Seizing the Opportunity: Harnessing the Buying Power of Generation Z for Small Businesses.
In today’s business landscape, it is crucial for businesses to pay attention to the growing force of Generation Z.
Understanding Generation Z
Generation Z, born approximately between 1997 and 2012, is emerging as a significant force in the economy. With about 68.2 million members in the United States alone, Gen Z represents over 20 percent of the population and possesses approximately $150 billion in buying power.
Embracing Small Business Saturday
Small Business Saturday, an initiative launched by American Express, has garnered support from both millennials and Gen Z. A recent Bankrate survey revealed that approximately two-thirds of individuals from both generations expressed their willingness to participate in this event. Small Business Saturday 2022 generated an estimated $17.9 billion in business, highlighting the potential for long-term patronage of small businesses.
Tapping into Gen Z Consumers
To attract Gen Z consumers, small businesses can employ the following strategies:
- Mastering Social Media: Utilize social media platforms, particularly TikTok, which has influenced the shopping decisions of two-thirds of Gen Z users. Tailor your social media content to target local audiences, boosting awareness and driving foot traffic to physical stores. Additionally, leverage customer-profile targeting to drive online sales. Social commerce, shopping experiences within social media platforms, is projected to reach nearly $80 billion by 2025, with younger consumers leading the way.
- Prioritizing Mobile: About 29% of small businesses are focusing on mobile by investing in mobile app development. Having a mobile app can enhance the customer experience and convenience, facilitating online transactions and engagement.
- Customer Service and Unique Offerings: Highlight your ability to provide unique gift ideas and prioritise excellent customer service. More than half of respondents in a Bankrate survey chose smaller retailers for their unique gift options, while 48% appreciated superior customer service.
- Readiness to Adapt: Stay agile and adapt quickly to changing circumstances. The pandemic highlighted the importance of scaling online operations swiftly. Explore services that can support increased online transactions and ensure a seamless customer experience across various channels.
- Promoting Sustainability: Emphasise any sustainability initiatives your business has undertaken, as three-quarters of Gen Z consumers prioritise sustainability over brand names. This value resonates with consumers of all ages, with a growing percentage recognizing the importance of sustainable packaging.
- Retaining Customers with Membership Models: Consider offering membership or subscription options to encourage repeat business. This model can foster customer loyalty and provide a solid foundation for small businesses in 2023.
By implementing these strategies, small businesses can effectively capture the attention and loyalty of Gen Z consumers, tapping into their significant economic influence and driving sustainable growth in the long run.
