CHIEF FINANCIAL OFFICER
For the past number of years, the spotlight shone brightly on Millennials. While still a powerful group, there is now another demographic under the microscope. Generation or Gen Z make up 30% of the world’s population. This group- born after 1997 and currently between the ages of 7 – 23, differs from all previous generations in two rather significant ways. Firstly, they are considered digital natives because they have had access to technology – smartphones and other devices from birth. And secondly, they are the most racially and ethnically diverse generation.
Gen Zers spend a lot of time online. From communicating with friends and family, following celebrities, accessing entertainment to education and learning, for this cohort, barriers between the virtual and the physical worlds are completely fluid. Not surprisingly, social networks are extremely popular with Facebook, YouTube, and Instagram topping the list.
As we’ve spoken about in a previous blog post, online shopping presents postal operators with significant opportunities for revenue growth. Its meteoric rise and with it a corresponding dramatic jump in the volume of parcels makes it arguably one of the greatest influences on the industry. As Posts internationally adapt and expand their business models to better serve the online shopper, it is crucial that these adaptations take into consideration the attributes of the Gen Z customer. Gen Zers are environmentally conscious consumers who look at areas such as packaging and carbon footprint when shopping. They also see the smartphone as almost an appendage, with 32% of Gen Z transactions taking place on a mobile device.
Given their propensity to shop online, Gen Z has high expectations around delivery times and speed. They also veer towards self-reliance and therefore want to have greater control over their actions and purchases than previous generations. Posts, if they are going to provide these consumers with the level of service they expect, must leverage technology and offer digital solutions and services. Also, beyond catering to flexible delivery times, Posts will need to offer expanded service hours and take steps to prove that they are reliable and trustworthy.
Escher understands the growing importance of Gen Z to the postal industry. We developed The Gen Z Consumer a comprehensive and detailed eBook that takes a close look at what makes Gen Zers tick and how Posts can best serve this highly influential consumer.