Archive for General Information

Move over Millennials, Generation Z is now the largest single population segment

Defining Gen Z

 

How do we define the youngest generation? Gen Z is most commonly defined as those born after 1996, divided into two groups: those born between 1997 and 2005 (The First Connected Kids) and those born 2006 to 2015 (The Technology Inherent). The oldest members of the generation are now 20. The oldest millennials are now 37.

Because members of Gen-Z are different in key ways from millennials, the demographic shift holds some implications for brands and retail marketers. According to Nielsen’s new Total Audience report, millennials and Gen-Z now comprise 48 percent of the total media audience.

Differences of gen z

While members of Gen-Z look like millennials from an overall device ownership perspective, there are a few key differences. According to Nielsen, they watch less conventional and DVR-based TV than earlier generations. They also spend far less time accessing the internet via PCs than older groups. Gen-Z spent only eight minutes per day online via PC. The vast majority of their online time is spent on mobile devices.

 

Millennials care more about prices than Gen Z

This is arguably because they came of age during the recession. Sixty-seven percent of millennials surveyed said that they would go to the website to get a coupon, whereas only 46% of Gen Z polled said they would do the same. Millennials also tend to click on more ads; 71% of Millennials in a recent poll said they followed an advertisement online before making a purchase, however only 59% of Gen Z’ers said the same.

Members of Gen-Z are more likely to buy in stores than millennials and prefer it to e-commerce, according to multiple studies. However, technology heavily influences those mostly in-store purchase behaviors.

According to a Euclid Analytics consumer retail behavior survey, Gen-Z uses mobile apps and features on mobile phones more than other demographic segments in retail stores. Texting and Snapchat in particular are much more heavily used:

The use of Snapchat is the most dramatic difference between Gen Z and other groups. More than 40% of Gen Z respondents say they use Snapchat in a store, compared to only 15% of other respondents. Texting remains the most popular activity overall, especially with Gen Z. Half the Gen Z respondents say they text while in a store, compared to 39% of other respondents. The only mobile feature Generation Z uses less than other groups is Google search.

 

 

Gen Z Is More Entrepreneurial

According to Gen Z marketing strategist Deep Patel, “the newly developing high tech and highly networked world has resulted in an entire generation thinking and acting more entrepreneurially.” Generation Z desires more independent work environments. As a matter of fact, 72% of teens say they want to start a business someday.

Gen Z Has Higher Expectations Than Millennials

Millennials remember playing solitaire, coming home to dial-up internet and using AOL. Generation Z was born into a world overrun with technology. “When it doesn’t get there that fast they think something’s wrong,” said Marcie Merriman, executive director of growth strategy at Ernst & Young. “They expect businesses, brands and retailers to be loyal to them. If they don’t feel appreciated, they’re going to move on. It’s not about them being loyal to the business.”
Gen-Z is the next generation of mass-market consumers. While they share some of the behavior patterns and characteristics of millennials, they have distinct preferences and expectations that brands and retailers must understand and address.

 

 

 

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Walmart Uses Google and Uber in Walmart-Amazon War

 

 

 

I find this Walmart-Amazon war fascinating; if you’ve read this blog, you may have read an earlier post on how Walmart and Amazon continue to try to one up each other in the fight for becoming the world’s retail giant.

It looks like Walmart is responding to Amazon’s latest purchase of Whole Foods and indicating that they will lower prices in an attempt to “change the face of grocery shopping.”

They are planning to partner with two big name companies, namely Google and Uber, to expand their service offerings.

First, they are testing grocery delivery via Uber in Denver and Orlando currently to see if this could be a new offering. In the past, Walmart has tried various other options, including considering the use of their own employees and, more interestingly, their own customers (this one never saw the light of day of course).

More interestingly, they are also partnering with Google to provide streamlined online shopping. The first step will begin in September when Walmart’s items are available for purchase via Google Express. In the long term, they are hoping to be able to offer online purchasing through Google Assistant or Google Home, similar to Amazon Echo.

The moves are interesting. On one hand, Walmart could be starting a new phase with their delivery – Ubereats turned UberMart or UberRetail perhaps – or they could not be successful at either of these new ventures and be seen worldwide as the ones who continue to chase Amazon and never really catch up.

Walmart is a retail giant, no doubt, but I believe Amazon is still the stronger of the two. However, Walmart definitely has its sights set on Amazon and seem to be working quickly to catch up and possibly pass them by.

So it seems the Walmart-Amazon war continues, and for now Walmart seems to be making headway. We’ll keep an eye on these new developments and wait for the next move in this retail game of chess.

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#ButtGate Made Worse by Short Fuse

Last week, a story went viral about a customer who left a less than stellar Google review for a restaurant in Tennessee. The owner, who pays attention to reviews (that’s a good thing), got a bit….upset with the customer and shot back a “review” of their own. In case you missed it, here’s a replay of the exchange:

 

Customer’s Google review:

 

Okay, so this review is a bit dramatic and could have been written differently and gotten the same message across, but there are some points to be made. After all, unclothed children are probably not a good idea in the dining room.

Instead of taking a breath and stepping back, the owner was reactive and posted this on the company’s Facebook page (it is now deleted):

 

You can only imagine the reaction it got from Facebook users.

After calming down a bit, the owners then posted this explanation, which has also been deleted. At least it’s a better explanation – mothers know that when it comes to criticizing children, parents do tend to get a bit sensitive.

 

 

There are always three sides to every story – his, hers, and the truth. I’m sure both sides are correct in their perception of what happened, but both reacted in a rather unnecessary way. However, it’s the business owner who will feel the impact of this – will people feel comfortable leaving less than stellar reviews going forward, or will they simply not return? Will people hesitate to visit, not necessarily because of the customer’s review (though that doesn’t help) but more because of the knee jerk response from the owners?

Honestly, this is a viral story at this moment – I’m sure it will blow over and no one will remember it in a few months. But for now, the reactionary response doesn’t seem worth it from a business perspective.

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