U.S. Generation Z Consumer Trends Index 2023

As the United States continues to grapple with rising prices and economic uncertainty, marketers face the constant challenge of maintaining a pulse on ever- fluctuating consumer behavior. We have already released a U.S.-specific version as part of our suite of 2023 Consumer Trends Index reports, but here at Marigold, we are always looking to empower marketers with additional insights that enhance relationship marketing strategies. And thus, the generation-specific Consumer Trends Index was born.

This iteration focuses specifically on consumers aged 18 to 25 from Generation Z, or “Gen Z” for short. Known for their high level of digital-connectedness, Gen Z consumers present unique challenges to marketers. These consumers expect a high degree of personalization from brands yet have become increasingly concerned about their data privacy. They use their mobile phones throughout the research and purchase processes at incredibly high rates, and they want brands to provide consistent user experiences but are cynical about brands using locational data, voice data, and third-party cookie tracking.

Fortunately for marketers, Gen Z consumers have clearly demonstrated their preferences and created a roadmap for how brands can position themselves for

success. An overwhelming majority of Gen Z consumers will share their hobbies and interests with brands in exchange for better service. They also consider multiple brand offerings — discounts, loyalty points/rewards, and unlocking content, to name a few — as valuable exchanges for personal data. For brands, the key is to respect the boundaries of Gen Z consumers, create worthwhile value exchanges, and prioritize zero-party data strategies.

Loyalty is also a major point of emphasis for Gen Z consumers. Nearly three- quarters of this cohort are willing to pay more to shop with the brands they’re loyal to — the brands who can successfully develop and foster said loyalty will win the day. For Gen Z consumers, this is best achieved with a coalescence of loyalty programs, clear data privacy policies, and digital-friendly customer experiences.

At Marigold, we pride ourselves on our technology’s ability to scale businesses from start-ups and high growth companies all the way to global enterprises. If you’d like to dig in deeper and understand how you can better align your relationship marketing efforts to your audience’s needs, we’re here to help.

• Gen Z consumers purchase from a wide variety of channels, with over 30% having purchased from social media posts, social media advertisements, email, or SMS/MMS in the last year.
• 43% of Gen Z consumers are very pessimistic about the rising cost of living, and 46% are very pessimistic about the economic outlook. This year, compared to last, a majority of Gen Z consumers will be doing more research before buying (53%) and making less impulsive purchases (56%).
• Gen Z consumers have an exceptionally high rate of digital connectedness. In the last year, 56% have made an in-app purchase, 52% have used a mobile phone to do in-store research, and 49% have purchased digital content. Further, 75% consider a brand’s mobile app or website to be an important or critically important factor in maintaining loyalty.
• Gen Z consumers are overwhelmingly loyal to their favorite brands, with 71% prepared to pay more to shop with them.
• Loyalty programs are a major desire for Gen Z consumers — 65% consider loyalty programs to be an important or critically important factor in maintaining loyalty, 52% are more likely to take part in a loyalty program this year compared to last, and 24% have left or become less loyal to a brand because of an inadequate loyalty program.
• Gen Z consumers are becoming even more privacy-conscious, with large year-on-year increases in the use of privacy-centric search engines and premium/paid-for internet security software, and overwhelming cynicism about ads that rely on locational data, voice data and third-party cookie tracking.
• Gen Z consumers want personalized content and offers from trusted brands, with 74% willing to share their hobbies and interests in exchange for better service.
• The Gen Z outlook is dim for banner ads, with purchases down 47% year-on-year and ad blocker use up 11% year-on-year.

Marigold, in conjunction with Econsultancy, conducted its 2023 Consumer Trends Index of U.S. consumers across four age generations: Generation Z, Generation Y/Millennials, Generation X, and Baby Boomers. This latest report is based on the insights from 490 Gen Z consumers from the United States. The data was collected in October–November 2022.

This research reveals what Gen Z consumers expect from the brands they do business with online — the channels they prefer to connect on, what value exchanges elicit engagement, and how attitudes have shifted in response to increased economic uncertainty. The granular insights will empower digital strategists, marketers, and decision makers to deliver relationship marketing strategies that build mutually beneficial and long-lasting connections between brand and buyer.

Be sure to visit www.meetmarigold.com for other available reports and research papers, including Global, U.S., U.K., and vertical-specific versions.

Gen Z Consumers Purchase from a Wide Range of Channels

Email, SMS/MMS, and both social media posts and advertisements are all common online purchase channels among Gen Z consumers, suggesting the need for an omnichannel approach.

A sizable 41% of Gen Z consumers have made a purchase from an email in the last 12 months — good news for marketers seeking to maximize their ROI. Though email is not quite the highest performing channel in total purchase frequency — trailing social media posts and ads — it is a prudent choice as brands own their database. As advertising costs continue to rise, email serves as a cost-effective alternative that can be easily tailored to create personalized customer experiences.

• 58% of Gen Z consumers have made a purchase from a social media post in the last 12 months
• 51% of Gen Z consumers have made a purchase from an SMS/MMS message in the last 12 months
• 41% of Gen Z consumers have made a purchase from an email in the last 12 months
• 32% of Gen Z consumers have made a purchase from a social media advertisement in the last 12 months

Banner Ads Aren’t Clicking with Gen Z

Fewer than a fifth (17%) of Gen Z consumers have purchased from a banner ad in the last 12 months — a year-on-year decrease of 47%.

Gen Z consumers have grown up in a digital world where advertisements are ubiquitous, and as a result, they have become more adept at ignoring them. Banner ads are often seen as intrusive and disruptive, with Gen Z taking matters into their own hands via ad blockers. Nearly half (49%) have used an ad blocker in the last 12 months — a year-on-year increase of 11%.

Gen Z consumers value authenticity and personalization — they are less likely to respond to generic banner ads that do not speak to their interests or needs. Brand messaging should be tailored to their unique interests and preferences, highlighting the value of zero-party data. Such data puts consumers in control of what information they share and whom they share it with, enabling both greater transparency and more effective personalization .

• Only 17% of Gen Z consumers have made a purchase directly from a banner ad in the last 12 months a 47% year-on-year decrease
• 49% of Gen Z consumers have used an ad blocker in the last 12 months an 11% year-on-year increase

The Factors Behind Gen Z Purchasing Behaviour

When asked to identify with a shopper profile, the plurality (44%) of Gen Z consumers cite that they’re looking for the best price when purchasing. A distant second place goes to the shopper profile that requires products to fit their style (28%), while brand responsibility (15%) and convenience (12%) round out the list.

Though value is the most common single emphasis for Gen Z consumers, the other shopper profiles still combine to nearly 60%, suggesting that these numerous profiles need a level of individualization to win their business when it’s time to purchase. Irrespective of whether a customer wants the best price, quickest service, etc., as long as the customer’s unique interests are met, brands will be positioning themselves for success.

• 44% of Gen Z consumers emphasize getting the best price
• 28% of Gen Z consumers emphasize product style
• 15% of Gen Z consumers emphasize brand responsibility
• 12% of Gen Z consumers emphasize convenience

A Mobile Strategy Is Key

Being a generation of digital natives, Gen Z predictably uses mobile phones at exceptionally high rates. This usage extends into purchase decisions, with sizable numbers of Gen Z consumers making in-app purchases (56%), researching while in-store (52%), and buying digital content (49%) via mobile.

These all point to the importance of a full-fledged mobile strategy. Marketers should think of mobile as a collection of touchpoints (such as SMS, MMS, email, website, mobile app) that coalesce to enhance brand accessibility.

• 59% of Gen Z consumers have received or sent money from their mobile phone to another individual
• 56% of Gen Z consumers have used their mobile phone while in a store to research a potential purchase
• 52% of Gen Z consumers have bought digital content via mobile phone a—44% year-on-year increase
• 49% of Gen Z consumers have browsed for products in a physical store but purchased online—a 26% year-on-year increase
• 48% of Gen Z consumers have made an in-app product or service purchase 59% 56% 52% 49% 48%

How Gen Z’s Favorite Brands Are Communicating

When it comes to separating favored brands from those less so, messaging is a key differentiator. Gen Z consumers want communications that are consistent and personalized.

Over 80% of Gen Z consumers believe that their favorite brands do the following: provide a consistent user experience (87%), reward them for their loyalty (86%), treat them like an individual (84%), surprise them with rewards they don’t expect (83%), and use their data in a way that makes them feel comfortable (81%).

The brands committed to fostering better relationships and adding relevance, value, and personalization to their messaging are the ones that are elevated to preferred status and poised to see long-term benefits across the customer lifecycle.

What Gen Z’s favorite brands do

• 87% Provide a consistent user experience
• 86% Reward them for their loyalty
• 84% Treat them like individuals
• 83% Surprise them with unexpected rewards
• 81% Use data in a way that makes them feel comfortable
• 77% Strive to develop a relationship
• 76% Influence their lives beyond the products and services brands provide
• 75% Make them feel special, like VIPs

Gen Z’s Relationships With Their Favorite Brands

To win and maintain relationships with Gen Z consumers, marketers need to connect with them by delivering the right message, on the right channel, at the right time.

It can be tempting to blast news offerings to an entire database, but a plurality (47%) of Gen Z consumers describe the relationship with their favorite brand as getting communications from the brand only as and when necessary. For brands, this type of relationship entails a communication frequency based on each customer’s individual purchase cycle and profile attributes. Doing so requires a cadence that is constantly refined by optimal delivery times. Campaigns should be triggered based on online behavioral data and other real-time customer signals across your websites, apps, and owned properties, including in-store actions. Let the data tell you when it’s time to send a message, in which channel, and what the content should be. Listening is as important as talking when building relationships and driving favored outcomes.

How Gen Z consumers describe the relationship with their favorite brands:

• 47% They communicate as and when necessary
• 27%They communicate with each other like they have a good relationship, and the brand understands them

Gen Z Consumers Are Frustrated With Non-Personalized Messaging

With the slew of marketing technologies available to brands, there’s little excuse for sending communications devoid of personalization.

Even so, Gen Z consumers indicate that they’ve been frustrated by multiple types of brand communications, including messages that failed to reflect their wants and needs (51%), irrelevant content or offers (47%), and a lack of recognition for shopping or loyalty card history (41%).

Truly personalized messaging is the core of relationship marketing, with a focus on creating long-term customer satisfaction. In order to reduce attrition and continue to grow, brands need to deliver personalized messaging that shows empathy and an understanding of an individual’s likes, interests, history, and preferences, while delivering in the moments that matter. The key to successful messaging necessitates collecting, understanding, and activating more zero-party data throughout their entire messaging process.

• 51% Messages that failed to address wants and needs
• 47% Irrelevant content or offers
• 41% Messages that didn’t recognize shopping or loyalty card history
• 36% Messages based on information not shared directly with the brand
• 25% Communications delivered at the wrong time of day

When It Comes to Messaging Frequency, Marketers Are Doing Well

Whether through email, apps, social media, or SMS, Gen Z consumers are generally content with the volume of messages they receive from brands. When asked about messaging frequency, Gen Z consumers “want more” or feel they get served the “right amount” of personalized treats (74%), discount codes/money-off coupons (72%), free delivery offers (70%), loyalty program information (68%), and VIP offers (68%).

In fact, Gen Z consumers are not just content — for several types of messaging, they want more. There have been year-on-year increases in the desire for more messaging on discount codes/money-off coupons (16% YoY increase), loyalty program information (13% YoY increase), VIP offers (12% YoY increase), and free delivery offers (5% YoY increase).

A messaging strategy balanced with a blend of value-based offers and personalized content is key to high engagement rates and customer retention.

Messages that Gen Z consumers “want more” or receive the “right amount” of:

• 74% Personalized treats
• 72% Discount codes/money-off coupons
• 70% Free delivery offers
• 68% Loyalty program information
• 68% VIP offers
• 59% Sale promotions
• 59% Brand purpose-related activities

Gen Z Consumers Are Loyal to Their Favorite Brands

Despite economic uncertainty and the rising cost of living, an overwhelming majority (71%) of Gen Z consumers are willing to pay more to shop with their favorite brands.

The value potential of a loyal Gen Z customer base should not be overlooked. As a highly digitally connected generation, Gen Z loyalty can quickly translate to increased brand presence online, and ultimately more opportunities to connect with new customers.

• 71% of Gen Z consumers will pay more to purchase from their favorite brands
• Only 21% of Gen Z consumers say they’re not loyal to any particular brands

Top Loyalty Drivers

A loyal customer base is exceptionally powerful in driving revenue and reducing the stressors associated with acquiring new customers. But to establish such a base requires that brands understand the factors driving loyalty. For Gen Z consumers, ease-of-use and convenience are key. Gen Z’s upbringing took place during the rise of online commerce — these consumers are accustomed to instant gratification and easily navigable websites and apps. Failing to provide a seamless digital experience in 2023 is simply inexcusable.

Factors that are important or critically important to maintaining Gen Z loyalty

• 77% Availability online/in-store
• 76% Offers and promotions
• 75% Range of options/product choice
• 75% Mobile app/website
• 73% Customer service/support
• 72% Quality of products or services
• 70% Data privacy policies
• 65% Loyalty programs
• 64% Brand purpose
• 59% Brand efforts to build a relationship

The Cost of Getting Loyalty Wrong

Maintaining the “favored” status is key for brands to keep consumers loyal, especially with a sizable 71% of Gen Z consumers willing to pay more to shop with their favored brands. However, 37% of Gen Z consumers have switched away or become less loyal to a previously favored brand in the last year — a worrying 32% year-on-year increase.

The quality of a brand’s product or services (32%) is the most commonly cited reason for Gen Z consumers switching away or becoming less loyal to a brand. The high level of digital-connectedness among Gen Z consumers is also apparent, with 28% citing inadequate product availability online/in-store, 27% citing the brand’s mobile app/website, and 20% citing the brand’s data privacy policies.

Understanding the problem areas for Gen Z consumers is a critical facet for building loyalty and — aside from the obvious needs like providing quality products and optimal customer service — a digital-friendly experience is key.

• 37% Over a third of Gen Z consumers have switched away or become less loyal to a previously favored brand in the last year — a 32% year-on-year increase

The Reasons Gen Z Consumers Have Switched Away From a Favored Brand

• 32% Quality of products / services
• 28% Availability online / in-store
• 27% Mobile app / website
• 25% Customer service / support
• 24% Loyalty program
• 23% Range of options
• 23% Brand purpose
• 20% Data privacy policies
• 19% Offers & promotions

Lapsed Gen Z Customers Can Be Won Back

The great news is that over three-quarters (78%) of Gen Z consumers who have switched away or become less loyal to a previously favored brand say they can be won back.

The key to successful business is a low customer churn rate — loyal customers result in higher customer lifetime value, more predictable revenue, and enhanced brand reputation. To address customer churn, determining the cause is critical. As per the previous data points, Gen Z attrition could be occurring as a result of multiple factors such as product quality, customer service, or a lackluster digital experience. Gathering these insights and targeting those lapsed customers with personalized solutions will provide an opportunity to rekindle the customer-brand relationship.

Easy ways to collect this information from lapsed customers include win-back offers or even new marketing campaigns including sweepstakes, sent via email or SMS, that contain survey questions to qualify. Create a one-off value exchange that doesn’t dilute your core value to mass markets but that is highly targeted and has enough hook to obtain that data on why customers left. These offers might just bring them back into your fold as a customer, and at the least, you will understand why they left and can course- correct with current customers to lower your churn rates.

• 78% Over three-quarters of Gen Z consumers who have switched away from or become less loyal to a previously favored brand in the last year say they can be won back

Loyalty Program Participation Remains Strong

Gen Z consumers love loyalty programs. These programs not only deliver perks and benefits, they also foster an emotional connection between brand and customer. For brands, loyalty programs have the imperative benefit of rewarding repeat customers, thus driving sales and increasing customer lifetime value.

Over half of Gen Z consumers (52%) are more likely to take part in a loyalty program this year compared to last, with a mere 8% being less likely. When taking into consideration the other Gen Z attitudes toward loyalty programs — with 86% saying their favorite brand rewards them for their loyalty, 65% citing loyalty programs as important or critically important, and 24% having left a brand because of an inadequate loyalty program — the stats suggest that brands with robust loyalty programs have a massive opportunity to win with Gen Z consumers.

• 52% of Gen Z consumers are more likely to take part in a loyalty program this year compared to last
• Only 8% of Gen Z consumers are less likely to take part in a loyalty program this year compared to last

What Gen Z Consumers Want From Loyalty Programs

The most desired loyalty program components among Gen Z consumers can generally be broken down into the financial and non-financial. The former are the most popular, with a majority wanting points/rewards (59%) and discounts (58%). However, the importance of non-financial offerings should not be understated. More than a fifth of Gen Z consumers want personalized loyalty program components, like exclusive/early access to products/events/services (28%), personalized product/service suggestions (24%), and communications via the consumer’s preferred channels (24%).

Attaining loyalty ought not be reduced to merely offering the cheapest price point. Rather, it is a more collective suite of experiences, in which a brand fosters community, recognizes the customer as an individual, and delivers personalized recommendations that reflect this. learn more Loyalty assessment: how does your loyalty program rank?

Desired loyalty program offerings

• 59% Points / rewards
• 58% Discounts on products / services
• 28% Exclusive/early access to products / events / services
• 24% Personalized product / service suggestions
• 24% Communications via preferred channels
• 20% Community
• 16% Brand recognition

Avoid the “Creepy” and Embrace the “Cool”

Despite being a generation raised in the digital age, Gen Z consumers are perhaps more concerned about data privacy than one may imagine. They guard their privacy closely and are cynical about a number of brand interactions.

The overwhelming majority of Gen Z consumers consider the following to be “creepy”: adverts from unknown companies based on location data (61%), adverts related to something they talked about near a smart device (60%), and third-party tracking cookies (57%).

Fortunately, not all brand interactions are viewed with such scrutiny. Gen Z consumers generally consider the following to be “cool”: recommendations from a brand based on past purchases (79%), email reminders about abandoned online shopping carts (69%), and personalized offers after staying on brand sites for 2+ minutes (64%).

creepy

• 61% of Gen Z consumers state ads from unknown companies based on location data are creepy
• 60% of Gen Z consumers state ads related to something they talked about near a smart device are creepy
• 57% of Gen Z consumers state retargeting ads derived from third- party cookie tracking are creepy

cool

• 79% of Gen Z consumers state recommendations from brands based on past purchases are cool
• 69% of Gen Z consumers state email reminders about abandoned online shopping carts are cool
• 64% of Gen Z consumers state personalized offers after staying on brand sites for 2+ minutes are cool

The Value Exchange Economy

The idea of a value exchange is as old as civilization and omnipresent in life. Whether you’re looking at it from the marketer’s or the customer’s perspective, it’s simple: ask, receive, give, repeat. It’s a match made in relationship marketing heaven.

It doesn’t have to be an extravagant prize or colossal discount. Of course, 90% of Gen Z consumers are prepared to trade data for loyalty rewards, 89% for a discount, and 83% for the chance to win something. But many Gen Z consumers will share their personal, psychographic and behavioral data in return for early or exclusive access (86%), unlocking content (76%), and to feel part of a brand’s community (71%).

Gen Z consumers will trade personal and preference data for the following

• 90% Loyalty points/rewards
• 89% Discounts or coupons
• 88% Early and/or exclusive access to offers
• 83% A chance to win something
• 76% Unlocking content
• 71% Community

Gen Z Consumers Will Share Their Personal and Behavioural Data for a Better Service

There’s an obvious fissure between the data Gen Z consumers are and aren’t comfortable sharing. A healthy majority of Gen Z consumers are willing to share their full name (59%), gender (82%), date of birth (70%), and email address (72%). This is contrasted by the fewer than half who are comfortable sharing their family make-up (44%), home address (37%), income (45%), location in real-time (33%), and photograph (38%). The key is to keep data collection to the scope of what is actually necessary to create personalized experiences, or run the risk of making Gen Z consumers — who’ve demonstrated a high concern for data privacy — feel uncomfortable.

This leads to the real story. A mammoth 74% of Gen Z consumers are comfortable sharing information about their hobbies in return for better service — behavioral data that marketers can use to truly tailor messaging, content, and offers. This class of data empowers brands to build direct relationships with consumers, and in turn, deliver better personalization. As it comes directly and willingly from the consumer, there are no intermediaries or guesswork, and the consumer feels at ease.

What Gen Z consumers will share in return for better service

• 74% Hobbies and interests
• 59% Full Name
• 82% Gender
• 70% Date-of-birth
• 72% Email address
• 58% Phone number
• 37% Home address
• 44% Family makeup
• 45% Income
• 33% Location in real-time
• 38% Photograph

Gen Z Consumers Are Taking a More Proactive Role in Protecting Their Data and Privacy

As Gen Z consumers become more concerned about data privacy and security, brands are tasked with providing transparency to quell concerns, while simultaneously feeling the heat to develop efficient marketing strategies.

Nearly half (49%) of Gen Z consumers have used ad blocking tech in the last year — an 11% year-on-year increase. This uptick in adoption, paired with the phasing out of third-party tracking cookies and poor performance of banner ads, points to the growing weakness of traditional digital advertising.

Ad blockers are just the tip of the iceberg when it comes to the privacy-conscious behavior of Gen Z consumers — in the last year, a third or more have also used privacy modes on pre- installed browsers (46%), cleaners to circumvent cookie tracking or remove unnecessary entries (41%), paid-for/premium internet security software (35%), and alternative privacy- centric search engines/browsers (33%).

This data suggests the importance for marketers to actively address and respect the privacy concerns of Gen Z consumers, best achieved by communicating how their data will be used, respecting boundaries, and providing opt-in/out options wherever possible.

In the last 12 months, Gen Z consumers have used the following

• 49% Ad blockers—an 11% year-on-year increase
• 46% Privacy mode on a pre-installed browser—a 24% year-on-year increase
• 43% Password manager—a 19% year-on-year increase
• 41% Cleaners, e.g. cookies, registry—a 14% year-on-year increase
• 35% Paid-for/premium internet security software—a 75% year-on-year increase
• 33% Alternative privacy-centric search engine or browser—a 32% year-on-year increase
• 29% Password generator—a 4% year-on-year increase

The Slow Death of Third-Party Cookies

For decades, third-party tracking cookies have been the lifeblood of the online advertising ecosystem. Soon, however, Google will be imminently curtailing their use, with promises of a full phase-out by the end of 2024 (Safari and Firefox already have). The loss of third- party cookies will inevitably make it more difficult for the marketers wedded to the practice of tracking users online to serve targeted advertisements.

Gen Z consumers are gaining awareness of the impending cookie withdrawal — 46% say they’re aware, a 31% year-on-year increase. Among those aware, 32% are both glad (because they don’t like being tracked) and optimistic (because brands may come up with a better way of sharing data).

Short story, Gen Z consumers don’t like having their online activity tracked without consent, without a clear value exchange, and by brands with which they have no relationship. Marketers need to shift to a first- and zero-party data strategy to power their advertising and marketing initiatives before the cookie fully crumbles.

Gen Z Consumer Sentiment on the Withdrawal of Third-Party Tracking Cookies

• 46% of Gen Z consumers are aware of the impending cookie withdrawal a 31% year-on-year increase
• 32% Among Gen Z consumers aware of the impending cookie withdrawal, 32% are both glad and optimistic
• 19% Among Gen Z consumers aware of the impending cookie withdrawal, 19% are cynical and believe brands will just find a new way to track them

Gen Z Consumers Are Polarized on the State of the Economy

Rising prices and economic uncertainty have put economic issues at the forefront for many Gen Z consumers. Nearly half (46%) are very pessimistic about the economic outlook, with a similar 43% very pessimistic about the rising cost of living. Interestingly, sizable numbers deviate from this pessimism, with a notable 32% very optimistic about their job security, and 31% very optimistic about the rising cost of living. These polarized takes highlight the importance of recognizing this already isolated cohort of consumers as a collection of individuals, rather than a uniform group that can be approached with a one-size-fits-all approach.

A personalized strategy is key for Gen Z consumers — aforementioned financial incentives will be advantageous offerings for economically concerned consumers, but approaches that incorporate non-financial offerings (like style matching, personalized suggestions, and VIP offers) will be especially useful for those consumers who don’t have economics top-of-mind.

How Gen Z consumers feel about economic issues:

Gen Z Purchase Habits Are Shifting

Gen Z consumers are becoming more restrained, with 56% making fewer impulsive purchase decisions and 53% doing more research before buying. The value of loyalty programs also resurfaces, with 45% relying more on loyalty program benefits this year compared to last. This presents a mutually beneficial opportunity for brands and customers — in a time of financial uncertainty, loyalty programs can appeal to the financial considerations of customers, while also helping brands gather zero-party data.

How Gen Z habits have changed this year, compared to last:

Gen Z Trust in Brands to Deliver Personalized Marketing is on the Rise

Just a few years ago, consumer trust in organizations that had access to consumer data was at an all-time low. The Cambridge Analytica scandal dominated headlines, huge fines were being meted out for data breaches, and the practice of using surreptitiously gathered third-party data was omnipresent.

Fortunately, these crises have been a catalyst for change in all verticals, accelerating the way in which brands provide digital service and innovating how they deliver their products. For many, it’s been an opportunity to build deeper, more meaningful relationships with customers and use their data in a transparent manner to provide personalized marketing and services.

Year-on-year uplifts in Gen Z trust per industry:

• 18% Financial Services
• 17% Food / Grocery
• 2% Travel / Hospitality
• 17% Gaming / Gambling
• 21% Sports / Entertainment
• 22% Beauty / Fashion
• 5% Furniture / Household Goods
• 19% Household Appliances
• No change Home Improvement / Garden / Pets
• 34% Restaurants

Online Customer Experience Is Good, but It Can Always Be Better

Crafting a seamless online customer experience is a mutually beneficial endeavor — and a must for a generation as digitized as Gen Z. For brands, it drives efficiencies and increases revenue. For customers, it allows for enhanced accessibility and frictionless purchases. It’s worth noting again that a staggering 87% of Gen Z consumers have a favorite brand that provides a consistent customer experience — whatever the channel.

On the whole, brands are doing well, with over half of Gen Z consumers in most industries defining their online experience as “excellent.”

Industries related to food are doing particularly well, with grocery (57%) and meal orders (55%) receiving the highest “excellent” ratings from Gen Z consumers.

When it comes to “very poor,” the story is generally positive with all customer experiences except for betting/gambling (23%) falling below 20%.

Percent of Gen Z consumers who have had an “excellent” online customer experience:

• 43% Signed up for a new financial product
• 52% Booked a flight, holiday, or hotel room
• 39% Placed a bet / gambled
• 53% In-home / out-of-home entertainment
• 57% A grocery order for delivery or pick up
• 55% Ordered breakfast / lunch / dinner for delivery or pick-up
• 51% Clothes, fashion accessories, or makeup
• 49% Furniture
• 51% Large household appliances
• 51% Home improvement