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Gen Z, millennials to SMBs: Get online or be left behind

Monday, November 25, 2024 — 12:42:38 (EST)

TEMPE, Ariz., Nov. 21, 2024 /PRNewswire/ -- Maintaining an online presence is important to small businesses, but is it necessary? According to new data from GoDaddy (NYSE:GDDY), if a business's target audience is Gen Z or Millennials, not having one could seriously impact their bottom line.

A majority (80%) of 1,000 Gen Z and Millennial U.S. consumers surveyed in September shared they research small businesses online before shopping with them for the first time. They are taking extra steps to verify the credibility of a business by checking their reviews, website and social media accounts.

New survey data from GoDaddy shows 80% of Gen Z and Millennial consumers research businesses before buying.

This new cohort of younger consumers largely aligns on the reasons they would not purchase from a business's online store. For example:

More than half (56%) said a lack of reviews would make them not shop with a new small business Nearly 4 in 10 (36.5%) stated a business not accepting their preferred method of payment would deter them from shopping at a new small business

3 in 10 (32.5%) indicated not including contact information on a website discourages them from purchasing from a new small business

Around 1 in 3 (31.5%) said having an incomplete or under construction website dissuades them from buying from a new small business

Over a quarter (26%) shared not having an "About Us" page on a website would hinder them from shopping at a new small business

Almost 1 in 4 (23.5%) noted uncertainties around if their credit card information is safe would stop them from purchasing at a new small business

Gen Z and Millennial shoppers also strongly agree on some effective ways a business owner could improve their brand's online reputation for new customers. For example:

For 3 out of 4 Gen Z and Millennial consumers combined (74%), a lack of recent updates (within the last 30 days) on a business's social media or blog impacts their integrity

Nearly 4 in 5 Gen Z (73%) and Millennial (80%) shoppers feel a dedicated website and online store make 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."

When it comes to shopping online, GoDaddy's survey results show Gen Z and Millennial customers have a lot in common. However, regarding social media preferences, there is a clear generational divide between which platforms Gen Z and Millennials prefer to see small businesses using.

Below is a table showing the percentage of respondents in each age group stating where they expect a business to be present. (For example, 61% of Gen Z consumers expect businesses to be on Instagram.)

Social Media Platform Millennials Gen Z Facebook 67 % 49 % Instagram 49 % 61 % Snapchat 14 % 24 % Threads 7 % 7 % TikTok 30 % 48 % X 19 % 22 % Other 1 % 0 % Do not expect a small business to have an online presence 6 % 5 %

While younger consumers may not agree which social platforms a small business should have, the data does reveal another commonality. The vast majority of Gen Z (95%) and Millennial (94%) shoppers expect businesses to be on some form of social media platform.

What the survey findings suggest is that entrepreneurs today should prioritize reviews, update their business website, and frequently publish content that is on-brand across social media.

By leaning into these new insights on Gen Z and Millennial consumer preferences, entrepreneurs can better target their audience, increase the probability that their business will come across as professional and credible, and ultimately increase sales.

Small business owners can manage their brand from start to finish with intuitive online tools like GoDaddy Airo™, which uses AI to save entrepreneurs precious time in establishing their online presence and gaining new customers. Features like logo creation, search engine optimization to improve site rankings and draw traffic, and custom content for email marketing, social media and more put entrepreneurs in the driver's seat.

To learn more about GoDaddy and its products, visit www.GoDaddy.com.  

About GoDaddy   

GoDaddy helps millions of entrepreneurs globally start and scale their businesses. People come to GoDaddy to name their idea, build a website and logo, sell their products and services, and accept payments. GoDaddy Airo™, the company's AI-powered experience, makes growing a small business faster and easier by helping them to get their idea online in minutes, drive traffic and boost sales. GoDaddy's expert guides are available 24/7 to provide assistance. To learn more about the company, visit www.GoDaddy.com.  

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Source: Company press release.