How To Understand The Power Of Gen Z

Posted by Karen Erdelac on Aug 22, 2022

How To Understand The Power Of Gen ZThey have no memory of a time without cell phones and the internet. They are the first truly digital generation, born in the late 1990s to early 2000s or specifically from 1997 to 2012. This is Generation Z.

As a business owner, why should you care about another group following along after the Baby Boomers, Gen X, and Gen Y - the Millennials? Well, Generation Z is on track to become not only the largest ever generation of workers and consumers, but they will become the most influential generation to date, with an income predicted to total $33 trillion by 2030. 

While the Baby Boomers and Gen X are still influential, securing the Millennial and Gen Z consumers' loyalty will be essential to your business's long-term success. These two generations already have approximately $350 billion combined spending power in the U.S. alone. 

What Drives The Gen Z Consumer?

Bank of America study of Gen Z's financial behaviors and priorities found a group already establishing potentially long-lasting earning and spending patterns. 

For example, half of the older members of Gen Z say they or someone in their home had lost a job or significant income because of the COVID-19 pandemic, notably worse than other generations. Nearly 70% also say the pandemic has influenced their financial priorities, including focusing more on saving for the future and living a more frugal lifestyle. 

For Gen Z Consumers, It's All About Value

The National Retail Federation (NRF) reports that 65 % of the members of Gen Z prefer value over brand loyalty when deciding on a purchase, with more than 50% reporting they will buy from a competing brand if the original product's value is not up to par. 

However, "value" doesn't necessarily mean product quality or the price tag. 69 % of this socially conscious generation are more likely to purchase from businesses that give back to social causes. 

Along with social concerns, Gen Z is also practical. They're more likely than other generations to buy lower-priced, lower-quality, or unbranded products — for less critical product categories due to their experience with tight financial times.

For Gen Z, It's Not Just What They Buy, But How They'll Pay

This group's approach to money and familiarity with all things digital like e-shopping and mobile payments offer enormous opportunities and challenges for the world of commerce.

According to a  study by Discover and the Center for Generational Kinetics, Gen Z's most favored payment method is a debit card (57%), with cash coming in at a close second (53%). Although the frequency may be lower than a debit card or cash, 32% of Gen Z use a digital wallet often, while 60% have used it sometimes. 

The explosive growth of buy now, pay later services is credited mainly to Gen Z shoppers. Gen Z likes what buy now, pay later has to offer: zero-interest loans on specific products with no credit checks and flexible repayment schedules. As a result, the very nature of the credit industry is changing. Members of Gen Z aren't building credit scores, as very few buy now pay later services report to the credit bureaus. As a result, credit scores could become less critical in the future as Gen Z seeks to purchase homes, cars, and other significant items.

Since 2005, Quikstone has helped thousands of business owners, from the Baby Boomers to Gen X and Gen Y (the Millennials), grow and prosper with easy, fast, and flexible working capital for all their business needs. 

Now, if you'd like to get your business ready for Generation Z by going digital, adding a gift and loyalty program, purchasing new equipment, expanding or remodeling with a deck or patio, but don't have the cash on hand, Quikstone can help. There's a simple one-page application, and no collateral is needed. If you process credit cards, you could qualify for as much as $250,000. We have an A+ rating with the Better Business Bureau, and 80% of our merchants are repeat customers.

Contact us today to get started with a no-cost or obligation consultation. 

At Quikstone, we have one goal – to help you succeed.

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