Brands at Risk of Being “Cancelled” by Gen Z, New Research Finds

Since the pandemic, Gen Z has significantly increased online shopping but quickly becomes intolerant of poor digital experiences; retailers at risk of being abandoned

– 80% are more willing to try new brands online since the pandemic

– 63% have less patience with slow or poorly functioning websites

– 57% are less loyal now to brands than before the pandemic

– 37% either abandon a purchase or post a negative review with a poor digital shopping experience

 Sitecore®, the global leader in digital experience management software, today reveals how the shopping habits of Gen Z have evolved since the pandemic. The research, conducted by Advanis, surveyed more than 1,000 Gen Z consumers in the U.S. to understand their purchasing preferences. With one-third (37%) either abandoning a purchase or posting a negative review due to a poor digital shopping experience, it revealed that Gen Z, which has an estimated shopping power of up to $143 billion1, quickly cancels brands and moves on.

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Key findings from the study include:

• Loyalty is a one-way street: With Gen Z, brands must get it right or suffer the economic and reputational consequences. Fifty-seven percent are less loyal to brands than before the pandemic and 80% are now more willing to try new brands online. Retailers have no room for error as 38% of shoppers only allow a brand a single second chance before switching to a competitor. If an online store is out of stock, 74% of Gen Z will move to another retailer. On the flipside, 76% believe that their favorite brands should reward them for their patronage.
   
• From browser to digitally savvy buyer: Before the pandemic, almost a third (31%) of Gen Z – digital natives – had never purchased anything online. Since COVID-19, the vast majority (87%) state their online shopping skills have improved, with 26% using a mobile device to make a purchase for the first time. Sixty-three percent find online shopping is now more enjoyable than in-person, with nearly two-thirds (64%) identifying as digital converts who want to keep buying almost everything online.
   
• The digitally demanding shopper: An overwhelming majority (83%) of Gen Z view online shopping as an experience rather than a transaction and has lofty expectations. Three quarters want new and exciting experiences when they shop online, and 71% expect a highly personalized experience. Speed of delivery is critical, with 80% finding retailers able to deliver in less than 24 hours more appealing. In addition, 37% identify free delivery as the most important element when shopping online. To improve the experience, Gen Z wants brands to take action to ensure their website works well on mobile devices (53%), remembers shopping preferences (46%), and provides personalized suggestions (43%).

“This study highlights that brands can’t ignore the power of poor digital experiences when it comes to Gen Z and its shopping habits,” said Paige O’Neill, chief marketing officer, Sitecore. “This group has quickly shifted its significant spending power online, and pressure will continue to mount on retailers until they can deliver an experience that delights. Brand loyalty has evaporated and there is no margin for error any longer from browsing through to delivery. The ability to consistently create personalized experiences is critical to secure the wallets of Gen Z. This puts technology firmly at the center of this new battle for retailers.”

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