How Generation Z will Shape the Digital Economy | YUJ Designs

How Generation Z will Shape the Digital Economy

3 minutes read

generation-z

The Digital Native Generation

Generation Z, is the true digital native generation. They have never known a world without internet. Every aspect of their lives includes being connected with the digital world. Tons of information is just a fingertip away for them. They are comfortable with collecting, cross-referencing many sources of information. Integrating virtual and offline experiences, in a way, they have shared the experiences of people in their network, which makes them hunt for more unique experiences all the time. UX design studios should make an effort to understand the psyche of this generation in order to cater to them in a better and efficient way.

digital-native-gen-z

https://www.ravereviews.org/gen-z-financial-fears/

Prioritizing Experiences

Unlike the millennials, their predecessors, reports show they are responsible and conscious towards money management. A research report from Barclaycard shows that they tend to prioritize experiences. Based on the social, economic and political scenarios of each generation, they build their unique approach towards finances and managing money.

And Gen Z approaches money management differently. They prefer paying for experiences that will provide clean – healthy lifestyles, enable them to spend time with family and friends, rather than buying materialistic things.

From Materialism to Experience Economy

materialism-exp-economy

https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/true-gen-generation-z-and-its-implications-for-companies

The Experience Economy – published 20 years ago, asserted that future economy will thrive by businesses focusing more on experiences as their differentiators. The growth charts will rise from the value of experiences and transformations. Today, one can witness the experience economy blooming. Products and services alone are insufficient for the customers. Businesses need to step up the game by providing meaningful and valuable experiences. The customers today want immersive experiences integrating digital and physical experiences, giving rise to experiential retail.

Delivering Experiences

Businesses need to Adapt to Survive

Millennials and Generation Z become dominant consumer groups, with Generation Z purchasing already reaching an estimated $100 billion according to research conducted by Barkley. This means, companies no matter their size will have to adapt to digitalization. As this generation is digital native. This new breed of customers are quite comfortable with virtual experiences. Delivering experience is an organizational mindset – a focus on learning, growth, and improvement, which has been shown to result in increased performance. intra-individual comparisons. e.g., me now vs. me then. A business focused on delivering experiences has a competitive advantage in business.

It’s not something a business buys, it’s something a business becomes.

Customer-driven Future

In the coming future, companies will be run by customers. Changes in the economy due to evolving skills, knowledge and experiences of customers will transform the businesses. And therefore, it is important to know how to make the leap to a consumer-driven future with brains and brawn. Businesses that will grasp this trend, will need to adapt to it fast to ride the wave of growth.

The new age customers are mainly millennials and the generation Z. This new generation is out looking for new experiences. They don’t just buy products, they believe in joining the businesses/ brands by buying into the experiences they are offered. This new generation sees equal, decentralized, safe, inclusive, systematic as the keywords of the future. Businesses will have to understand what this new generation believes in, in order to work on value creation, offering meaning full experiences rather than delivering mere products.

How to Cater to Gen Z

The Gen Z has created a need for businesses to transform the way they communicate and connect with one of the fastest growing consumer generation in the world. Based on what we know about the generation Z, let’s try to decode ways in which businesses should address and connect with them.

  • Be Authentic. 63% of the gen Z prefers connecting with real people.
  • Acknowledge that they’re a Pluralist Generation. They do not like to be stereotyped or gender biased products.
  • Choice of media for Communication will change. This generation watches more than 3-4 hours of videos on YouTube though is less likely to watch traditional TV and use platforms like Facebook.
  • They value experiences they can share on social media. As against the luxurious products that don’t interest them as much.
  • They prefer talking to omnipresent chatbots for help. They will prefer chatting with a bot to resolve any customer service related issues.

The purchase patterns and behavior of the generation Z are still evolving. They are bound to surprise us in the years to come. Though, the key for the growth of businesses is to be aware of the gen Z and cater to them to stay relevant and competitive in the coming future.

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YUJ Designs

 

YUJ Designs is a top-tier UX design studio in India. YUJ Designs has successfully crafted experiences for more than 100 international clients, many of them Fortune 500 companies. With a rock-solid experience of working on more than 2,000 design and research projects, we have earned a spot in the top 15 global user experience agencies. In the business of informing design strategies by a blended understanding of business ROI and user needs, our work ensures both, delightful product experience and a positive impact on the customer's top line.

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