Does "new generation" also mean "new customers"?
A new customer group born between 1997 and 2012 is entering the market and will become one of the most important buyer groups in the near future. As early as 2026, this generation will make up the largest share of consumers and thus have a significant influence on the future of the customer approach. In order to make loyal customers out of this potential buyer group and to bind them to their own brand in the long term, retailers must understand what makes this generation tick and how their requirements differ from those of previous generations or customer groups.
This generation ticks differently: Gen Z
Through their parents, Generation Z is confronted with a pragmatic, responsible generation (Generation X) that wants to prepare their children as well as possible for life. At the same time, shaped by the Corona pandemic and the accompanying social distancing and self-isolation, they lack tangible experiences and adventures. 'Blursday' describes this feeling that the individual days no longer stand out from each other, and it doesn't really matter which day it is. In order to break out of this structure, Generation Z is looking for a kick and thrilling experiences. In this context, social contacts play a particularly important role. 42% of Generation Z also feel more connected to their contacts through virtual experiences.
At the same time, however, it can be observed that the income of this generation is lower compared to other generations. Accordingly, the demands and desires for products and services are limited by income and available funds. For this reason, members of Generation Z resort to cheaper alternatives when necessary. This also means that benefits such as discounts and special perks can encourage this generation to buy or remain loyal to a brand.
To better understand shopper groups, social networks have always been a good place to start. Here, customers interact with their favourite brands, talk about their preferences, what they don't like and what their requirements are. Thus, data is voluntarily provided in the form of user-generated content.
Consequently, when designing and implementing a loyalty programme, retailers and companies should understand the differences between different customer groups, show more flexibility and be present exactly where their customer group is - on social media.
For example, award loyalty points not only for registration and purchases in your webshop, but also for social engagements and interactions. If you also award points for following on social networks, interactions with the brand on social media - for example, using hashtags, likes or comments, participating in competitions - or recommendations, you will be able to increase the number of members, points collected and redeemed, engagement and sales.
At the same time, social networks can increase customer growth rate and lifetime value, namely when existing customers bring their contacts to your company through referrals.
In summary, different generations differ significantly in their needs and requirements. Accordingly, it is essential to know your customers inside out in order to address them appropriately and to bind them to your brand.
The most important thing, however, is to remain flexible and adapt to changing requirements, platforms and technologies. Because: As quickly as new platforms emerge or are trendy, they can also disappear from the scene again, new influencers or idols are trendy or other factors for customer loyalty gain importance in the future.
Accordingly, brands/companies should adapt their loyalty strategy to customer behaviour. KPS supports you in developing or revising your loyalty strategy right through to implementation. If you are open to new ideas and willing to try new things to attract the attention of generations, you can only win or, in case of doubt, learn from mistakes.