Gen Z and Millennials have grown up with infinite choice and near-instant answers, so it’s no surprise they now expect shopping to feel just as intuitive as scrolling. But here’s the tension: they crave guidance, not just automation. Personalization, not surveillance. Inspiration, but without friction.
In our latest Relevance Report, based on data from 4,000 shoppers across the U.S. and U.K., we uncover how digital natives are reshaping ecommerce — and how many brands are still missing the mark.
The situation has layers. Externally, brands face abandonment after a single failed search. Personally, leaders feel the pressure to adapt — or get left behind. Internally, there’s confusion about how much AI is too much, and philosophically, a bigger question looms: can tech be trusted if it doesn’t feel human?
To make relevance real, we’ll need to rewrite a few assumptions. Start by questioning the old lie: that attention equals loyalty. What Gen Z and Millennials want is meaning. What they need is a reason to stay.
Let’s decode that.
Digital Natives with High Expectations
Digital shoppers are fluent in seamless, intuitive interfaces. They bounce between TikTok, Spotify, WhatsApp, and Shein in a matter of minutes. So when a brand’s website loads slowly, search results are off-base, or navigation feels like a maze? They ghost you.
Here’s what digital natives expect — and what happens when those expectations aren’t met:
88% of Gen Z and 83% of Millennials expect GenAI to transform how they shop. That doesn’t mean gimmicks. It means real, contextual help that adapts in the moment. Imagine you’re building a capsule day-to-evening wardrobe. You type “versatile black blazer” into the search bar, and, instead of a basic product grid, you’re shown styled outfits, care tips for humid climates, and what’s trending with people like you. That’s the bar Gen Z expects you to meet — relevance powered by intent-aware AI.
58% of Gen Z are already comfortable buying directly on social platforms. If your ecommerce site doesn’t echo the speed and simplicity of a social feed, you’re adding friction where they expect flow.
These expectations aren’t unrealistic — they’re born from lived experience. Think about how Spotify knows what you want to hear next, or how Duolingo knows when you’re about to ghost it. Digital natives want that same attentiveness from the brands they buy from.
The question isn’t “Can you keep up?” It’s “Can you make them feel seen?”
Search and Discovery Are Make or Break
Think about how shoppers use digital tools: they expect YouTube to finish their search phrases mid-sentence and Google Maps to reroute them before they hit traffic. So when your site search spits out irrelevant results or dead-ends? It’s disqualified.
Here’s a hard truth: if your search bar doesn’t work like magic, it might as well not exist.
For Gen Z and Millennials, search is the front door — and 43% of them experience issues right there. A mistyped word, vague query, or broad category shouldn’t derail the journey. But for many brands, it does. And 19% of shoppers don’t stick around to give you a second chance when that happens.
The fix isn’t just better search. It’s smarter discovery.
Here’s what winning looks like:
- AI that understands intent, not just keywords.
- Dynamic filters and listings that adjust in-session based on user behavior.
- Generative answering that helps users articulate what they can’t quite name yet.
Brands using Coveo’s platform are already doing this — shifting from static taxonomies to adaptive, personalized pathways that evolve with every click. Because when search works, it’s invisible. And when it doesn’t, you’re forgotten. Fast.
Explore the data in Coveo’s full Relevance Report
Social Commerce: Discovery, Yes. Conversion… Maybe
Gen Z doesn’t go shopping — they stumble upon it.
On TikTok, a “Get ready with me” video can lead to a moisturizer sell-out. On Instagram, a carousel post sparks wishlist inspiration. But here’s the twist: while over 80% of younger shoppers discover products on social media, only only a small proportion (14 and 15% of gen z and millennials respectively) actually buy them there.
At first glance, it seems contradictory:
- 58% of Gen Z say they’re likely to purchase directly on social media.
- But only 14% actually do when they discover a product there.
What’s going on?
This isn’t a case of conflicting data — it’s a classic case of intention versus action.Many Gen Z shoppers feel comfortable with the idea of buying directly on platforms like TikTok or Instagram. That comfort signals trust, familiarity, and openness to the experience. But in reality, their purchase behavior still tends to flow toward what they know — marketplaces and brand websites.
Here’s what shoppers actually do next:
Why the drop-off? Because most ecommerce journeys break where they should bridge.
The vibe shift from curated, scrollable discovery to clunky, search-heavy websites creates friction. A product that looked effortless in a Reel suddenly feels buried under dropdowns, filters, and sizing charts.
To close the gap, brands need to extend the social experience into the site. That means:
- Seamless transitions from social clicks to personalized product pages.
- In-session intent modeling to pick up where the shopper left off.
- Guided discovery powered by Coveo’s AI — not a maze of irrelevant filters.
Social commerce is the new showroom. But if your ecommerce experience can’t pick up the conversation, you lose the sale before it starts.
They Crave Guidance, Not Just Algorithms
There’s a quiet rebellion happening in how younger generations engage with ecommerce.
Yes, they’re digital natives. But no, they don’t want to be left to fend for themselves in a sea of SKUs. Gen Z and Millennials are fluent in tech — but fluency doesn’t mean immunity to choice overload. They don’t just want recommendations. They want reassurance. And that’s where most brands fall short.
According to our Relevance Report:
- 30% of digital natives want smart product guides — tools that help them compare, contextualize, and decide.
- 29% want help understanding features — not just specs, but what those specs mean in real life.
- 28% want a virtual shopping assistant — someone (or something) who can interpret their intent and guide them, not push a sale.
Here’s what that could look like:
You’re searching for noise-canceling headphones but don’t know whether to prioritize sound quality, battery life, or comfort. A traditional site gives you a filter panel and a long list. A guided experience powered by AI asks a few intent-based questions, highlights models that align with your lifestyle (e.g., commuting vs. studio use), and even surfaces verified reviews that mention pain points you’re concerned about. It builds confidence.
And that’s the shift: from algorithmic suggestion to guided discovery. From personalization that assumes to personalization that asks.
The Privacy Paradox
Digital natives are often painted as either careless with their data or completely paranoid about it. Neither is true.
The reality is more nuanced: Gen Z and Millennials are willing to share personal data — but only when it’s clear they’re getting something valuable in return. It’s not privacy they’re guarding; it’s trust. While only 53% of consumers overall are willing to share data for better deals or experiences, that number jumps to 60% for Gen Z and 62% for Millennials — but only when they trust the brand.
That’s the paradox. They’re open. But they’re skeptical.
What digital natives resent isn’t personalization. It’s manipulation. When recommendations feel creepy or unearned, they disengage fast. But when brands are transparent about what data is being used and why, the approach creates a different dynamic: one built on mutual value.
So how do you earn that trust?
- Be radically transparent. Show why a product is being recommended. Add copy like “Recommended because you viewed…” or “People with your preferences chose…” It signals intent, not intrusion.
- Let shoppers opt in actively. Don’t bury preferences in account settings. Make personalization a feature, not a default.
- Tie data to real value. Offer personalized promotions, curated bundles, or early access to relevant drops.
Imagine a skincare brand that, instead of auto-recommending based on browsing history, asks users about climate, skin concerns, and budget — then clearly shows how that information shapes their product feed. Suddenly, data collection feels like collaboration.
For digital natives, that transparency is the bridge between data and trust. And trust? That’s the currency of loyalty in 2025.
Action Steps for Retailers
Let’s zoom out.
If Gen Z and Millennials are setting the pace for commerce — and the data says they are — then staying relevant means evolving from transactional to intuitive. These shoppers don’t just want products. They want clarity, alignment, and a sense that your brand gets them.
So how do you meet them where they are and still move them forward?
Here’s where to start:
- Invest in intent-aware search: It’s not enough to index your catalog. Your search should understand why someone’s searching — not just what they type. Use AI to interpret behavior in-session to serve results that anticipate intent, not react to it.
- Make social discovery shoppable: If the journey starts on TikTok or Instagram, don’t make the handoff clunky. Use dynamic recommendations and AI-powered listings to smooth the path from inspiration to conversion.
- Guide, don’t just recommend: Offer interactive tools, explainable AI, and smart product finders that build shopper confidence and reduce decision fatigue.
- Build trust through transparency: Make your AI explain itself. When personalization is clear, it feels like service. When it’s opaque, it feels invasive.
What’s clear from our Relevance Report is this: relevance is the new loyalty. Not because it keeps people around, but because it gives them a reason to come back.
Don’t just optimize for clicks. Optimize for connection.