What Gen Z customer experiences should look, sound and feel like
They’ve been closely studied for more than a decade. The eldest among them are turning 30, and the youngest are starting high school. Yet many of those who fall within the “Gen Z” demographic have no problem defining what a great customer experience means for them.
The National Retail Federation (NRF) on Wednesday held its sixth annual State of the Consumer event, a virtual gathering which featured a segment of brief interviews with Gen Z about what they like and don’t like when they engage with a brand. Here’s a glimpse of what they said:
“For me, it’s just, I think the overall vibe of the store, I like the really artsy feel. I love going to art museums, so I feel like going into the store that has that same vibe.”
“Seeing all the associates and being greeted into the store, and seeing all the items and merchandise laid out for me, and being able to make an impactful purchase I’m going to use for the rest of my lifel really, is what makes retail special for me.”
“My shopping this year is going to change by following what’s happening with sustainability and closed loop shipping, shopping more at thrift stores, only buying necessities and just continuing to support brands that are looking out for consumers.”
CX is one way that brands can demonstrate they’re looking out for Gen Z, which may be more important than ever as more of them come of age and share their sentiments online. According to Katherine Cullen, the NRF’s VP of Industry and Consumer Insights, Gen Z are quickly becoming a segment brands need to better understand to ensure they continue to attract customers and retain them.
“We see them increasingly influencing holiday traditions, differentiating themselves and how they manage costs, and leading the adoption of AI tools and platforms to dive into these trends,” Cullen said.
Rachel Hardy, director of consumer product marketing at Pinterest, said suggested any CX strategies focused on Gen Z needs to be grounded in the fact they are coming of age in a highly volatile economic environment. This changes both their aspirations and expectations of brands compared with Millennials, Gen X or Baby Boomers. For example, big ticket purchases may not be as high a priority.
“Gen Z is exhausted and the future is uncertain, and the idea of this five-year plan no longer exists. Their time horizon is more over a one to two-year period,” she said. “I’d say a lot of (their focus is on) self care, simple pleasures and comfort.”
MaryLeigh Bliss, chief content officer at market research firm YPulse, agreed.
“They’re more likely than other age groups to say that the biggest financial priority in their lives right now is buying the things that they want,” she said. Treat culture is absolutely a huge part of their real retail behavior. Think about the trinket trend. They’re looking for accessible, unexpected, unique, little pieces of joy, and they’re getting that through small products a lot of the time.”
360 takeaway:
Think in terms of shorter customer journeys based more on impulse purchases. This raises the stakes in terms of discovery strategies based on contextual recommendations and fast, seamless purchase processes.
Where Gen Z wants AI (and where they don’t) in CX
This is also a generation that is occupying a front-row seat to the changes in CX wrought by generative and agentic artificial intelligence (AI), and to a certain extent they’re accepting of the technology, Bliss said. However it also introduces a lot of skepticism that they bring into an experience.
“What we really see is that they’re becoming AI detectives,” she said. “When they see something online, their instant question is, ‘Is this AI?’ They’re really looking for badges of authenticity.”
Gen Z consumers are also much more visually-oriented than generations that grew up primarily using text, said Hardy. That informed the launch of Pinterest Assistant, which uses a conversational-style interface to help users find what they want.
“They don’t always have a perfect query to ask for what they’re looking for, but they do know when they see the right thing, how it makes them feel, or they have a sense from the visual inspiration,” she said, adding that it’s important Gen Z don’t feel as though AI is making a shopping decision on their behalf, which often leads to buyer’s remorse.
360 takeaway:
Clear labelling of how AI is being used and what aspects of an experience are “human made” will be paramount in convincing Gen Z customers to offer their data in exchange for better CX.
Why CX should support Gen Z’s quest for community
Younger Gen Z consumers may seem to be wearing a uniform of sweats and tight T-shirts, but they often have a few items that they feel distinguish them and help promote a sense of self-expression, Bliss said. They want to stand out, and will gravitate to brands that help them connect to those with similar interests and values.
“For Gen Z, aesthetics are a connection to a community,” she said. “We do really see that Gen Z is craving connection, and a lot of that connection is happening online, whether older generations like it or not. Aesthetics can be a signal of that community that they’re a part of, whether it’s a fandom or simply being a fan of a specific brand.”
Hardy said Gen Z uses Pinterest in part to curate a sense of self through mood boards, but they’re constantly mixing and changing the kinds of trends they follow.
“Make sure that your customer can see themselves in the trend and feel as though they’re going to build their own life and kind of make it their own,” she recommended.
360 takeaway
CX based on appealing to everyone won’t work for Gen Z. Where it makes sense, create experiences based on highly specific niches and subcultures that reinforce whatever makes this generation feel unique or special.
Bliss cautioned against making sweeping generalizations about Gen Z, however. She said there’s a lot of misinformation out there, including incomplete information. Brands need to use their own first-party data to get to know consumers as intimately as possible rather than using demographics as their only source of truth.
“You’ll see headlines with big buzzwords about Gen Z that sound great and are very clicky, but are not necessarily representing their actual behaviors, their actual POVs,” she said. “A lot of the articles that you read are based on one or two TikToks.”
Content from the NRF’s State of the Consumer event is available on demand for registered users.
