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