Generation Z may reside at the tail end of the alphabet, but marketers who fail to give it top-of-mind attention do so at their own risk.
Experts may differ on when the earliest members of Generation Z (also called iGen or post-millennials) were born, with opinions ranging from 1990 to 2001, but it’s agreed they share some traits as consumers. And businesses with an eye on the future should know what they are and how to address them.
“The next generation of American consumers is ethnically diverse, tech-savvy and on the move,” said Chicago-based research firm Technomic Inc. in its recent study, “GEN Z: Decoding the Behaviors of the Next Generation.” “They are discerning consumers. … As they mature, they are more influenced by their peers and by digital and traditional media.”
“Gen Z is the first generation to experience multichannel and digital marketing on a daily basis, and almost since birth,” said Jackie Rodriguez, senior manager at Technomic. “As older Gen Zers’ sphere of influence widens, they still look to outside sources of information rather than making independent decisions.”
“Gen Z are electronic-age consumers — cellphones, tablets and everything in between,” said Steve Nachwalter, principal of Nachwalter Consulting Group, a global management firm based in Las Vegas. “Imagine the generation before who graduated college without Google. The new era of technology has ushered in an entirely new way to market, reach and satisfy consumers. When I was a kid, if Moses or myself wanted to buy something, we actually had to go to the store and hope they had it. We had to know when things came out and we had to be there on time to get it.”
Scott Seegmiller, chief financial officer at WestCorp Management Group in Las Vegas, says Gen Zers come with their own set of expectations of the businesses they choose to patronize. They include enjoying Internet access everywhere, receiving unattended deliveries and having no limits on data plans. “They also want to be left alone; no hassles. (And) they like to work out and be fit and participate in social activities.”
For these reasons and others, Seegmiller fears that Gen Z consumers may prove harder to please. In time, though, he said “they should mellow out and be more accepting of norms. They want to be involved in entertainment and activities, but as they age and gain responsibility, they will go more to career and more serious goals.”
How can businesses — especially those in gaming and on the Strip — cater to them now and in the future? Seegmiller’s response is concise: “Deals, social events, group activities, entertainment geared to their likes.”
“I honestly believe that Gen Z consumers are very similar to millennials,” said Tony Caufield, information technology manager for Three Square Food Bank. “I think the biggest difference is going to be their social conscience. The younger millennials and now Gen Z are starting to have a greater concern for businesses that have a social conscience, or at least the appearance of one. They want to see that companies are giving back to the community, and not completely profit-driven.”
Gen Zers “should be on the radar, and businesses should be planning for them,” Caufield continued. “I have seen multiple businesses go under over the past 10 years because they couldn’t keep up with the times. It is detrimental for a business not to stay in tune with the generation by keeping up with social and technology trends. A business should make goals and follow an organized plan when it comes to marketing to the next generation.”
On the Radar
Anyone who wants to survive in business, Nachwalter said, needs to “not only understand but to embrace change, technology and the changing needs of their customers. This is a commonsense practice that no business can survive without.”
He says he can recall a time when Atari games were released and he hoped he would get to the store before they sold out. “Now, the world is so interconnected that except for Black Friday and in-store savings, no one has to leave their home for anything.” Gen Z consumers “are spoiled, and the more do-it-yourself a merchant is, the more business they will have. Look at all the person-to-person businesses dying by the thousands and being replaced by the automated check-out. Travel agents, magazines, mom-and-pop retailers, bookstores are all dying out because they have failed to survive in the smartphone era.”
Further, members of Gen Z “do not know a world without smartphones, high-speed Internet, and high-resolution graphics,” Caufield added. Gen Z consumers, he opined, will have little patience for slow-loading webpages or companies without phone apps or social media platforms.
“Those 25 and younger are looking for your social media presence. If they cannot locate you on Facebook, Twitter, Pinterest, etc., they may just move on.”
Business 101
Automation, though, could make Gen Z consumers easier to satisfy, Nachwalter said.
“If they are at your site and ready to buy, the easier you make it to check out, the ... more chances you have of winning his repeat business,” he said. “The real hard part is designing the work flow for your check-out and competing in the ever-changing market.”
It’s important, he said, for businesses to be flexible and aware of shifting trends.
“The world changes every day,” Nachwalter said. “There are no more VHS, Beta Max, cassette tapes, long distance bills or non-flat-screen anythings. The real key is being able to follow trends, abandon what is not working, see things coming from a few years away and adjust. Sony no longer makes Betamax but they are striving and creating cool things all the time. Be ready; life is a wild ride.”
In Southern Nevada, the focus on Generation Z is noticeable in gaming.
“While at IGT I noticed some definite positives to engaging millennials,” Caufield said. “I know other manufacturers are doing the same. Adding skill-based gaming will definitely appeal to this generation and the next.”
And the potential exists for an even greater expansion, with proper regulatory vetting.
“If online casino-style games were created in a way that online users could play against their friends in real life, then you would really have something marketable and engaging,” Caufield said. “For instance, one player would be playing poker online while the other player is standing at the poker table in the casino. It would make the entire gaming experience that much more enjoyable.”
Gaming, and especially the Strip, can maintain its appeal for these younger consumers by using technology to spark their interest.
“Bring them in and treat them special when they are there,” Nachwalter said. “That’s Business 101.”