Humans have long corralled themselves into generational categories with the belief that one’s social, economic time-period and environment will effectively shape them into individuals with similar interests and behavior. Baby Boomers were conceived in the muddled post-World War II canvas and groomed into nonconforming liberals whilst Generation Xers alternated between their divorced parents’ homes apathetically. Online marketers in recent years have shortsightedly been clamouring for the attention of Millennials, aka Generation Y, who represent the highest proportion of online spending compared to any other cohort. As pioneers of the most disruptive invention of all, the Internet, they were the ones who molded it, and in return, it ultimately molded them.
With the spotlight trained on the founders, many have missed the opportunity that lies in the hands of the next generation, the same smartwatch clad hands dexterously juggling a tablet and a mobile phone while taking a selfie. When companies started recruiting 19 year olds as the foremost experts on this outspoken generation, we know that we are witnessing the dawn of a new age. Gen Y slowly incorporated the web into their lifestyles, but Generation Z (Gen Z) was born, fully submerged into the assimilation of notifications. Eighty-one percent of these aptly named “digital natives” are on social media at least three hours a day, making success more contingent on competent digital marketing than ever.
Gen Z are rapidly becoming a critical audience for marketers and brands to understand. Even if they aren’t your target group at the moment, they soon will be. In a couple of years, nearly 4 in 10 consumers will be from Gen Z, and their purchasing power will rise exponentially over the next 5 to 7 years as they grow to be the single largest group of consumers worldwide. They are forming their spending habits now which can influence their habits into adulthood. Appealing to this group can have a huge impact in a company’s long-term customer retention and brand loyalty.
So what does it take to really capture the attention of Generation Z? Let’s take a closer look.
Snap, Swipe, Share
Gen Z thrives on the edge of fast communications. Six second Vines, 140 character tweets, emojis and Snapchats – tapped once and gone into the ether. For brands, this means creating bite-sized, visual content that Gen Z can quickly digest and process. The more bite-sized pieces of information you can get to Gen Z, the further along their path to purchase you can push yourself.
The one thing Gen Z appreciates more than succinct communications is curating their own content. As a form of self-expression, these individuals enjoy taking charge and personalising their own content. Additionally, brands that utilise or acknowledge these consumer creations portray themselves as active listeners and genuinely caring about their customer’s wants.
Gen Z may not have a lot of its own money (yet), but this doesn’t necessarily mean they lack purchasing power. According to brand strategy firm, Sparks and Honey, the average upwardly mobile Gen Z receives an allowance of $16.90 per week, which collectively adds up to $44 billion a year. In addition to pocket money, they exert considerable influence on household purchases and family spending compared to previous generations.
What this means is that marketers need different approaches to gain the attention of the Gen Z. In the past, most ad dollars were spent on TV, radio stations, and newspapers. But to reach Gen Z, companies will need to spend more to create videos and other content that provides useful information, entertains, and otherwise impresses them enough that they share with families, friends, and followers.
Making CSR the Norm
“An Inconvenient Truth” opened the eyes of unsuspecting Millennials but Generation Z grew up in an already unstable world of conflict. Fuelled by current events, they seek to create value and social change for the world through the products they purchase. This group places a higher priority on the quality of a product and how environmentally friendly it is rather than being blindly loyal to a brand. As most Gen Z research products and services prior to purchase, they become privy to the company’s practices, history, and reputation.
After too many lapses in safety and accounting, businesses must now prove themselves by being transparent and relatable. One way is to allow real customers themselves to create content, feedback, and reviews as a means of advertising the company authentically. Following in the footsteps of TOMS Shoes, businesses must start incorporating a social aspect to their business whether it be employee community service or through the triple bottom line approach in order to penetrate these increasingly knowledgeable and ethical customers.
Gen Z is expected to be the most racially diverse generation. While Millennials in their own right are a pretty diverse group, Gen Z will view the increasing diversity in a more positive light. With more friends from different ethnic backgrounds than older generations, brands will have to amp up their multicultural marketing strategies to make their brands relevant to a wider range of ethnic groups.
Gen Z are growing up in a post-9/11 world and in a global economic recession, resulting in a demographic that is very socially conscious. They will expect nothing less from brands. Brands that can form a connection with this diverse group will have the most success. To do this, brands will have to incorporate various, yet consistent, messages that highlight diversity across a variety of platforms.
Point to Note: Gen Z’s everyday lives blend seamlessly with their lives on social channels, and many of their defining characteristics stem from this continuity. Marketers will have to try harder than ever to interact authentically with this generation of consumers, but if they do, they’ll be rewarded by an audience that loves engaging with brands and championing their products.
Posted by Arwika Ussahatanon, Corporate Media