Marketers can no longer afford to overlook Generation Z.
Indeed, the majority of brands have long stereotyped this age group – born in the mid-90s to 2000s – as smartphone-addicted children too young to hold any real purchasing power.
The other shoe has suddenly dropped, however, for marketing departments as they realize the potential value Generation Z represents as a customer base. It is estimated that by 2020, this often-neglected demographic – which already holds $44 billion in purchasing power – will be the source of 40% of global spend and generate $1.4 trillion in disposable income.
Admittedly, targeting Gen Z presents a slew of challenges to brands and companies. Engaging this set of consumers isn’t as simple as just “going digital†with marketing operations – as it is, in many ways, for their millennial predecessors.Opens a new window
Rather, they take “tech-savvy†to a new level, and as social media natives, are equal parts ever-connected and immune to traditional forms of advertising. In other words, social media ads just won’t cut it.
While advertising to this new kid on the consumer block requires a fresh approach to marketing, it’s worth it.
Not only will Generation Z’s purchasing power continue increasing, brands that succeed in converting these shoppers will find they are acquiring customers more brand-conscious and loyal than any other demographic.
Is it really all about mobile?
Short answer: Yes. Long answer: No.
It’s no secret that for Gen Z, mobile phones are extensions of themselves. Obviously, that means marketers must ensure their content is optimized to accommodate mobile users.
In fact, a mobile-first strategy is crucial. (Think: Instagram, Snapchat, Native apps.)
Marketers should note, though, that some reports have found it common for Gen Zers to consume content across five screens, while IBM revealed that two-thirds regularly use multiple devices at once.
So although mobile-friendly content should be a priority, cross-platform selling strategies are also important: Don’t put all your eggs into the mobile basket. A brand’s marketing content – from a photo on Instagram to website design – should be easily accessible across all devices.
Personalization without intrusion
Growing up with social media, Gen Zers have had invasive advertising shoved in their faces from an early age.
Consequently, grabbing their attention can pose a challenge. The customized experience offers one way to capture these customers.
Most Gen Z consumers want to see personalized advertising, which conveys they are being treated as individuals.
According to Google, over one-quarter agree they even expect their shopping habits and preferences to be used by e-tailers to provide a more tailor-made, online experience.
To achieve this effectively, marketers will need to gather data – lots of it.
Be warned, however, that personalizing content is anything but simple. It requires vast resources and it’s easy to get wrong. Moreover, in the post-Cambridge-Analytica-scandal era, Gen Zers are increasingly guarded about their privacy.
As such, marketers must be careful that their brands don’t overstep and come off as intrusive or creepy.
Finding balance is the challenge.
Authenticity and User-Generated Content
Clunky brands whose marketing appears inauthentic will be annihilated online by Generation Z.
It’s imperative for marketing teams to create an editorial strategy that will ensure their operations remain “authentic†and don’t seem corporate or “sales-y†to the consumer.
An effective route: Involve audiences through UGC (user-generated content). Marketers should leverage social media and encourage their customers to post photos, reviews and videos online – any kind of shareable content that shows real people – not models or celebrities – enjoying a product or service and showcasing a brand’s value.
This social media-obsessed demographic demands authenticityOpens a new window from businesses and wants a certain level of familiarity with the brands they engage with online. UGC is a form of easy-to-produce content that gives Generation Z what it wants.
Snapchat and Instagram
Gen Zers don’t consume as much content on Facebook or Twitter as older generations. Instead, they’re big on Snapchat and Instagram.
Marketers should learn how to best advertise on both these channels.
With 71% of Generation Z on Snapchat – and more than half using the app around 11 times per day – it is an easy way to push brand exposure.
Instagram, meanwhile, can enhance the consumer experience – especially through the Instagram Stories function, which offers a platform to share exclusive content and to showcase products, facilities and even staff – a way to connect with consumers and promote the human elements of a company.
Ultimately, targeting Generation Z will test marketers’ abilities. Those who manage to get their message across, though, will certainly get results.
Other tactics that can help:
- Doing good is good for businessOpens a new window : This is a generation that appreciates purpose-driven and ethical businesses, and actions speak louder than words to Gen Zers.
- Social influencers:Opens a new window As stated, this demographic lives on social media. So it trusts social influencers, taking their advice as if from a family member or friend. A marketing segment proving increasingly effective are micro-influencers whose smaller but more dedicated online followers lead to impressive conversions.
- Be direct: Get to the point. ASAP. Their ability to access anything instantaneously and everything online has contributed to Generation Z’s short attention span.