Article
Are you ready for Gen Z consumers? No BS allowed!
Gen Z consumers comprise 26 percent of the population and they should not be confused with millennials.
December 6, 2018 by Elliot Maras — Editor, Kiosk Marketplace & Vending Times
Is your business ready for Generation Z — consumers 22 years of age and younger? If you haven't considered what types of companies the first generation born with a smart phone in their hand wants to do business with, you're bound to be missing out.
Gen Z consumers comprise 26 percent of the population and should not be confused with millennials, as they are more pragmatic and have their "BS meters" on high alert, according to research from Unidays, a student affinity network.
Josh Rathour, Unidays CEO, summarized the findings of a survey of 1,800 college students in the U.S., the U.K., Australia and New Zealand during the recent Money20/20 conference in Las Vegas.
Don't confuse them with millennials
"Gen Z are not millennials," Rathour said. Gen Zers are socially and politically conscious consumers who want to do business with companies that embrace their values.
"Gen Zers are at a time in their lives when they are starting to make decisions about how to manage their money," he said. "Companies that attract them now have a chance to create brand affinities that will last a lifetime."
"Take a fine-tuned strategy to reach them in a meaningful way," Rathour added. These consumers use social media even more than millennials for keeping in touch with their friends.
"Watching their parents struggle through the Great Recession fundamentally influenced how Gen Z sees money, but they aren't afraid to spend with companies they respect and on items they value."
Events that shaped them
The big events Gen Zers remember include the Great Recession, which instilled a need for pragmatism, Rathour shared, and the regulation of the credit market that limited credit card marketing to students, making Gen Zers less familiar with using credit cards than other consumers.
Their pragmatism has made them less prone to take on debt, Rathour explained, especially education debt. A majority of GenZers surveyed expect to graduate college with no debt or less than $25,000 in debt, and 73 percent have a job to pay for education and expenses.
"They see the way credit abuse can ruin your future," Rathour said. They believe in saving — 72 percent of them have a savings or checking account, while 83 percent would rather save for a big purchase than use credit. More than half — 52 percent — don't have a credit card, and among those that do, 26 percent only have one.
Also 61 percent chose their parents' bank when opening a bank account. This includes a savings account for most Gen Zers, and they prefer to deposit hard-earned cash in person despite their mobile-first habits, as 70 percent want to place their savings in a bank with a physical presence. Nearly half (45 percent) would not open an account with an online-only bank.
They also want a bank that can provide a frictionless experience, Rathour said, and they are inclined to use bank apps, especially those that help them manage their money.
Ninety-three percent of Gen Zers believe it is important to bank with an ethical company and 83 percent said they would choose an ethical bank over one that is larger.
The facts are in on Gen Zers: they are consumers who know what type of companies they want to do business with.
About Elliot Maras
Elliot Maras is the editor of Kiosk Marketplace and Vending Times. He brings three decades covering unattended retail and commercial foodservice.
