The Purchasing Power of Generation Z

Understanding exactly how customers shop often helps companies promote their products and increase revenue. However, the purchasing decisions of each new generation differ from the generations who came before. As Gen Z grows, companies strive to grasp what kind of consumers this tech-savvy group consists of. The cohort (born 1995-2012), now as old as 23, currently holds 146 billion dollars in buying power. What will drive them to purchase your product?

Quality over Price

The oldest Generation Z consumers are on the cusp of entering professional adult life. Therefore, the majority still do not receive steady paychecks. Brand name products don’t mean as much to this price-conscious group as they once did to older generations. In fact, Gen Z is more likely to invest in the quality of products they’re buying rather than the image.

For example, Gen Z will most definitely purchase clothing made in high-caliber, ethically-friendly environments over clothing produced in low-quality sweatshops. Go the extra distance to entice young consumers to come back instead of simply leveraging your brand name to increase sales.

Take a Social Stance

Gen Z has shown they’re more likely to flock to brands who take a stance on certain societal issues. Speaking out about environmental or social problems, and proposing solutions with their products, becomes a key differentiation. You may have noticed a trend of companies shifting towards environmentally-friendly practices as a way to connect with consumers. You can thank Gen Z for that — sustainability, social responsibility, and transparency act as major selling points.

But choose your battles carefully! Many companies have lost more customers than they gained by expressing a political stance. Small companies who can’t afford to take a big hit may want to look into local volunteering, donating, or community-building. These actions all rank highly among Gen Z, and remain a safe bet for those who can’t afford to take huge political risks.

The Clicks and Mortar Generation

Today’s teens grew up with cell phones in their hands. So it’s no surprise that Generation Z uses smartphones more than any other generation. When shopping, they’re likely to spend less time in a brick and mortar store and more time buying digitally. Keep up with their online shopping habits! Try promoting and selling directly through social media, where consumers have the ability to purchase your product in one click!

Acquiring online sales from Gen Z can present a new challenge to your sales team. However, surveyed results show that aesthetically pleasing print material can drive them to your online store or social media pages. Try using direct mailers as a way to lure your customers online! Don’t forget to attach a coupon code that tracks just how successful your mailers perform with your target audience.

Adjust your current strategy to attract larger groups of young consumers! Gain their loyalty now to build the foundation for lifelong relationships that’ll help your business thrive. Need some help getting started? Contact Print Tech for more tips and tricks from our marketing experts!