Canadian Retailer - The Marketing Issue - 48

CONSUMER DEMOGRAPHICS

THE Z FACTOR
Their ranks may be smaller
in number than millennials in
terms of shopping, but Gen Z
is fast becoming an entity unto
itself. Studies show that they
tend to be more connected,
more time sensitive, more
impulsive and more tuned in to
the shopping experience. Their
expectations are higher and
their patience lower when it
comes to satisfaction. And they
definitely like their shopping
experience to be personalized,
whether online or in store.
According to Accenture's 2016
Customer Journey Survey:
* Gen Zs are impulsive-nearly
60% more say they made a
purchase because they saw
an item they liked.
* They are more open to new
ideas. For example, over 70%
say they are currently using
or want to try voice-activated
ordering.
* They like others to do the
shopping for them. Some
71% of Gen Z shoppers are
interested in automatic
replenishment programs
and are more prepared to
order these items through
concierge services like Apple's
Siri, Google's Assistant or
Amazon's Alexa artificial
intelligence platforms.
* They love the in-store
experience. Gen Zs make
visiting a store a multimedia/multi-channel
event: engaging with sales
associates, comparison
shopping on mobile devices
and interacting with instore, self-service digital
information sources.
* GenZs are two times more
likely to turn to YouTube
before making a purchase.
* They also crave speed for
online purchases and want
same day delivery.
* They're more likely to provide
feedback via Tweets or on
Facebook or Snapchat posts.

48 |

CANADIAN RETAILER

Curating the experience

A second overarching theme is personalization and curation, Askew notes. "Millennials have a very high interest in
highly curated assortments and even subscription models
for all sorts of items from fashion, health and
beauty to home goods. In fact, that interest in- "MILLENNIALS HAVE A VERY
HIGH INTEREST IN HIGHLY
creases in importance the younger they are."
Not surprisingly, a key influencing factor in CURATED ASSORTMENTS AND
the decision-making process is social media, EVEN SUBSCRIPTION MODELS
both in terms of informing and building trust. FOR ALL SORTS OF ITEMS
"Millennials are more trusting of social media FROM FASHION, HEALTH AND
channels and more likely to engage at deeper BEAUTY TO HOME GOODS.
levels through those channels," says Marty IN FACT, THAT INTEREST
Weintraub, Partner and National Retail Con- INCREASES IN IMPORTANCE
sulting Leader at Deloitte Canada.
THE YOUNGER THEY ARE."
The predominant social media channel of
- KELLY ASKEW
choice changes with age, according to the Accenture report.
Accenture
Facebook, YouTube and Pinterest are the most popular social media sites for all age groups. However Gen Z shoppers
are heavier users of Snapchat (68% of Gen Z vs. 29% of older
millennials) and Instagram (63% vs. 55%).
"They look at social media before going to the store, consulting friends and family and a whole network of people
that may be promoting the brand," Askew says
Video in particular carries a considerable punch, he
notes. "Rich video and graphics that are personalized are
incredibly powerful marketing tools."
While the path to success may lie in digital engagement
and mastery of social media, many retailers face one particular challenge. That is the digital divide between management and their audience, Weintraub says. "Folks that
hold senior decision making roles are not the millennial
generation, but are often selling to millennials. They don't
talk the same language naturally. They need to determine
plans to deal with that."
Judging by the numbers-and what's on the horizon-it's
time to make those determinations.

| THE MARKETING ISSUE

Table of Contents for the Digital Edition of Canadian Retailer - The Marketing Issue