How to understand and market to a Gen Z audience

Anyone born between 1996 and 2015 is classed as Gen Z. In 2023, this means the Gen Z age range is 8-27 years old. That’s quite a big gap, and a lot happens in those formative years. However, Gen Z, as well as being the future, also hold a lot of influence now. It’s reported that Gen Z hold around $360 billion of disposable income in the US alone, over double the figure three years prior — undeniable proof that this generation is growing rapidly in terms of market share. Presumably, this is the older end of the cohort, but don’t dismiss the younger Gen Zers. 92% of parents say their children influence purchase decisions in the home.

Gen Z are digital natives; they grew up online and are a lot savvier than previous generations. Times are changing, and Gen Z’s purchasing power is only growing. Research shows that appealing to Gen Z is going to be a whole different ballgame compared to previous generations. For Gen Z, the customer experience and brand ethos is just as important as the product. Let’s explore the tactics needed to expertly navigate what’s to come and capitalize on this emerging generation of consumers. 

Who are Gen Z?

We know the age of Gen Z, but what actually makes them tick? Forbes reports that Gen Z are much more varied in persona than the generations before them. As technology evolves, opportunities become more accessible, and society becomes more accepting and even celebratory of one’s differences, Gen Z is undeniably a generation of individuality. So how do you market to a group of increasingly varied personas, all at very different stages in their life, and with varying levels of spending power? It’s a good question. 

Ernst and Young describe Gen Z as “By far, the most diverse generation yet.” In a survey with a representative sample of 1,509 members of Gen Z from across the United States, five categories of personality emerged.

•  Stressed Strivers: high achievers, driven by a fear of not being good enough.
• Authentic Activists: motivated by the obligation to save the world — and the fear of what will happen if they don’t.
• Big Dreamers: expect to do well and make money but aren’t necessarily willing to put in the effort.
• Secluded Perfectionists: focused on loving what they do and being the best, not the money or accolades.
• Carefree Constituents: the definition of “go with the flow,” and while they may not drive change, they’ll be the ones to adopt it into the mainstream.

Social media and Gen Z

Gen Z and social media shopping

When you think of Gen Z, you think of social media. The generation that grew up with social media is immersed in multiple different social media platforms, and they’re not just using it for socializing. As social media apps have evolved to include shopping functionality, consumers have lapped it up. Data also shows that women are much more likely to engage in social media shopping than men. Whatever your audience demographic, it’s clear that brands need to have a social media presence if they want to compete. 

How to utilize social media to market to Gen Z

When asked what social media platforms they want brands to use more often, 56% of Gen Z said Instagram, 38% said YouTube, and 35% said TikTok. Gen Z prefers short, sharp, engaging content. Gen Zers don’t want to spend time reading long chunks of text. Instead, they want video content, and easily digestible snippets of information—and they want to interact with it too. 

Utilize features like polls and quizzes to make social media an interaction, rather than an act of passive consumption. Stand out in the scroll by making it fun. It’s a type of gamification, a tactic you can apply to your email marketing campaigns to capture that Gen Z audience. 

Gen Z’s lack of trust in big brands

Gen Z probably doesn’t trust you

Salesforce found that only 42% of Gen Z say they trust big businesses. Gen Z has grown up online, they’re incredibly aware of marketing tactics and strategies and can see through them. Gen Z can easily find out about a brand and everything it stands for. Gen Z trust their friends and peers more than they trust a sparkly billboard, so it may be time to shake up your strategy. 

How to build trust between Gen Z and your brand

There can be a bit of an ‘us and them’ feeling with other generations, it’s the way it’s always been. Gen Z are facing the consequences of previous generations’ actions, but they’re also given opportunities previous generations didn’t have. A key way to build a relationship with Gen Z is to include them in your marketing. Consumers want to see themselves in a brand’s marketing, so they instantly know it’s for people like them. 

40% of Gen Z head to TikTok or Instagram rather than Google to search for things. This is a huge shift in behavior and it shows that Gen Z look for recommendations from people like them, in a way that feels authentic and genuine. To get a slice of this, work with Gen Z influencers and utilize user-generated content (UGC) to provide content that will appeal to this authenticity-seeking audience.

82% of Gen Z shoppers will buy from a brand after reading reviews from other customers on social media. So incorporate your customer reviews into your marketing and make sure reviews are prominent on your website, especially on high drop-off pages such as checkout. You can also use reviews for social media content, to share the word that you’re a brand people can trust. UGC delivers a hit of social proof that will resonate with all generations, but especially Gen Z. 

Values and ethics: Generation Zealous

Gen Z cares 

Definition: 

Zealous: showing great energy or enthusiasm in pursuit of a cause or objective.

Gen Z find themselves with access to a whole planet’s worth of news. We’re all more aware than ever of the effects of climate change, and we also have 24/7 access to global news streams. News is constant, and it’s rarely positive. This generation grew up signing online petitions, posting blackout squares on Instagram, and watching the #MeToo movement unfold. It’s no surprise then, that Gen Z are a generation who want change, and are passionate about various causes. 

How marketing and ethics go hand in hand

Traditionally, brands didn’t need a personality. A good product was enough to generate a sale, but times have changed. As every generation is facing tighter budgets due to economic downturn, consumers are becoming more selective with who they’ll do business with. Your brand should have values, things you speak up about, whether it’s Pride, the climate emergency, or a local charity you support - brands need to stand for something. 

You need to remember that Gen Z have so many choices. If brand A is selling a very similar product to brand B, but brand B boasts B Corp status and donates a percentage of profits to a cause the Gen-Zer cares about, it’s brand B that gets the sale, and the loyalty. Your brand needs to be doing more than offering a product or service to stand out, you need to be doing good too. Make sure your brand stands for something. Share this passion in your marketing. Social media especially is a great place to demonstrate support for any movement or cause, and you can even pick up new customers this way by appearing on a hashtag they’re interested in. This isn’t something you can do flippantly, your brand needs to mean it. Brands have been caught out for appearing to do good, but when you look properly, it’s purely marketing spin - this is known as colorwashing. That’s worse than doing nothing at all. You need to walk the walk or be prepared for your customers to walk away. 

The wider economic situation Gen Z find themselves in

Gen Z are cautious with their money

Gen Z are coming into the workforce at a time of economic turbulence, rising costs of living and mass-layoffs mean the generation is, understandably, cautious when it comes to their finances. It’s believed that Gen Z are putting away more for retirement than other generations have done, at 14% of their income. 

Deloitte’s 2022 global Gen Z and Millennial Survey shows that a third of Gen Z worry about the cost of living above all other concerns and 45% live paycheck to paycheck. The Bank of America Institute found that younger consumers are getting squeezed the most by higher rent inflation, with median rent payments up 16% year over year in July for Gen Z, compared to just 3% for Baby Boomers.

How to market to a spending-conscious generation

To stay competitive in the Gen Z market, brands must focus on quality over quantity. Since Gen Zers spend their money more carefully and wisely than their millennial predecessors. Of course, it depends on your product or service, but the generation battling a rising cost of living and stagnating wages is likely to impulse buy. It’s less about the sparkle, and more about the substance. 

In your marketing campaigns prioritize highlighting the qualities of your product such as longevity, eco-friendly credentials, and unique, innovative design. Gen Z won’t buy anything if they can’t justify to themselves why a purchase is worth it, so do it for them. 

This email campaign from Australian accessories brand Bellroy is perfect for a Gen Z audience. The campaign is focused on just one product which means it’s not overwhelming and instantly feels more sincere. The campaign is all about communicating the quality and value of the backpack. The various blocks address different selling points, with clear and aesthetic imagery to appeal to any audience. As you move down the campaign you’re subtly sold more and more reasons why this backpack is a sensible purchase, and then if you’re not sold? There’s a product block to a wider collection at the end of the campaign. 

Conclusion  

Ultimately, Gen Z aren’t aliens, they’re the you of yesteryear, with arguably a lot more on their plate. As with any audience, to market to them successfully, we must know them. So connect with Gen Z, show them people like them in your marketing, and ask them what they want too. You don’t need to commission huge bodies of research, simple Instagram polls on what causes your audience cares about can inform your next campaign. Another way to connect is to hire Gen Zers, having representatives on your team is never a bad thing, with any demographic. Also, simply keep up to date with trends, via the news, by reading blogs, and scrolling social media - yes, watching TikTok’s For You page can be considered audience research. 

Gen Z are the future, and they want to shop with brands who care about that future. Doing more than selling a product is key to capturing this generation’s attention and spending power.