Getting to Know the Real Generation Z
By: Jeff Cheal, director of personalization, Episerver
Millennials are one of the nation’s largest
generations, allowing them to bring a new set of priorities and expectations to
the table. Not only that, but they’re setting the stage for how the next
generation will make purchases and interact with your business. Companies are
consistently trying to “crack the code” to determine who millennials really are
and what they want – with mixed results at best.
However, millennials may (finally) be old news in
the eyes of marketers.
Brands are preparing for the impending next wave of
consumers on deck: Generation Z. How can they learn from Gen Z experiences to
stay ahead of the game?
The Gen Z Factor
While marketers are quick to define Gen Z
exclusively by their age (starting
birth date of 1993), there’s
more to this powerhouse of true “digital natives” than meets the eye. Some
simply label them as screen addicts, and these types of generalizations are leading many to
underestimate the impact this young generation will have on businesses.
Research shows that by 2020, Gen Z will account for
nearly 40 percent of all consumers and influence about $4 billion in discretionary
spending. From shopping habits to channel preferences, Gen Z is differentiating
itself from previous generations – and it’s time to start paying attention.
What Gen Z Really Wants
Marketers need to learn what Gen Z really wants by
examining the brands they interact with. It pays to pay attention. Brands that
are reaping the benefits of learning from new interaction trends are those
developing more meaningful brand engagements.
Gen Z shoppers may be young, but they are far from
naive when it comes to the types of experiences they expect from brands. Above
all else, they value authenticity and quality. Although price and convenience
still matter, brands can’t win over a Gen Z consumer on those aspects alone.
While other generations see price as the most
important factor for brand loyalty, Gen Z holds firm to the idea of quality.
According to a report from Yes Lifecycle Marketing, 57 percent of Gen Z consumers consider quality to be the most significant driver
of brand loyalty. Brand standard, such as the use of high-quality products or promoting
sustainable practices, matter to Gen Z and will have a significant influence on
their spending habits.
To gain a deeper understanding of who this
generation is and how to engage with them, brands must also keep these insights
top of mind:
- The more information, the better
If Gen Z is anything, it’s well-informed. This tech-savvy
generation has a knack for information. They’ve grown up with access to
information constantly at their fingertips. Let’s just say, they didn’t use a
card-catalog system at the library during their lifetime nor hear the sweet
dial-up noise of AOL. Still, they both value and take for granted that they can
conduct research and compare prices in fast and convenient ways.
With more information and options at their disposal, Gen
Z wants more than just a good deal. Brands need to showcase their perceived
value instead of relying solely on offering the lowest price. What really
matters to Gen Z shoppers are factors like product quality, free shipping,
brand prestige and unique engagements through multi-channel opportunities
(in-store, social media, etc.). They’ll pay a premium for products from a brand
they feel a connection to and trust. If brands want to attract these influential
consumers, they need to deliver consistent experiences across all touchpoints.
- Experiences come first
Digital experiences are important, but they won’t get companies
far with Gen Z if they aren’t both personal and meaningful. In fact, 50 percent of Gen Z consumers say they will stop visiting a website that
doesn’t anticipate their needs, likes or wants. It’s not enough to display someone’s
name or wish them a happy birthday when they visit your site – personalization
needs to provide capabilities to help customers feel a connection with the
brand and deliver a more convenient shopping experience. This can be done in a
variety of ways, including saved shipping addresses, personalized
recommendations or one-click purchases.
The demand for unique experiences goes beyond digital
channels. For one in five Gen Z customers, in-store experiences play a huge
role in brand loyalty. Yes, an online presence is important. However, Gen Z
shoppers in Yes Lifecycle Marketing’s study still consider a brand’s website to
be just as important as what the brand offers in store. Ready to take advantage
of Gen Z’s affinity for omnichannel? Create a seamless cross-channel experience
by making sure personalized offers can be redeemed both in-store and online. One
way to do this is by enabling customers to access their online profile in an
in-store kiosk, this allows a shopper to easily re-order or continue product
research from their online session.
- Pay attention to outward marketing
Traditional marketing strategies may not have what it
takes to fully capture the attention of Gen Z. This generation continues to
gravitate toward social media and brands are starting to build experiences to suit
the channels capturing the attention of Gen Z. Platforms like Instagram and
Snapchat make it easier for consumers to interact directly with brands, and in
turn those companies can deliver unique, immersive experiences. Publishers such
as Buzzfeed and Teen Vogue are cashing in on the communal aspect of social
media that keeps Gen Z coming back for more. Both companies are steadily
increasing their number of average
engagements on Instagram
by posting relatable memes or encouraging followers to tag a friend.
From sponsored posts to lifestyle videos, brands are
using their social channels to deliver relevant content that goes beyond
showing off a product or service. For example, a beverage company can show its
social awareness by taking part in cultural events or multimedia campaigns. Brands
that showcase their unique voices and personality via social media, such as Wendy’s and Charmin, are leaving a lasting impression in the minds
of Gen Z consumers.
Lifestyle brands share new and unique ways to use
their product to improve day-to-day life. This content is not an infomercial –
successful examples are typically spiritual, casual and tell the bigger story. When
it comes to Gen Z consumers, it’s not just about a brand’s product or service –
purchasing is closely tied to how they view the brand’s product or service in
the context of their lifestyle.
Gen Z is setting a new tone – one that
varies significantly from the generations that have come before it, but
strategies to reach Gen Z can also be effective for other audiences. Marketing
strategies for Gen Z tend to focus on their connection to technology and desire
for a multichannel approach, which can appeal to all shoppers, regardless of
age. Gen Z is the future, and catering to them is the best way to future proof
Jeff Cheal is the Director of Product Strategy for Personalization, Campaign & Analytics at Episerver. He has an extensive background in advertising sales, software and marketing strategy. He is based out of New York, serving the North American market as an ambassador for the Episerver product suite, staying connected with both the partner network and customer base.