New data from GoDaddy found that small businesses must maintain a strong online presence to attract Gen Z and Millennial consumers, who heavily rely on online research before making purchases.
That online presence is vital for small businesses, especially if their target audience includes Gen Z or Millennials. GoDaddy reported that not having an online presence could significantly impact a business’s bottom line.
A survey it conducted found that 80 per cent of Gen Z and Millennials research small businesses online before shopping with them for the first time. These younger consumers take extra steps to verify a business’s credibility by checking reviews, websites and social media accounts.
This new cohort of consumers largely agrees on several reasons they would avoid purchasing from a business’s online store. More than half (56 per cent) said a lack of reviews would deter them from shopping with a new small business. More than a third (36.5 per cent) stated that not accepting their preferred method of payment would be a deal-breaker.
Additionally, a third (32.5 per cent) indicated that not including contact information on a website discourages them from making a purchase. Almost the same number (31.5 per cent) said an incomplete or under-construction website would dissuade them from buying, while a quarter (26 per cent) shared that not having an “About Us” page would hinder their decision.
Almost another quarter (23.5 per cent) noted that uncertainties about the safety of their credit card information would stop them from purchasing.
Gen Z and Millennial shoppers also agree on effective ways for business owners to improve their brand’s online reputation. For three out of four (74 per cent), a lack of recent updates (within the last 30 days) on a business’s social media or blog impacts their perception of the business’ integrity. About three-quarters of Gen Z (73 per cent) and Millennial (80 per cent) shoppers feel that having a dedicated website and online store makes a small business more credible.
“Knowing what shoppers are specifically researching online when considering purchasing from a new business should have entrepreneurs paying close attention to how their brand is showing up,” said GoDaddy senior director of marketing Amy Jennette. “Small business owners should make every effort to put their best foot forward and attract customers with the right digital tools.”
GoDaddy’s survey results show that while Gen Z and Millennial customers have a lot in common when it comes to online shopping, there is a clear generational divide in social media platform preferences.
For example, 61 per cent of Gen Z consumers expect businesses to be on Instagram while Millennials expect most (61 per cent) to be on Facebook first, Instagram second (49 per cent). Despite these differences, the vast majority of Gen Z (95 per cent) and Millennial (94 per cent) shoppers expect businesses to be present on some form of social media platform.
The survey findings suggest that entrepreneurs should prioritize gathering reviews, updating their business websites, and frequently publishing on-brand content across social media to attract and retain younger consumers.
Image credit: Depositphotos.com
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