One inevitable result of time ticking by is that digital natives – people who have lived their lives never knowing what things were like before computers became commonplace and the internet was invented – make up an increasingly significant proportion of the population. This of course means they make up a bigger part of the workforce, and also of the market for pretty much anything, too. So what might organisations need to do to ensure their offerings remain relevant and desirable?
Digital natives are the future of our workforce, and the future of our target markets, too. The World Economic Forum has reported that by 2025 27% of the workforce in OECD countries will be from Gen Z, the first truly digital native generation, born between 1996 and 2010. With this generation’s purchasing power and disposable income set to increase significantly in the coming years, it’s no wonder that employers are increasingly considering how to appeal to this generation of talent – and it’s also no surprise that the retail sector is gearing up to meet their expectations.
But what characterises Gen Z in terms of their attitudes, which might inform companies’ strategies relating to both workspace and consumer activities? Here’s a quick summary, based on a McKinsey explainer (that’s a great read if you’d like more detail):
- They are at a wide range of life stages; the youngest Gen Zers are in their teenage years, while the older members of the generation have jobs and maybe even a mortgage.
- They work, shop, date and make friends online, switching between sites, apps and social feeds, curating their online identities carefully.
- Video-based social media such as Tik Tok is particularly paramount.
- Pessimism and anxiety levels are higher than previous generations, due to global unrest, climate emergency, financial crises and the global pandemic, as well as decreased economic opportunities.
- Generally speaking, Gen Z are more socially inclusive and progressive. For them, purpose and accountability, diversity and inclusion, and sustainable, eco-friendly practices are key.
- Consumption is about access, not ownership, and there’s a strong emphasis on ease, so streaming, sharing and rental services with simple online access are preferred.
- Experiences, rather than things, are what Gen Z prioritise spending their money on.
- Gen Zers like to shop in bricks and mortar stores more than Millennials do, but they still want a superlative online shopping experience.
- They choose brands with a strong purpose, and a genuine focus on sustainable practice (they can spot greenwashing a mile off).
Workspaces to attract Gen Z talent
To attract and retain the cream of the crop of this digital native generation, organisations need to implement advanced workspace technology that aligns with Gen Zers’ values and work habits.
Gen Z values cooperation and efficient communication, so collaborative tools are important for facilitating seamless teamwork and enabling remote working. For example, instant messaging, video conferencing and file sharing all make it easy for teams to stay connected and productive, wherever they are physically located. On a related note, cloud-based solutions also support the ‘work from anywhere’ requirement, which is expected more by these digital natives than any generation before them. Similarly, employee apps, which support communication, engagement and recognition, are a useful way to maintain a positive and supportive workplace culture, which is a particular consideration for Gen Zers.
Investing in the latest hardware is necessary to keep up with the fast-paced and tech-savvy nature of Gen Z, giving them the tools they need to perform at their best – including AI-augmented technology. It’s also key to supply tech and systems that ‘just work’, having been carefully designed and integrated seamlessly. This is one reason why technology as-a-service is becoming increasingly popular, since regular upgrades can be achieved without capital expenditure, both to match business need and fulfil the expectations of this generation, while being tax efficient.
Finally, as digital natives, Gen Z is highly aware of cybersecurity risks. Implementing robust security measures, such as multi-factor authentication and encrypted communications, is crucial. Ensuring that their data and personal information are protected builds trust and confidence in the organisation.
Retail spaces that boost Gen Z footfall and sales
Gen Z is drawn to visually appealing and interactive content, so digital signage and interactive displays are best for capturing their attention with dynamic advertisements, real-time promotions, and engaging product information. These technologies create an immersive shopping environment, encouraging exploration and boosting impulse purchases – it’s also possible to integrate sensors which will play video content according to the demographic of the shopper, auto-play sound, or even release scent into the air, for a seamless and multisensory experience.
Since Gen Z relies heavily on smartphones for shopping, mobile integration can reap rewards. Retailers can enhance their in-store experiences by integrating mobile, whether that’s as simple as accepting mobile payments or providing QR codes for product information, or more complex phygital customer journeys offering app-exclusive discounts, which encourages digital native consumers to visit the physical stores of their favourite brands.
Free Wi-Fi can encourage digital natives to spend more time in store, while beacon technology can further enhance their experience by sending personalised notifications and offers to their smartphones based on their location within the store. This targeted approach makes Gen Zers feel valued and catered to, increasing the likelihood of a purchase. Similarly, the ease of making a purchase can nudge shoppers into making a buying decision; self-checkout reduces wait times and streamline the purchasing process, making in-store shopping more appealing to tech-savvy consumers who prefer quick and hassle-free transactions.
The wow factor created by the latest technology is also a must for brands looking to tempt Gen Z into their stores. Augmented Reality technology can transform the shopping experience, allowing Gen Z consumers to visualise products in real-world settings, while in-store AR applications, such as virtual fitting rooms for clothing or AR makeup try-ons, offer an engaging and personalised experience. This not only increases footfall but also reduces the likelihood of returns, as customers can make better informed purchase decisions.
To find out more about how Aura can help your organisation elevate the experiences of digital natives, both as your workforce and your target customers, to ultimately drive business success, drop us a line.
