Clients of the future

Generation Z is growing up fast; chances are they’re part of your clientele already, so make sure your business is up to speed when it comes to serving the next generation. Nadine Dilong explains.

As a business owner, it won’t come as a surprise to you if I tell you it’s important to know who your clients are. And by that I don’t just mean logging down their names and medical history, but I mean your client base as a whole, in other words, their demographics.

Depending on your services and style of business, chances are the vast majority of your clients are Millennials (born between 1980-1994) or Gen X (born between 1965-1979). Your marketing strategies should ideally target those groups, but what about Generation Z?

Having grown up with the internet and smartphones, Gen Z-ers are digital experts.

Generation Z-ers are born between 1995 and 2009, making the oldest among them 23 years of age. While this may sound very young – arguably too young to consider – dismissing this group from your target market could be a major mistake. According to Forbes, Gen Z will account for a whopping 40% of all consumers by 2020, so if you plan to stay in business beyond the current decade, better start thinking the way young folks do.

In a nutshell, Gen Z is the digital generation; they are the first ones not to know what life without the internet and smartphones was like. In fact, 63% of them received their first mobile phone at the age of six, according to a study by Growth Tank that was presented at this year’s Naturally Good Expo. Gen Z-ers are connected over 10 hours a day and self-identify as digital addicts.

They’re multicultural, educated (half of them will have a University degree), and have the shortest attention span ever counting only eight seconds. But what’s really important for spas, salons, and clinics, is to know that Generation Z is extremely savvy.

They’ve grown up with Siri and Google answering literally all of their questions, self-educating and striving to make the world a better place. They’re open-minded and flexible, ready to move house up to an estimated 15 times in their lifetime while working 17 different jobs. They have the world at their fingertips, so in order to convert them into a customer, you need to stand out from the crowd.

Gen Z will account for 40% of all consumers by 2020.

While Millenials tend to be brand-obsessed, Gen Z-ers are service obsessed. They expect five-star customer service that is personalised and genuine; it’s not so much about the brand itself, but the brand experience. They also tend to research a product or service online before buying, and are heavily influenced by social media.

What this means for beauty and wellness businesses is that they need to have a modern, fast loading, mobile friendly online presence. This doesn’t just translate into a pretty, well-functioning website, but an Instagram and Facebook account that’s updated daily is crucial. According to Forbes, 60% of Gen Z shoppers won’t use apps or websites that load slowly or are difficult to navigate, so go ahead and check your website’s loading time asap (after you finish reading this magazine, of course), and know that every second counts.

In contrast to generations living in the pre-internet era, and who therefore had it much harder factchecking, Gen Z isn’t as easily tricked by seemingly clever sales strategies. To translate this into a real life situation, if you’re trying to sell a serum to a 20 yearold, be prepared to explain the list of ingredients and how exactly it helps reduce their acne – just because the packaging says so, doesn’t mean Gen Z is willing to believe it. With their smartphones permanently attached to their hands, they will happily google ‘Alpha Hydroxy Acid’ before taking out their credit card.

Moreover, know your company values and don’t shy away from loudly proclaiming them on every channel you can (brochures, social media, website etc) as this is what attracts Generation Z and might extend their eight-second attention span. Besides your own business’ marketing strategies, it’s of course also important to look at the brands you stock and what they’re doing to stay relevant.

Some skincare brands, such as Skinstitut, have already adapted their marketing strategies, seeing the value in their youngest customers.

“Skinstitut sees value in reaching out to and connecting with Generation Z as this ever-growing group are our new customers. This segment of the market are avid social media users hence why our digital and social strategy is now incorporating both content and imagery that will speak to this audience in a genuine manner. Skinstitut speaks with honesty and transparency, which are important traits when reaching out to Gen Z, who are known to be highly savvy and value authenticity,“ explains the brand’s skin expert, Zoe Devine.

Besides transparency about products and services, Gen Z appreciates brands that stand for something. They actually want to make the world a better place, and are much more likely to buy something if their money supports a good cause. For your business, this could mean sponsoring a fundraiser event, or something as simple as encouraging your clients to return empty skincare pots and bottles for recycling purposes. Gen Z appreciates the effort and generally prefers to spend their money with brands that try to keep their carbon footprint as minimal as possible (don’t give them plastic bags – they’ve brought reusable ones, duh!). In fact, 76% are concerned about humanity’s impact on the planet. So what about their disposable income? Does

According to a study by The Center For Generational Kinetics, 70% of Gen Z-ers are already earning their own money, which is about the same as Millenials, who are about 10 years older! Considering that most of Gen Z is still in their teenage years, this number is expected to rise quickly once everyone reaches legal working age. 35% of Gen Z are currently living with their parents without paying rent, leaving them with few to no expenses and making it easier for them to purchase ‘unncessary’ products or services. Gen Z works to live, not the other way around, but they are incredibly responsible when it comes to money thanks to having grown up during the GFC and having seen first-hand the financial instability their parents or friends’ parents went through.

In a nutshell, this means that Gen Z is a force to be reckoned with, a customer that cannot be ignored. There are many different ways you can prepare and adapt your business to attract and win Gen Z over as a client. So if you think your salon/ spa/clinic is not quite Gen Z ready yet, make sure to implement the following:

• Optimise your website for mobile

• Update your Instagram and Facebook daily

• Clearly state your company values

• Focus on excellent, personalised customer service

• Back up claims with facts

• Think outside the box when it comes to marketing

• Stand for something /support good causes