Onbe, a payments partner for few global leading brands, released a new study identifying the factors that drive millennials and Gen Z consumers’ purchase decisions. The study, although is focussed and based on the feedback of 1,000 Americans, holds true for many regions across the globe. For example, the Middle East, where social commerce is a big thing and social media sites often introduce new shoppable features with a variety of AR/VR based applications to enhance CX and drive engagement and sales.
The current report is based on a survey of people who are aged between 18 to 40 years old. The report says that the most impactful way to build loyalty and awareness with the under-40 consumer is through engagement and creating branded digital experiences.
Along their customer journey, this demographic is heavily swayed by how brands connect with them across digital platforms—most prominently through influencer marketing and digital rewards and incentives.
“Every marketer recognises the massive buying power of millennials and Gen Z shoppers, but many lack the actionable insight necessary to transform those potential customers into brand loyalists,” said Kevin Brown, Onbe Chief Marketing Officer. “To effectively attract and engage this demographic, savvy brands will craft a digital roadmap and holistic consumer experience—from enhancing payments and utilising spend data to incorporating brand influencers into their marketing mix.”
Onbe’s study found that influencers can dramatically increase brand loyalty and transform purchasing behaviours:
- Both millennials and Gen Z are heavily persuaded by social influencers, with more than 70 per cent having made a purchase decision based on an influencer’s recommendation.
- 50 per cent of millennials and Gen Z have switched to a new brand based on an influencer’s recommendation.
- 40 per cent of millennials and 57 per cent of Gen Z have made a purchase on Instagram based on an influencer’s recommendation.
- Clothing, shoes and accessories are the most popular items purchased based on an influencer’s recommendation for 45 per cent of millennials and 55 per cent of Gen Z.
Also Read: Is Social Commerce The Future of Shopping?
“Despite the rapid rise of social media influencers, brands are only just beginning to recognise the power of both the influencers and the generations they engage,” said Brown.
“To build loyalty, brands must meet audiences where they are–and in most cases, that place is on social media. Influencers are able to step into that space and bridge the gap between brands and the people they’re trying to reach in a unique, highly personal way.”
Onbe’s study also found that millennial and Gen Z consumers bring an increasingly high preference for digital rewards and incentives:
- Both groups prefer to receive virtual cards over physical cards or those that can be used for only a single retailer.
- 90 per cent of both groups are likely to spend reward payments with the same brand that offered them the reward.
- 80 per cent of both groups say special promotions make them more loyal to a brand.
Onbe, based in Chicago and Philadelphia, creates engaging payment experiences on behalf of modern brands for consumers, workforces and marketplaces, delivering value beyond currency.