Chris Palmer, CEO, BoxFox

It’s no secret. This “new” Gen Z cohort (those after Millennials) shop differently, think differently, and ultimately engage differently than any generation before them. And it’s for good reason: Gen Zers have grown up in an era of intense personalization and convenience that’s been growing more and more sophisticated each year.

They want a ride to a party? One tap on their smartphone orders up an Uber. They want a sophisticated latte with 2 splendas and no whip? Sure thing, it’ll be ready when they walk into the Starbucks on the corner. They need new running shoes for an upcoming charity run? No problem, Zappos will deliver this week for no shipping costs.

How can we possibly blame this generation for being different? They didn’t invent personalization or convenience in retail, but now that they’ve been exposed to it virtually all of their lives, they now expect (read: demand) it. And if they don’t receive the level of service and experience that they’ve come to expect, then they’ll move on to the next up and comer who will cater to their needs.

What Small Retailers Need to Know About Gen Zers

Brick-and-mortar store managers or operators are likely bracing for impact. All have heard the horror stories of Gen Zers and how they’re going to destroy the brick-and-mortar store along with the way retailers have done things for years. While, yes, there are many changes that need to be considered when marketing to this new generation (more on that later), it’s actually not all bad news.

IBM and the NRF recently released a study, titled: Uniquely Generation Z: What Brands Should Know About Today’s Youngest Consumers, and found some interesting results, including:

• 67% of Gen Z prefer shopping in stores all the time, while another 31% prefer to shop in brick-and-mortar stores sometimes
• 66% frequently use more than one device
• 60% will not use an app or website if they are too slow to load

What does it all boil down to? The experience. As evidenced in the numbers above, it’s clear that this generation has a zero-tolerance policy for buying or browsing channels that are slow, don’t work, or are cumbersome. Retailers must craft a frictionless, easy experience for this young consumer type that they can access at any time—not just via the in-store experience.

The Portrait of a Gen Z Consumer

We’ve talked about what the Gen Z consumer demands in terms of the experience, but who are these individuals that are changing up the retail (and just about every other) industry? Let’s take a look at some of their most defining characteristics, via Mobile Marketer:

• They have a cautious approach to spending
• They’re are the first real social media generation, bidding clothes goodbye if they’ve been photographed wearing something more than 3 times
• Many are drifting away from prominent brands and designer logos
• Most prefer to buy clothes, shoes, and makeup in-store
• They tend to ask store associates for input (28% do, in fact), and expect a quality service experience
• They pay attention to humor, a short story, or good music (but in short, snackable form)

When retailers consider these characteristics in their retail playbooks—regardless of how small their independent retail store or retail chain may be—they are taking the first step towards meeting their new consumers’ demands, which will serve them will in the long run.

3 Tips to Marketing to Gen Zers

How should independent retailers or small chains market to this generation? It’s not rocket science, but it does require a mind shift. No longer does traditional advertising cut it. No longer are low prices king. No longer is building loyalty the answer.

So what is the answer? While there’s no silver bullet, here are 3 tips that retailers should keep in mind when targeting and marketing to Gen Zers:

1) Focus on Experiences: We’re living in the experience economy, and Gen Zers want everything they do to be about making memories and sharing with their close circles (selfie, anyone?). Consider a small sports retailer as an example. Why not host an in-store community yoga class each Wednesday? Utilize a treadmill to do gait analysis and recommend the best pair of shoe? Participate in a local 5k run to raise money for charity?

When the retail store becomes a destination for an experience, Gen Zers will associate the store with memories—something this generation cares about deeply.

2) Communicate Through Familiar Channels: It’s no secret that Gen Zers are tied to their smartphones. Whether they’re texting, browsing social media, watching videos, or browsing for a new pair of running shoes, teens (13-18 years old), use their smartphones almost three hours a day to consume TV shows, videos, music, games, and social media.
Retailers cannot simply ignore this generation’s lifestyle and continue to engage consumers via antiquated channels like radio ads and print advertising. Even Adidas’ CEO Kasper Rorsted recently revealed plans to drop TV spots in favor of mobile-based marketing. Small retailers can standout by engaging with this target market by utilizing channels like Facebook, Instagram, and even Pinterest and YouTube.

3) Make the Buying Process Effortless: Shopping cart abandonment for e-commerce retailers is at an all-time high. 88% leave items in the shopping cart with plans to buy later. Why? They want a better price, they’re looking elsewhere, or they got distracted. And while those numbers speak to e-commerce sites only, independent retailers should be even more concerned about those numbers.

Not only do retailers need to entice this generation into their brick-and-mortar store (a feat in and of itself), but they need to make the buying process so effortless and the aesthetics and experience so amazing that Gen Zers (or their parents buying for them) don’t leave empty handed.

The “Retail Apocalypse” so to speak sends a very clear message to retailers: Be different, be engaging, be seamless, or disappear. Independent retailers or small chains are tasked with studying its consumers and, as a result, adapting for survival.

BoxFox is an online business-to-business marketplace that enables retailers to sell and buy excess inventory.