Almost every brand wants to follow Gen Z's lead. To gain popularity with Gen Z, it takes more than just creating a few videos or TikToks and convincing an influencer to endorse the brand.
Generation Z already has significant economic influence. And that influence is growing as more people enter the workforce and start earning big money.
While financial stability is just one of the concerns that Gen Z is business owner database concerned about, climate change and their generation’s mental health are their next most pressing concerns. Brands should take this into account when approaching Gen Z – this is a group that wants brands to not just sell them products, but to truly understand their wants, needs and passions.
For brands to convince Gen Z to make a purchase, it’s important to meet them where they are. So, to better understand Gen Z, let’s dive into what sets this generation apart from previous ones and what brands need to do to earn their loyalty.
Facts About Generation Z
1. Marketing must truly reflect cultural diversity. Nearly a third (32%) of Gen Zers say they are more likely to buy from brands that challenge racial and ethnic stereotypes, compared with 25% of adults overall. Authenticity is also important: 38% of people are more likely to buy from brands that don’t use Photoshop or airbrushing, compared with 26% of adults overall.
2. 47% of Gen Z “always” or “often” feel anxious, while 22% “always” or “often” feel depressed, with these feelings increasing with age.
While their concerns aren't directly related to the shopping experience, making shopping easier and more affordable can only make them more inclined to the brand. For example, exclusive offers evoke positive emotions.
3. Don’t underestimate the importance of sustainability and environmental responsibility when engaging with Gen Z. 47% want the brands they buy to support sustainability and climate action. But don’t use vague terms like “green” and “eco-friendly.”
4. Gen Z-specific offerings that address the needs of not only students but also those new to the workforce will help reach a wider audience and make it easier to retain students in that audience after college.
5. The average Zoomer is 30% more likely than older generations to believe that having many diverse interests is better than having one or two deep ones.
This is a generation of enthusiasts. Some of these passions are broad, while others are quite specialized. If you can tap into these interests, especially the more specific ones, the passion of the fans may just spill over into the brand.
Yes, as the first generation of digital natives, Gen Z spends hours online and wants to be entertained. This is evident in their social media preferences and love of gaming. But it’s not all fun and games when it comes to online privacy, which they are keen to protect.
6. Gen Z clearly loves social media. They use social media primarily for entertainment (68%), and when it comes to influencing purchase intent, 53% believe that watching a video has led to a purchase. They also want the entertainment factor to extend to advertising: 52% of Gen Zers prefer creative and entertaining advertising, and 43% like funny advertising.
The best results can be achieved by creating content that presents products in a way that is engaging, entertaining, and often humorous.
7. Email isn't dead: 48% of Gen Zers say it's their preferred way to receive information about special offers, making it their top choice.
8. Zoomers take online privacy seriously. Nearly half (49%) use ad blockers, 46% use privacy or incognito mode in their browsers, and 35% pay for internet security software.
It is important to make it clear to Generation Z that cybersecurity and data privacy are valued in business. At the initial stage of the acquisition process, it is worth collecting only the minimum amount of necessary data.
9. 71% of Gen Z adults have played video games to improve their mental health or reduce stress, with 72% drawn to content or experiences that involve finding clues, solving mysteries, and the like.
Gamification is a great way to engage and keep Gen Z engaged with your brand. It can also help you gain insights from consumers who might not otherwise volunteer.
10. Z users are not fond of paying digitally, with only 14% saying it is their preferred payment method. Debit cards came in first (45%), followed by cash and credit cards. Promote different payment methods and explore buy now, pay later (BNPL) services.
The financial caution of Gen Z has a big impact on their spending habits. After all, this is the group that invented “loud budgeting” — the trend of talking openly with friends and family about financial goals and boundaries. But while discounts certainly motivate consumers to try new things, quality is more important than you might think. And while social media has a big impact, it’s not necessarily the biggest.
11. 72% of Gen Z believe that high-quality products or services are the best way for a brand to stand out from the competition, followed by competitive pricing (48%). A third of respondents believe that offering discounts exclusively for their age group is the best way for a brand to make a name for itself.
Price is a key purchasing factor for Gen Z, but so is quality in terms of customer service and the product itself. Providing personalized offers and support will encourage these consumers to choose you over the competition. In fact, 48% of Gen Z customers said they would pay extra for better customer service—more than Baby Boomers or Gen X.
12. Nearly half (46%) of Gen Z consumers look at social media reviews while shopping.
When browsing their social media, Gen Zers are certainly exposed to a lot of review and unboxing videos, suggesting that social media is a useful channel for raising awareness (68% of Gen Zers learn about new brands this way).
13. Having a multi-channel presence is key, and while social media is popular with the current generation, you shouldn’t put all your Gen Z marketing ideas in one basket. Even if Gen Zers don’t shop online or on social media—just as many shop in-store (97%) as online (95%)7—they do use digital channels as part of their decision-making process. So a multi-channel approach is better suited to getting your messages across to this group.
14. 56% of Gen Zers say family and friends are the biggest influencers on purchases, while only 39% mention social media and influencers.
Brands need more than just a social media presence – their content and offers need to motivate family and friends to share them.
15. 47% of Gen Z consumers prefer to wait a few days before making a purchase, compared to 41% of millennials. What’s more, only 29% prefer to buy at full price outright rather than wait for the item to go on sale.
Patience, at least when it comes to shopping, is a virtue for Generation Z. They actively seek out bargains.
More than two-thirds (69%) of Gen Z consumers value email reminders for abandoned online carts, and 64% enjoy receiving personalized offers after spending a few minutes on a brand’s site.
One could argue that Generation Z, as relatively new consumers, hasn’t had time to develop brand loyalty. But the same elements that motivate purchases—thriftiness and the desire for positive experiences—can also drive brand loyalty.
16. The most attractive offers for them are free shipping (60%) and receiving a free gift with purchase (52%).
17. Only 43% of Gen Zers say they are loyal to brands, but 37% participate in loyalty or rewards programs.
If Gen Zers feel a brand loyalty program is worth it, they will actually join it: 63% are likely to join a loyalty program to receive offers specific to Gen Z. This means that when designing your loyalty program, make sure it includes enticements that are exclusive to Gen Z. This could include age-specific discounts, the ability to earn points for unique or limited-edition gifts, donating a portion of proceeds to support their favorite causes, and access to exclusive payment methods like BNPL.
18. When it comes to making a purchasing decision, 32% of students always or often check for a Gen Z student discount before making a purchase, and 62% of Gen Z students always or often check for a student discount.
Appeal to Gen Z's desire to save money and pride yourself on offering discounts that are personalized to them. And don't forget that email is their preferred channel for receiving information about these offers.
19. For 59% of Gen Zers, instantly verifying their eligibility for an exclusive Gen Z offer—instead of uploading documents proving their age, for example—and not sharing data with other brands positively impacts their willingness to take advantage of offers.
Conclusion
To ensure your marketing messages resonate with this generation, you must be truly inclusive, tap into their concerns and passions, and embrace their cultural diversity.
19 Surprising Facts About Gen Z Every Brand Needs to Know
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