As difficult as it is to keep up with changing technology, it can be even more difficult to understand different generations and how they are influencing the market. In today’s world of consumerism, age is no longer a prohibitor. In fact, our young and youthful Gen Z accounts for 29 to 143 billion dollars in direct spending (about 40% of total consumer spending). In addition, Gen Z also accounts for older generations’ spending as well. According to a report by CASSANDRA, approximately 93% of parents say that their children influence family and household purchases. This is a phenomenal significance of buying power that has completely refigured the purchasing thought process.
Trying to understand Gen Z can feel just as elusive as trying to decode a new software on your computer. The last two decades of extreme advancements in technology, politics, and the economy have created complicated gaps between younger and older generations’ purchasing motives. To kick off our new blog series, “Marketing in 2021”, we’re taking a deep dive into how Gen Z is changing the world of marketing.
A Generation Shaped by Changes
Gen Z births range between the years 1997 and 2012. Their childhood includes the introduction of Wi-Fi and smartphones, multiple economic recessions, and progressive civil rights movements. The quickly evolving world of the 2000s and 2010s shaped an adaptable and resolute generation. Key Gen Z Characteristics such as impatience, pragmatism, and social-mindedness are influencers for how they make purchasing decisions – let’s take a look.
Digital Natives
Gen Z is considered to be the first generation of digital natives – they were born into an age where advanced technology was already normalized. Countering their parents who had to endlessly search textbooks and clunky databases for answers, information is now accessible at the touch of a button or the sound of a voice. This instant retrieval of information has made a very impatient Gen Z.
Approximately, Gen Z’s attention span lasts eight seconds. And within these eight seconds, their minds can quickly navigate information and filter out any irrelevant data. So, what does this mean for your marketing strategies? Instant loading times are a necessity, content such as videos will excel much further than detailed text, and first impressions are everything. Gen Z’s rapid cognitive processing times make the first few seconds of introducing your product or service extremely vital.
Economic Instability
The recession of 2008 developed a shrewd and financially focused Gen Z. During the recession, Gen Z witnessed the market crash, savings quickly deplete, and parents get laid off. The response to this was an overall acceptance of employment and working for financial security. Gen Z’s career-focused and financially driven ambitions contrast quite differently to the generation from before: Millennials. Instead of working for money, Millennials envision work idealistically and for the sake of life fulfillment. This difference is evolving the process of consumer spending habits.
Gen Z doesn’t just spend money – they research. Their pragmatic nature and frugality lead them to only buy what will bring value to them. Unlike Millennials who value experiences over products, Gen Z values conveying the “right image” and buying products that will bring them happiness. With their adaptation to advancing technology, they can obtain any information they desire to make the right type of informed purchase. These types of informed purchases are not only influenced by others’ approvals but also where the company and brand stand on social issues.
Social Responsibility
The last two decades paved a major push forward for a movement of social conscientiousness and civil responsibility. Topics like “environmental sustainability” and “equal rights” have become indefinite buzzwords. Gen Z is more aware than any other generation of the demand for positive impact. And not only are they aware, but you can easily expect them to call out negative practices that they disagree with.
Earlier, we mentioned that Gen Z is willing to pay more for products that “convey the right image”. They are more likely than any other generation to believe that brands allow them to express themselves – so much of what Gen Z purchases are represented on their social media and showcased to their networks of friends. Taking this all into consideration, you can begin to understand Gen Z’s purchasing motivations. Their constant question of what is socially acceptable to post on their social feeds influences what is acceptable for them to purchase in real life.
Next Steps for Creating a Gen Z Marketing Strategy
Gen Z’s pragmatic and social-minded natures are driving companies to become fully transparent. This Forbes article refers to Gen Z as the “Age of Transparency” and “True Gen”. Is your brand environmentally sustainable, ethically moral, and in support of political progressive movements? Do your consumers know this? Clear values and established social standings hold a lot of power for motivating Gen Z to purchase your product or service. Ingenuine ads no longer stand a chance and creating a strong online community for your brand will produce increased conversions as your consumers influence other consumers.
You may be wondering what the best strategy is for tackling the increasing consumer spending of Gen Z in 2021. Because you’re dealing with a generation that is spread broadly across the market for the use of many different channels, an omnichannel marketing strategy may be a smart way to go. Omni-channel marketing begins by tracking the customer journey from the first Google search, through Social Media ads, in-person store visits, and beyond. From this, you can then use multiple channels that work with each other to create a fully integrated customer experience.
If you’re not sure where to start, there are a lot of great resources to help you. We’ve created some of our own here, but we also have the expertise and tools to help you accomplish a successful marketing strategy. It’s important to us that our clients get the opportunity to focus on what’s truly important – their customers. Find out more information on how we can help you get started here.
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