Gen Z has officially entered the workplace and marketplace, bringing significant changes that businesses must address. What sets Gen Z apart? Born between 1996 and 2010, they are the first digitally-native generation, having grown up with smartphones and a deep attachment to digital connectivity. The COVID-19 pandemic marked their formative years, the tenure of the first Black U.S. president, and a noticeable increase in diversity – nearly 50% of Gen Z are non-white.Â
Implications for Businesses
Several studies have identified key characteristics of Gen Z’s customer behavior:Â
- Customer Satisfaction: Only 50% of Gen Z respondents are satisfied with the current customer experience (CX), compared to 71-72% of older generations.Â
- Self-Service Preference: 38% of Gen Z will abandon a customer service issue if it can’t be resolved via self-service, versus just 11% of baby boomers.Â
- Loyalty: 52% of Gen Z customers would not buy from a company again after a poor experience.Â
- Interestingly, Gen Z is somewhat more forgiving: They give companies 2.6 chances to rectify a bad experience, compared to 1.1 chances from baby boomers.Â
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However, their loyalty is difficult to secure:Â
- Brand Switching: 85% are willing to switch to a new brand for superior CX.Â
- Brand Advocacy: 76% are ready to recommend a brand based on exceptional digital experiences.Â
Core Values
Gen Z prioritizes ethical concerns when evaluating brands, followed by:Â
- Digital-first operations
- Responsiveness
- Empowerment
- TransparencyÂ
They are motivated not just by brand perception but by how interacting with the brand makes them view themselves. This focus on engagement and accountability is unique compared to previous generations.
Actionable Insights for Businesses
To connect with Gen Z, businesses need:Â
- Seamless digital capabilitiesÂ
- Intelligent self-service optionsÂ
- Integration of DE&I (diversity, equity, and inclusion) principlesÂ
 While Gen Z shares some commonalities with millennials, their influence on succeeding generations will shape future market trends. Businesses must stay agile and forward-thinking to meet these evolving demands and maintain a competitive edge.Â
