How To Keep Up With Wants And Needs Of Generation Z Consumers

Just when you finally had a handle on how to cater to baby boomers and millennials, Generation Z is debuting as an important demographic. These consumers born between approximately 1995 and 2010 comprise 25 percent of the U.S. population and pack a collective annual purchasing power of $44 billion. There are characteristics of Generation Z consumers that you need to know to earn their business:

1. Price consciousness. Don’t expect them to pay more for identical menu items or merchandise if your competitor down the street offers them for less. Generation Z consumers also expect to be “courted” for their patronage using promotional offers and special deals.
2. Cash-only. According to a study from Interactions Marketing, 64 percent of Generation Z consumers would rather pay with cash. It’s theorized that because they’ve grown up with credit cards and, in some cases, mobile payments, using cash is novel and “cool.”
3. Prefer experiences over material things. The majority (62 percent) of Generation Z consumers responding to the Interactions Marketing study are much more interested in spending their money on experiences than things. Top ranked experiences among Generation Z consumers are enjoying food (80 percent) and participating in activities with friends (47 percent). In addition, 75 percent said they prefer to patronize retailers that provide “engaging” shopping experiences.