Retail Consumer Data Meet Gen Z · 2018-04-27 · As a jeweller, we tend to only have one of any particular line in-stock. We needed a reliable infrastructure to support our omnichannel

Results from a Cybertill sponsored YouGov survey of 18-24 year olds living in

the UK. The survey covered topics such as in-store technology, click and collect,

omnichannel shopping, experiential retailing, and loyalty.

Championing great customer experiences cybertill.com

Meet Gen ZRetail Consumer Data

Gen Z UK Report Cybertill YouGov 2018-FINAL.indd 1 22/04/2018 11:20:59

The media is shouting about Gen Z, and retailers are listening, but a majority of the research on 18-24 year olds is US-based. We’re changing that.

Ian Tomlinson, CEO, Cybertill

GEN Z YOUGOV SURVEY 2018 cybertill.com

Gen Z are largely misunderstood, and much like Millenials, are pigeonholed by the media. Lazy, selfish, swipe zombies, unsatiable in their quest for makeup tutorials and cat videos. But what is actually relevant when it comes to how they consume? And how can retailers figure out what really matters?

When we were looking for data about

Gen Z to share with our retail customers, we

noticed a considerable gap in research in the UK.

A majority of the information UK retailers have

access to about Gen Z is largely based on the US

market. So, we sponsored a survey with YouGov

which digs deep into the omnichannel preferences

of the Gen Z consumer, as well as Millenials and

other generations. We hope this report gives you

insight into the next generation of earners and

shoppers, and what you can be doing now in

order to prepare for the future.

Who are Gen Z

2


GEN Z YOUGOV SURVEY 2018

Shopping preferences at a glance

55%

49%

65%

18%

57%

70%voted contactless payment to be the most valuable in-store tech, followed by self-stock check (38%)

said it is most frustrating when they can’t find a desired item in-store

of in-store fashion purchases are influenced by ecommerce

of Gen Z don’t like it when shop staff approach them when they enter a shop

Only said that VIP events would encourage them to sign up for a loyalty scheme

find queuing for fitting rooms in-store most frustrating

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I don’t post anything on Facebook, my mum’s on Facebook.Gen Z, AnonLiverpool, UK



Across the board, stores influence Gen Z consumers to make online purchases more often than online browsing influences Gen Z consumers to make in-store purchase, except electricals which are mostly researched online and bought in-store.

Gen Z shopping preferences differ depending on what they are buying, and they often

browse and shop across various channels. For example, browsing online, then going

in-store to purchase, further reinforcing the importance of having a seamless omnichannel

presence as consumers move across the various shopping channels throughout their

consumer journey.

32% browse and buy fashion in-store, compared to 23% who browse and buy online.

Nearly half of all in-store fashion purchases Gen Z make are assisted by browsing online.

Electricals purchases are heavily influenced by online browsing, with two thirds of

electrical purchases in-store assisted by ecommerce.

For a generation that has a reputation for really needing to be impressed, we were

surprised to find that most people in the Gen Z age group are not really bothered by

experiential (i.e. in-store product demonstrations, events, testers, etc) features to

motivate them to shop in-store.

Gen Z and omnichannel

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Gen Z want to see real people as opposed to celebrities, and typically that will come across through social influencers. To reach Gen Z it will be more effective to use influencers with smaller, but more niche followers.”

Angie Read, Co-author Marketing to Gen Z: The Rules for Reaching This Vast and Very Different Generation of Influencers.



Gen Z shopping preferences, by sector

Most Gen Z consumers don’t have specific shopping channel preferences and thus shop across a mixture of online

and in-store channels, reinforcing the importance of a seamless omnichannel experience. Grocery is the exception.

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18%

31%

9%

31%

26%

4%

19%

19%

19%

66%

9%

9%

19%

3%

7%

0%

11%

13%

7%

6%

10%

7%

13%

6%

6%

4%

11%

12%

5%

3%

11%

12%

16%

13%

10%

3%

14%

10%

6%

7%

32%

27%

37%

29%

24%

9%

40%

43%

21%

16%

21%

14%

6%

18%

27%

81%

5%

4%

42%

2%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

In-store only

Online only

Browse in-store and buy online

Browse online and buy in-store

No preference

Not applicable - I do not buy this

Sports and leisure (e.g. sportswear and equipment etc.)

Health and beauty

Electricals

Home and DIY

Jewellery and accessories

Baby and nursery

Fashion

Books and stationary

Arts and crafts

Groceries (i.e. food and drink)



Gen Z hate queuing in-store. More than any other age group, 37% of Gen Z find queuing for the checkout frustrating and 57% find queuing for the fitting rooms frustrating.

However, the store is still incredibly important to Gen Z. They like shopping in-store

because of the immediacy of being able to take products home right away, and not have

to wait in for delivery.

86% of Gen Z voted the biggest frustration is when an item is marked ‘in-stock’ online

on a retailer’s website, but not available when you go specifically to find it in-store. So, if

you mark something as in stock in a shop location on your website, it better be there. Or,

promote stock check in-store converting to click and collect to drive footfall to store and

give Gen Z consumers certainty.

Overall, Gen Z are much more interested in helping themselves and get frustrated when

shop staff approach them in-store. A huge proportion, 70% of Gen Z said they find it

frustrating when they can’t find a desired item in-store, on their own.

Retailers should invest in technology that allows for self checkout or self stock check

in-store and on websites if they want to entice Gen Z and keep them coming back.

No one puts Gen Z in a queue

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Despite expecting to see dramatic differences between the Millennials and Generation Z, the results were actually very similar. The only instances where there where differing results was when comparing the answers of over 55’s to Generation Z or Millennials.



According to population statistics, there are 2.2 billion Gen Z’ers world-wide and only 1.7 billion Millenials.

Jonathan Kendall, Global Ops Director, De Beers ForevermarkSpeaking in Hong Kong at the International Jewellery Show 2018



Meeting Gen Z demands

F.Hinds’ clever reserve and collect system shows when a customer will be able to view

an item in any store. If an item is in stock at a specific store, collection can be arranged

for as soon as two hours from reservation. Offering pay in-store instead of pay online

ensures Gen Z customers aren’t out of pocket if considering more than one style.

https://www.fhinds.co.uk/basket

As a jeweller, we tend to only have one of any particular line in-stock. We needed a reliable infrastructure to support our omnichannel initiatives, and the Cybertill’s RetailStore platform gives us this.”

Paul Hinds, IT Director, F.Hinds

Cybertill customer since 2013

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Gen Z in-store frustrations

Gen Z are most frustrated by the prospect of seeing an item listed in stock online and then not being able to get it in-store.

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22%

5%

20%

17%

2%

15%

9%

11%

11%

41%

15%

43%

18%

45%

53%

11%

34%

27%

47%

26%

45%

50%

25%

38%

23%

23%

45%

32%

44%

34%

46%

9%

29%

8%

37%

9%

6%

40%

17%

16%

6%

15%

1%

4%

2%

3%

3%

1%

1%

2%

4%

2%

1%

4%

2%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Very frustrated

Fairly frustrated

Not very frustrated

Not at all frustrated

Don't know

The store's staff approaching me as soon as I get into the store

There is no loyalty scheme/ VIP discounts available

The shop's staff seem to be less knowledgeable about the product(s) than you

It is difficult to find a desired item in-store

There is no Wi-Fi available in-store

There is a lack of mobile phone signal in-store

There is a lack of toilet facilities in-store

Having to queue for the fitting room(s)

Having to queue for the checkout in-store

An item is marked 'in-stock' online on their website, but not available when you go to find it in-store

The store doesn't stock the full range of items available online (i.e. on their website), or there are items that are not available as they are out

of stock



Even though a dedicated click and collect entrance and car park may appeal to older consumers, Gen Z are not really bothered about it. However, a dedicated area to pick up collection goods is important, i.e. a till separate from the main checkout till.

When picking up a click and collect order, 48% of Gen Z feel frustrated when they are

unable to retrieve their order confirmation email on a mobile due to poor mobile signal

in-store. Remember Gen Z queue aversion? This is definitely something that could cause a

queue at a collection till. What frustrates Gen Z the most about click and collect is when an

item they ordered arrives later than promised.

When choosing click and collect, what Gen Z (and Millenials) want the most is real-time

updates via text message, email or push notification and to know exactly when they can

their item up. This is almost more important than the speed in which Gen Z consumers

get the items.

Consumers over 35 years old favour ease over information and want a dedicated ‘click and

collect’ till or area above everything else. Whilst many retailers are beginning to invest in

click and collect drive throughs and car parks, Gen Z are not bothered by this.

Gen Z and click and collect

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It’s more important to tell your customers exactly when they will receive their order so that they can, for example, go and pick it up on their lunch break, rather than to tell them a vague version of ‘next day.’




What Gen Z wants from click and collect

When asked to imagine buying an item online and collecting it in-store, Gen Z preferred:

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8%

4%

17%

41%

45%

57%

59%

67%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Don't know

None of the above

A dedicated car park, drive through, or entrance for collection

Dedicated area to examine, try on or test the item there and then when you pick it up and then get customer service to help if needed

Free Wi-Fi in-store to make it easy to retrieve order confirmation

Item packaged appropriately depending on size and what it is (e.g. luxury item in good quality branded packaging, not unnecessarily

large packaging depending on the item etc.)

A dedicated 'click-and-collect' till or area

Real-time item updates via text message, email or push notification so you know exactly when to pick the item up



Gen Z are all for the self-help; not wanting to speak to shop staff to check stock levels and would rather do it themselves.

A majority of Gen Z chose in-store technology that made them more self sufficient whilst

shopping. 38% want self-stock check. 35% want self-check out.

34% of Gen Z want touch screen displays in fitting rooms (i.e. to request a different size/

colour).

The majority of Gen Z (55)% said contactless/mobile payment would enhance their overall

in-store shopping experience.

Surprisingly, some of the tech that the media has been saying is ‘must have’ over the past

5 years or so, Gen Z want nothing to do with. For example, Gen Z do not think that beacon

technology (landmarks that send signals to mobile devices when you go near them with

retail offers and information) would enhance their overall in-store shopping.

16% of Gen Z don’t care for in-store technology and said that none of the options would

enhance their shopping experience.

How Gen Z shop with tech in-store

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Whatever technology you’re implementing in-store, for Gen Z, make it easy to understand, make it easy for them to help themselves, and make it work.”




Engaging Gen Z where they are

CYBERTILL.COM/CASE-STUDY-NEALS-YARD

Neal’s Yard Remedies use a pop-up shop at Wilderness Festival to engage with new

customers. The brand provides an experience, but also convienience. Shoppers can test

products there and then and complete purchases on mobile device. The retailer uses

endless aisle technology to help shop staff sell better in-store at the pop-up and in-store.

Cybertill has given us insight into how people are buying. Because the data is live, Cybertill enriches our decision-making process and we can see the impact of our promotions in the sales figures.

Head of IT, Neal’s Yard Remedies

Cybertill customer since 2014

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https://www.retailstore.co.uk/case-study-neals-yard/


Gen Z in-store technology desires

Payment technology in-store takes the lead significantly as a preference when Gen Z

were asked about what kind of technology would enhance their experiences in-store.

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9%

16%

15%

21%

31%

34%

34%

35%

38%

55%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Don't know

None of these

Beacons (i.e. physical landmarks that send signals to mobile devices when I go near them with retail offers and

information)

Mobile point of sale (i.e. portable mobile devices available for check-out by shop staff on the shop floor)

E-receipts (i.e. being sent my receipt via email, rather than a paper copy)

Touch screen display on the shop floor to browse items that are in-store

Touch screen display in the fitting room(s) (i.e. to request a different size/colour)

Self-checkout via touch screen display where you collect your items elsewhere in-store (e.g. in Argos)

Self-stock check via touch screen displays around the store

Contactless/ mobile payment (e.g. Apple Pay etc.)



Gen Z are really not enthused by retailers offering an ‘experience’ as the sole incentive for signing up to loyalty schemes. They want discounts!

Unsurprisingly, 75% of Gen Z state that discounts and promotions would encourage them

to sign up to a loyalty scheme with a retailer. In fact, Gen Z, Millenials, and those aged over

35 were all in agreement on loyalty schemes across the board.

Points-based schemes were slightly less popular with 67%of Gen Z stating they would

be encouraged to sign up for a loyalty scheme with offers of points that equal money to

spend in-store. To put it simply, retailers should make their loyalty schemes as simple as

possible for Gen Z.

Only 22% liked personal recommendations (i.e. recommendations based on purchase

history) as an incentive to sign up.

Also, retailers may want to save VIP events and experiential retailing for PR stunts and not

as an incentive to keep customers loyal as only 18% of Gen Z, and 12% of Millennials say

that this would incentivise them to be loyal to a brand.

Keeping Gen Z loyal - how?

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Despite their age, Gen Z are more akin to their grandparents than they are to Millenials when it comes to money. They are hard working and value financial stability and witnessed their parents in the recession.

Angie Read, Co-author Marketing to Gen Z: The Rules for Reaching This Vast and Very Different Generation of Influencers.



Enticing Gen Z with loyalty

Entice Gen Z with discounts to keep them spending with you.Invest in personalised promotions rather than

events or experiences. Gen Z want value for money and see right through PR stunts.

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6%

5%

1%

18%

22%

22%

27%

35%

39%

57%

67%

75%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Not applicable - nothing in particular would encourage me to sign up to a loyalty scheme with a

store

Don't know

Other

VIP events (e.g. launch parties, masterclasses, celebrity signings etc.)

Personal recommendations (i.e. recommendations based on your purchase history)

VIP pre-launch access to stock or sales

Remembers previous orders so I can easily order again

If I could view and redeem my offers/discounts on a mobile device

Personalised promotions (i.e. promotions based on your purchase history)

Cashback (i.e. you earn cash or credit each time you spend)

Points that equal money to spend in-store

Discounts (e.g. 20% off one item, Buy-One-Get-One-Free offers etc.)



The ResearchThe online YouGov Survey was completed by 2004 GB adults aged

between 18-55+. A total of 973 males and 1031 females took part.

The analysis has been broken down into the demographics of 183

Generation Z (18-24), 304 Millennials (25-34) and then participants age

35-55+.

Terms and ConditionsThe artwork and references contained within this report are copyright

and trademark of respective owners. Cybertill does claim ownership of

the artwork. The artwork displayed within this report are displayed to

support the topic of stock management and omnichannel retailing.

Data contained within this report may only be published if crediting

‘Cybertill and YouGov’ and a link back to cybertill.com/gen-z

For press enquiries, or to request access to the raw data, please contact

[email protected]

Research methodology

18cybertill.com


Cybertill’s RetailStore platform can help you create a more personalised and streamlined

experience for your customers and staff. When your business operates online and in-store,

the till is not just a point of sale, but instead, a point of service. Cybertill’s RetailStore

platform supports omnichannel initiatives providing:

▶ Outstanding POS software with

real-time, secure stock, sales, and

customer data visibility

▶ Cloud-based, modular completeretail management platform with

enterprise merchandising and

warehousing options including

automated and in-transit stock

reservations

▶ Omnichannel sales and returns

processing including

click and collect, dropship,

and inter-store transfers

▶ Enhanced customer experience

with touch screen mobile POS and

e-receipt options

▶ Advanced real-time reporting

including accounting, budgeting and

forecasting

▶ Seamless integration into existing

ERP, accounting, ecommerce systems,

and more

▶ Marketplace modules for multi-

channel online selling

▶ CRM module with clientellingoptions to personalise your

omnichannel marketing

▶ Modules for bespoke in-storeservices such as workshop, VIP

customer service and repairs

Serve your customers better

cybertill.com 19


We’re very happy that we chose Cybertill.” Roy Clark, Director of Retail and Trading, Barnardo’s



MUSTO rely on Cybertill’s software not only to manage retail operations of the store estate, but also to process

transactions efficiently at MUSTO’s global pop-up stores for the Volvo Ocean Race. The race is the world’s

toughest ocean race which stops at 10 cities, in 10 countries as the teams traverse the globe. The pop-up stores

at each port village are operational for only 2-4 weeks, this gives MUSTO unbridled opportunity to engage and

interact with new consumers and loyal fans.

Amazingly, the teams in the race move so quickly between stopover ports, two container stores needed to be

planned to leapfrog each other to ensure that the pop-up shop is ready when the teams arrive in port. At each

port, mobile tills need to accept local currencies and payment preferences including China’s 6-digit PIN; and

stock, sales, and customer data must also be accurate and accessible in real-time.

Cybertill’s software offers quick and easy analysis of inventory and provides automated merchandising tools,

such as being able to track in-transit stock. Because it is cloud based, staff onsite do not have to manage the

PoS software. The real-time data enables the MUSTO team to monitor sales live and optimise stock for each

port.

For MUSTO, Cybertill’s RetailStore platform is the lifeblood of the Volvo Ocean Race’s commercial operation as

well as a stable technology partner for the MUSTO’s retail estate.

Know exactly what your business needs with live, business critical data. See what the RetailStore can do for

you. Schedule a free consultation today.

Retailing ‘round the world in 280 days

cybertill.com 21

The investment in Cybertill has allowed us to integrate our ecommerce platform with our stores. We now have live sales and product data feeding across the business. This makes decision making more accurate.”

Frank Potts, IT Director, MUSTO



The Retail Skills academy was established by City College Northwich and opened a shop called Ego to give

students some real-life experience. Ego is a buy and sell fashion boutique where donors keep 52% of the sale

price. The remainder is used to train students to become great retailers.

The Retail Skills Academy’s shop, Ego, needed a professional and flexible system, that would fit its unique

business model. “Cybertill is incredibly flexible. It has allowed us to have our donors and suppliers on the

system.” Explains Sue Dougal, Head of Retail, Retail Skills Academy. Cybertill being web-based was critical to

the Retail Skills Academy, as data backups and software updates are done by Cybertill’s managed service. “We

are not a retailer, we are a college. For us to buy software and expect our IT department to support it would

have been unreasonable.”

The shop has proved to be a great success. When it first opened, they were taking all donated items. Now,

they turn away 50% of items as through Cybertill they know what sells and what doesn’t. Cybertill has been

key in giving students a real understanding of the business as they are able to monitor progress and access

information. “The financial reporting is key, so we can see how much we are contributing to our operational

costs.”

Accept new and donated goods, perfect for vintage or second-hand shops. Arrange a demo today.

Training the retail heros of tomorrow at Ego

cybertill.com 22

When students want to analyse the business, we have numbers instantly. With Cybertill we can illustrate that we want them to learn how to influence a retail business. It is so much more powerful than text book examples and case studies.”

Sue Dougal, Head of Retail, Retail Skills Academy



Daniel Footwear is an independent retailer with over 30 stores throughout the UK and an award-winning

ecommerce site. The shops provide an extensive range of on trend designer shoes, bags, and accessories in a

boutique retail environment. Daniel Footwear needed a more progressive system with a real-time single view

of stock. “We realised t hat real-time stock levels would allow us to run the business more efficiently,” explains

Daniel Buck, Founder and owner. “We needed a system that was easy to use in-store and I wanted minimal

disruption throughout the installation.” Management needed readily available information to make informed

decisions about the business, especially as stores are spread throughout the UK.

The real-time reporting allows head office to plan daily stock shipments to stores at the busiest times of the

year. Cybertill’s live reporting allows Daniel Footwear to get the right stock picked, packed, and despatched

to stores same day and optimised sales nationwide. “With Cybertill, reporting is live as well as simple to

understand. You can monitor and oversee sales, stock, costs, margins so you can get a real handle on how the

business is doing,” explained Daniel Buck.

The management team can access data from any location on any web-enabled device. “When we’re out of the

office we can act on things quickly as you can access Cybertill on your phone. It is a perk to have it anywhere

instantly.” Chris Hawker, Stock Control Manager. “Cybertill links in real-time to our ecommerce store, which is

invaluable. It means online can only see stock that we have available so customers don’t get frustrated ordering

lines that are out of stock.”

Hold less stock and sell more of it. Schedule a free demo of the brand new Cybertill RetailStore platform today.

Helping foster growth in footwear

cybertill.com 23

The Cybertill system has helped the business grow and the simplicity of rolling the system out across stores makes it ideal for expanding retailers.”

Daniel Buck, founder and owner, Daniel Footwear


It’s scalable, as we grow and roll out more shops, the scalability of the Cybertill platform is infinite.” Head of IT, Neal’s Yard Remedies



Neal’s Yard Remedies are a natural cosmetics and skincare company, formed in 1981. The brand actively

sources freshly grown ingredients, and support and promote organic farming. Neal’s Yard Remedies’ products

don’t use synthetic ingredients, so all product constitutes have to be grown, and quite often they have seasonal

patterns. It is not uncommon for the company to place orders 24-months in advance. Because the products

often have such a short shelf life, the whole manufacturing system relies on sound information in order to track

sales and forecast growth areas.

Before using Cybertill Neal’s Yard Remedies used a basic point of sale system throughout its stores, but as the

estate grew to include franchise and concessions, head office needed to see real-time data across the whole

business.

In addition to using Cybertill’s software and mobile point of sale at pop up shops, the cosmetics company

makes use of Cybertill’s minimum and maximum inventory level application which feeds through to the

purchase order systems - which at busy times like Christmas uses the algorithm re-stocking tool, when sales

become more dynamic. These features allow Neal’s Yard Remedies’ operation to be as lean as it can be.

“Cybertill has given us insight into how people are buying. Because the data is live, it means we can respond

instantly to emerging trends. Cybertill enriches our decision-making process and we can see the impact of our

promotions in the sales figures.” says Head of IT.

Get smarter with your retail management. Schedule a free demo today.

Keeping tech fresh with Neal’s Yard Remedies

cybertill.com

It’s scalable, as we grow and roll out more shops, the scalability of the Cybertill platform is infinite.”

Head of IT, Neal’s Yard Remedies


We needed a reliable infrastructure to support our omnichannel initiatives. The RetailStore platform gives us this.” Paul Hinds, IT Director, F.Hinds


t: 0800 030 4459 e: [email protected] w: cybertill.com @cybertill linkedin.com/company/cybertill

cybertill.com/arrange-a-demo

Cybertill provides complete retail management solutions for multi-store retailers and brands committed to improving customer

experience. Its dedicated cloud point of sale platforms, RetailStore and CharityStore enable a real-time single view of stock, sales,

and customers across shops, mobile points of sale, click and collect points, franchises, concessions, and ecommerce.

Over 700 retailers and brands trust Cybertill

Let’s crack this omnichannel thing together.


https://www.retailstore.co.uk/arrange-a-demonstration/

Documents

Retail Consumer Data Meet Gen Z · 2018-04-27 · As a jeweller, we tend to only have one of any particular line in-stock. We needed a reliable infrastructure to support our omnichannel