Intriguing Insights #010 A-Z with Gen Z

According to the latest Connected Consumer Spending Guide from International Data Corporation (IDC), consumer purchases of traditional and emerging technologies will reach $2.06 trillion in 2023. This projection was prior to the lockdown, since when our dependence on technology has seen an unimaginable and exponential increase.

Now with all this tech entering our homes will we see a change in the roles played by members of the family in the purchase and consumption of these items. Well my reading is that not only will we see a change but also the emergence of a cohort that will swiftly become the most important from a marketers view point.  Move over millennials - Gen Z is here to dethrone you.

Now, I looked at traditional roles in the purchase process and analysed tech through their lens. Not surprisingly I found Gen Z playing a crucial part in all roles. Let me explain.

The roles in question are:

INITIATOR first identifies the need to buy a particular product or service

INFLUENCER their views influence the buyers and deciders

GATEKEEPER controls information access to decision makers and influencers

BUYER actually makes the purchase physically

USER consumes or uses the product or service

Now let’s look at a tech purchase, from home during lockdown and hence an online purchase. Now consider a home with a Gen Z kid - let’s look at a kid 10 years or older. Remember Gen Z goes all the way up to 25 years. Now the parents to such kids are either older millennials or then Gen Xers. Now against this background let’s look at the six roles mentioned above.

INITIATOR

An Isobar-Ipsos #MeetTheZ Survey reveals that 66% of Gen Zers believe tech helps them gain experience and acquire new  skills. This ensures that they are continually on the look out for gadgets that will enhance their productivity both in terms of work/school and leisure. No wonder then that they assume a lead role as initiators. Especially in the current reality where physical interactions are down to only necessary meetings making their parents a little less acquainted with what’s out there.

INFLUENCER

Nine in 10 parents of Gen Zers say their children influence at least some aspect of their purchases, the National (American) Retail Federation found in a recent survey of nearly 3,000 adults.  While this is an American study, I am quite confident that Indian kids won’t be far behind. And do note this is at an overall level - take this conversation to tech products and services and the numbers are bound to see a surge.

GATEKEEPER

Now, I have taken a bit of a liberty with how I’ve looked at the gatekeepers.  While the Gen Z kids may still not be able to exert control over their parents, the sheer information access that they are naturally accustomed to puts them in a position of advantage to decide what is good or not. 

 A recent Adobe report pointed out that 46% of Gen Z currently follows more than 10 influencers on social media and 68%  read 3 or more reviews before buying something for the first time. This behaviour is reciprocated by them sharing their own feedback on products that they use. A Forbes research showed that 64% of Gen Zers leave online reviews about their customer experiences, whether positive or negative.

With this level of engagement in the quality of a potential new purchase it is with considerable ease that the Gen Z plays the role of a gatekeeper in household tech purchases.

BUYER

Now while a majority of Gen Zers may be too young to be able to buy things on their own. Various tech players from Apple, Microsoft, Google to Nintendo have given kids the option of being linked to family accounts by their parents. This means all the kid needs to make a purchase is a single click by the parent on their device. Yes if one has to be absolutely accurate the parent is making the purchase but in reality it is noting but a simple ok. The buying is for all practical purposes being carried out by the kid.

USER

The Isobar-Ipsos survey mentioned above, reveals that at least 55% of Gen Zers say their life runs on technology and spend an average of 8 hours everyday online. This statistic alone reveals who is the ultimate user of the tech overload in our lives today.

Sure, Gen Z is soon going to be the focal consumer across categories. But for now, technology companies need to acknowledge them as the primary consumers. No surprise then that Apple’s latest communication is already talking to the next generation of Alphas. Time to keep up...