While marketers were busy figuring out how to connect with Millennials, the next generation started growing up. The Centennials — age 13-18 — are mobile native, savvy consumers, empowered with the tools to make their own decisions and find solutions. Already this generation has $44 million in annual spending power. And this number will continue to grow as Centennials age.
What can brands and retailers do to get Centennials engaged? PowerReviews surveyed more than 1,700 Centennial (13-18) and Millennial (18-34) consumers in the U.S. to better understand how these two generations shop and interact with brands. Read on to learn why Centennial consumers are (and aren’t) engaging with brands, and what companies can do to better connect with the next generation of shoppers.
Centennials Are Reluctant to Engage With Brands
In the past month, 62% of Centennials haven’t written an online review — despite the fact that 95% read reviews before making a purchase and 64% saying they read at least four reviews before they buy. Unfortunately for retailers, Centennials are most likely to leave a product review if they’re unhappy than any other reason.
What can brands and retailers do to generate more positive reviews? 23% of Centennials said they would be most likely to write a review if they were given an incentive. Centennials crave information and want to verify that they’re making the right purchase decision. And, there are ways to leverage this opportunity without compromising on your brand’s integrity.
Centennials Respond to Incentives
One way of overcoming the challenge of securing reviews is through product sampling. Using this tactic, consumers are sent samples and asked to submit online reviews. Sampling also has the added benefit of promoting brand loyalty — something which technology has helped erode by providing unlimited opens to consumers. This allows retailers to build relationships with existing customers by rewarding loyalty while generating review content. Sweepstakes are another way to incentivize consumers. After all, everyone wants a chance to win big!
Remember: when incentivizing shoppers to write reviews, transparency is key. Ask your reviews software partner if they allow you to indicate whether a reviewer received a sample or another incentive for writing a review.
Negative Reviews Play a Key Role in the Purchase Journey of a Centennial
Late last year, there was a lot of media buzz after Amazon.com filed a lawsuit against more than 1,000 people for writing fake product reviews on their website. Inauthentic reviews break down trust and have the potential to tarnish a brand’s image, and this case was a good reminder to brands and retailers to have measures in place to ensure review content is authentic.
Through our survey of Centennial shoppers, we found that negative reviews actually have a key part to play in the shopper journey. For starters, nearly half of Centennials said they wouldn’t trust a product’s reviews if there were no negative reviews present.
And 60% of Centennials read negative reviews first. Consumers look for negative reviews to validate their purchasing decisions, so retailers and brands need to embrace transparency and trust consumers to gather information and make up their own minds.
4 Tips for Retailers to Engage with Generation Z
Centennials are reluctant to engage with brands and retailers. But there are things brands and retailers can do to better engage with these savvy shoppers.
- Incentivize reviews: Offer customers a discount on future purchases or a free sample to encourage them to write a review. It’s a low-cost investment that will help generate future sales.
- Be responsive: If Centennials are talking about you and your products in reviews, engage with them. And, empower customers to answer questions from other shoppers.
- Be transparent: Don’t mislead consumers by removing negative reviews. And be sure to indicate if incentives were provided to the review writer. Otherwise, you’re likely to lose shoppers’ trust and risk breaking the law.
- Clean up: Fake reviews can damage your brand, so real reviews need to be verified and false reviews protected again. Be sure to ask your ratings and reviews provider what measures they have in place to ensure reviews are authentic and fraud-free.
Remember: the purchasing power of Centennials will only continue to grow. Now’s the time to get a better understanding of the way this generation shops and use that information to hone your marketing plans to better reach this demographic.
As our newest generation of shopper, Centennials (also known as Generation Z) have high expectations. Armed with technology, they have the power to source information and make decisions without the influence of retailers. How can brands and retailers better connect with this next generation of shoppers? The first step is to understand how Centennials are browsing and shopping for products.
Recently, PowerReviews surveyed more than 1,700 Centennial (13-18) and Millennial (19-34) consumers in the U.S. to better understand how the shopping habits of the two generations differ. The largest shakeup in shopper habits between the two generations is that more Centennials like shopping in-store. Could the Centennials be leading a return to in-store shopping?
Back In-Store?
When doing their research and browsing for products, 94% of Centennials and 96% of Millennials do so online. That probably comes as no surprise. Then, when it comes time to purchase, 63% of Millennials say they prefer to stay online, with just 37% opting to go in-store. However, Centennials are far more likely to go in-store to purchase, with 46% saying that this was their preference.
Of course, it’s not the end of online shopping. Nearly half of the Centennials we surveyed said they’ve made up to three separate transactions online in the previous month. But could this indicate a future resurgence for in-store shopping? Time will tell.
What Can Retailers Do?
Though Centennials may be leading a return to in-store shopping, that certainly doesn’t mean brands and retailers should devalue their online initiatives. Instead, smart retailers must be flexible enough to evolve to meet each generation’s shopping needs and keep fine tuning the relationship between online and in-store.
What can you do now? For starters, make sure it’s easy for all shoppers to find the information they’re looking for — regardless of whether they’re browsing and buying online or in-store. Make sure you have reviews available on your mobile site and via mobile apps, and be sure to use reviews in-store, either through print advertisements or digital displays. Remember — reviews aren’t just a tool for those who browse and purchase online. Previous PowerReviews research found that 70% of shoppers want to access product ratings and reviews while shopping in-store.
If you don’t provide shoppers with the information they need to make a purchase decision, you risk losing them to a competitor who will.
Why do you think Centennials are more likely to purchase in-store? Share your thoughts in the comments below.
Ratings and reviews technology company recognized for employee-focused culture and collaborative work environment
January 11, 2016– CHICAGO– PowerReviews, a leading provider of ratings, reviews and question-and-answer technology to more than 1,000 global brands and retailers, has been named one of 2015’s National Best and Brightest Companies to Work For® by the National Association for Business Resources.
PowerReviews was honored for its commitment to excellence and comprehensive employee enrichment. This recognition comes shortly after the company was named one of the Best and Brightest Companies to Work For® in both Chicago and San Francisco.
PowerReviews places a high value on transparency – between brands and consumers, as well as management and staff – creating a positive and energized work environment. This transparency has laid the foundation for a company culture focused on open communication, knowledge sharing and collaboration.
“Every PowerReviews employee has the ability to shape the company’s future, which creates a sense of ownership and responsibility,” says Matt Moog, CEO at PowerReviews. “Our team’s talent and dedication is the reason why PowerReviews is such a great place to work, and it shows in everything we do – from our products to the way we interact with our clients.”
PowerReviews believes that employees won’t be professionally effective if they aren’t personally fulfilled. To foster a healthy work-life balance, PowerReviews offers benefits such as a flexible paid time off policy, and encourages all employees to join committees that enact change both within the company and in the surrounding communities.
Since its relaunch in July 2014, PowerReviews has experienced explosive business growth and quickly grown its staff to support continued expansion. Through this rapid growth, PowerReviews has remained dedicated to creating and maintaining its employee-centric work environment and successfully doubled its headcount in just one year.
Nominees for the Best and Brightest award were evaluated by an independent research firm on employee selection, engagement, development and enrichment, retention, community initiatives and strategic company performance.
To learn more about PowerReviews, visit www.powerreviews.com.
About PowerReviews
PowerReviews works with more than 1,000 global brands and retailers to collect and display ratings and reviews on 5,000 websites. Ratings and reviews are an essential resource for consumers as they search and shop online and in-store: they drive relevant traffic, increase sales, and create actionable insights to improve products and services. PowerReviews’ mobile-friendly rating and review and Q&A software is fast to implement and simple to customize, making it easy for brands and retailers to generate more authentic content that is seen by more consumers. The PowerReviews Network is the largest in the industry, reaching 2,500 retailers and more than 700 million in-market shoppers every month, giving retailers and brands the power to reach shoppers wherever they are. For more information, visit www.powerreviews.com.
About Best and Brightest Companies to Work For
The “Best and Brightest Companies to Work For®”, a program of the National Association for Business Resources is presented annually in several markets: Detroit, Chicago, Atlanta, San Francisco, Milwaukee, Houston, Grand Rapids and nationally. http://www.101bestandbrightest.com.
For additional information:
Meghan Spork
Walker Sands Communications
312-241-1474
Meghan.spork@walkersands.com
Over the past decade or so, there’s been a ton of commentary on the best way to engage with Millennials (consumers age 19-34). In fact, some claim that Millennials are the most studied generation ever. But while everyone’s been focused on the Millennials, the next generation of shoppers — the Centennials — have been growing up quickly.
How are the shopping habits of Centennials (age 13-18, also known as Generation Z) different from those of Millennials? PowerReviews conducted a survey of more than 1,700 Millennial and Centennial consumers in the U.S. to answer that question.
Read on to learn how Generation Z is conducting product research prior to purchase, as well as 3 tips for better engaging with this generation while they’re doing their product research.
Centennials Research First, Spend Later
Centennials have grown up in the worst recession on record, so it’s not surprising that they’re generally resourceful and practical when it comes to spending money. In fact, nearly three quarters of Centennials say they take their time with most purchases by researching price, reading product reviews, and exploring different brands.
In addition, Centennials are savers rather than spenders. In fact, three quarters of Centennials say they prefer to save money for the future rather than immediately spend on the products they want. And, they strive to be independent. When Centennials have a big purchase on the horizon, nearly half save up and buy it themselves. A third admit they do have help from their parents but still make a contribution. And just 13% of Centennials reported being treated to the product outright by their parents.
Centennials Prefer Browsing on Laptop and Desktop Computers
According to the Pew Research Center, 85% of teens have access to a smartphone. So it comes as a surprise that more that half of Centennials prefer to do their product research on a laptop or desktop computer. The second most favored method for product research is the mobile phone, follow by the tablet. While Centennials do purchase in store, just 6% will do their research there. This is a clear warning shot that retailers should give Centennials lots of information early in their shopping journey.
Centennials Care About Quality
The majority (70%) of Centennials say that quality is more important to them than price. So how do they determine quality? By reading online reviews. In fact, nearly half of Centennials say they won’t purchase a product if there aren’t enough reviews.
Reviews are now an expected part of the shopping experience with 95% of Centennials searching for and reading reviews to enhance and validate their product choice. The majority (52%) seek out reviews on third party blogs and websites. But a third want to see reviews directly on a retailer or brand’s website. It’s a new demand, which is on the rise. Retailer and brand websites that don’t have reviews are at a disadvantage and risk losing customers at a key part of their shopping journey.
Connecting With Centennials While They Browse
How can brands and retailers better connect with Centennial shoppers while they’re conducting product research? Here are three key tips.
- Emphasize quality and differentiation: Centennials seek quality over price. So make sure the reviews you feature discuss the quality of your products, rather than exclusively praising low pricing and delivery costs.
- Engage early online: Nearly all Centennials are doing their product research online, so it’s key for brands and retailers to optimize their websites for browsing and purchasing. Centennials are hungry for information, so make sure you have lots of interesting and helpful product information, descriptions, sizing information, photos, and reviews.
- Bolster your online presence: Centennials are using their desktop computers and mobile phones as a key part of their shopping experience. Ensure your website is optimized for mobile so it loads quickly and is easy to view and navigate, no matter where your customer is searching.
Now is the time to learn all you can about the next generation of shoppers and tailor your marketing strategy accordingly. Remember: If you fail to engage with this generation, they have the independence and control to conduct their entire shopper journey without you.
Featured Presenter
Kimberly Ruthenbeck | Room & Board | Director of Web Customer Experience
Ruthenbeck has been with national home furnishings retailer Room & Board since 1994, serving in a variety of strategic roles and leading teams in the following areas: stores, vendor management, inventory management, and merchandising. Her breadth of experience and passion for the customer has led her to her current role as director of web experience.
Since 2008, Ruthenbeck and her team have developed the website into a best-in-class experience by creating a site that is both intuitive and inspiring. Roomandboard.com has been recognized for its leading-edge presentation of complex product options and customization that have translated to double-digit sales increases online.
User-generated content, such as ratings and reviews, images, and Q&A, has revolutionized the online consumer purchase journey. As consumers become more mobile, they are demanding relevant user generated content and a seamless shopping experience across channels.
Learn how Room & Board leverages reviews online and in-store.
During this webinar, Kimberly Ruthenbeck, Director of Web Customer Experience at Room & Board discusses how the company unifies the voice of the consumer online and in-store to improve the shopping journey, increase sales, and create actionable insights.
Session highlights:
- Discover how Room & Board uses ratings and reviews to impact the consumer journey across all channels
- Learn how Room & Board mines reviews for feedback and to gain product insights
- Explore strategies for driving more traffic and sales with UGC
