Strategies for Engaging and Retaining Loyalty Among Generation Z and Millennials: Insights and Recommendations
In the wake of the COVID-19 pandemic, retailers are facing a new challenge: adapting to the evolving preferences and behaviours of the increasingly influential millennial and Gen Z demographics. According to recent studies, these generations make up more than half of the nation's total population, and their purchasing power is on the rise.
A pivot by marketers into stronger and leaner roles has been reported in the "Special Covid-19 Edition" of The CMO Survey in June 2020. This shift is necessary as brands strive to align their values and offerings with the lifestyles of younger shoppers, who value authenticity, sustainability, and a strong social media presence.
One strategy that is proving effective is the use of influencer marketing, particularly micro-influencers. A study by Logica Research in May 2020 found that Gen Z, in particular, is more influenced by influencer accounts than retail accounts when making purchases. Micro-influencers, with their smaller but highly engaged followings, generate higher engagement and foster closer, more personal connections, building stronger trust with consumers.
Another approach is to create in-person experiences beyond transactions. Post-pandemic, Gen Z is returning to malls not just to shop but for community and cultural experiences, having missed out on social milestones during COVID. Retailers are successfully attracting this cohort by hosting events, immersive pop-ups, and live experiences that cultivate engagement and connection.
Investing in genuine customer service is also crucial. Despite digital advances, the human element in retail is resurging as a competitive advantage. Well-trained, empathetic frontline staff who genuinely understand and interact with customers foster trust and build long-term relationships with socially connected shoppers like millennials and Gen Z.
Retailers should also implement omnichannel and hybrid retail approaches. COVID-19 accelerated online shopping, but the most resilient retailers combine both offline and online channels. An integrated omnichannel strategy—offering seamless experiences across physical stores, e-commerce, social media, and mobile payments—meets the preferences of these tech-savvy groups and enhances engagement.
Lastly, retailers should prioritise safety and operational adjustments. Although less about relationship-building and more about customer assurance, retailers adapting their store layouts and flows to reduce COVID-19 risks (e.g., one-way aisles, reduced density) address health concerns of shoppers. This fosters trust and comfort, encouraging in-person visits among cautious customers, including millennials and Gen Z.
By leveraging the influence of micro-influencers, offering engaging and community-oriented in-store experiences, enhancing human-centered customer service, adopting omnichannel retailing, and maintaining COVID-19 safety measures, retailers can effectively connect with millennial and Gen Z consumers in the post-COVID retail landscape. These approaches respond directly to changed expectations and behaviours shaped by the pandemic and evolving digital culture.
- In the aftermath of the pandemic, retailers are adapting their marketing strategies to align with the values and lifestyles of the influential millennial and Gen Z demographics, who prioritize authenticity, sustainability, and a strong online presence.
- Studies indicate that Gen Z consumers are more influenced by influencer accounts than retail accounts when making purchases, thus, influencer marketing, particularly micro-influencers, is proving effective.
- Retailers are attracting Gen Z shoppers by hosting events, immersive pop-ups, and live experiences in physical stores, catering to the post-pandemic desire for community and cultural experiences beyond transactions.
- Well-trained, empathetic frontline staff who genuinely understand and interact with customers are fostering trust and building long-term relationships with socially connected shoppers like millennials and Gen Z, whose preference is shifting towards human-centered customer service.
- In the post-COVID retail landscape, retailers are adopting omnichannel and hybrid retail approaches, combining offline and online channels to meet the preferences of tech-savvy millennials and Gen Z consumers who seek seamless experiences across various platforms.
- To foster trust and comfort among cautious customers, including millennials and Gen Z, retailers are making safety and operational adjustments, such as changing store layouts and flows to reduce COVID-19 risks and address health concerns.
