5-minute read

The ‘one-size-fits-all’ approach does not apply to Gen Z and young Millennials – born between 1997-2012 and 1990-1997 respectively. There’s a new mentality which is changing the way this fragmented audience engages with brands. Harnessing data analytics could present brands with an opportunity to learn how listening to their audiences can garner brand recognition and loyalty.

Keeping up with the pace of change

With previous generations, we may have expected a herd mentality of ‘I want what everyone else has got’ but this is evidently less of a factor for Gen Z and younger Millennials. In our research of 500 shoppers aged 18 to 34, 47% surveyed were either indifferent to or disagreed with the notion that they would shop at the same stores as friends their age.¹ The remainder do still want to fit in amongst friendship groups when it comes to purchases, exposing the complexity of this audience: the need to demonstrate that they have their finger on the pulse culturally but don’t want to be seen copying their peers.

While audience habits are more open-minded, that’s not to say that traditional marketing approaches are any weaker in effectiveness – with 77% of consumers saying they were influenced by price, and that this was the most important factor of all.¹ This translated through to buying behaviour with 43% strongly agreeing that sales promotions make them more likely to shop at a particular retailer.¹ 

The role of influencers

Digital spaces are helping Gen Z explore the world they live in and how they want to respond to it, with 84% of UK Gen Zs actively following and engaging with influencers on social media.² With platforms – such as TikTok – dominating the digital landscape, Gen Z is constantly exposed to influencers who shape their preferences and behaviours, making choices over who to align with – knowing that those same choices have been made by others. In our survey, 12% said that a recommendation by an influencer would encourage them to shop with a particular retailer,¹ highlighting that influencers impact purchasing decisions, societal attitudes, and cultural trends.

Authenticity is key

Authenticity is key for Gen Z audiences, and marketing tactics – including use of brand advocates – which are deemed ‘fake’ or inauthentic, will turn this audience off.

Influencers provide an opportunity for retailers to reach audiences in an authentic way, but the approach isn’t risk-free: inauthenticity can be punished, in some cases badly. Chantal Willis, Director of Large and Strategic Account Development at Barclaycard Payments, highlights how influencer campaigns can lead to a PR crisis, “If the collaboration is exposed and criticised as part of this movement”. Nowhere is this brand rejection more evident than in the growing popularity of the ‘de-influencing’ movement.

Harnessing payment data

Retailers must listen to their audience; they can do so by enhancing their understanding of customer preferences and behaviours through analysis of payment data. This analysis helps identify purchasing patterns, preferred payment methods and popular products – enabling tailored marketing strategies and store layouts. Additionally, integrating payment data with social media and online reviews allows for personalised shopping experiences and the anticipation of emerging trends.

Representing the audience in decision-making

For brands to remain relevant, they must allow the audience to shape their decision-making. Companies are increasingly establishing shadow boards to ensure younger generations’ insights and ideas are represented. For example, Gucci’s adoption of non-executive employees working alongside senior executives on strategic initiatives, saw sales growth of 136% since its introduction.³ 

Digital listening

Gen Z and younger Millennials, as avid social media users, further provide a wealth of information through their daily interactions online that brands can harness. Brands that adopt a digital listening strategy could gain valuable insights into the preferences and concerns of this tech-savvy audience. However, the most successful brands don’t just monitor what the audience is saying but embrace ways to respond in relevant, agile, and informed manners.

Brands can also tap into social commerce by enabling direct shopping from influencer content, through platforms such as TikTok Shop. This strategy can turn inspiration into immediate purchases, enhancing the shopping experience with effortless interactions and a seamless purchasing journey.

The shopping list for brands

When it comes to retail, a key factor brands must consider is how influencing still plays a role with Gen Z and Millennial shopping habits. These audiences indicate complexities from being influenced by their friends, wanting to remain different, and searching for authenticity when following social media influencers. To maintain brand strength and loyalty, brands must take these issues into account and use data – such as those provided by Barclaycard Payments analytics service – to adopt approaches which are likely to resonate with shoppers. 

¹Barclaycard-commissioned Maru poll of 500 UK consumers (February 2024).
²Source: Influencer marketing in the UK, Statista, 2023.
³Source: Why You Should Create a ‘Shadow Board’ of Younger Employees, Harvard Business Review, June 2019.

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