Five Key Consumer Insights to Earn Brand Loyalty 

A Purpose-Driven Generation

Gen Z is on track to be the most educated generation in history, and three out of four believe they are responsible for driving their own careers.

  • 74% Believe a company’s purpose matters more than the size of their paycheck
  • 72% Aspire to own a business
  • 58% Are willing to work nights and weekends to earn additional money, and many use online, peer-to-peer marketplaces to earn extra cash

Sources: TNS-Monster Multi Generational Study, Afterpay Gen Z Report

Businesses Get What They Give

Gen Z pays attention to the way businesses operate, and they value a commitment to privacy, social impact and environmental responsibility. They tend to be loyal to brands and businesses they believe are transparent and accountable.

  • 69% Are more likely to buy from a company that contributes to social causes they care about
  • 69% Pay attention to the way businesses operate
  • 66% Believe businesses tend to value investors more than their customers or employees

Sources: Association of Chartered Certified Accountants and International Federation of Accountants

Parents Rely on Intel From Their Kids to Make Decisions

According to McKinsey & Company, Gen Z represents 40% of global consumers, and nine out of 10 parents say they rely on intel from their tech savvy kids to make most household purchasing decisions, including:

  • 77% of food and beverage purchases
  • 76% of furniture purchases
  • 73% of household goods purchases
  • 65% of restaurant choices
  • 66% of travel plans
  • 60% of clothing and shoe purchases for family members
  • 55% of personal care purchases for family members

Source: IBM-National Retail Federation

Word of Mouth is Trusted Most

Gen Z males tend to trust word-of-mouth recommendations from friends, user-generated content (UCG), and influencers more than traditional advertising or celebrity endorsements. YouTube is the primary source of information for 95% of Gen Z men:

  • 80% use an iPhone to discover and research brands on social media platforms
  • 60% trust recommendations by ‘real people’ more than celebrity endorsements
  • Their top three Google search terms are:
    1. Best
    2. Cheap
    3. How to

Sources: Piper Jaffray-Business Insider, Fractl 

Vintage and Luxury Brands Define Personal Style

Gen Z is the most diverse generation in history according to Pew Research, and they value inclusivity and individuality. They also have a soft spot for nostalgia. This generation has revived vintage brands and they are fueling the online resale marketplace. While they like bargains and will buy store brands to save money, Gen Z splurges on luxury brands that convey the right image or can be customized to express their personal style.

Gen Z saves about 25% of their monthly income, and they spend most of their own money on:

  1. Clothes and shoes
  2. Books and music
  3. Apps
  4. Toys and games
  5. Events and outings

Source:  IBM-National Retail Federation

Product Quality, Availability, Price, and Shopping Experience are Tipping Points

Smartphone technology plays a huge role in the way Gen Z discovers and evaluates brands, and they typically make nine out of 10 purchases in a physical store. Product quality, availability, price and a fun shopping experience are the tipping points for most purchasing decisions.

  • 66% Want high quality products
  • 66% Expect products to be in stock
  • 65% Search for the best price online, and look for discounts, coupons and loyalty rewards
  • 56% Want a fun in-store experience

Source:  IBM-National Retail Federation

Consumer Insights Empower Brands to Connect With Gen Z

Gaining a complete understanding of the way people live, work and shop can explain what matters most to consumers. Generation Z values authentic brands that reflect their personal values and style. Qualitativequantitative  and quick-turn consumer research can fill in the blanks and explain what it takes to earn their brand loyalty.

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Since 1989 we have been coaching business leaders, marketers and insights professionals to focus on providing a positive customer experience before, during, and after a purchase. Ultimately, listening to the voice of consumers can drive up repeat business, enhance customer loyalty and improve business growth.

Insights In Marketing is a marketing research firm that delivers in-depth and actionable insights so you can have every confidence your decisions are inspired by the consumer voice. Our Team has decades of client and supplier side consumer research experience, and our marketing expertise spans across various industries and consumer segments.