6 Key Success Factors for Your Online Shop
What are the key issues that online retailers should resolve to prosper? We identified five key areas that will help you to enhance your profits.
In the world of online shopping, Generation Z (Gen Z) is no longer the future, it is the present. This generation is getting older and they are rapidly becoming a target group worthy of your attention. Today, we’ll learn about Gen Z’s shopping habits, what makes them unique, and how to sell to them.
Generation Z is most frequently defined as the group of children born between 1997 and 2012. They are the generation sandwiched between Millennials (1981-1996) and Generation Alpha (2013 – present).
Sometimes, they are referred to as Gen Z or Zoomers. It is worth noting that they are already the largest generation on Earth, making up roughly 32% of the living population.
Gen Z is often considered the first “digital native” generation. Although it is debatable who was first, there is no debate that they’ve had exposure and experience with the internet and mobile devices from a very young. However, there is more to them than just that.
Many argue that Gen Z has only known recessions and insecurity (at least as they enter adulthood). This is no doubt the case when you consider the job market, housing costs, and inflation in recent years.
Because of the economic situation, they are known to be quite a nostalgic generation, both in terms of reliving their youth (the 2000s and 2010s), but also for time periods predating their own. They seem to have a particular fondness for the 80s, perhaps because their parents and grandparents lived through those times.
As consumers, Generation Z tends to be quite digital-centric. They prefer to research and place orders online. They pay close attention to online trends and social media is incredibly influential in their purchase decisions. When shopping on social media, Health & Beauty products are the most consumed category for this generation.
When it comes to the ethics of their consumer habits, this can be a bit contradictory. Although surveys show that this generation claims to support ideals such as “environmental consciousness”, their love for “fast fashion”, fast delivery, and cheap goods is apparent through sales numbers and other data.
Gen Z also likes to use mobile devices to shop online. Make sure your online shop is mobile responsive (this is also important for SEO).
To no one’s surprise, Gen Z loves to shop online. Of course, that in itself doesn’t make them unique. According to a Statista survey from 2022, at least 43% of Gen Z women have purchased via a social media platform, while men sat nearby at 37%.
Social media, as we mentioned earlier, is where online shops should focus their energy if they want to get the attention of this generation.
It’s also worth noting that the same survey revealed that 59% of Gen Z women have browsed a brand’s social media page (men: 53%). Similar numbers showed up for the question of discovering a new brand on social media (58% for women and 52% for men).
According to eMarketer, a recent 2023 study found that 74% of Gen Z internet users use TikTok for searches. Astoundingly, 51% even favour the Chinese video platform over Google.
That’s not to say that Google is not relevant for Generation Z, but it’s worth noting that they are more willing to research elsewhere. This is particularly true for this generation, compared to older ones.
So, what social media strategy should you focus on?
Of course, this depends on your time and resources. It also depends on how important this generation is for you. As more and more members of this generation enter the workforce, their spending power will increase. Therefore, it’s important to start thinking about this now.
Whether you go with paid or organic methods, there are a number of social media strategies to connect with this new generation of consumers:
There’s a lot to be said when it comes to influencer marketing. Whether you like them or not, they can be quite influential (hence, the name). Almost every niche in the world has some kind of influencer. In fact, so-called micro-influencers can often be relatively affordable and can bring a great return on investment. Although they don’t necessarily have a traditionally “high” number of followers, they are incredibly popular within the industry.
Shutterstock/CarlosBarquero
User-generated content (UGC) can also go in a few directions. It’s important to remember the main concept behind this idea: using social proof to boost trust (and sales).
In short, UGC aims to use your customers’ voices to influence other shoppers to purchase from your shop.
User-generated content can come in the form of customer reviews (popular for both B2C and B2B businesses) or in customer testimonials (quite popular in the B2B segment).
Recommended reading:
Why Are Customer Reviews So Important for Your Online Shop?
For B2C, testimonials could, for example, come in the form of social media posts (e.g. creating a hashtag for your followers to use).
Of course, creating your own content can be time-consuming, but it can bring the most long-term benefits to your brand. With engaging and consistent content creation, you’ll build a stronger and more loyal following. It can also benefit your SEO when you have more backlinks and engagement with your posts.
No matter how you choose to create content, make sure it is engaging. Content that receives shares, likes and comments are the ones that get you visibility (and traffic).
Video is also very important for a lot of the popular platforms where Gen Z is found (i.e. Instagram, TikTok).
Storytelling is also an effective method of creating content. Whether it is UGC, product usage, or a behind-the-scenes look at your shop, everyone loves a good story.
Now that we’ve covered the basics on how to reach Generation Z on social media, there are a few things to keep in mind for your online shop.
We already touched on mobile responsiveness. However, let’s dig a bit deeper. According to Hubspot, 74% of Gen Z use their mobile phones most often when shopping online. Only 16% of Gen Z said they use computers the most.
Along with mobile responsiveness, Gen Z expects a smooth shopping experience. Therefore, your checkout should be optimised. Digital Wallets should be accepted (e.g. Apple Pay and Google Pay). Depending on the market you are active in, this may include other popular payment methods.
Does your brand support a specific cause? Make sure this is visible in your online shop (and in your marketing efforts). This can be in reference to your manufacturing process and the materials/ingredients you use (environmental).
It could also be promoting a charity that you work with. Of course, that doesn’t mean you need to make this the identity of your brand, but it has worked quite well for brands like Reformation, TOMS, and Warby Parker.
Consider the “community” element of your online shop as well. Loyalty programmes can be a good way to connect with a generation that is not particularly known for brand loyalty if done right. Reward your customers for providing data (e.g. exchange points for surveys, feedback forms, etc.) and then use this data to enhance your personalisation efforts.
Recommended reading:
How to Make the Right Product Recommendations to Online Shoppers
Gen Z is still evolving. After all, about a third of the generation is still not of working age yet. However, the other two-thirds have already entered the workforce. As the largest generation, they shouldn’t be ignored.
13/11/24What are the key issues that online retailers should resolve to prosper? We identified five key areas that will help you to enhance your profits.
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