According to IBM Institute for Business Value, approximately Opens a new window 70%Opens a new window of Gen Zers impact family purchasing decisions on various products and services. By “Generation Z,†marketing specialists mean those born between 1997-2015, the cohort which has turned the world of business upside down. They currently have more than $140 billion in spending power, and this number keeps growing. Their needs and beliefs are different from previous generations while already having a powerful influence on marketing and customer experience.
Quality, Design, and More
Generation Z is a world away from Millennials or Generation X. They require a completely different approach that emphasizes the value of a product or service. Product quality comes in for over 66% of Gen Zers. This means they could be ready to pay over the odds for something, especially if the purchased item is made up from the premium materials and lasts for a long time or the service they ordered is globally trusted and has proven positive testimonials.
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Capturing and minimalistic design is another factor that determines the loyalty of Gen Z customers, as evidenced by the fact that 23% of them may drop a brand over poor mobile app design. Furthermore, consumers from this category are looking for a seamless experience and transparency, both physical and digital, in any part of the world. For instance, 96% of Gen Z who took part in a survey in Singapore reported they would be willing to pay a premium for transparent brands. Easy-to-use, clear in understanding, minimalistic in words, no hidden fees, proving its value for the buyer — these are the expected qualities they’re looking for.
Additionally, brands that contribute to the environment and society have greater chances of appealing to Gen Z. In particular, this generation is interested in social issues, such as higher education, economic security, physical and mental health, race and gender equity, civic engagement, climate change and so on. In particular, that is because 35% of Gen Zers shared that their health has worsened during the COVID-19 pandemic. This means that companies that show global use, for example, adopting garbage sorting policies, have more chances to deserving consumers’ credit.
What Type of Content-format Should a Business Pick?
Most typical Millenials don’t mind reading long posts with plenty of lists, tables, and graphs. However, the Gen Zers often complain that they hate reading tiring long reads, preferring visual content, such as videos, images, infographics, quizzes, surveys, interactive tools, games, comics, and visually appealing quotes. Video and interactive content are their favorites, so it’s better to focus on these two categories first. Over 85% of Gen Zers watch videos at least once per month, and 36% of them watch them every day. In addition, 62% of Generation Z name YouTube as their preferred source of online video.
Now, it’s not that easy to develop content that would grab the attention of the target audience and make them want to view the full piece. The average attention span of a Millennial is 12 secs compared to 8 secs of Gen Z. It’s less than goldfish. Short attention spans mean that Gen Z loathes pop-ups that cannot be skipped. They also keep away from long, irrelevant commercials. Formats like YouTube bumper ads would work best for Gen Z.
Not all types and formats of video content work equally well for Gen Z. One example that is really effective is a vertical video. National Geographic, Spotify, Mercedes-Benz, and Netflix are using this type of video for their commercials and other content. Also, social media platforms that focus on vertical content have become social media giants for Generation Z. A good example is Tik Tok, as it is expected to have over 37 million Gen Z usersOpens a new window who access their accounts at least once every month.
Gen Z wants to participate. That’s why personalized messaging works so well. Such type of content makes viewers stay on the page longer by engaging them to take part in the specific activity. Users assess pages with interactive content more positively than those without it, for example, 42% of Gen Z would take part in an online game for a campaign.
An effective trick is interactive shopping, as it is able to guide users further down the conversion funnel. PayPal, for instance, was the first to introduce round-the-clock mobile shopping. Every store has an original QR code, and a customer only needs an app to scan it and get the goods. Adidas NEO window shopping is another example of interactive shopping. It connects with customers’ mobile devices, and there is no need for any QR codes or apps to shop hassle-free.
Gaming is another aspect to consider when trying to reach this audience. It’s projected to be a $94-billion industry by 2024Opens a new window , while 90% of Gen-Zers are in the video gaming ring, which implies multiple marketing opportunities. Gaming is still a kind of “Terra Nova†for advertisers. But inspired by the Fortnite collaborations with top-tier brands, such as Riot Games or NFL, it’s definitely a channel one should dive into.
Choosing the Right Device
IBM reports that nearly 75% of this generation would choose a smartphone as the preferred device for both work and pastime. The same source also provides stats on other devices. 45% of Generation Z would choose a laptop; 30% of them would use a desktop computer; 10% would go for a tablet. Gaming consoles, interactive gadgets, and wearable devices are the least popular options.
Almost every member of Gen Z is devoted to a smartphone as it used to be their primary big-ticket. Purchasing goods and services for them is much easier via their smartphones, as GOpens a new window oogle admitOpens a new window Opens a new window a new window” target=”_blank”>s. Thus, to appeal to Gen Z, a company has to optimize for mobile devices. As of today, more than 85% of Gen Zers find out about new goods through social media apps installed on their smartphones. Their buying preferences are heavily impacted by what they learn about products and services on social media. However, mobile devices should not be the only focus of marketing experts.
The popularity of CTV is growing impressively. It’s proven that Generation Z watches 68 videos per day on average, and roughly 71% of them spend more than three hours daily viewing online videos. They choose CTV for its opportunity to watch content in high resolution from various sources.
An average Gen Zer prefers online sources that include Smart TVs, consoles, and various multimedia devices like Roku, Apple, etc. That’s why CTV and OTT emerge as the right choice for marketers who are interested in catching the eye of Gen Zers. Those who own a Smart TV, for example, have shown that they barely skip an ad. CTV commercials are usually targeted and short, which makes them less annoying. That’s why more and more marketing experts choose CTV to promote their products and services.
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Influencers are Kings of Trust!
Partnering with so-called influencers could be the key to success. 17% of businessesOpens a new window contribute more than 50% of their marketing budget to influencer marketing. Earlier, companies had to spend way more money on celebrities and macro-influencers than today, where micro-influencers dominate. With a follower count between 2,000-50,000, they typically charge less than $500 per sponsored post. That’s a great way for a company to cut marketing costs as micro-influencers show to deserve more trust from the audience.
Over 70% of teen YouTube users relate to micro-influencers like YouTube creators more than any celebrities like movie stars or popular bands. According to Peer-to-Peer Marketing research, micro-influencers have become a more demanded marketing niche than vlogger-millionaires. They hold greater power when driving conversion rates. They also have better recommendation power. Finally, these people can potentially drive up to 60% higher engagement levels and more than 22% more conversions per week.
Respect Their Privacy, Boost Their Loyalty, Ask for Feedback
Highlighting a dedication to privacy is essential. That is another key. 88% of Gen Zers say that protecting privacy matters to them. They would not share personal info other than contact information that easily because they are looking for authenticity to feel safe. Some may only think about providing passwords, encryption, and measures like that, but it is not enough. The quality of a product or service, as well as the company’s website and app, is also associated with safety and loyalty. Generation Z would hardly trust a brand that is using photoshopped or poorly edited images or low-quality photographs on its website.
Some recent cases prove how much privacy matters to Generation Z. Facebook was being sued for failing to protect users’ personal data in the Cambridge Analytica breach. Misuse of information from almost 1,000,000 people in England and Wales made the company face some serious troubles. After that incident, over half of teen users deleted their accounts. The idea is that websites making it possible to remain anonymous or create temporary posts are more popular among Gen Z. Those are Snapchat and Whisper, for instance.
And the last thing you could do to engage with customers is encourage them to leave feedback and offer suggestions on how to improve the company’s services. Do not ignore their comments and reviews. Because 76% of Generation ZersOpens a new window state that they expect to hear back from a company once they leave their feedback. By the way, they tend to leave many reviews, comments and reviews, so any brand’s success can depend on testimonials a lot.
Final Thoughts
Generation Z has the potential to become a major responding audience if approached appropriately. It’s important to understand that marketing to these people would be completely different from marketing to other generations. Even though it might be a challenge, if a company is willing to put the work in to find new customers and meet their needs, Gen Zers will reward this business for the invested time and money.
What steps have you taken to reach and attract Generation Z consumers? Share with us on FacebookOpens a new window , TwitterOpens a new window , and LinkedInOpens a new window .