Born between the mid-1990s and early 2000s, Generation Z, also known as the iGeneration, currently makes up 32% of the 7.7 billion-strong global population. You might be familiar with a few facts about them, such as their eight-second attention spans or that they don’t check their email.
Statistics like these have naturally resulted in some unwarranted “doomsday warnings” among marketers. But the reality is that it’s not all doom and gloom. In fact, the youngest generation is extremely important to the success of your business. So, exactly who is generation Z and why are they such a valuable demographic?
Importance of Gen Z
Well, in 2020, Gen Z will account for around 40% of all consumers. They’re set to be the most powerful force in the current market, with an individual buying power of $44 billion. Coupled with the influence they have on their parents’ spending, that number expands to a whopping $600 billion.
Having grown up surrounded by a deluge of information, Gen Z possesses a sophisticated filter. You have just a few seconds to convince them that your business is worth their time. Get it right and they can focus enough to perform in-depth research on topics they find important to them. Here are some strategies that will help you achieve this.
Experience Over Products
As alluded to above, Gen Z is immune to obvious marketing campaigns. They want to know how your business will benefit them and the experience it will provide, not what makes your product so amazing. As detailed in this Mention post, 75% of what you sell is the intangible feeling associated with the product, while only 25% is the product itself.
A study conducted by the NRF in partnership with IBM found that 55 percent of Gen Z prefer buying from businesses that are socially responsible and eco-friendly.
As a result of being exposed to what’s going on in the world around them from a young age, Gen Z is acutely aware of the socio-economic and environmental issues that society is facing today. They care about the world and the impact your business has on it. Consequently, your business needs to show it cares to avoid being shunned by Gen Z.
Customer retention is important to any marketing strategy. In fact, a Harvard Business Review post reported that acquiring a brand-new customer will set you back between five and 25 times more than hanging on to the one you already have.
But Gen Z cares less about brand loyalty than previous generations, so you need to find another way. The answer is meaningful interactions. This includes events, competitions, games, and asking for feedback on your product.
Optimize for Mobile
One IBM survey found that 75% of Gen Z uses a smartphone more than any other device. They also use smartphones to make most of their online purchases. So, ensure that your website and marketing content is optimized for mobile, as well as making the checkout process as simple as possible.
You need to show Gen Z authenticity and that your business cares. Effectively doing so will allow your business to reap the benefits of being highly regarded by this valuable generation.