With a purchasing power of $143 billion, Generation Z in the U.S. desires highly personalized experiences

Gen Z has significantly increased their online shopping since the pandemic , but retailers are at risk of being abandoned by this generation of consumers due to poor online shopping experiences.

Recently, Sitecore commissioned Advanis to conduct a survey of Generation Z consumers in the United States , revealing the shopping habits of Generation Z to understand their purchasing preferences .

Survey data shows that one-third ( 37%) of Gen Z shoppers will abandon a brand due to a bad online shopping experience . Gen Z’s purchasing power is estimated to be as high as $143 billion. Once the shopping experience is not good, they will quickly cancel the brand and choose other brands.

The survey found that for Gen Z, brands must get things right or suffer financial and reputational consequences . 57% are less loyal to brands than before the pandemic, and 80% are now more willing to try new brands online. However, retailers have no room for error, as 38% of Gen Z shoppers will only allow a brand a second chance before switching to a competitor.

In addition, delivery speed is crucial, and 80% of people think that retailers are more attractive if they can deliver within 24 hours . In addition, 37% of people think that free shipping is the most important factor in online shopping . In addition, if an online store is out of stock , 74% of Generation Z will turn to another retailer.

Before the pandemic, about a third ( 31% ) of Gen Z had never purchased anything online . Since the pandemic, the vast majority ( 87% ) say their online shopping skills have improved, and 26% have used a mobile device to shop for the first time. 63% of respondents believe that online shopping is now more enjoyable than in-person shopping, and nearly two-thirds ( 64% ) say they are digital shoppers who would buy almost everything online.

Separately, the survey found that the vast majority ( 83% ) of Gen Z view online shopping as an experience rather than a transaction , and they have high expectations. Three quarters want new and exciting experiences when shopping online, and 71% want a highly personalized experience .

To improve the shopping experience, Gen Z wants brands to take action by ensuring their websites work well on mobile devices ( 53% ), remembering consumer shopping preferences ( 46% ) , and providing personalized recommendations ( 43% ) . 76% believe their favorite brands should reward them for their patronage.

“This research highlights that brands cannot ignore the negative impact of poor digital experiences when it comes to Gen Z and their shopping habits,” said Paige O’Neill, Chief Marketing Officer at Sitecore . “ This group has quickly shifted a significant portion of their spending power online, and the pressure on retailers will continue to increase until they can deliver a delightful experience . Therefore, it is critical to continuously create personalized experiences for Gen Z consumers . ”

Generation Z

USA

Spending power

Personalized Experience