reality (AR) and Virtual Reality (VR) elements sought after to share on social media. Almost half of Gen Zers want to get in on the act when it comes to creativity and co-create virtual products with businesses or creators and social media influencers, whether it be in-person experiences or online.^[3]

Take SHISEIDO for example. The beauty brand ran a multi-phase campaign with a mix of mobile-first creative and Facebook augmented reality ads to launch its new product, earning a 1.7x return on ad spend. SHISEIDO found that their experimentation with augmented reality filters and experiences successfully drove high engagement and sales from Gen Z audiences.

Two young millennial or Gen Z shoppers

Embrace hybrid as your new normal

Due to the changing nature of the store and elevated social commerce, businesses can reach Gen Z shoppers by placing an emphasis on creating a seamless hybrid shopping experience. Evident through Meta research that shows Gen Z shoppers use online resources to do research prior to going to a physical store, while almost two-thirds use online resources to do research whilst in-store^[4].

Define your purpose

Define a clear purpose based on a combination of what you’re good at, what you care about, what your audiences care about and what people need.

For over half (60 per cent)^[5] of Gen Z shoppers, it’s important that the businesses they buy from share the same values and beliefs as them and help them express their personality and style. This generation will typically evaluate brands and products based upon criteria that aligns to their values, and are particularly focused on areas like sustainability and diversity.

A brand doing this well is ChicMe, whose philosophy is to challenge traditional fashion stereotypes and embrace body positivity. The fashion brand has a strong eCommerce presence and regularly engages with its loyal following. ChicMe also explored new targeting strategies, creating lookalike audiences based on its own first-party data. By using lookalike audiences, ChicMe reached its target audience and increased sales, achieving an 82 per cent lower cost per conversion.

In today’s fast-paced world, customer priorities are constantly changing, and businesses must adapt their online and physical presence to meet those new expectations. Think about integrating any of these areas into your next business strategy to reach more Gen Z consumers!

^[1] Transformation of the in-store experience’ Study by HarrisX (Facebook-commissioned online survey of 205 retail shoppers aged 18-24 in AU, Sep 2021
^[2] Retail Future of Shopping’ Study by Ipsos (Meta-commissioned online survey of 162 Retail shoppers aged 18-24, AU, March 2022)
^[3] Retail Future of Shopping’ Study by Ipsos (Meta-commissioned online survey of 162 Retail shoppers aged 18-24, AU, March 2022)
^[4] ‘Transformation of the in-store experience’ Study by HarrisX (Facebook-commissioned online survey of 205 retail shoppers aged 18-24, AU, Sep 2021)
^[5] ‘Retail Future of Shopping’ Study by Ipsos (Meta-commissioned online survey of 2614 Retail shoppers, AU, March 2022).