top of page

Understanding Gen Z; or at least let's try to.

Gen Z consumers are distinct in their shopping habits and expectations, necessitating a shift in retail strategies to cater to their needs, particularly during post-holiday sales and times of uncertainty.

According to a recent Medallia study, Gen Z is moving away from traditional loyalty towards convenience. A mere 43% of Gen Z believes brands can earn their loyalty, compared to 59% of the general population. Retailers need to revise loyalty methods as common strategies such as deals, coupons, and standard loyalty programs may be less effective with this generation. Instead, Gen Z, being emotional, inclusive and opinionated, tends to favor brands that are vocal about social issues. A new approach could be loyalty programs that support causes dear to Gen Z, recognizing their role in contributing to these causes.

Convenience is a key factor for Gen Z in their customer experience. They seek value for money, conveniently located retailers, and low prices. They are more likely than other generations to choose retailers based on fast or cheap shipping options. In response to inflation, they may even compromise on service quality or product quality and size to save money. Ultimately, these preferences point towards convenience as the underlying theme. Retailers seeking repeat business from Gen Z should focus on reducing friction and finding innovative delivery methods for their products and services.

Regarding payment methods, Gen Z shows a higher preference for options like 'buy now, pay later' (BNPL) when choosing retailers. This preference is driven by diminishing buying power due to inflation and the convenience and immediacy of acquiring credit through BNPL. Brands can leverage their digital channels to test how BNPL affects conversions, optimizing based on outcomes.

Analysis of unstructured social data can also be valuable in understanding Gen Z. They are more likely to learn about products through social media and to be influenced by celebrity-affiliated brands. Utilizing AI-powered analytics to process data from social media can unlock insights about generational preferences and drive acquisition and retention strategies.

Download the Study here

1 view

Recent Posts

See All


bottom of page