EY shopper analysis unveils 5 ways to effectively engage Gen Z consumer
MONTREAL - Retailers need to replicate the ease of digital shopping in their brick and mortar stores if they're to successfully engage generation Z shoppers, accoridng to a EY report released Thursday. According to the report, e-commerce fulfills Gen Z's needs, and in order for retailers to be relevant, they must translate that experience in their stores.
When it comes to engaging consumers, a new executive briefing developed by Forbes Insights, in cooperation with EY, outlines how retailers need to use a combination of digital and in-store tactics.
According to the briefing, the five most effective ways to engage Gen Z consumers are:
Real-time/dynamic pricing;
Digital promotions in store;
Two-way communication;
Limiting out-of-stocks; and
Loyalty pricing/programs.
"Digital shopping sets a high standard online – and consumers expect the same or better standard when they walk into a store," stated Daniel Baer, EY's Canadian retail and consumer products sector leader. "Digitally savvy consumers are armed with information they've gathered online, and when their in-store experience and products don't match their expectations, it can lead to lost sales and a diminished brand."
According to EY's report, Millennial consumers transformed the retail industry by demanding a great price for the items they purchased. While that generation is still most likely to look for coupons or respond to a shopping alert online, todays teens are shopping online for simplicity.
"Physical stores act as a competitive advantage to showcase products and offer immediacy that an online purchase lacks," Baer said. "But at the end of the day, the youngest consumers want a shopping experience that understands their life patterns."
The report noted that 58% of Gen Z consumers would choose in-store purchases over online in order to see and feel the product, while 50% look to avoid shipping costs and 43% want to get the products faster.
"As those in the younger generations get a bit older and start having their own credit cards – and buying power – retailers will have to up their game even more," Baer said. These consumers crave experience versus products, social media versus traditional advertising and personalization versus mass marketing. "The good news is retailers are realizing what Gen Z and Millennial consumers don't want. They loathe 'experts'. Whether they're shopping online or in store, younger generations don't value 'experts' because they've already educated themselves and found the information they're looking for when it comes to things like quality."