Gen Z favors two-way dialogue with brands, a research shows

By Guardian Correspondent , The Guardian
Published at 11:39 AM Sep 30 2024
Ivan Ostojić, Chief Business Officer, Infobip
Photo: Agencies
Ivan Ostojić, Chief Business Officer, Infobip

New research from global communication platform Infobip reveals that younger generations, especially Gen Z, prefer engaging in two-way conversations with brands, a trend that is particularly relevant as Black Friday approaches.

According to the Generational Messaging Trends Report, 65 percent of consumers under 27 prefer dialogue-based interactions with businesses, while 83 percent expect personalized treatment.

The study shows that at least 86 percent of all generations desire targeted and relevant communications. 

This highlights the need for retailers to adopt a tailored approach for different age groups, especially during the holiday shopping season, which kicks off with Black Friday.

Black Friday marks the beginning of the Christmas shopping rush, presenting retailers with opportunities to boost sales and enhance brand visibility. 

According to Bain & Company, a 5 percent increase in customer retention can lead to a 25 percent rise in profits. 

However, navigating a successful omnichannel strategy that caters to diverse generational preferences can be challenging. For example, Baby Boomers tend to resist repetitive messaging, while Millennials are more comfortable using newer technologies like chatbots to make purchases.

Generation X prefers receiving updates about products and services, illustrating how varied communication preferences are across generations.

"Consumers from all generations want brands to engage with them in a conversational and friendly manner, which in turn fosters loyalty. However, brands need to get their communication strategies right," said Ivan Ostojić, Chief Business Officer at Infobip. He added that Infobip has published a playbook to help retailers and e-commerce companies tailor their approaches to each generation this shopping season.

The research shows that Gen Z and Millennials favor creativity in business communication, gravitating toward messages that are engaging, humorous, and entertaining. Meanwhile, Generation X and Baby Boomers prefer more straightforward and personalized messages, and they are less tolerant of repetitive content.

Chat apps are particularly popular among Baby Boomers, with 68 percent using them, compared to 57 percent of Gen X. This trend may be attributed to older generations having more time to connect with family and friends via free messaging services that include pictures and videos.

Younger consumers, on the other hand, naturally extend their use of chat apps to brand interactions. Millennials lead the way, with 60 percent preferring to communicate with brands via chat apps, followed by Gen Z at 53 percent. In comparison, only 28 percent of Baby Boomers and 25 percent of Gen X prefer this method.

Social media is another crucial channel for engaging younger audiences. Platforms like TikTok and YouTube dominate the time and attention of younger generations, and brands targeting teens are increasingly creating content on these platforms.

Surprisingly, 30 percent of Gen Z and younger Millennials also listed voice communication as a preferred channel for connecting with friends and family.

In Africa, where the population skews younger, understanding these communication preferences is even more critical. 

Kenya, for example, has approximately 18.4 million Gen Zers, accounting for 33.4 percent of the population. Similarly, Uganda and Tanzania have youthful populations, with more than 70 percent of their citizens under 30. 

As these young consumers increasingly drive economic growth, brands must adapt their communication strategies to effectively engage with them.