Gen Z is here and entering the home buying market. Are you ready? Defined as those born between 1997 and 2012—the oldest members of Gen Z are 24, and with interest rates at all-time lows, 2% of Gen Z became homeowners in 2020. This generation is the first that grew up with access to smartphones, the Internet, social media, and technology. In the year that Gen Z entered the scene, Amazon reached 1,000,000 customer accounts and quickly grew into the behemoth it is today.
What do you need to know to prepare for Gen Z? It might not be what you expect. Gen Z has a definite difference from the millennial generation and we suspect that they will be shaping the online shopping journey for many years to come. Like the millennials, Gen Z has an appetite for technology and shopping online, spending on average 8 hours per day online according to the Global Web Index. We’ve outlined a few key points below to help you navigate.
Mobile devices count for about half of their internet consumption.
If your website isn’t mobile first, then you might be missing the boat on more than just Google ranking. Gen Z spends on average 4+ hours on their phones per day, making this an important part of their buying cycle.
What to do: Make sure that your website is mobile first and that all of the frequent actions that a home shopper would take are easy to navigate from a mobile device.
Your online shopping experience can make or break you.
In a survey conducted by Global Web Index, 72 % of Gen Z reported purchasing an item online and 22% said that a poor online shopping experience prevented them from buying at least 3-4 times.
What to do: Each stage of the home buying process should be easily navigated online. Think single sign-on and access to interactive tools that help engage and overcome friction points.
Gen Z is considered one of the most financially savvy generations.
While millennials are a little more fluid with their spending, Gen Z is considered the most financially savvy of the two. They are known to be savers and less likely to be influenced by marketing.
What to do: Adding financial tools and an online design center to your process would appeal to this generation. This independent generation likes making smart decisions and values access to information that will help them make sound decisions.
Gen Z prefers to curate their own experiences.
Independent, self-starters, are just a few words that you may hear to describe Gen Z. Technology is intrinsic with this generation and technology like VR and AR has easily been adopted.
What to do: Gen Z is more likely to be frustrated by old processes and like a sense of control. Online VR tours, home visualizers and AR technology are more likely to be expected by this generation.
67 million strong, Gen Z is making their way into the home buying stage of their lives with expectations greater than previous generations for a smooth shopping experience online as well as an appetite for information. Want to see how you stack up? Email us for a free Virtual Shopper Readiness Assessment or visit us at TheBDX.com.
