It’s no secret that retailers and brands are undergoing rapid and unprecedented transformation fueled by technological advancements and evolving consumer behaviors and expectations. To stay relevant and remain competitive in today’s fast-paced world, retailers and brand have to adapt to these changes. Unfortunately it is not a straightforward process — each generation has unique needs, values, and expectations that brands need to take into account when developing marketing and retail strategies.

To help retailers and brands on this journey, Zeta Global, a provider of an AI-powered marketing tool, recently published a report titled  “The Changing Face of Retail: Connecting with Gen X, Millennials, and Gen Z” that examines trends such as the emergence of “phygital” retail, sustainability, experiential retail, loyalty programs, and livestreaming, and looks at how each trend can be tailored to each generation’s unique needs. Here are some key findings from the report:

Gen Z

Gen Z is the youngest generation in the workforce and consumer market, and it currently makes up 20.2 percent of the population.

Despite being digital natives, 47 percent of Gen Z customers prefer to shop in-store rather than online — more than any other generation. However, they heavily pre-shop before visiting the brick-and-mortar store, using various digital tools such as mobile, social media, and friend-sourcing.

They also value authenticity in brands and companies. In fact, 95 percent of people in this group prioritize authenticity over other product or company attributes such as design or social impact. Gen Z is also hyper-aware of the impact that businesses have on the environment and society as a whole. They are drawn to brands that use visual storytelling to showcase ethical practices and demonstrate social responsibility.

Finally, members of the Gen Z population have  the least spending power and are known for being highly price-conscious. While they prioritize quality over quantity and are willing to save up and spend more for a high-quality product that will last longer, they are also frugal and will search for cheaper alternatives if necessary.

Millennials

Millennials are currently in their late twenties to early forties, making them the second-youngest generation in the workforce and consumer market.

Millennials value authenticity in brands and companies. In fact, 90 percent of Millennials choose brands they believe are authentic, and 43 percent prioritize the authenticity of a brand over content.

Millennials are also socially conscious and 75 percent prefer to buy from brands that are environmentally sustainable. While they may not always engage in action — such as recycling — they still prioritize sustainable practices and societal justice in their purchasing decisions. Transparency is also of utmost importance to millennial customers — they want to know exactly what they are buying and who they are buying from.

Finally, Millennials are the most price-sensitive of all generations, with low prices driving their choice of brands and retailers.

Gen X

Members of  the Gen X population are currently in their mid-forties to early fifties. They are often characterized as independent, adaptable, and pragmatic, with a strong work ethic and a focus on self-reliance.

Gen X is the most conservative generation when it comes to shopping, and trust is very important for them. In fact, 69 percent of Gen Xers believe that transparency is important for brands, and they prefer brands that are open and honest with them.

While Gen Xers may be skeptical of brands’ sustainability claims, they are becoming more eco-conscious and invest the most in sustainable causes compared to other generations. In fact, more than 90 percent of Gen X consumers say they would spend at least 10 percent more on any kind of sustainable product, whereas two years ago not even 35 percent  of them were willing to do so.

Despite being financially stable and outspending all other generations, Gen X places a large emphasis on getting the best value for their money. They are known for their extensive research and will not make a purchase until they are convinced that it is worth their investment. As such, they make thorough use of search engines, online reviews, and social media networks to gather information before making a purchase.

Finally, Gen X is a generation that displays extreme brand loyalty, with 84 percent being either extremely, moderately, or quite loyal to retail brands. This loyalty is driven by the availability of both long- and short-term rewards that are personalized to their individual needs and preferences.

The full Zeta Global report, which offers more details on these groups, can be downloaded here.