How and Why You Should Target Generation Z Through Branding

11.30.17 / Madeleine Wilson

Predicting market trends and anticipating consumer shifts can make or break your company. However, we’re so often hyper-focused on what’s happening right in front of us, we forget to look ahead. Don’t let Gen Z sneak up on you – arm yourself early with data and resources to engage this consumer base effectively and powerfully.

You might not have the time or the resources to fully understand how this up-and-coming generation will affect your brand, so we’ve done the work for you.

Who is Gen Z?

Remember when Millennials overtook Generation X? Well, it’s about to happen again – but this time with Generation Z. Born between the years 1997 and 2015, this group currently makes up 26 percent of the population. Undeniably, marketers need to pay attention to this demographic before it’s too late.

Massive Buying Power

Although they’re young now, Gen Zers already have a combined buying power of $44 billion in the United States. If that wasn’t enough, they also influence $600 billion of family spending and by 2025, they’ll own 40 percent of consumer spending.

Digital Natives

Often referred to as “Digital Natives,” individuals in Gen Z cannot remember a time without Internet. Given this, they spend the majority of their free time online. According to Mediakix, with an eight second attention span, they value speed and ease-of-use.

Their media consumption behaviors differ from previous generations as well. Approximately 85 percent watch anywhere between two and four hours of YouTube per day. They prefer brands communicate with them there as opposed to anywhere else (like television or direct mail). On average, they use five screens – a smartphone, TV, laptop, desktop, and an iPad. That’s a lot of different screens communicating a lot of different messages.

Social Still Rules

Social media heavily impacts the way Gen Zers interact with one another and the way they view themselves. Because everything is so public and visible, personal appearances weigh heavy in their minds. Their parents – mostly Gen Xers – did not grow up with the same technology, so when it became available to them, they went all-in with snapping photos and sharing them with the whole world. Because, why not? Well, now we have an entire generation where their whole lives have been documented online. This is their “normal.”

Desire for Privacy

Since Gen Zers are accustomed to their whole lives being broadcast to the public, they crave privacy. More and more Gen Zers are setting up private social media accounts and being careful about what they post online. While Millennials like to share every experience and every thought with the online world, Gen Zers tend to share things among smaller, more intimate groups of people.

The “Instagram Effect”

The pressures presented by social media are encouraging Gen Zers to spend less on products and more on leisure services, such as vacations, dining out, and going out. This is what we call “the Instagram Effect.” Showing the awesome, cool, aspirational life their living draws more attention and satisfaction than just showing the latest, greatest product. Brand-name recognition holds far less credibility – in fact, many Gen Zers are extremely critical and less trusting of brands.

Money-Cautious

The older Gen Zers watched their families and older siblings suffer financially during the Great Recession. They see Millennials with thousands of dollars in debt and their parents’ businesses scrambling to get back on their feet. Although Gen Zers don’t have their own revenue stream yet, they have still felt the impact of financial crisis. This makes them far more cautious about spending money. They view college more as a time to hit the ground running to prepare for their career rather than a relaxing time of self-discovery.

What does this mean for my brand?

Brands can evolve to reach this new generation of consumers by following these steps:

Cater to Their Unique Shopping Habits

Gen Z individuals are twice as likely to shop on mobile devices – increasing the need for responsive websites and easy-to-navigate apps. Offering mobile-friendly shopping experiences and digestible product education is key. Convenience and visibility are critical here. If your site is too slow to load or difficult to traverse, Gen Zers will abandon ship quickly. More often than not, this generation will see your brand online before they see it on shelf.

This generation searches for information on their own, so proactive marketing will be most effective. Too impatient to wait for it to come to them, Gen Zers seek out to self-educate. They have a do-it-yourself, entrepreneurial mentality from being told “no” time after time during the Recession. They like to take things into their own hands.

Just as they look to their peers and influencers for recommendations on purchase decisions, they also love sharing their own knowledge online. This generation seeks out collaborative engagement and trusts peer recommendations before anything else. Influencing peers and sharing “insider” information on social media gives Gen Zers credibility among their followers. Brands need to give this consumer base easy ways to share this information digitally.

Since this generation lives with almost anything at their fingertips, they demand convenience. With the click of a button, they can have food delivered right to their door from their favorite restaurant in no time. Thousands of movies and television shows exist just beyond the tap of a screen. One-click smart shopping is a must.

Above all, Gen Zers demand speed. As they’ve grown up with quick load times and lightning fast streaming, they have very low tolerance for anything slow. Lagging apps or difficult-to-navigate websites will be the kiss of death for some brands. If a page takes too long to load, 60 percent of this generation won’t use it and will quickly move onto the next.

Put Values First

Gen Zers see themselves as do-gooders. As the most diverse generation, they believe people can coexist in society and want to make the world a more equal and fair place for all.

They’ve grown up seeing the Wall Street protests – rebellion against the establishment is practically in their DNA. They’re label-wary and challenge common “norms” like gender identity. Instead of relying on labels to define their personal identity, they actively craft their own personal brand through shared values.

This generation cares about transparency. They want to know how their beauty products are tested, who made the food they’re about to consume, etc. They will boycott a brand if the owner’s beliefs oppose their own or they don’t treat their employees fairly. Their money-conscious mentality makes them much more thoughtful about every purchase. If they’re spending their hard-earned money, they want to know exactly where it’s going.

With endless information always at their fingertips, anyone can be an “investigator” – looking for the truth behind veils of secrecy so prevalent in corporate America. When brands break their trust, they don’t forget that. Ethical and transparent brands that tell their story will resonate strongly with this generation.

 

“For decades, brands communicated through advertisements, so corporations with the biggest budgets could make the biggest impact on billboards, magazine spreads, TV, and radio ads. But with the internet, now people can dig into what brands really stand for, beyond the heavily photoshopped visions they try to project.”
-Elizabeth Segran, Ph. D., Fast Company

Innovate, Innovate, Innovate

The Millennials paved the way for Internet-based innovation. As Gen Zers have grown up with innovation after innovation, they now expect it.

That being said, they’re far less impressed and excited by technological innovation. They crave something more – experience. In-store virtual and augmented reality shopping experiences will define the customer experience in the next few years. This experiential, interactive technology physically connects this generation to brands – therefore building a much stronger bond.

It’s important for brands to offer value beyond the product offering itself. In other words, brands must offer a lifestyle. These price-conscious consumers want to spend on experience, rather than material.

Although this generation has yet to gain their own revenue streams, we can already confidently identify certain characteristics based on behaviors, culture, and history. This generation craves security (in every sense of the word), convenience, innovation, and brands they can connect with on an emotional level. The Recession made them cautious with their spending, but they’ll become brand-loyal when they’re offered what they crave. Educating customers on the value beyond the product itself and providing meaningful experiences will tap into this generation’s massive buying power.

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