Gen Z, millennials to small businesses: Get online

If a small business has Gen Z or millennials as a target audience, not having an online presence could seriously impact their bottom line, according to new data from GoDaddy. 

In fact, 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." 

[Read more: Which generation will splurge this holiday season?]

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. 

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. 

GoDaddy advises that 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. 

[Read more: Despite slowing economic growth, shoppers continue spending]