Free Generation Z Shopping Report Download

You need to understand how young people shop if you’re going to convince them to buy from your brand.

Generation Z make up 10% of UK population (aged 16 to 24) and they’re of great interest to marketers, UXers and conversion specialists because Gen Z are the first generation to be born and raised in the digital age.

So, how does this effect their shopping behaviour?

How do they feel about shopping in a physical shop versus shopping online? How do they shop? Is there a difference in what they buy online versus offline? What concerns do they have and what does shopping mean to them? How does their shopping behaviour differ to previous generations and how should you engage with them as consumers? Which is their platform of choice for shopping and how do they prefer to be contacted by companies?

We discovered all this and much more!

Suitable for: Marketers, UX designers, Customer Experience, Product Managers, Conversion Optimisers, Brands targetting Generation Z

Just press the button to go to the site to download the full 20 page report for free.

Psychology of Social Networks: What makes us addicted?

Psychology of Social Networks

Have you ever thought about the number of times you check social networks? Is it a few times a week? Once a day? Seventy-two percent of online adults use social media and the average user spends 23 hours a week on social media – that’s the equivalent of a part time job!

We are living in the social media era.

– 2 billion worldwide social network users

– 500 million tweets sent every day

– 70 million images uploaded on Instagram every day

– 300 hours of video uploaded per minute on YouTube

What makes us so addicted?

Social networks are an extension of ourselves.

Communication occurs during interaction, and our need to be connected and interact with others is universal and unavoidable; hidden behind this social instinct there is the even more powerful necessity of giving sense and meanings to our world. Being in touch with others, allows us to create social universes made of symbols – e.g. language, numbers, gestures, emoticons 🙂 – and social rules, which are shared and understood by everybody.

Social validation is an important part of being human. A Facebook ‘Like’ or a Twitter ‘Favourite’ is a social signal that makes us feel good.

Fear Of Missing Out (FOMO) is a large driver of social network use, particularly for those aged thirty and under. Sixty-seven percent of users say that they’re afraid they’ll “miss something.” Dr Stephanie Rutledge explains:

We have a brain wired for collaboration, compromise, restraint, comprehending and managing one’s place in shifting-alliances. We notice when others are doing something that excludes us. It will trigger some primitive survival responses. People under 30 are still in the period when they are establishing their own lives, developing personal and professional identities, becoming economically viable (creating alliances), etc. Their focus will of necessity be social.

Ego needs a platform to showcase itself and social networks are the perfect answer. Eighty percent of our online conversations are self-disclosure, compared to 30 to 40 percent of offline conversations. We live in a ‘Me’ society with an obsession of the ‘self’ that drives us to update our status and tag ourselves in photos (but only those that we look good in of course).

Social comparison and self esteem increase. People compare themselves to assess feelings, strengths, weaknesses, abilities and perspectives. Having your social connections reaffirmed makes you feel good.

Brain chemistry. Social networks are physically addictive as well as psychologically. A study from Harvard University showed that self-disclosure online fires up a part of the brain that also lights up when taking an addictive substance, like cocaine.

Communication is to be human

One cannot not communicate (Watzlawick & the Palo Alto School, 1967) is one of the reasons adopted in social and clinical psychology. The social world is socially constructed through interactions between people: roles, rules, categorisations, stereotypes, normality, deviance are results of human sharing, the outcome of our being humans.

Woman on mobile phone

Social networks have the power to amplify this human nature. They have broken the barriers of distance and time, of presence and visibility. They expand the possibilities of sharing and playing identities. They fulfil the most deeply human need of finding a psychological distinctiveness and self-definition in a social context.

They become stages where observing, examining, take part to the “social staging”; the script interpreted is made by interactional dynamics, social rules, emotions and so on;

An extension of our offline world

Facebook profiles become teenagers’ “virtual bedrooms” (Hodkinson and Lincoln, 2008), meant as virtual environments to be personalised, to meet peers and play at adulthood. Several studies demonstrate that users experience the interaction on social media as an extension of their offline social relationships, as a supplement to their real life, and not as a substitution of it.

Social networks are an extension of our most deep psychological instinct, being social

Social networks become stages with no time and no space.

In conclusion, “all media are extensions of some human faculty” (Marshall McLuhan). Social networks are an extension of our most deep psychological instinct, being social.

Social Media

Need help or advice?

If you’d like to know more about UX psychology and how it can help you, contact our UX experts for free, friendly, no-ties advice.

Other posts you may find interesting:

10 psychology techniques to drive behaviour
Behaviour modelling: How to make dogs drive cars and users click buttons

References
  • Paul WatzlawickJanet Beavin BavelasDon D. Jackson (1967). Pragmatics of Human Communication: A Study of Interactional Patterns, Pathologies and Paradoxes. Norton & Company Inc, NY.
  • Tajfel, H. (1974). Social identity and intergroup behavior. Social Science Information,13, 65-93. 
  • Hodkinson, P., Lincoln, S. (2008). Online Journals as Virtual Bedrooms? Young People, Identity and Personal Space. Young, 16(1) pp.27-46.
  • McLuhan, M. (1964). Understanding Media: The Extensions Of Man. London: Routledge & Kegan Paul.

Fascinating insights: E-commerce expo day 1

This week we attended the London e-commerce expo to discover the latest statistics, technology and importantly, what’s predicted to be big in 2015. Here’s our write-up of the sessions we attended on day 1 (day 2 to come soon). What’s very clear is that mobile will be massive in 2015! New technology enabling more advanced tracking of customers offline and online will also pave the way for advanced data, customer engagement and retargeting across channels (more of this in our next blog post: day 2).

Driving Sales in a connected world

Tracy Yaverbaun, Facebook

facebook mobile
Mobile was a key theme in Tracy’s presentation. There has been a huge change in devices and multi-device use, for marketers this is a huge challenge!

Mobile is where the growth is and where it will continue to be but brands aren’t moving as fast as consumers.

Only 4% of budgets go into mobile but it’s where 20% of consumers time is. Everything has to work on mobile for facebook now.

80% of Facebook’s users are mobile. 26m daily users on facebook, out of these 23m are mobile .

Mobile is disrupting commerce. Physical shop real estate is shrinking so e-commerce is more important than ever. Yet the screen size is smaller so marketers have to work harder on the small screen real estate.

Consumers want msgs relevant to them at the right place at the right time. You need to consider:

1. Discovery. People can find your brand. The Facebook newsfeed is one of the best places for consumers to discover products. Most people check their newsfeed a whopping 14 times every day!

2. Personalisation. Personalisation at scale. E.g. Amazon used Facebook to only target people who didn’t own kindles and were frequent flyers (using their CRM to filter out people who had kindles). It’s all about ‘good targeting’.

3. Measurement. ROI no matter which device consumers start or end their journey. Mobile has a huge amount of traffic but a lot of brands discount this. Marketers are obsessed with looking at clicks but they don’t matter, what matters is return on investment. Even if people don’t click, they’ve seen your message and taken in your brand. Facebook now has cross device measurement capability.

The future of ecommerce is personalised discovery across devices and that you can measure every step along the way.

The future of mobile on the high street

Andrew McClelland and Matt Norbury

Future of mobile on the high street
What was very clear in this keynote, was that mobile is a huge, growing market and the key takeaway was that if you’re not focussed on mobile you are already getting left behind. Here are some of the key points:

Mobile growth is larger than tablet. 186% average growth in sales via mobile compared to 131% in tablet e-cmmerce. Average mobile conversion last year was 1.1%, this year 1.4%.

Basket size on mobiles is almost equal to desktop. £76 average basket value for mobile, average for desktop is £80.

8 in 10 smartphone users will use their smartphone at some point during the purchase process.

Mobile is critical to retail in the coming years. You have got to give people a real reason to engage – games and fun stuff. Add sufficient value that people keep coming back.

Don’t fear ‘showrooming’. Although people are using their mobiles inshore, most are actually just checking their email and social networks, not comparing prices.

Provide wifi. Wifi in-store is becoming a requisite – people expect it. Some people will leave a store if it doesn’t have wifi. Good for the guys whilst the girlfriend is shopping – keeps the boyfriend happier, keeps the girlfriend in the store for longer, everyones happy and the girlfriend has spent more.

Personalisation is big. 70% of people will give personal information and preferences to get something valuable in return such as offers.

Use beacons to measure footfall. Can measure uplift of message and conversion from a voucher you sent them. See the full end-to-end conversion, starting online, ending offline.

Five tips to make sure that customers transact with your app

David Pope, Jumio

Mobile commerce transactions

25% of downloaded apps are NEVER used.

Nearly 66% of consumers making purchases on a tablet or phone, regularly abandon their purchases during the payment process.

David explained his top five tips to get customers using and buying from your mobile app:

1. Be aware which operating system or platform will deliver the best return for your app. Interestingly, although Google Plays market share is way more than Apple’s, Apple’s users actually spend more – almost five times as much! ios users display 6 times the engagement of android users and tablets drive about 20% more spending on avg. Avg spending is 89 eur for tablets, 67 for pcs, 66 for smartphones. Although this isn’t the same in every industry and he specifically excluded travel and gaming as not applicable.

2. Be sensitive to data privacy concerns that may inhibit app usage. Trust is the number  barrier to growth of mobile content and commerce. 99% of users will not share their contact information. Less is more. Don’t ask for location, don’t ask how old the user is, don’t ask to access their contacts – greed for data gets in the way of transactions.

3. Reduce payment friction. This is all about your User Experience. David specifically talked about the keystroke level model – timing how long it will take customer to type data into your forms and working to reduce this number. And the gestalt laws of grouping (this is a more general design rule). Quite rightly, he pointed out that lots of apps still show alphanumeric keyboards for numeric data input – this is really frustrating and time consuming for your users. He also spoke of form length as important for reducing friction and gave the example of one change reduced to just 4 fields that resulted in 160% increase in conversions.

4. Balance functionality with speed and performance. There is a direct link between the performance of an app, number of downloads and its rankings in the app store. Tagman widget for calculating performance optimisation for your app. David recommends taking an MVP approach.

5. Build customer retention into your app. Integrate social features e.g. Sephora. Create a sense of community and use timely reminders, e.g. Map my run. Promote the benefits of your app, e.g. Swiftkey, tells you how much time you saved compare to normal keyboard. Personalise your customers experience.

Jumio
David’s aim in describing the above, was in promoting his product, Jumio. Basically instead of typing in their details, your customer would use Jumio on their mobile to scan their credit card and all the fields on your form would be populated automatically (Fastfill). Apparently this aids validation and reduces fraud. Note, legally, the customer still needs to manually enter their CVC number. It’s claimed that the average increase in form completion rate is 18-33%, coupled with less data entry errors.

Watch the video:

The customer journey report 2014

Dave Chaffey, Smart Insights

Dave’s slides can be viewed below. He placed focus on the customer journey and how wide it actually is – you need to focus on all channels, both online and offline and how people interact with / switch between them. It’s also important to use the right language for each of your personas to appeal to them in the words they use.

It was fairly disappointing to see that only 33% of respondents in the survey make use of usability studies but I’d be willing to bet that these 33% are the more successful companies. Clearly, there are a lot of companies that need to make greater use of user research methods as opposed to just analysing numbers.

Beware of the box: Don’t let your commerce software dictate how your business works

David Winterbottom

David’s presentation was from  a more technical viewpoint, being from a developer background originally. I loved his approach to writing software requirements which is called YAGNI (You ain’t gonna need it). We often experience feature / scope creep in our UX world and we’re always battling against it, so YAGNI is definitely an acronym I’m going to be using! Quite rightly, David also advised that companies shouldn’t write a long list of software requirements at the RFP phase as this should be open at this stage to allow the company you work with to come up with the best solution, otherwise you’re already limiting them and telling them the solution.

I also liked the example that in Korea, customers can now scan QR codes to purchase things in the store. Soon, you’ll also be able to have your items delivered so that they’re waiting for you when you get back home (very cool).

David spoke briefly about an open source platform they’ve created called ‘Oscar‘. It’s totally free, designer friendly (apparently), and mobile by default. It’s built in Django and quick for prototyping which David said can be done in just a few days.

Read part 2 : More fascinating e-commerce insights for 2015!

The future of e-commerce: Generation Z

generation_z_technology_devices

The next up and coming wave of consumers are called generation Z. Born between the mid 1990s and 2010, these young people have been brought up with the internet and social networks. They are ‘Digital Natives’ and as a marketer or product owner you will need to approach this generation of consumer very differently. So, let’s learn more about them…

Who are Generation Z?

Right now they are aged between 4 and 19 years old.
They currently make up more than a quarter of the US population and this is still growing.
They spend nearly every waking hour online. 46% are connected 10+ hours per day!
They influence household purchases. You can’t just advertise to parents – Gen Z are major influencers of their parents decision making.
Tech savvy and heavy users of mobile. They’ve grown up in a digital world.
Always connected, especially to social networking channels.
High online spenders.

Prefer to shop online

Gen Z have been brought up with the internet and they prefer to buy just about everything online as opposed to offline. 20% of girls aged 12 and under regularly visit online shopping sites. The ability to easily make purchases online and delivering the right product information at the right time will be key.

Despite having very low incomes (think pocket money) Gen Z spend much more of their share of income online compared to previous generations. When this germination grows older and their income increases, they will drive major e-commerce growth.

Born to share

Gen Z have the ability to impact your brand via social like no generation before. They’ve been born and raised in a world of social websites. If they don’t like your website or product, they won’t call you, they’ll put it online so their connected web of contacts can see. They’re more likely to communicate with brands via social media and will be more demanding, they’ll tell you exactly how they feel. 77% will vent frustration of poor service over social media and expect an immediate response and resolution.

Listening and fast response will be key to managing this generation online. And to encourage this generation of sharers to share your content, you’ll need to ensure the content you create will be something Gen Z will enjoy – a fun brand voice, engaging content and incentives for sharing.

Traditional advertising won’t be as effective

A Forbes study claims that 57% of Zs saying they would rather save money than spend it immediately: “After seeing their parents lose jobs and their older siblings move back home, this generation will avoid debt. They’ll find the best deals and will expect to test out products physically or virtually before they buy.”

Gen Z will research everything themselves, turning to online reviews, bloggers and product experts to learn about products. Do you have a brand advocacy strategy? You will need to. By harnessing people who love your brand, and encouraging or incentivizing them to share their opinions online, you’ll provide a source of authentic information that Gen Z is likelier to trust.

Multi-screening and multi-tasking are the norm

They multi-task across at least 5 screens daily. “They suffer from FOMO (fear of missing out) more than millenials, so being culturally connected is critical” researchers from Sparks and Honey wrote.

Mobile internet preferred

According to a survey by Ericsson, 58% of Gen Z prefer surfing the web on their mobile as opposed to watching TV.

High tech – Even the youngest age group (9-11 years) shows advanced technology adoption and mobile internet usage similar to their older brothers and sisters. 31% of US children aged 6-12 wanted an iPad over any other electronic device for christmas in 2010 (followed by a computer 29%, and iPod touch 29%) – gone are the days of wanting lego!

Respond more greatly to visual stimuli

A Wikia study shows that 54% visit YouTube multiple times a day. Visual sharing sites like Instagram and Snapchat are also huge avenues of communication for teens.

Marketers will need to start communicating visually to a diverse audience, across multiple screens.

Prefer simple, short, interactive content

Gen Z have the lowest attention span and they prefer media that is simple to use and interactive as opposed to passive TV. Getting and keeping their attention will be challenging though as they like to communicate in bite sizes. Easy to use and simpler platforms appeal to this generation.

Addicted to social networking

Many children now feel that social networking is more important than other aspects of their life, including their family. According to a study by the University of Maryland, 79% of children showed symptoms of distress when they were kept away from social networking devices.

Goodbye Facebook, hello Instagram

Every year, the amount of Gen Z leaving Facebook grows. 25% of 13-17 year olds left Facebook in 2014. They prefer visual platforms; the numbers joining Instagram grew from just 12% in 2012 to 23% in 2013. They also prefer incognito media platforms such as Snapchat, Secret and Whisper.

They want to change the world

60% of Gen Z want to have an impact on the world (compare this to 39% of Gen Y). 1 in 4 of those aged 16 or over currently volunteer. Globally, teens and their families, are changing their purchasing behaviour towards choosing environmentally responsible products and companies.

Not brand loyal

The products themselves and their quality are more important to Generation Z than brand names. Expect these consumers to switch to competitors much more quickly.

Obese

By 2027 most of the grown up Gen Zers will be obese (77.9% of males and 61.8% of females). 66% of kids aged 6-11 say online gaming is their main source of entertainment, so obesity comes as little surprise.

generation_z_interests

Some of the above slides are courtesy of Sparks and Honey. If you would like to read more about Generation Z we would recommend reading their full report: Sparks and Honey on Slideshare.