Generation Z are those born between the 1997 and 2012 and represent just over 25% of the Global Population. As of 2023, this segment held a reported €360 BILLION in buying/spending power –with projections suggesting that by 2026, Gen Z will be the largest consumer group worldwide.
Gen Z exhibit distinct characteristics that set them apart from previous generations and understanding these unique characteristics and preferences is paramount in crafting effective marketing strategies for this tech-savvy and socially conscious demographic. In this article, we’ll delve into their key characteristics and explore successful marketing tactics; empowering your brand to stay ahead of the curve and unlock the secrets of engaging with this influential generation in a meaningful and impactful way.
Cracking the Gen Z Code.
The world that shaped Generation Z was one of rapid technological advancement and significant social change and their upbringing has influenced their perceptions, behaviours, and preferences – distinctly setting them apart from earlier generations. As Gen Z step into adulthood, they not only represent a significant portion of the consumer market but also bring with them fresh perspectives and dynamics to the world of marketing. Understanding these unique traits and preferences is essential for brands as they look to interact or engage with this new generation.
Key Characteristics of Gen Z
They are hyper-connected.
Unlike previous generations, Gen Z has been immersed in digital technology from a very young age and are often called the ‘always-on’ generation. For many within this group, smartphones, tablets, and high-speed internet have always been a part of their lives with the average Gen Zer reporting to spend over 8 hours a day online.
This early exposure has resulted in Gen Z possessing exceptional digital skills and a profound comfort with navigating the online environment, often on multiple screens at once – in fact, 66% of Gen Z say that they use more than one device at a time.
This constant connectivity has not only shaped Gen Zs communication preferences but also their expectation for instant access to information and services. They lean heavily on messaging apps and social media platforms that offer instant connectivity, information and immediate responses.
They are individuals AND collectivists.
Despite, or perhaps because of their ‘always-on‘, online presence, Gen Zers are traditionally reported to be fiercely individualistic; to reject traditional notions of success and happiness in favour of personal fulfilment and self-expression. This generation is a WHOPPING 35% LESS LIKELY than previous ones to follow traditional paths in both their careers and personal lives; instead, they seek to forge their own path.
However, we believe that a dichotomy exists in this portrayal, one which is a direct result of the Covid-19 pandemic – and this is, a powerful countertrend for Collectivism. One which has been shaped by the restricted individual freedoms during the most trying periods of 2020-2022, (this was after all, this generations’ formative years) and by the impressive effects when countries and communities worked together. Gen Z will, as they get older bring rise to a culture that rewards collective action. 70% of Gen Z agree that “The wellbeing of society is much more important than my needs as an individual”.
They are truth seekers.
This Generation are often characterised by their desire for complete authenticity. This is likely due to growing up in the age of fake news and deep fakes. They are consistently bombarded by advertising have grown adept at detecting what is real, and what is not. For Gen Z, authenticity isn’t a buzzword; it’s a prerequisite for their attention, their engagement and ultimately their wallets.
For brands, authenticity means showing the human side of your company, admitting to mistakes, crafting genuine messaging across each and every touchpoint and standing by and backing up your values, consistently. It’s about true dialogue, not monologue — engaging with Gen Z in a two-way conversation rather than pushing a hard sell.
They are socially conscious.
Generation Z has a strong inclination towards social and environmental issues more than any generation before them. They are highly aware of global issues such as climate change, social justice, and equality. This heightened sense of responsibility influences their purchasing behaviour, personal beliefs and their expectations from brands:
- Sustainability and Ethics: They prefer brands that are transparent about their production processes and that support sustainable practices. Gen Z is willing (where they can) to pay a premium for products and services that are environmentally friendly and ethically produced.
- Diversity & Inclusion: Generation Z is the most diverse generation in history, in terms of ethnicity, sexual orientation, and gender identity. This diversity is reflected in their attitudes towards inclusivity and equality. Their values extend beyond themselves as individuals – they want everyone to be empowered to be their authentic selves. They expect to see this acceptance, inclusion and diversity reflected in what they see from brands.
- Cultural Awareness: Growing up in a globally connected world has made Gen Z extremely culturally aware and sensitive. This is evident in their language, consumption habits, and the media they consume and produce.
- Activism: Many Gen Zers are activists in their own right, often using their social media platforms as a tool to effect change and spread awareness about various causes. This activism also influences their expectations from political and business leaders.
Gen Z vs Other Generations.
When comparing Gen Z to other generations, key differences emerge. Unlike Millennials, who witnessed the rise of the digital age, Gen Z have never known a world without the internet. This distinction underpins many of the variances in behaviour and expectations between the two groups. Gen Z is more naturally adept at filtering and processing information quickly due to their upbringing in a world saturated with digital content. They expect immediate access to your brands information, product details and company values.
Another difference lies in brand affinity. While Baby Boomers tend to stick with brands they trust over many years, Gen Z is more fickle and willing to switch brands for better quality, price, or alignment with their values.
How to create a true Customer Connection with Gen Z.
This diverse generation exhibits unique characteristics that brands must understand to effectively win their target consumers hearts, minds and wallets! Here are four marketing approaches to consider:
1. Technology Mix
By utilising technology-driven strategies and creating relatable and authentic content, brands can build lasting relationships with Gen Z consumers. Remember, staying adaptable and proactive in updating your marketing approach will keep your strategies effective and relevant to this dynamic demographic.
Social Media
Social media is not just a pastime for Gen Z— it is a critical part of their daily routine. It is often observed that they ‘live on their phones’, and this perception isn’t wrong, with 42% saying that they fall asleep with and wake up to social media most days. This generation uses Instagram, TikTok, and Snapchat to connect, express themselves, and find products or services that resonate with their unique identity.
They rely heavily on social proof and are influenced by what they see from trusted influencers and their own, curated networks. In fact, young people are increasingly using social media as a search engine, to research products in terms of the item’s fit, quality, packaging and more.
For brands, this means that maintaining a strong and engaging presence on social media is non-negotiable. Content needs to be authentic and relatable to capture Gen Z’s attention.
Experiential Focus
Gen Z share a spirit of fun and enjoy gamification – they show higher engagement rates compared with previous generations. This generations media consumption habits reflect an absolute shift towards immersive digital experiences and interactive, engaging content.
Gen Z already use AI as part of their daily lives. With 61% having a positive attitude towards the use of AI-generated content on social media and across a brands website.
Augmented reality (AR), virtual reality (VR), and other immersive experiences can elevate a brand’s appeal by offering interactive and captivating ways for Gen Z to connect with your brand and products. For instance, AR filters on social media platforms allow users to “try on” products virtually, creating a fun and shareable experience.
An incredible example of this was seen just ahead of the release of Emily in Paris on Netflix. Where Google and Netflix partnered up to create an in-show shopping experience which enabled viewers to use Google’s Lens technology to scan ‘looks’ seen on the show by using their mobile devices to find similar items online.
Brands can further leverage the capabilities of mobile apps and AI to deliver highly convenient services. Features like in-app shopping, push notifications, and easy access to customer service can enhance the overall user experience and give Gen Z the immediacy they crave.
Video Content
When it comes to choosing platforms and formats for video marketing to Gen Z, it’s crucial to stay updated with where this demographic spends their time. Currently, platforms like TikTok, Instagram Reels, and YouTube are highly popular. These platforms are favour short-form videos, live streaming, and interactive features such as polls or Q&A sessions. By strategically using these platforms and adapting content to fit their preferences and consumption habits, brands can effectively reach and engage with Gen Z in ways which are impactful and meaningful.
Videos that incorporate humour, creativity, and are succinct generally perform well, as they align with the fast-paced, content-rich environment that Gen Z thrive in. Video content also allows for emotional storytelling that can evoke responses ranging from laughter to empathy, making it a powerful tool for the authentic connection they crave.
2. Personalisation & Privacy
Gen Z have grown up in an age, where they’re constantly bombarded with content and information via social media. Instead of becoming overwhelmed and disengaging completely, Gen Zs want to find ‘the gold among the clutter’, and this is where personalisation can truly make your brand soar.
True Personalisation is key to capturing the attention of Gen Z, with 84% saying that their favourite brand treats them as an individual.
Brands can implement data-driven marketing techniques to deliver personalised messages and offers, using analytics tools to segment the audience and tailor their content accordingly. Moreover, engaging with Gen Z in real-time through interactive and gamified content such as polls, quizzes, and live streams can significantly enhance the personalisation effect of digital campaigns.
By crafting experiences based on individual preferences and values, brands can become favourites amongst Gen Z consumers. It’s about recognising each customer’s uniqueness, respecting their values, and reflecting them across your brands marketing touchpoints.
Privacy
Once again, we can see a conflict at play with Gen Z; whilst they want incredibly high levels of personalisation; 70% of Gen Z consumers also cite data privacy policies as of critical importance when shopping with a brand. This does not mean that they are unwilling to share their data with you, quite the opposite really, with 74% saying they are happy to share hobbies and interest for improved experience.
Your handling of personal data can make or break Gen Z’s trust in your brand. These young consumers have been exposed to high-profile data breaches and are, therefore, more cautious about where and how their information is shared.
Once again you should embrace transparency; be open about collecting, using, and protecting consumer data. Offer customers control over their personal information and the choice to opt in or out. Remember, that data privacy is not a one-off campaign for this generation; it’s an ongoing commitment.
3. A Sustainable Shift
Gen Z consumers have strong opinions about the world they live in — and they aren’t afraid to voice them. Gen Z are known for their social responsibility, dedication to social and political issues. One incredible way that this manifests itself is their preference for re-sale items over new, especially when it comes to fashion.
This preference is twofold, while this generation cares deeply about the environment, they are also mostly teens or young adults who have to be choosy with how they spend their money. Incredibly, 61% of Gen Z shoppers said that they will look for an item second-hand before buying it new. And over half of Gen Z shoppers are more likely to shop with a brand that offers second-hand apparel and new items.
While the resale marketplace is well established, with platforms like The RealReal and Poshmark loved across different generations. Gen Zs impact can now be seen across the ecommerce landscape with many dedicated resell platforms Depop, Vinted, GOAT, Grailed and even Asos Marketplace.
Brands can explore the concept of incorporating refurbishment, repair and resale formats into their business models, investigate strategic partnerships with second-hand marketplaces, or content creators within the resale space.
Patagonia – Worn Wear
An incredible and truly authentic example of this, is demonstrated by Patagonia. A brand born out of a love for the great outdoors by an activist founder, Yvon Chouinard, the company has a steadfast commitment to using business as a force for good.
In recent years, all product-based content produced by the brand focuses on this Worn Wear initiative – the repairing and recycling garments. Now that truly showcases a consistent commitment as a force for good.
4. Community
Gen Z is the loneliest generation, according to the Cigna US Loneliness Index and because of this, the connection brands provide can help young consumers feel a sense of belonging.
For many Gen Z consumers, simply selling a product isn’t enough anymore — brands need to build a universe. 74% of Gen Zs say that their favourite brands are the ones that make them feel like they’re part of a community,
In practice, this could mean leveraging user-generated content, which often feels more real, authentic and relatable than professional ad campaigns.
User Generated Content (UGC)
UGC is a powerful tool in community building, especially for fashion and beauty brands – it reinforces the idea that post-purchase, consumers remain an integral part of a brands story. Brands can encourage UGC by creating campaigns that invite Gen Z to share their experiences on social media. This can be done by developing hosting platforms such as Sephora’s Beauty Insider Community or through more real-time tactics, such as hosting contests that require posting photos or videos using a specific hashtag, or by inviting users to share stories about their product experiences. These methods not only generate content but also foster a community-like feeling among users, which is highly valued by Gen Z.
Refy
Launched in 2020, by Influencer Jess Hunt, Refy completely disrupted the beauty brand launch playbook. Unlike international beauty brands, Refy prioritised the sharing of tutorial style content, by their very first customers – this ensured that reactions, applications and ‘hints and tips’ shared were real and that all different types of women were reflected on their social media feeds.
This approach was so successful with Gen Z, the brands core consumer, that now every single review or recommendation uploaded to an individual’s social media platforms, using participating hashtags can be featured on the brands website homepage or social media channels.
Final thoughts.
Successfully marketing to Generation Z involves a deep understanding of their unique characteristics and consumption behaviours. This generation, being technologically savvy, socially conscious, and authenticity-seeking, requires marketing strategies that are genuine, engaging, and in line with their values.
Brands must maintain a strong online presence, particularly on social media platforms, and leverage digital technologies to provide interactive and personalised experiences. Furthermore, Gen Z’s preference for brands that demonstrate social responsibility makes sustainability and ethical practices mean significate consideration is required before venturing into this sphere.
By staying abreast of these key insights and trends, brands can develop impactful marketing approaches that resonate with Gen Z and foster lasting connections with this increasingly influential demographic.