Capturing Gen Z Shoppers: Social Media and Personalization Strategies

 The influence of social media on shopping habits is more significant than ever, especially for Gen Z. According to Walmart and Morning Consult’s State of Adaptive Retail report published last month, more than half (55%) of Gen Z shoppers have bought items online while browsing social media in the last six months. The survey also revealed that more than half of shoppers want personalized product recommendations.

This trend highlights a critical opportunity for retailers: leveraging real-time data from social media platforms to tailor their personalization strategies. Many retailers might not realize that the data generated by social media interactions is at their disposal, offering insights into consumer behavior, preferences, and emerging trends. By effectively utilizing this data, retail trade shows can create highly personalized shopping experiences that resonate with Gen Z consumers and drive sales.

Survey Insights

The survey findings indicate several key points about Gen Z’s shopping behavior:

• Social media as a shopping hub: 55% of Gen Z shoppers have made an online purchase directly from social media.
• Diverse shopping journeys: While 44% of Gen Z shoppers begin their shopping journey with online searches, significant numbers also start by browsing in stores (42%), visiting retailers’ mobile apps or websites (40%), and checking social media (38%).
• Desire for virtual try-ons: About 49% of respondents were willing to buy more clothes if they had access to virtual try-on tools.

Millennials: Established and Purpose-Driven Shoppers

Born between 1981 and 1996, Millennials are characterized by their established careers and greater spending power in retail strategy . Their shopping habits reflect their diverse needs as they navigate major life milestones such as marriage, homeownership, and parenthood. According to Attentive’s recent article, This Is How Millennials and Gen Z Are Shopping in 2024, Millennials “are nearly as likely to make an impulse purchase on their phone (48%) as they are in-store (49%).”​ This generation values convenience and personalization, often using mobile devices to shop.

Millennials have also experienced the shift from in-person to digital shopping. Having grown up during the rise of the internet, they were early adopters of online shopping, which has become a standard feature of their purchasing habits. Deloitte’s 2024 Gen Z and Millennial Survey highlights that nearly all Millennials “want purpose-driven work, and they are not afraid to turn down work that doesn’t align with their values.” This extends to their shopping habits, prioritizing brands that align with their ethical and environmental values.

Leveraging Real-Time Data for Personalization

To capitalize on Gen Z’s preference for social media, retailers can implement data-driven personalization strategies using the real-time data available from social media platforms. Here’s how:

1- Collect and Analyze Social Media Data

• Real-Time Insights: Social media platforms provide immediate feedback on consumer behavior, preferences, and trends. Retailers can use this data to understand what products are popular and which marketing strategies are effective.
• Sentiment Analysis: Tools like social listening can help retailers gauge consumer sentiment and identify emerging trends. This enables businesses to quickly adapt their product offerings and marketing messages to align with Gen Z’s preferences.

2- Personalized Advertising

• Targeted Ads: Using data analytics, retailers can create highly targeted ads based on users’ social media activity. Personalized ads that reflect individual preferences and browsing history are more likely to resonate with Gen Z and drive purchases.
• Dynamic Content: Implement dynamic content delivery that changes based on the user’s behavior and interactions. This ensures that Gen Z shoppers see the most relevant products and promotions.

3-Engage with Influencers

• Influencer Collaborations: Partner with social media influencers with a strong following among Gen Z. Influencers can authentically promote products and drive traffic to the retailer’s online store.
• Sponsored Content: Create sponsored posts and stories that seamlessly integrate with the influencer’s content. This approach increases brand visibility and credibility among Gen Z consumers.

4-Enhance User Experience

• Virtual Try-Ons: Invest in AR and VR technologies to offer virtual try-on tools, as nearly half of the survey respondents expressed interest in these features. This can significantly enhance the online shopping experience and reduce return rates.
• Seamless Integration: Ensure that the shopping experience is seamless across all channels. For example, allow users to save their carts and wishlists across devices and access personalized online and in-store recommendations.

5-Create Personalized Shopping Experiences

• AI and Machine Learning: Utilize AI to analyze shopping patterns and predict future behavior. Machine learning algorithms can provide personalized product recommendations and tailored promotions, enhancing the shopping experience.
• Omnichannel Personalization: Develop unified customer profiles that aggregate data from various touchpoints, including social media, e-commerce platforms, and physical stores. This holistic approach enables more accurate personalization.

Consultancy’s Expertise and Experience

1. Expertise: Begin by understanding the consultancy’s expertise in your project domain, whether it’s IT strategy, marketing, or any other area relevant to your needs.

• Can you provide a detailed description of your company’s expertise in our project domain, which is [specify the domain]?

2. Experience: Inquire about their experience in terms of both years in the industry and the number of similar projects they’ve successfully completed. Additionally, ask if they have worked with your current and future application stack.

• How many years has your consultancy been active in [project domain]?
• Can you share some examples of projects in [project domain] that you have successfully completed?
• Could you elaborate on your experience with our current and future application stack? (Please provide details of the stack)

3. Client Success: Find out which of their clients they’ve helped with projects similar to yours and which team members were involved in these successful projects.

• Can you name some clients for whom you have successfully completed projects similar to ours?
• Which team members were involved in these successful projects, and what roles did they play?

Vendor Team

4. Team Operations: Gain insights into how the consultancy’s team operates, especially in terms of remote work and specific activities like interviews and presentations.

• Could you describe how your team typically operates, especially in terms of remote work?
• Which specific activities will be conducted remotely, and which ones on-site (if any)?

5. Team Members: Request information about the proposed team members, including their names, titles, roles on the project, employment status (dedicated or contract), years with the company, years in the industry, and their experience on similar projects.

• Please provide the names, titles, and roles of the team members proposed for our project.
• Are these team members dedicated to our project or on a contract basis?
• How many years have these team members been with your company, and what is their overall industry experience?
• Can you share their specific experiences on similar projects?

6. Meeting Opportunities: Identify team members you can meet before project execution and those you can meet in person during the project. Determine your primary project contact and inquire about the involvement of an executive sponsor.

• Which team members can we meet before the project officially starts?
• Will there be opportunities to meet team members in person during the project?
• Who will be our primary point of contact throughout the project?
• Does an executive sponsor from your consultancy play an active role in our project?

Consultancy Information

7. Business Details: Understand whether the consultancy is public or private, and if private, inquire about the principals. Find out how long they have been in business and where their headquarters are located.

• Is your consultancy a public or private entity, and if private, can you share information about the principals?
• How many years has your consultancy been in operation?
• Where is your company’s headquarters located?

8. Resources and Growth: Explore the location of their project team resources and whether time zone differences may affect communication. Get information on the total number of employees, recent revenue, profit, and growth in the last year.

• Where are the resources for the project team located, and are there potential time zone differences affecting communication?
• What is the total number of employees in your organization?
• Could you provide details on your most recent year’s revenue and profit?
• What was the growth percentage of your consultancy in the last full year?

9. Client Base: Discover the number of clients they have, both in the past 12 months and throughout their company’s history. Assess whether they have clients of a similar size and within your industry and segment.

• How many clients have you served in the past 12 months?
• What is the total number of clients in your company’s history?
• Have you worked with clients similar in size and within our industry and segment?

10. Financial Relationships: Inquire about any financial relationships the consultancy has with other companies, such as reseller or referral arrangements.

• Do you have financial relationships with other companies, such as reseller or referral agreements?

11. Business Insurance: Determine the types of business insurance they carry, ensuring they meet your requirements.

• What types of business insurance do you carry, and do they meet our specific requirements?

Project Information

12. Project Timeline: Verify if the consultancy can meet your project’s start and end dates. Understand the methodology they follow, the activities they will conduct, and the deliverables they will provide. Ensure you will own all deliverables without restrictions.

• Can you confirm that you can meet our project’s start and end dates?
• What methodology does your retail consultants follow for project execution?
• Could you provide a detailed breakdown of the activities you will conduct and the deliverables you will provide?
• Will we have unrestricted ownership of all project deliverables?

13. Sample Deliverables: Ask if the consultancy can provide sample deliverables from previous projects.

• Can you share sample deliverables from similar projects?

Flexibility

14. Scope Changes: Explore how changes in scope are addressed during the project and how easily additional resources can be added or team size decreased. Assess your control over swapping out underperforming resources and whether they can make resource changes without your approval.

• How does your consultancy handle changes in project scope during the course of the project?
• In what timeframe and with what ease can you ramp up additional resources if needed?
• How can the team size be decreased if necessary?
• What level of control do we have in replacing under-performing resources, and can you do so without our approval?

Contractual

15. Pricing and Terms: Learn how pricing is determined (e.g., fixed-price, time-and-materials) and the duration of price validity. Understand the payment terms and the requirements for contract termination for convenience. Inquire about invoicing frequency and any penalties for late deliverables.

• How is the pricing structure determined (e.g., fixed-price, time-and-materials)?
• For how long are the quoted prices valid?
• What are the specific payment terms and invoicing frequency?
• What is the process and cost involved in terminating the contract for convenience?
• Are there any penalties for late deliverables?