Stay in the know. Subscribe to Currents
CurrentLead

Are You Meeting Your Customer’s Expectations?

2 Mins read

Two recent surveys from GoDaddy reveal that small businesses are losing potential customers because they are not meeting the expectations of Gen Z and millennial consumers.

The disconnect is large—91% of small business owners believe they offer a “convenient online experience” to customers. Yet only 21% of consumers (19% of Gen Z) agree.

The issue is that while the business owners say their top target market is Gen Z and millennials, their business practices cater to the older generations. However, all is not lost. Gen Z (73%) and millennials (75%) say they’d shop more often at small businesses if they offered the same conveniences as the larger big box chain stores.

Here’s what Gen Z and millennials want:

Alternate Ways to Pay

  • 73% of Gen Z and 83% of millennials say that “Buy Online, Pickup In-Store” (BOPIS) is important to them, but only 34% of small businesses offer it
  • 85% of Gen Z and 82% of millennials want small businesses to accept contactless digital payments, yet 27% of small businesses don’t accept digital wallet payments

Online Shopping

  • 90% of consumers think it’s important for small businesses to offer free shipping, yet 38% don’t offer free shipping
  • 89% of consumers say it’s important for small businesses to have a website, but 24% of companies don’t have one—this is the stat that continues to amaze me. It is simply unacceptable for a business to not have a website today.
  • 55% of Gen Z and 61% of millennials say it’s very important that they can buy directly from a business’s website, but 28% of small businesses don’t have an online store
  • 65% of consumers are more likely to purchase if they knew the personal story of the business, yet 20% of small businesses don’t share their stories

Social Media

  • 80% of Gen Z and 75% of millennials) believe it’s important small businesses have storefronts linked to their social pages for easy shopping, but small businesses mainly use their social accounts for brand awareness—only 25% sell physical products, and 19% sell digital products over social media
  • 41% of Gen Z and 43% of millennials follow businesses on social media for discounts, but 47% of small businesses don’t offer discount codes when consumers follow them on social media

The irony is that 91% of small businesses think staying current with tech innovations is important, but they’re not meeting the high expectations of today’s increasingly tech-savvy consumer base.

Part of the problem may be that small business owners are confused by the different generational preferences regarding the convenient experiences consumers want.

Buying Habits

When using a debit or credit card, the percentage of consumers that prefer to use Tap to Pay:

  • Gen Z – 50%
  • Millennials – 31%
  • Gen X – 23%
  • Boomers – 18%

Is it important for small businesses to accept contactless digital payments?

  • Gen Z – 85%: yes
  • Millennials – 82%: yes
  • Gen X – 67%: yes; 33% no
  • Boomers – 40%: yes; 60%: no

Is it important to make purchases directly from a business’s website?

  • Gen Z – 55%: yes
  • Millennials – 61%: yes
  • Gen X – 50%: yes, “very important”
  • Boomers – 41%: yes, “very important”

Is it for small businesses to link their storefronts to their social pages?

  • Gen Z – 80%: yes
  • Millennials–75%: yes
  • Gen X – 50%: yes; 50%: no
  • Boomers– 29%: yes; 71%: no

Consumer behaviors have changed rapidly in the past few years. The younger generations are massive in size and in or entering prime spending years. It’s a must for small businesses to work smarter and embrace the technology that gives consumers what they want.

Expectations stock image by Rawpixel.com/Shutterstock

Related posts
CurrentTechnology

Methods to Check Database Corruption in SQL Server

6 Mins read
Database corruption in SQL Server, a Relational Database Management System, can pose a major threat to organizations’ functioning due to data loss…
CurrentTechnology

The Generative Generation: AI, Chatbots and Financial Compliance

5 Mins read
In March 2023, SEC Chairman Gary Gensler described AI (Artificial Intelligence) as “the most transformative technology of our time, on par with…
CurrentManage

Want Higher Profits and Morale in Your Business? Keep Your Employees

3 Mins read
Despite the existing data, many employers remain oblivious to the silent profit killer lurking within their companies: employee turnover. While attracting top…