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Retailers are turning to Snapchat as CX engagement tool to target Gen Z, 77% of who use it for brand discovery and shopping, building authentic conversations using its communication-friendly design, and tapping its AR-based location-sharing

August 5, 2025 //  by Finnovate

Here are a few specific reasons so many retailers are turning to Snapchat as a consumer engagement platform, starting with favorable user demographics: 1) One big reason an increasing number of retailers are reaching out to customers via Snapchat is that highly coveted Gen Z and even Gen Alpha (the generation following Gen Z of consumers 15 and under) shoppers are spending their time, and money, there. Data backs up the fact that young consumers frequent Snapchat and see it as a branding and shopping platform. According to a recent survey of U.S. and U.K. Gen Z consumers from identity verification technology provider SheerID, 77% of respondents reported learning about a new brand through platforms such as Instagram, Tiktok and Snapchat.   Gen Alpha has an estimated $28 billion in direct purchasing power.  While 14% Gen Alpha consumers rank Snapchat as their favorite social network, 84% check it at least once a day. If your brand appeals to young shoppers, or you want it to, Snapchat is a vital engagement tool. 2) Snapchat is heavily focused on direct communication among peers, including features for texting, video chatting and exchanging photos. Its communication-friendly design is perfect for both one-to-one and one-to-many conversations, adding an air of authenticity and “real life” interaction which ironically would not be achievable without digital assistance. 3) This sense of digitally enhanced reality extends to Snapchat’s augmented reality capabilities, which retailers are leveraging to get their brand and products in front of consumers in new ways.  American Eagle is something of a retail Snapchat pioneer, and another interesting promotion it is currently running on the platform involves including more than 800 retail stores across the U.S. as Promoted Places on the Snap Map location-sharing feature.

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Category: Essential Guidance

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