It’s important to recognise that Gen Z now makes up a significant portion of the global population, spanning from 1997 to 2012, and currently ranging from 12 to 27-years-old.
This places them in a unique position where the older members have considerable purchasing power, while the younger ones heavily influence household purchasing decisions.
As a brand manager or marketer, it’s crucial to understand what Gen Z seeks from customer experience (CX) and how this differs from previous generations. Recognising the distinct characteristics of Gen Z and understanding their approach to shopping and research is essential for creating an effective CX strategy.
The personal touch wins
Brands can choose between two options: personalise or perish – that is how important a personalised touch is to the Gen Z. According to the most recent State of Personalisation report, Gen Z consumers are much more likely to say personalised experiences have influenced them to make a purchase than other generations.
This is because Gen Zs regard themselves as unique individuals who want to be recognised and understood – while placing very high value on their communities. In fact, really understanding their desire for personalised experiences and individuality may well be the key to unlocking their loyalty towards your brand.
Gen Zs are digital natives
Gen Zs are considered to be the first digitally native generation, having had access to the internet, mobile phones, game consoles and other technology for their entire lives.
This generation does everything online – and they seek out great, easy to navigate online experiences. Doing it right is how your brand can win their loyalty.
Gen Zs are loyal – if you get the customer experience right
Creating great customer experiences that appeal to Gen Zs is the key to winning them over as loyal customers. In fact, it’s a no-brainer. This generation values prompt and efficient customer support. They expect quick responses and resolutions to their enquiries or issues, reflecting their desire for instant gratification in a fast-paced digital environment.
As a brand manager, you need to understand how to tailor your customer experience strategies for this influential and demanding group, to compete in this fast-changing market.
Wesbank is a brand getting the customer experience right. According to recent WesBank data, there has been a consistent increase over the past three years in the number of vehicle finance applications for new and pre-owned cars by Millennials and Gen Zs.
This is a generation of individuals who want their own cars, according to WesBank marketing and communications head, Lebo Gaoaketse. She says industry experts who suggested a desire for private car ownership would wane among Millennials and Gen Zs in favour of alternative forms of transport, such as e-hailing services, have not been on target.
Winning them over
“This generation wants their own wheels – but they are struggling to afford them,” she says. Wesbank has seen a decline in vehicle purchases among this age group, as reported in 2023 by data analytics firm Lightstone, which noted that those under 35 accounted for 39% of new car purchases in 2012, but only 31% in 2022.
Gaoaketse says subdued sales are not a result of diminished desire for personal cars, but rather a symptom of a depressed economy and strained affordability across all age groups, including Millennials and Gen Zs.
In response, WesBank introduced a graduate finance programme, which grants young people access to vehicle finance despite not yet having a credit record. This is huge for recent graduates, and is sure to win over this generation who are battling to get finance to invest in what they regard as not only a necessity – especially to get ahead in their career – but also an emotional fulfilment.
No guesses where the Gen Zs’ loyalty will lie when purchasing their next set of wheels, five years on.
How Gen Zs are shaping the future of CX
Consumers like Gen Zs and younger Millennials heavily influence the future of the customer experience, as their desires and data shape how businesses will operate moving forward.
At IDC Directions 2023, analysts noted that CX was becoming digital-first, as personalisation and content creation with AI influence how consumers interact with businesses. This is especially true of Gen Zs who grew up simultaneously with many transforming consumer technologies, such as mobile phones and laptops.
Gen Z and the customer journey
So, what is the key to successfully tailoring your digital customer journey – your pathway to purchase – from awareness and consideration, through to decision-making and purchasing – ending in loyalty and finally, advocacy of your brand to their social and business circles – to win the hearts of Gen Zs?
Simplicity and ease throughout the customer experience – from initial exposure to adopting the brand – and sticking with it.
Understanding what Gen Zs respond to is key. To retain them as customers and turn them into advocates, you need to understand how they fully experience your brand or product.
Employing customer journey analytics can help you see where customers are struggling, or where in the journey they are dropping off. Pinpointing errors across your website or App is critical, so you can optimise the customer journey and keep potential and existing consumers happy and loyal.
Gen Z is the future of marketing and as the chairperson of the MMA SA’s Youth Development Board, we strive to empower marketers with information on how to reach this generation and convert them to loyal customers of your brand.
Takalani Masikhwa is chairperson of the MMA SA’s Youth Development Board. He is an award-winning digital strategist and aspiring captain of industry striving to be the very best at what he does. He aims to become the go-to person for all things media and business consulting. It’s not all always work – he enjoys curating music, taking leisurely walks and spending time with people.
