Small Business Enterprises, or SMEs, have been growing in number in recent years – and today, they account for three fifths of all employment, and a staggering 99.9% of all business in the UK.
As younger Generation Z and so-called Zillenial generations have come of business-owning age and experience, industries have begun to shift. These younger business-owners, having grown up with the wonders of the internet, have new ambitions – economical and ecological – and, having taught themselves using the internet, are here to disrupt the market in new and interesting ways. Here is how Gen Z has made their mark on business.
Understanding the Demographic
The majority of Gen-Z/Zillenial-started companies have the same core demographic as their founders and executives – Gen Z and Zillenial. This means that younger businesses have a great advantage over longer-running organisations, as they have a more in-depth understanding of the generations likely to buy their products. In turn, this means they can leverage customer retention strategies in a way much more conducive to encouraging repeat custom in the 16-34 age bracket.
Three Ways Younger Entrepreneurs Retain Customers
Social Media Revolution
As mentioned, Gen-Z and Zillenial business owners understand their target markets much more intimately than older business owners can – enabling them to utilize tools available to them far more effectively. Digital ad spend across social media platforms is set to reach $517 billion in 2023 – and younger businesses know how to leverage that spend correctly. Break-out social media platforms like Tik Tok are incredibly lucrative for engaging customers, especially previous customers who follow the brand; targeted and tailored short-form content can act as its own subliminal call to action, bringing customers back to an e-commerce platform over and over.
Loyalty Programs
Loyalty programs, where customers are rewarded with redeemable points for continued purchases with a company, have proven to be extremely popular as a business stratagem for younger business owners, driving their business’ sales through a sense of loyalty to a compelling brand. The success of loyalty programs is compounded by excellent marketing, which onboards new customers early and allows them to reap the benefits.
Email Marketing
Email marketing is nothing new in e-commerce. It has been a driving force for marketing and sales for many years, and remains the single most cost-effective way to increase sales for a business, with a return-on-investment of over 4000% on average. Younger businesses are using email marketing to similar effect, pushing products in the same way but with revitalized language, speaking to their demographics on their level.
Paving the Way
Generation Z are not only joining established businesses on the market, but they are also competing with them – and in so doing, paving the way for others in their generation to follow in their footsteps, utilise their generational strengths and wick custom away from older companies unable to adjust. Younger people with a newer mission have a fresher voice – something to which consumers react positively, leading to a more diverse and ethical range of products available across industries.
