The term Generation Z or Gen Z refers to those people who are born during the mid-1900s and early 2000s.
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Other terms used include Post Millenials, Homeland generation and iGeneration. They are the teenagers of today’s generation in their early 20’s. At this age, they are starting to enter the workforce. Their earning potential increases as well as their buying power. Regardless of whatever niche, Generation Z will greatly influence business growth.
Why Gen Z is Important for Your Business?
Gen Z makes up 29.5 percent of the population in the United States and foreseen to rise up to 40 percent by the year 2020. It has a buying power of $44 billion with an influence of parents and home purchases, they have a spending power of more or less $200 billion. Do not underestimate the capacity of Gen Z.
Strategies to Use When Marketing With Gen Z
The generation after millennials is important to businesses. It is necessary that you need to understand their behavior to be able to know the correct approach to market effectively.
1. Business Needs Purpose
In business, it is not only making money, but it should have a purpose. Generation Z takes responsibility for the world. They are aware of what is happening in our surroundings, may it be environmental, political and economic problems that we are facing today. According to The National Retail Federation and IBM, Gen Z cares more compared to the rest of the generations. This is the reason why almost 55% of Gen Z choose brands that are eco-friendly.
This generation is environmentally and socially responsible because they want brands that represent their values and their expectations of themselves and well as of their peers. What does it mean to business or how can we relate this kind of attitude and perception of Generation Z? They want to have a positive purpose that can improve the present condition of the world.
Businesses that focus more on sales without a purpose is a big NO to Gen Z. If you want to be successful today, you have to realign your values or focus and find means to add value to the society and the world as a whole. A good example is Ugmonk, the company partnered with Rice Bowls and provide meals for kids for every purchased of their products. Their founder Jeff Sheldon said that they have received great feedback from their customers about the idea of feeding the kids. Their customers know that a part of their purchase is going to a good cause. You will be surprised to know that many customers love this kind of idea.
Another perfect example is TOMS Shoes. For every pair of shoes that a customer bought on their store, they give back by donating a pair of shoes to a child that is needed. This is something that Generation Z is looking for a brand. A brand that cares about the world and is making an effort to improve our lives.
2. Promote Entrepreneurial Values
Gen Z grew up during the recession period wherein they have witnessed the collapse of the housing market and parents losing their jobs. They know the fact that there is no secure job. According to the author of “The Future of Work” Jabob Morgan-“Job security is a myth, as is long term employment. Many people are losing jobs and an average employee tenure is under five years and for millennials below three years.
This is maybe the reason why most Generation Z wants to have their own business. About 72% of the teens in the United States have this idea and 61% of them wants to start a business directly out of college. This simply indicates that Gen Z doesn’t value formal education like any other generations. They question the increase in tuition fees for college. Gen Z is very much aware that anything can be learned online. Only 64% of Generation Z want to pursue a college degree with a 7% decline compared to millennials which is 71%.
In spite of their distrust for formal education and job security, they are confident about their future. More than 50% believe that they can be better than their parents. Gen Z as your target is interested in having a business in the future. The best approach to use is to take them behind the scenes and let them see how it works. In addition, build a good relationship with Gen Z by giving more value to entrepreneurial qualities like self-empowerment, positivity, determination, and resilience.
3. Generate Loyalty
Customer retention must be a large part of your strategy. Good rapport and customer relations can generate loyalty with your customers. They are less interested in brand appeal and loyalty programs. Gen Z customers love to interact with the brand they like. You can win their loyalty by meaningful interaction.
4. Communicate Personally
They like personalized experience when shopping. Based on Google’s report on Generation Z, 26% of shoppers expect retailers to give them more personalized experience based on shopping habits.
5. Optimize Mobile Experience
Almost 75% of Generation Z uses a mobile phone or smartphone for shopping. Mark Dolliver, an eMarketer analyst states “ Part of the appeal of smartphone usage for people this age is that the phone is probably the first big-ticket item that they own”. Teens prefer online shopping for convenience. You need to optimize your business for mobile devices.
6. Generation Z Uses Social Networks in A Different Manner
It is necessary to know and understand how they use social media platforms for your content and ads to coincide your content and ads.
A study conducted by Response Media shows:
- They reveal their aspirational selves on Instagram
- They share their actual moments on Snapchat
- They usually get news on what is happening on Twitter
- They gather information from Facebook
Another study by Market Wired revealed that Instagram is the most popular app Gen Z uses for brand discovery at about 45% of them use it to find new products. For shopping recommendations they use YouTube.
7. Forgetting Facebook and Focus More Snapchat
About 34% of US teens think that Facebook is for older people. In fact, Facebook loses over or less 25% of users from ages 13 and 17 for the last three years. If you want to reach out your business to Gen Z focus more on Instagram and Snapchat.
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