Gen X and Millennials ruled the previous decade as decision-makers responsible for buying logistics services. But this is starting to change as Gen Z is stepping onto the stage and bringing new expectations to the world of logistics. The logistics industry will have to consider this generation. As this generation is entirely different from the others, starting this business transition sooner rather than later is good.
In this article, we’ll explore who Gen Z is, how they differ from previous generations, and why and how your logistics business must adapt to their needs.
Who is Gen Z?
Gen Z is the first generation of true digital natives, growing up with smartphones, social media, and high-speed internet at their fingertips. They are currently one of the largest consumer groups globally and are expected to represent 40% of global consumers by 2025.
Critical characteristics of Gen Z include:
- Tech-Savvy: They are highly proficient with digital devices and expect seamless, tech-integrated experiences across industries.
- Socially Conscious: This generation strongly emphasizes ethical and environmental responsibility. They quickly choose brands that align with their values and reject those that don’t.
- Demanding Speed and Convenience: Gen Z expects fast, convenient, and reliable service, especially regarding deliveries and customer care.
How Gen Z Differs from Previous Generations
While Millennials, Gen X, and Baby Boomers have shaped consumer markets for decades, Gen Z stands out for their emphasis on speed, ethics, and technology. Unlike Millennials, who experienced the dawn of social media, Gen Z was born into it.
When it comes to being approached by sales representatives, the differences between older generations (such as Baby Boomers and Gen X) and Gen Z are also stark.
- Older Generations: Baby Boomers and Gen X still value personal interaction. They prefer traditional communication channels like phone calls, face-to-face meetings, attending trade shows or networking events. Building relationships through personal rapport and trust is crucial, and they often appreciate in-depth discussions with sales reps.
- Gen Z: On the other hand, this generation is less inclined to engage with phone calls or in-person meetings. They favor digital-first communication methods such as emails, messaging apps, and social media. Gen Z prefers quick, direct, and efficient communication. They are more likely to respond to a well-targeted email or a concise, personalized message than to a cold call. Additionally, they research solutions independently before engaging with a sales rep, valuing transparency and efficiency over traditional relationship-building.
For logistics companies, understanding and adapting to these generational differences is crucial in approaching potential customers in ways that resonate with their preferences.
Areas Logistics Businesses Need to Improve to Attract Gen Z Customers
As the logistics industry evolves, so do the expectations of new customer segments. Gen Z customers, known for their digital fluency and socially conscious values, bring fresh demands to the marketplace. Several key areas need improvement for logistics businesses to thrive with this new generation. Let’s explore where companies can make significant strides to appeal to Gen Z.
Getting Gen Z Customers
Attracting Gen Z is about much more than marketing and sales; it requires businesses to meet their high standards for sustainability, digital interaction, and social impact. Unlike previous generations, Gen Z is not easily swayed by price alone. They tend to look for brands and services that align with their values, particularly in areas like environmental sustainability, ethical business practices, and corporate social responsibility.
This means that improving sustainability efforts, such as reducing carbon emissions and minimizing waste, is crucial for logistics companies. Highlighting social responsibility—whether through fair labor practices, diversity initiatives, or community engagement—is equally important.
Additionally, it’s essential to understand that this generation has a different approach to sales and interaction. Traditional sales activities, such as attending trade shows or hosting in-person events, may be less effective with Gen Z than older generations. Gen Z customers are far more active on social media; they read blogs, listen to podcasts, and prefer attending value-driven virtual events like webinars or educational panels. They seek content that adds value, aligns with their interests, and reflects their personal beliefs.
Moreover, many Gen Z consumers prefer to avoid interacting via phone. They often favor digital communication—like messaging apps, emails, or chat platforms—over direct, live conversations. This is partly due to their more introverted nature and comfort with multitasking and managing digital interactions independently. However, this doesn’t mean logistics businesses should completely abandon older sales and marketing tactics such as calling activities or attending trade shows. These methods still have their place. Instead, companies should expand their sales and marketing strategies by integrating more modern approaches.
Technology Adoption
Gen Z is deeply embedded in technology, and they expect the companies they work with to be equally tech-driven. However, when considering technology adoption in the logistics sector, it’s essential to acknowledge the challenges and past failures some businesses have faced, like digital freight forwarding companies, visibility providers, etc. Many of these companies offered innovative digital solutions—like service portals and real-time visibility—but failed to gain traction or survive in the market.
One may ask themselves, why did so many of these digital logistics companies fail if digital is so important? One of the key reasons is that they started too early. If you take a closer look at the age structure of decision-makers in logistics organizations, you’ll notice that many of these positions are still held by Millennials, Gen X, or even older generations. These leaders often view digital solutions, like customer service portals, shipment visibility, order management, and communications, as “nice-to-have” features rather than core necessities. To them, these technologies may seem like just another shiny object that isn’t essential to the business’s core operations.
However, this attitude will likely change with the rise of Gen Z. As this generation moves into decision-making roles, their expectations will shift the market towards a more technology-centered approach. Gen Z inherently values tech-enabled efficiency and transparency, viewing digital solutions as critical components rather than optional add-ons. For logistics business owners hesitant to fully embrace technology, now is the time to reverse that stance. The landscape is shifting, and staying competitive means integrating cutting-edge technology into your operations.
Personalization and Flexibility
Gen Z is the generation of choice and customization. They have grown up in a world where technology allows them to personalize everything, from social media feeds to shopping experiences. Regarding logistics, they will expect the same level of personalization. This means logistics companies must go beyond traditional, one-size-fits-all services and provide options tailored to individual preferences.
To meet this demand, businesses should leverage data and analytics. By analyzing customer behavior, preferences, and past interactions, logistics companies can offer:
- Custom Delivery Options: Gen Z wants the ability to choose how, when, and where their products are delivered. Offering services like same-day delivery, delivery to lockers, flexible time slots, or the ability to reschedule deliveries is critical.
- Real-Time Updates: Gen Z customers expect to be informed at every delivery stage. Providing real-time tracking with detailed updates via mobile apps or SMS notifications ensures they feel in control of their shipment. A user-friendly interface that allows them to make adjustments mid-delivery is a bonus.
- Personalized Communications: Whether it’s an email, a notification, or a customer service interaction, communications should be customized based on the customer’s past behavior and preferences. Offering discounts based on frequent delivery patterns or highlighting personalized shipping offers makes them feel valued as individuals.
- Customer Service: For Gen Z, speed and efficiency are non-negotiable, especially regarding customer service. They don’t have the patience to wait on hold during a phone call or tolerate delayed email responses. They expect instant answers, so chatbots, live chats, and AI-powered customer service tools have become essential for logistics companies looking to engage this generation.
Flexibility in logistics doesn’t stop with delivery; it extends to aligned brand transparency and even packaging. Many Gen Z customers care about eco-friendly packaging and may prefer minimal, recyclable packaging over elaborate boxes. Offering choices in this regard, like opting out of unnecessary materials, can enhance the customer experience and strengthen brand loyalty.
Summary
Gen Z is starting to climb the corporate ladder, bringing new expectations for how businesses operate. They are heavily influenced by technology, sustainability, and social impact, so logistics businesses must adapt quickly to stay relevant. While this new generation poses challenges for traditional logistics companies, it also presents significant opportunities. Fast movers that successfully adjust to meet Gen Z’s demands will gain a competitive edge and attract more business from this growing and influential customer segment.
