There is a new generation of audience that is catching the attention of marketers: Generation Z. This is the group of consumers immediately after Millennials. Being born between mid-1990s and mid-2000s, the oldest Generation Z kids should be around 25 years old now. And as of last year, they account to 32% of the world’s 7 billion population, making them potentially the largest generation yet[1].
Unlike those born before them, this group of people did not know of a world before the Internet and social media. Majority of them were also born into the Great Recession of 2008. These two factors made them more entrepreneurial and cost-conscious than Generation Xers and Millennials.
In order to reach out to this new generation of consumers, marketers need to adopt an approach quite different from what they have been using on their predecessors. If you are one such brand who is still a little unsure of your approach, here are some tips that can shed some light:
Digital Advertisements
Because Generation Z consume most of their content from mobile devices rather than traditional ones, they do not have the habit of watching television, listening to FM radio, and reading magazines and newspapers.
Whether they are sitting at the back of Grab cars, riding trains or waiting at an office lobby, they would be glued to their mobile devices. If marketers are not putting a lot of advertising attention and budget online, chances are Generation Z kids do not know you exist.
Peer Marketing
Generation Z consumers are more aware than their predecessors. They spend time researching about products and services online and trust their peers more than marketing gimmicks.
That is why Reviews and Testimonials are the most important parts of an e-commerce experience. They also see themselves as having some influencing power among their peers, which is why Influencer Marketing is very effective.
While the rest of the developed world still question the validity of Influencer Marketing, China is already turning it into a billion-dollar industry[2]. Ruhan is a Chinese Influencer Incubator backed by e-commerce giant Alibaba[3], which is rumored to plan for a NASDAQ IPO this year.
Ruhan signs contract deals with potential bloggers, which are provided with their own social media management team, designer and Taobao store. In return, a portion of profits earned by the influencers will be passed on to Ruhan.
Now or Never
This is the generation of instant gratification. They will not wait one week for the next episode of their Netflix show. They will not wait a full second longer for that website to load. With information overload and opportunity cost at an all-time high, they have no patience for anything.
Content provided by marketers need to either give them immediate answers, or be so compelling they would want to invest their time. Videos must achieve that ‘mini-skirt’ sweet spot: long enough to cover the topic but short enough to be interesting. Websites must load fast enough to prevent audiences from leaving halfway.
Be the Individual, not the Brand
Try as they might, most companies today struggle to humanise their businesses. Perhaps it’s the thought of being open and vulnerable that scares them, because CEOs and leaders were supposed to be infallible. But that thought is old-school and outdated.
No matter how we dislike being the face of the company, there is no escaping it today. Some of the most successful brands are associated with their leaders. And a successful branding of a leader is one that is tagged to their direction and vision.
Having a human being instead of a corporate logo lead a company creates deeper connection with the audience. Generation Z do not trust marketing campaigns, corporate mission statements and public relations talk. They would rather see companies walk the talk, make some mistakes along the way, own up to them, and ultimately grow.
Sell Value, Not Products
Generation Z kids have the highest social awareness compared to their predecessors, mostly because information is so cheap, convenient and immediate.
By the year 2020, this generation will account for $29 to $149 billion in direct spending, according to Forbes[4]. This is due to a strong influence in household spending. But having been raised around the economic downturn of 2008, they are very cautious and enlightened consumers.
In the age where information is free and products become increasingly generic, what companies need to actually be selling is value. And Generation Z appreciates a good value that socially aligns with them.
Shoes manufacturer Toms built its brand successfully around the commitment of giving a pair of shoes to a child in need for every pair sold.[5] This ultimately enables consumers to become the hero of their own journeys, by playing a part in helping the needy.
Be Transparent and Honest
There was a time when businesses can pretend they know what they’re talking about and be what they’re not. Thanks to the connection we are experiencing today, those days are gone.
While older generation audiences may sometimes accidentally fall for the snake oil salesman’s charm, Generation Z can’t be so easily fooled. Growing up around rampant and uncontrolled fake news and alternative facts, this new generation of kids have a habit of verifying everything they see with research.
This is not to say that they have no tolerance for mistakes. On the contrary, Generation Z values transparency and honesty. They believe that like them, brands make mistakes sometimes. But what sets good brands apart from bad ones is the ability to own up to their mistakes.
Conclusion
Unlike previous age groups, Generation Z will not be so forgiving towards marketers’ half-heartedness approach on value creation. This could potentially be the first generation that will not buy into luxury brands, instead adapting a more minimalist and environmentally-friendly lifestyle. Brands need to take their value game up a notch if they want to stay relevant.
[1] “Gen Z to Outnumber Millennials Within a Year: Demographic Trends ….” 20 Aug. 2018, https://www.bloomberg.com/news/articles/2018-08-20/gen-z-to-outnumber-millennials-within-a-year-demographic-trends. Accessed 22 Feb. 2019.
[2] “An inside look at China’s bizarre influencer-marketing industry | OMR ….” 24 Sep. 2018, https://omr.com/en/china-influencer-marketing/. Accessed 22 Feb. 2019.
[3] “Alibaba-Backed Chinese Influencer Incubator Ruhan … – Forbes.” 18 Dec. 2018, https://www.forbes.com/sites/laurenhallanan/2018/12/18/alibaba-backed-chinese-influencer-incubator-ruhan-announces-plans-to-go-public/. Accessed 22 Feb. 2019.
[4] “How Much Financial Influence Does Gen Z Have? – Forbes.” 10 Jan. 2018, https://www.forbes.com/sites/jefffromm/2018/01/10/what-you-need-to-know-about-the-financial-impact-of-gen-z-influence/. Accessed 24 Feb. 2019.
[5] “Toms Shoes – Wikipedia.” https://en.wikipedia.org/wiki/Toms_Shoes. Accessed 27 Feb. 2019.
