Gen Z’s Impact on How Businesses Use Technology By Nathan Sykes

Gen Z is now spread throughout the workforce with more and more entering the field. Unlike any other generation, these people are truly immersed in technology because they’ve grown up with it and they don’t know a world without it. It means that technology is necessary — not just to have the appropriate tools and solutions in place, but also to keep Gen Z’s attention and engagement.

In many ways, it is shaping the current state of the market, serving to increase the average business’s reliance on modern technology. Mobile is the biggest driver, with so many of these people experiencing and living their lives through digital mediums. Social media networks are a great example of this, although, with the rise of the Internet of Things, smartphones aren’t the only way Gen Z is constantly connected.

Generation Z currently makes up 26 percent of the U.S. population, a larger group than Baby Boomers or Millennials. By 2020, they will contribute more than $4 billion in buying power, making up a substantial driving force in the consumer world.

Ready or not, they are the future, and they’re changing the world as we speak. So, what does that mean for business applications of technology? How is Gen Z changing the way the enterprise world handles these new-age solutions?

Building a Proper Feedback Funnel

A whopping 64 percent of Gen Z publishes online reviews about their personal experiences, in both positive and negative forms. This shows several things about the group: that they are informed and well-read, but also that they are not afraid to share their opinions.

This has sweeping implications on the business world as a whole. Organizations looking to do business with Generation Z must understand that any experiences encountered will likely be shared openly — not just with friends and family, but the world at large. The same is true for employers of this generation, as they will likely share their work environment experiences and events with everyone around them. This concept of sharing more openly started with Gen X, grew ever more popular with Millennials and has now reached an apex with Gen Z.

The right prescriptive analytics and behavioral solutions will allow companies to identify sentiment, intent and how that shapes the reputation surrounding their brand. More and more organizations will start to use predictive models and machine learning to anticipate how their customers are going to react and respond.

More importantly, businesses need to create a funnel that allows customer feedback to flow through the necessary channels to the appropriate parties. Generation Z needs to see that their voices are being heard, and how that impacts the world around them.

The Right Technology and Efficiency

Back when Millennials started entering the workforce, there was a lot of talk surrounding the upgrade of modern solutions and practices — specifically, to incorporate new technologies. While this is still the case with Generation Z, these people are more about function and efficiency than the accessibility alone.

In other words, it’s more about implementing the right solutions that offer a more convenient workstyle and higher efficiency ratings. Just deploying new technologies for the sake of having tech in place is going to backfire if it creates more complexity and busywork in the short-term.

It makes sense, too, considering Gen Z has always grown up in a hyper-fast world where on-demand content and experiences are available consistently. This allows them to be both more focused and more competitive, which is a driving factor of the generation. They tend to enjoy managing their own talents and projects so as to showcase their abilities. But this also means they want work opportunities that allow such a thing, rather than drown them out with complex processes, lots of involved parties, and little to no personal recognition or achievement.

Unique Shopping Experiences

Another aspect or characteristic exclusive to Generation Z is that they truly have a unique view on shopping, and that plays a role in how the experiences flesh out. Shopping has really become a form of expression for these people, hinging on the connections they form and the experiences they have.

It goes beyond the concept of meaningful experiences that were introduced by Millennials. Yes, the experience must be personalized and relevant, and it must provide value to the customer. However, Generation Z also wants to form a strong connection or relationship with the brands they support. This manifests in several ways, whether through environmental and communal impact, overall transparency of offerings, or strong loyalty rewards programs.

As you might expect, this feeds directly into the technologies and solutions at play. How, for example, are businesses remaining transparent with their goods? Where are they sourcing raw materials, what impact does that have on the surrounding environment? Perhaps most importantly, how are consumers influencing all of this through their buying power? Generation Z, more than any other generation, really wants to help mitigate our negative impact on the world, while also reaping strong benefits for themselves. This makes the balancing act incredibly challenging for modern businesses.

Gen Z Is Here

Every generation, from Baby Boomers to Gen Z, has influenced the world as they’ve come of age. This introduces a variety of challenges for businesses and organizations, but it also creates new opportunities as a result.

While many of the changes discussed here are happening, the truth is that Gen Z is just starting to enter the mainstream and have a true impact, which means there are things that could happen and events that could play out that no one foresaw. The trick is understanding these people through behavioural and performance analytics and responding to what they value most.

Nathan Sykes is the founder of Finding an Outlet, where he writes about the latest in technology and business news and advice.

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