A new survey from GoDaddy reveals a startling reality for small business owners: failing to maintain an online presence could mean losing out on two of the most influential consumer groups, Gen Z and Millennials. These tech-savvy shoppers are not only browsing but actively vetting businesses online before making purchases.
The Online Research Boom
The survey, conducted in September with 1,000 Gen Z and Millennial participants across the U.S., shows that 80% of respondents research businesses online before shopping for the first time. Their digital detective work includes checking reviews, exploring websites, and scrolling through social media accounts.
Amy Jennette, GoDaddy’s Senior Director of Marketing, explained the implications: “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.”
The Deal-Breakers
When it comes to online shopping, younger generations have high expectations—and clear deal-breakers. The survey highlighted the following reasons why Gen Z and Millennials might skip shopping with a small business:
- Missing Reviews: 56% won’t shop without customer feedback.
- Payment Issues: 36.5% expect their preferred payment methods to be accepted.
- Contact Information: 32.5% want clear ways to reach the business.
- Incomplete Websites: 31.5% are discouraged by sites that appear unfinished.
- No “About Us” Page: 26% value transparency and a personal touch.
- Security Concerns: 23.5% avoid sites that don’t seem secure for payments.
These numbers emphasize a key message: online presence isn’t just helpful—it’s essential.
Social Media: A Digital Divide
While Gen Z and Millennials both value a social media presence, their platform preferences diverge. For instance, 67% of Millennials expect businesses to be active on Facebook, compared to just 49% of Gen Z. Meanwhile, Gen Z gravitates toward Instagram (61%) and TikTok (48%), platforms less favored by Millennials. The takeaway? Know your audience and meet them where they spend their time online.
Staying Relevant: Key Strategies
Younger shoppers don’t just want businesses to exist online—they expect active engagement. According to the survey:
- 74% of respondents are wary of businesses that haven’t updated their social media or blogs within the past month.
- Nearly 80% agree that a dedicated website and online store make a business more credible.
For small business owners, this means regular updates, polished branding, and fresh content are no longer optional—they’re survival tactics.
Tools for Success
GoDaddy’s survey also highlighted tools like GoDaddy Airo™, which leverages AI to help entrepreneurs optimize their online presence. From creating logos to improving search rankings, tools like these simplify the process of building digital credibility.