Why parcelLab?
Discover why parcelLab is the go-to post-purchase partner for top retailers across the globe
Gen Z and Millennials may be only a few years apart in age, but when it comes to how they shop, they couldn’t be more different. Millennials (born 1981–1996) grew up alongside the digital revolution. They’re tech-savvy, value-driven, and known for being loyal to brands. Meanwhile, Gen Z (born 1997–2012) are true digital natives. While the late 90s and early 2000s Gen Z’s can remember the early days of living without smartphones, influencers, and next-day delivery, the other half has only ever experienced it. That difference in digital upbringing? It’s shaping how they discover, engage with, and buy from brands.
Currently, Millennials’ total consumer expenditures are 54.3% higher compared to Gen Z. This is due to a variety of factors like age, education levels, and salary. Meanwhile, Gen Z represents an estimated $450bn in spending power across the world, and this number will only be getting larger as more of them age into adults.
So, how can retailers appeal to this hyper-engaged generation?
Millennials are more likely to start their shopping journey on Google or directly on a brand’s website. They’re driven by intent and research, often reading reviews and comparing options before committing.
Gen Z, however, is rewriting the rules. For them, TikTok is the new Google. This probably does not come as a shock to most. They’re discovering products through influencers, viral videos, and curated content on Instagram and TikTok. In fact, nearly 40% of Gen Z prefers using TikTok over Google for search. If your brand isn’t on social, Gen Z might not know you exist unless their parents or older family members have talked about it.
Key takeaway: Millennials search with intent. Gen Z scrolls with instinct. While Millennials start on Google, Gen Z is discovering products through TikTok and influencers, making social presence essential for brand visibility.
Millennials love a good deal, but they’re also driven by experience. Think: personalized emails, loyalty programs, and curated product recommendations. They expect a seamless omnichannel experience and are willing to pay more for convenience.
Gen Z, on the other hand, either shops with their values or impulse buys as they’re scrolling on social media (this can be true for some younger millennials as well). While parts of this generation want brands to stand for something, whether it’s sustainability, inclusivity, or mental health, the other half buys items because of TikTok or Instagram reels of influencers talking about or trying out a product.
An article by McKinsey reports that social commerce in the United States will expand to $145 billion by 2027, up from $67 billion today, and that Gen Z and millennials are propelling this growth as they make purchases on social media four times more often than older generations do. This is super important to consider as Gen Z continues to gain buying power.
Retailers may ask themselves if pricing matters to Gen Z when they are making a purchase. At the end of the day, most generations care to some extent about price, depending on what they are buying. It appears as though Gen Z’s considerations are more evenly distributed than those of other generations, and they actually rank quality as slightly more important than price.
Key takeaway: Gen Z may impulse buy on TikTok, but they still care about quality and values, while Millennials prioritize experience and convenience. Social commerce is booming, and both generations are driving the shift.
Millennials are the champions of cart abandonment, but not because they’re flaky. They want flexible payment options, clear shipping costs, and a hassle-free checkout. If your site isn’t optimized or your return process is clunky, they’ll bounce.
Gen Z takes it a step further. They demand speed and transparency, which means real-time delivery updates, easy order tracking, and clear return policies. They expect brands to anticipate their needs, especially after they have committed to a purchase.
Key takeaway: Want to win over Gen Z? Nail the post-purchase experience. Branded tracking pages, proactive notifications, and frictionless returns are table stakes now.
Millennials are loyal until they’re not. They’ll stick with brands that reward them, remember their preferences, and make life easier. Traditional loyalty programs still hold weight here.
Gen Z, though? They’re loyal to vibes, and in some cases, the best deals. Half of Gen Z will follow a brand across platforms, but the moment you stop resonating with their values or aesthetic, they’re out. They crave real-time personalization, fast feedback loops, and brands that evolve with them.
Then, you have the other 46% of Gen Z’s are happy to pay less for a cheaper own-brand product than pay more for a brand they know. To keep them satisfied, brands must make sure they are keeping up with trends and meeting Gen Z where they want, or risk falling behind.
Key takeaway: Millennials stay loyal to brands that offer rewards and convenience, while Gen Z stays loyal to brands that match their values, energy, and aesthetic. Lose the vibe, lose the customer.
The answer: Both.
Millennials may have more buying power, while Gen Z has more influence. Together, they’re shaping the future of commerce, and it’s fast, value-driven, and unapologetically digital.
To win in today’s market, retailers need to stop treating these groups as one-size-fits-all. Tailor your messaging, optimize your experience, and above all, stay authentic.
The brands that bridge the gap between experience and values? They’re the ones who’ll come out on top.
At parcelLab, we help retailers create post-purchase experiences that keep Millennials coming back and turn Gen Z browsers into brand evangelists. Because when you understand your audience, you don’t just sell more, you create customers for life.
Let’s build the kind of experience today’s shoppers won’t stop talking about. Take a platform tour today.