Gen Z … the First Truly Omnichannel Generation

For the last few years, manufacturers and retailers have fixed their aim on how to win with Millennials, which has resulted in being hyper-focused on understanding and actioning how to win the sale via their preference for online purchasing. The drive, and arguably imbalance, to conquer digital and e-commerce has been palpable. However, we are about to experience a pendulum swing as Gen Z is shaping up to be the first truly omnichannel generation, one that demonstrates an ease and willingness to shop in stores and online with great fluidity. Perhaps the most surprising behavior, a behavior traditional consumer goods brands need to recognize and assess, is Gen Z’s shopping “mostly in person” (aka in-store) for food and grocery, beverages, household essentials, pet care and personal care. An additional valuable point to be considered by these brands, as they aim to build consideration and drive trial among Gen Z, is while Gen Z may be buying in-store, their browsing activity for everyday products is more balanced between online to offline. Respondents to the Path to Purchase Institute’s recent Gen Z consumer survey claim they browse with Google (67%) and Amazon (69%), while browsing in grocery stores (69%) and at big box retailers and mass merchants (65%) in equal measure. While the rise in social influence as a critical component in winning brand consideration among Gen Z may not be a surprise, the idea that in-person shopping leads to a higher purchase percentage compared to shopping done online via websites, ads or social media should not be ignored. As digital and, more importantly, mobile natives, the Gen Z population is connecting across multiple social platforms and it is in this connectivity and community where the greatest value lies. Gen Z prefers to look to peers for inspiration and tends to trust other consumers’ opinions more than what brands say about themselves. Forty percent of Gen Z shoppers surveyed said the most effective online ads are those from brands they know and trust and more than half (51%) said customer reviews and testimonials have an impact on the brands and retailers they choose. The unlock for a brand is to uncover audiences who can be leveraged as authentic and trustworthy brand advocates and use them in both the real (at-shelf) and virtual (mobile, social, digital) worlds as trusted influencers of Gen Z purchase decisions. So, how can CPG marketers win the choice, earn the purchase and build critical brand loyalty with a generation who, research suggests, likes to explore, discover and try new things wherever and whenever they choose? Start now, act and adapt to Gen Z’s wants. Collectively, these three Gen Z behavioral findings — the rise of in-store shopping, the balance between in-store and online browsing, and the social influence of community and recommendations — validate the need for an omnichannel approach that boosts brand availability, brand equity and overall presence. Gen Z wants the best of both worlds. They want to visit your website or the aisle and be able to find and discover products easily, readily compare prices and see personal recommendations, at both the real and virtual shelf. The notion of ease and convenience resonates with this generation. To win with Gen Z shoppers, CPG brands will need to determine which of their strengths are most valuable in-store and online, embrace them in both places with equal importance, and create a holistic commerce experience — from consideration to conversion — that mirrors the demands of Gen Z, the truest omnichannel generation yet. About the Author: Liz Fogerty leads Strategy at Advantage Unified Commerce. She is a 25-year advertising and marketing veteran who has spent the last 16 years focusing her attention and expertise on advising CPGs on how to win at retail.