How Retailers Can Engage Gen-Z With Interactive, In-Store Experiences - Conversity

Posted by Liz Seyi on June 30th, 2024

As the first truly digital natives Gen-Z, born between 1997 – 2012, are very different from the generations that came before them. While the world, and in particular retail, has so many new options and possibilities, the preferences and challenges faced by a shifting sales cycle has been felt acutely by many businesses across the globe.

A recent study found that while many Gen-Z prefer to shop digitally, citing convenience and choice being key factors, a large 43% actually prefer to shop in-store. This is higher than the closest second group which was Gen-X (born around 1965 – 1984) at 29%.

While this is positive for the high street retailers, it does come with a caveat. Gen-Z prefers to do so with as minimal interaction with retail staff as possible at 42% of respondents. This is for a number of reasons but many feel the interpersonal interaction with them and a shop assistant, much like the feelings of a phone call, can create anxiety and mistrust.

The Gen-Z Retail Paradox

These two stats are at odds with each other and create a paradox of sorts for retailers – Gen-Z desires the tangible benefits of in-store shopping but without the perceived intrusiveness of traditional customer service.

This leads retailers to ask how it is possible that they can engage with their Gen-Z customers in a thoughtful and meaningful way, but without physical interaction?

Their increasing customer base desires one thing in particular – Personalisation.

Fortunately personalisation can be achieved digitally. This means in-store, or online, there are ways and means that customers can get a personalised experience by using technology. This then ensures that customers are getting good customer service, and can free up retail staff to deal with more pressing or specific interactions.

There are a number of ways that this can be implemented in-store.

Interactive & In-Store Quizzes

One of the easiest ways to give great customer service is to give great customer recommendations based on what they want, or what they need. By having personalised conversations on tablets in-store, customers can answer a series of targeted questions and be presented with options that match their needs. At Conversity, we create these specialised quizzes back with data from sales psychologists and smart algorithms to make sure that the questions are customer-centric and not product-based.

These conversational quizzes can enhance the shopping experience by reducing the overwhelming amount of choice that an individual may face, and pointing them directly to a product that matches their desires and needs.

An example of this could be someone shopping for a new lipstick. They can fill in a series of questions such as “What occasion is it for?”, “Do you prefer bright colours, or warm undertones?” “What colour is your hair?” and get given three or four options to test rather than 20+.

These quiz results can also be linked up with other parts of the retail tech stack, to help build personalised customer profiles, but all integrate with in-house data to influence everything from shop layout to product development.

Building Community & Community Spaces

While Gen-Z may not want to interact with shop staff they do value community, and want to treat shopping as a social interaction as much as a purchasing one. Many stores are becoming more like destination hubs where they can go for advice, likeminded individuals and even increase their knowledge of products or categories.

A great example of how this has evolved is the Apple store. They pioneered these community minded hubs with open stores where individuals can go in and interact with the items they wish to purchase. They can also book in for workshops and classes, covering everything from Internet basics to coding classes. The open layout, communal tables, and interactive displays create an inviting atmosphere that encourages social interaction and learning. This model can be adapted by other retailers to create a sense of community and foster engagement among Gen-Z customers.

Creating A Chance For Feedback

It’s generally accepted that Gen-Z are quite vocal and like to give feedback. By allowing them channels to do so, be it through online review platforms or or even on social media, Gen-Z can feel like their interaction with a retailer is a two-way street and not a one-sided conversation. This is great from a data perspective, and can be helped with the use of automation and data collection touchpoints.

Establishing channels for Gen-Z to provide feedback on their experiences can help retailers quickly address issues and improve service quality. This generation’s propensity to voice their opinions means they will appreciate being heard and seeing tangible changes based on their input.

This can be implemented in a variety of ways including digital kiosks, QR code, and social media engagement, each of which can be tailored to gather their input effectively.

Omnichannel Experience

Being digital first it’s really key that the in-store experience is matched with the digital and vice-versa. By creating a seamless experience that treats the two retail channels as a single entity rather than separate ones it makes it easier to create a clear brand identity and message that resonates with a Gen-Z audience. This also makes it easier for them to switch between the two environments easily, using each one for its own strengths yet not preferring one over the other.

Looking Ahead – Gen-Alpha on the Horizon

While much of the focus is currently on the preferences and behaviours of Gen-Z the informed retailer knows that the next generation is on the horizon. Generation Alpha is the term given to individuals that have been born from 2010 onwards (there is some crossover in these dates with Gen-Z, the same way that there is cross-over with Gen-Z and millennials etc).

If Gen-Z were the first generation that were digital natives, Gen-Alpha are being dubbed the “iPad Generation ” that have been raised on screen time from a young age and on-demand as standard. They are driven and generally don’t seem to be adhering to the same hierarchical traditional structure that their parents observe either. They are also more brand aware than any other generation before them.

With this in mind getting retail strategies ready for Gen-Alpha and their upcoming spending power is a sensible approach to have.

Potential Retail Strategies for Gen-Alpha

Early Engagement

Gamification is one area that really appeals to Gen-Alpha’s love of gaming (Roblox, Fortnite etc) with many citing desired careers as streamers or YouTubers. With this love of gameplay, interactive quizzes can be adapted into fun, game-like experiences that educate and engage when they are looking to make a purchase. This ties in again with being able to collect data, even if it’s anonymised data, to help drive forward everything from product development to marketing pushes.

Ethical Parental Influence

Much of Gen-Alpha’s current spending power is currently tied to their parents. Creating a family-oriented experience that appeals to both parents and children, emphasising ethical and sustainable products, can attract Gen-Alpha shoppers. Highlighting product transparency, ethical sourcing, and sustainability can resonate with parents, while interactive and engaging store layouts can appeal to the younger generation.

Tech-Integrated Experiences

Tech is as much a part of life as television was for Millenials. The interactivity required to keep Gen-Alpha engaged is likely to be even higher than Gen-Z. This can be leveraged with in-store data points, augmented reality and virtual reality being used in store and through social media. An example of this could be interactive quizzes to help a teenager find their perfect room decor and then using AR to help them visualise it in-situ to the device, making it easier to share with their parents or caregivers.

Personalisation & Interactivity Are The Future Of Retail

As we look to the future of retail, it’s clear that personalisation and interactivity will play the main  roles in engaging both Gen-Z and the upcoming Gen-Alpha. At Conversity, we are dedicated to helping retailers navigate these evolving consumer preferences with innovative, technology-driven solutions.

By incorporating personalised quizzes, fostering community spaces, and creating seamless omnichannel experiences, retailers will be able to meet the unique needs of Gen-Z shoppers while preparing for the tech-savvy Gen-Alpha. These strategies not only enhance customer satisfaction but also build long-term loyalty.