Gen Z and Millennials to Small Businesses: Get Online or Get Left Behind

Rhea-AI Summary

A new GoDaddy (NYSE:GDDY) survey reveals that 80% of Gen Z and Millennial consumers research small businesses online before making first-time purchases. The study, conducted with 1,000 U.S. consumers, highlights critical factors affecting purchasing decisions: 56% won't shop without reviews, 36.5% require preferred payment methods, and 32.5% need contact information. Additionally, 74% consider lack of recent social media updates as impacting credibility, while 73% of Gen Z and 80% of Millennials view dedicated websites as important for business credibility. Platform preferences vary, with Facebook leading among Millennials (67%) and Instagram for Gen Z (61%).

Positive

• Survey shows strong online presence is important for capturing younger demographics
• 95% of Gen Z and 94% of Millennials expect businesses to have social media presence
• Company offers AI-powered tools (GoDaddy Airo™) to help businesses establish online presence

Negative

• None.

Insights

Market Research Analyst

This consumer behavior study reveals critical insights for GoDaddy's business model and market position. The 80% research rate among young consumers validates GoDaddy's strategic focus on providing digital presence tools. The data shows strong demand for comprehensive online business solutions, particularly website builders, payment processing and social media management tools - all core offerings in GoDaddy's portfolio.

The high expectations for social media presence (95% for Gen Z, 94% for Millennials) and website credibility factors create a compelling case for GoDaddy's Airo™ AI-powered platform. The survey strategically positions GoDaddy as understanding evolving consumer needs while promoting their solution to address these demands.

This market research strengthens GoDaddy's competitive position in the website building and digital presence space, potentially driving increased adoption of their services among small business customers seeking to capture younger demographics.

TEMPE, AZ / ACCESSWIRE / November 25, 2024 / GoDaddy
New GoDaddy survey shows 80% of young shoppers research businesses before buying

Originally published on GoDaddy

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.

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.

View additional multimedia and more ESG storytelling from GoDaddy on 3blmedia.com.

Contact Info:
Spokesperson: GoDaddy
Website: https://www.3blmedia.com/profiles/godaddy
Email: info@3blmedia.com

SOURCE: GoDaddy Inc.

View the original press release on accesswire.com

FAQ

What percentage of young consumers research businesses online before shopping according to GoDaddy's (GDDY) 2024 survey?

According to GoDaddy's survey, 80% of Gen Z and Millennial consumers research small businesses online before making their first purchase.

What are the top social media platforms preferred by Gen Z according to GoDaddy's (GDDY) 2024 survey?

According to the survey, Gen Z's top social media platform preferences are Instagram (61%), Facebook (49%), and TikTok (48%).

What percentage of Gen Z and Millennials consider a dedicated website important for business credibility according to GoDaddy (GDDY)?

The survey shows that 73% of Gen Z and 80% of Millennial shoppers feel a dedicated website and online store make a small business more credible.