Many marketers have been catching some Zs when it comes to gaining an understanding of Gen Z shopping behaviors. Caught up in the millennial whirlwind, it has been easy to overlook the generation coming up fast on their heels, those born between 1997-2012 (ages 6-21).
In order to effectively market to this group, we first need to understand who they are. Studies show that this generation is shaping up to have unparalleled buying power in the vicinity of $150 billion. In short, it's time we wake up and start paying attention to a generation that is unlike its predecessors, the overanalyzed millennials.
A crucial distinction between Gen Zers and millennials is that Gen Zers have never known a world without unlimited digital access. Millennials aged into adulthood as the power of the internet took the global stage. But Gen Z has never known a “before.” For this generation, pretty much everything they want can be purchased through their phones. Half of them have gone through puberty in the maelstrom of social media, navigating intense bullying, trolls and unfortunate moments captured for all eternity. Their world is so profoundly different from any generation before them that we might actually treat this generation as a pivotal turning point in how we historically discuss society.
Millennials have been the opening act. Our fixation on their differences and peculiarities is only warming us up for how Gen Z is going to reshape the way we think about brands and marketing. While only half of this generation has grown into spending power -- unless you add their parents’ contribution (equaling billions) -- it is important that we understand some marketing truths now:
Gen Z’s digital world exists predominantly on mobile.
Last year, Think with Google studied this aspect for teens in the Gen Z generation, writing, “While millennials were mobile pioneers, teens are mobile natives.” Because of this, Gen Z is the generation that is much more exclusive on mobile and less so on laptops compared to other generations.
Also, 95% of teens have a smartphone or access to a smartphone compared to 73% in 2014-2015. Forty-five percent of teens say they are online "almost constantly" (compared to 24% in 2014-2015), and another 44% say they go online several times a day. This has significantly influenced this generation and how they consume media and products. Marketers need to have a mobile-first (or even mobile-only) strategy in order to effectively reach these consumers.
Privacy is a concern for Gen Z, but it’s not that simple.
Because of their digital background, Gen Zers want their interactions to be transparent and authentic yet also secure. Marketers need to strike a balance between privacy and personalization when interacting with this generation online.
One clear illustration of this is Gen Z’s preference for social media apps like Snapchat and Instagram over Facebook. They like to engage anonymously and create posts that can disappear within seconds, giving them greater control over their own communications, personas, privacy and more. Marketers need to keep this complex relationship with privacy concerns in mind, especially when delivering on the demand for hyper-personalization. If brands cross the line in either direction and fail to find this balance, this group can be deterred from a purchase.
Social media influencers play a critical role in the shopper decision making process.
When it comes to learning about new products in the market, Gen Z places weight on the opinions of influencers, as evidenced by their consumption of how-to videos on YouTube -- in fact, many are using YouTube in place of traditional sources of information -- Instagram stories highlighting brands and products, and more.
They know these YouTubers are paid, but the personal connection and transparency of the brand/celebrity interaction can offset any concerns marketers might have about using this tool. We conducted a recent study on shopping behaviors in key categories, with a respondent base comprised of 647 Gen Zers and 1,438 millennials. One example from our findings is that when it comes to fashion and style, 36% of Gen Z respondents say they turn to social media influencers in their decision making.
Marketers need to recognize the importance of influencers (whether it be everyday people or celebrities) and pay attention to the importance that Gen Z places on trustworthiness, honesty and relatability between them and the product. Leverage the platforms on which this generation feels most comfortable, like YouTube and Instagram, in any outreach campaigns.
Gen Z knows marketing.
This generation understands our methods and goals. Gen Z isn’t cynical (yet) about marketing, but they do not want to be coddled or “handled.” They know how to navigate the balance between an online and offline life and are ready to be ruthless when brands don’t understand the rules. Just look at Wendy’s notoriously snarky Twitter account, which walks the line of sass and smarts that Gen Z praises. Compare it to IHOP’s clunky IHOB burger rollout, which they widely panned.
Honest transactions, honest brands, authentic voices and experiences are ideas that marketers have been practicing with millennials for the last decade. Gen Z will turn this up to 11, and brands will need to become good at the game really fast, because Gen Z is writing the rules now.
