Understanding Gen Z consumer behaviour is about future-proofing your brand. Gen Z's purchasing power is growing rapidly, and their influence extends beyond their own spending habits. Moreover, they often sway family purchasing decisions and set trends that older generations follow. Brands that fail to connect with Gen Z risk becoming irrelevant in the coming years.
However, connecting with Gen Z isn't as simple as jumping on the latest social media platform or using trendy slang. It requires a deep understanding of their values, preferences, and the unique context in which they've grown up. From their digital-first mindset to their strong stance on social issues, Gen Z presents both challenges and opportunities for brands willing to adapt.
Isabelle Landreville, President & Chief Insight Seeker of Sylvestre & Co., chatted with Gary Rudman, President of GTR Consulting and a Gen Z researcher, on an episode of “Insightful Inspiration.” They discussed key strategies for building trust and meaningful connections with Gen Z consumers. Their conversation shed light on several crucial aspects of Gen Z consumer behavior that brands need to understand.
The digital native mindset
Gen Z is unique in that they've always had instant access to information as they were born between 1997 and 2012.
"These folks have grown up in a world where they don't know a world without a smartphone,” emphasizes Gary. “Even the oldest of these guys don't really remember a time before an iPhone existed."
There's no doubt it's shaped how they see and interact with the world. But what does this mean in practice?
First off, Gen Z prefers digital communication and transactions over face-to-face interactions. In fact, many have never visited a physical bank or written a check. They expect seamless digital experiences for everything. They expect intuitive, fast, and mobile-friendly digital experiences. Everywhere. Websites, apps, and online purchasing processes.
Secondly, Gen Z also has shorter attention spans. Specifically, Gen Z has an average attention span of 8 seconds, compared to 12 seconds for Millennials. As a result, content needs to be engaging and to the point. Mere seconds to grab their attention before they move on.
Lastly, Gen Z's constant access to information has shaped them into savvy, skeptical consumers. They can fact-check claims instantly and aren't afraid to challenge authority figures. Consequently, this generation approaches marketing with a critical eye, making traditional tactics less effective. For brands, this skepticism is both a challenge and an opportunity. The key to successfully engaging Gen Z lies in two critical elements: trust and authenticity.
"We have to do the first step, we have to go to them," Isabelle notes. "Because their pendulum is so way off that we have to be part of swinging it back to making it work and collaborate with them."
Trust and authenticity: The cornerstones of Gen Z consumer behaviour
Trust and authenticity are crucial for connecting with Gen Z. They've grown up surrounded by misinformation, corporate scandals, and environmental crises. Understandably, it's made them skeptical of institutions and brands.
"There's a general theme of mistrust. They've had access to information, they've seen how the world's been impacted by decisions made by those in power," Gary notes.
To address this, prioritize transparency. One way of doing this is to share practices, values, and decision-making processes openly. Gen Z appreciates brands that show their "behind-the-scenes" operations. However, it's important to be consistent. Make sure actions match any stated values across all platforms and interactions.
Additionally, brands should consider creating channels for genuine dialogue with Gen Z. They expect brands to listen and respond to their feedback authentically. On the other hand, don't try too hard to be "cool" or use Gen Z slang inauthentically.
"Their BS meter is pretty high up,” Isabelle adds. “You really have to show up fully and authentically, otherwise they can smell you a mile away."
How social responsibility and activism affect Gen Z's consumer behavior
Social and environmental concerns strongly influence Gen Z consumer behavior. In particular, they expect brands to not only be aware of important issues but also to take a stand and actively contribute to society.
To illustrate this point, Gary shares an example of Zara, a major fashion brand, facing backlash for an ad campaign. The campaign featured mannequins wrapped in white cloth, which was reminiscent of tragic images from Gaza. Gen Z quickly called out the brand for being insensitive and out of touch.
"Gen Z lives in the right now," Gary explains. "If you're not paying attention to what's happening right now, then you have a problem relating to them."
As a result, the brands that miss the mark risk more than losing customers. They might damage their reputation too.
To effectively connect with Gen Z, identify causes that align with your brand values and resonate with your audience. These causes should relate to your products or services. Furthermore, take meaningful action. Go beyond surface-level support. Implement real initiatives and dedicate resources to your chosen causes.
Finally, share updates on these efforts and their impact regularly. Highlight the real-world changes being made. Create opportunities for Gen Z to participate in your social responsibility efforts. In this way, brands can foster a sense of shared purpose and strengthen brand loyalty.
The power of personalization and customization
Gen Z values personalized experiences and products that allow for self-expression. As such, they expect brands to cater to their unique preferences. Use consumer data ethically to provide tailored recommendations and experiences.
To achieve this, offer customization options. Let Gen Z adjust products or services to their liking. Create limited-edition or exclusive products to appeal to their desire for uniqueness. Additionally, use AI and machine learning to deliver personalized content across digital platforms.
Building relationships through continuous engagement
Gen Z wants ongoing engagement with brands. Importantly, maintaining this relationship requires consistent effort and genuine interaction.
"It's backwards and forwards communication, not a one-way street," Gary emphasizes. "If you're just posting and ignoring complaints, you're telling Gen Z you don't care about them."
To foster this engagement, create online communities where Gen Z can connect with each other and your brand. Provide value beyond products. Offer educational content, entertainment, or resources that align with Gen Z interests.
Moreover, implement loyalty programs that offer meaningful benefits and experiences. Ask for and act on feedback regularly. Show how Gen Z input influences your decisions. This approach demonstrates that you value their opinions and are willing to evolve based on their needs.
"You can't just marry them and say, 'we're married now, we're good,’” Isabelle observes. “There's this notion of continuously dating them, continuously going out there, keeping that honeymoon phase always prevalent."
Balancing digital and real-world interactions
While Gen Z is highly digital-focused, they still value authentic, real-world experiences. To cater to this, bridge the gap between digital and physical interactions. Create immersive experiences through pop-up shops, interactive installations, or events. In doing so, you can bring your brand to life in the physical world.
Furthermore, integrate online and offline experiences. Use technology to enhance in-store experiences. Think QR codes for product information or augmented reality for virtual try-ons. Collaborate with influencers for both digital content and real-world events. This strategy can create authentic connections.
Lastly, focus on experiential marketing. Create memorable experiences that Gen Z will want to share on social media.
Summing up Gen Z consumer behaviour
Gen Z consumer behavior presents unique challenges and opportunities. To succeed, understanding their core values and preferences while remaining flexible to their evolving needs is crucial.
In conclusion, authentically align with Gen Z's values. Provide seamless digital experiences. Maintain genuine, two-way communication. These strategies are the best way to build lasting trust and loyalty. Stay attuned to the nuances of Gen Z consumer behaviour. Continuously evolve your strategies.
