Forget stereotypes about frivolous whippersnappers and their avocado toast. A recent survey supports the emerging picture of Millennials (21-38) and Generation Z (13-20) as frugal sceptics who need things quick but are slow to reward businesses with their loyalty.
Growing buying power means these shoppers can’t be ignored. So how can retailers remove generation-specific friction points and foster loyalty among these shoppers? Here are three crucial factors in winning over this group of customers.
Make Payment Painless
Shoppers want things fast and on their terms, but that’s doubly true for generations accustomed to the speed and convenience of digital technology. According to the 451 Research Retail Report commissioned by Adyen, Millennials (68 per cent) are most likely to abandon purchases when facing significant wait times. But queue-busting technology like mobile point of sale or self-checkout experiences can alleviate this pain point, increase customer satisfaction and build loyalty toward your business.
It’s not just about wait times, though – a variety of payment options helps younger shoppers pay their way, both online and in-store. Forty-four per cent of all Australian shoppers gave up on a purchase because they were unable to use their preferred payment method, but this jumps to 53 per cent for Gen Z.
Delight the digital natives
Both generations have spent most (or all) of their lives in a digitally connected world, so it’s unsurprising that the Retail Report found these generations to be more likely to prefer online shopping. This heightens the importance of reducing online friction. For instance, 44 per cent of online shoppers say they’ve abandoned an online purchase because of checkout friction like lengthy payment forms.
Keeping in mind these generations’ considerable screen time, retailers should be aiming to improve their interactions on social and messaging apps. Though 44 per cent of Australians say they use social networking to discover new products, 50 per cent also say they gave up on a purchase after not being able to track down a product they saw on social media. And a quarter say special offers would make them likelier to purchase through social media or third-party messaging apps.
Break down barriers
Particularly for generations who are more digitally connected, lines between physical and digital experiences are blurred. Findings from the Retail Report illustrated that younger generations still want to be able to shop in-store, and research from Accenture found that Millennials and Gen Z are the likeliest to make their shopping experience a multi-channel event. Many comparison-shop on mobile and are more open to interacting with self-service technology in-store.
Furthermore, 45 per cent of Australian shoppers see cross-channel conveniences as a reason to choose one retailer over another, a big advantage when trying to attract younger shoppers whose loyalty is hard-won. Improving inventory management, point-of-sale and personalisation technology can help build these cross-channel bridges.
Retailers who remove friction points and break down barriers between operations are poised to win over Millennials and Generation Z shoppers. They might even be more prepared for the next generation of shoppers.