5 Gen Z Stats Marketers Need to Know
June 16, 2023
The influence of Generation Z is on the rise. Estimated to account for as much as 26% of the world’s population, Gen Zers care deeply about a brand’s ethics and how those brands communicate with them.
Born between 1997 and 2012, Gen Z wields nearly $100 billion in purchasing power. Our 2023 Consumer Trend Index polled over 6,000 consumers across four generations — Baby boomers, Gen X, Millennials, and Gen Z.
We’ve compiled a partial list of our findings that will help marketers understand how their strategies need to adapt for an increasingly discerning consumer that wants to be engaged and entertained.
56% of Gen Z have made an in-app purchase with their mobile phones in the last year.
The growth of in-app purchasing underscores the importance of mobile optimization. Brands must deliver a seamless experience. Friction-free transactions are important to all consumers, but Gen Z consumers are more intolerant than others. Ensure that your websites, apps, and purchasing processes are simple and mobile-friendly. Marketers not only should but must invest in secure in-app purchasing options. As more of Gen Z enters the workforce, their purchasing power will only increase.
84% of Gen Z say that their favorite brand treats them like an individual.
Brands that prioritize personalization have a competitive advantage. Studies show that consumers want to be known and expect to be understood. 71% of consumers expect companies to deliver personalized interactions. And 76% get frustrated when this doesn’t happen. Gen Z consumers value uniquely tailored experiences and are more likely to choose brands that understand and cater to their individuality. By investing in genuine relationship building and personalization, you can rise above your competitors, and turn casual customers into loyal brand evangelists.
70% of Gen Z cite data privacy policies as either important or critically important to maintaining brand loyalty.
Gen Z consumers have grown up in an era of high-profile data breaches and privacy scandals. To establish trust and maintain brand loyalty, it’s crucial to communicate transparently about how your brand collects and uses data. Ensure that your privacy policies are easy to find and even easier to update. Only ask for data that you really need. This kind of data, known as zero-party data, is the most valuable and the most reliable.
74% of Gen Z are willing to share their hobbies and interests with brands in exchange for better service.
Gen Z consumers value personalized experiences. They understand and are willing to share information about their hobbies and interests to receive an enhanced experience. Engage with Gen Z consumers through interactive quizzes or surveys to transparently collect psychographic data, enabling you to deliver more relevant content and experiences.
By leveraging Gen Z’s willingness to be understood, marketers can gather valuable insights and tailor their offerings to match the unique preferences of individual consumers.
52% of Gen Z are more likely to participate in a loyalty program this year compared to last.
Gen Z consumers are increasingly interested in joining loyalty programs. Why? Not because of the brand savings or rewards, although this is important, but for the feeling of inclusion and being valued. With more customers citing loyalty programs as an incentive to stay with a brand, few retailers can afford to ignore shoppers who have already demonstrated an affinity for your products and services. Loyalty programs offer marketers a platform for strengthening brand advocacy. Many of the most successful brands have incorporated gamification, user-generated content, and insider offers into their loyalty programs to cultivate a sense of community.
While many Gen Z’ers are still too young to be gainfully employed and still live at home, they exercise a tremendous amount of influence on the family’s household spending. As they age, their purchasing power will naturally increase. Understanding what this generation values, how they engage with content, and how they make purchasing decisions is vital to building lasting relationships that stand the test of time. Learn more about Gen Z’s outlook on messaging, privacy, and brand loyalty in our Gen Z 2023 Consumer Trend Index report.
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