15 Amazing Key Insights About Gen Z That Every Brand Should Know

 

Almost every brand wants to target Gen Z, but you might be surprised at what they, and you, don’t know about this generation. However, winning the hearts of Gen Z requires more than creating a few circles or TikToks and convincing influencers to promote your brand.

With a global purchasing power of over $450 billion, Gen Z already has significant economic clout. And this penetration is increasing as Zoomers enter the workforce and start generating powerful income.

However, they are careful with their money. This is while the financial crisis has endured the Great Recession and the severe economic impact of the COVID-19 pandemic. While Gen Z appreciates great perks, a sense of community and individualized experiences are more valuable to them than affordability.

While financial security is only one of Gen Z’s top concerns, climate change and the mental health of their generation are the next most important concerns. Keeping this in mind when approaching Gen Z is important for brands. Gen Z wants brands to truly understand their wants, needs, and interests, not just market to them.

For brands to convince Gen Z to buy, it’s important to meet them where they are. So, to better understand Gen Z, what makes this generation unique compared to previous generations, and what should brands do to earn their loyalty?

Market To The Real Gen Z

Gen Z (born between 1997 and 2012), with more than 68 million people in the United States, is a more diverse and anxious generation than previous generations. For your marketing messages to resonate with this generation, you need to be truly inclusive, addressing their concerns and aspirations and addressing their cultural diversity.

FACT

1. Gen Z is truly a melting pot. They are the last generation to have a majority (51%) of non-Hispanic whites, as a quarter of Gen Z are Hispanic and 15% are non-Hispanic black. Additionally, nearly 20% of Gen Z adults identify as LGBTQ+. Compared to 7% of all adults.

TAKEAWAY

Your Marketing should truly reflect this diversity. Almost a third (32%) of Gen Z say they are more likely to buy from a brand that challenges racial and ethnic stereotypes, compared to 25% of adults overall. Authenticity is also important, with 38% more likely to buy from brands that don’t use Photoshop or retouching, compared to 26% of adults overall.

FACT

2. 47% of Gen Z “always” or “often” feel anxious, and 22% “always” or “often” feel depressed, and these feelings increase with age.

TAKEAWAY

Although their concerns aren’t directly related to the shopping experience, making it easier to buy and more profitable can make them feel better about your brand. For example, exclusive offers evoke positive emotions. Half of Gen Z consumers say they “appreciate” receiving special offers, 32% are “excited” and 30% are “happy.”

FACT

3. 60 percent reported being concerned about climate change and the environment in the past month, and 21 percent cited it as their top concern, after the cost of living (35 percent) and unemployment (22 percent). Additionally, Gen Z’s environmental concerns influence their behavior, with 35 percent no longer driving, 33 percent avoiding fast fashion purchases, and 21 percent being vegetarian or vegan.

TAKEAWAY

Don’t underestimate the importance of sustainability and environmental responsibility when dealing with Gen Z. If you can honestly share your environmental credentials, please do. Their choice of brands supports climate change and sustainability in 47% of cases. Use vague terms like “green” or “eco-friendly.” Gen Z will not tolerate greenwashing, so be specific and back up your claims.

FACT

4. In 20 fandoms and interest-based communities. They are 30% more likely than older generations to feel that having multiple and varied interests is better than having one or two deep interests. At the same time, 65% consider themselves a super fan of something.

TAKEAWAY

This is a generation of enthusiasts. Some of these interests are broad (Taylor Swift, anyone?), while others are very interesting. If you can tap into these interests, especially niche interests, your brand can be awash in fan enthusiasm.

LEARN HOW GEN Z BEHAVES

Yes, Gen Z, the first generation of digital natives, spends hours online looking for entertainment. This is evident in their social media  preferences and love for gaming. But it’s not all fun and games when it comes to the online privacy we’re trying to protect.

FACT

5. Only 43% of Gen Z claim to be loyal to brands, but 37% participate in loyalty or rewards programs.

TAKEAWAY

If Gen Z finds value in a brand’s loyalty program, they will actually join it. 63% are more likely to join a loyalty program to receive Gen Z offers. 5 So when creating your loyalty program, make sure: it includes Gen Z’s unique requests. This includes age-specific discounts, the ability to earn points for experiential or limited-edition gifts, the ability to donate a portion of your earnings to support your favorite causes, and access to exclusive payment options, such as BNPL.

FACT

6. Email is not dead. 48% of Gen Z cite email as their preferred method of finding out about special offers, making email their first choice. Additionally, 41% have made a purchase via email in the past 12 months.

TAKEAWAY

Once you’ve captured Gen Z’s attention by entertaining them, use email to bring your brand to their attention to inform them of sales and promotions. But even then, maintain the same creative tone of voice that attracted them to you in the first place.

FACT

7. Take into consideration the Buy Now Pay Later (BNPL) option and provide multiple payment options. BNPL is more popular among Gen Z than other adults, with 37% of adult Zoomers using BNPL at least once, compared to 32% of Millennials, 16% of Gen X, and just 6% of Boomers.

TAKEAWAY

Gen Z’s financial prudence has a big impact on their buying habits. After all, this is the group that invented the trend of “budgeting out loud,” or being clear with friends and family about your financial goals and boundaries. But while discounts certainly encourage consumers to try something new, quality is more important than you might think. Social media is a big influence, but not necessarily the biggest.

FACT

8. 71% of Gen Z adults have played video games to improve their mental health or stress levels, and 72% are drawn to content and experiences that involve finding clues or investigating mysteries.

TAKEAWAY

Gamification is a great way to attract Gen Z to your brand and keep them engaged. Additionally, you can find out more about consumers who might not otherwise volunteer information. Using a quiz, for example, you could find out what they are interested in and what they prefer.

DISCOVER HOW GEN Z SHOP

Zoomers don’t like digital payments. Only 14% say digital is their preferred payment method. Debit cards came in first (45 percent), followed by cash in second and credit cards in third.

FACT

9. Zoomer takes online privacy seriously. Almost half (49%) use an ad blocker, 46% use a privacy or incognito mode in their browser, and 35% pay for internet security software.

TAKEAWAY

Let Gen Z know you value cybersecurity and privacy, too. In the early stages of the acquisition funnel, collect only the minimum amount of data needed. Furthermore, before requesting additional information, please explain how the information will be used to benefit the customer, for example, to provide personalized shopping experiences.

FACT

10. 72% of Gen Z say that quality products or services are the best way to differentiate a brand from competitors, with competitive pricing coming in second (48%). One-third think offering special discounts for their age group is the best way to differentiate brands.

TAKEAWAY

Gen Z considers price, customer service, and product quality to be the most important buying factors. Providing customized and personalized offers and support will encourage customers to choose you over your competition. In fact, 48 percent of Gen Z customers say they’d be willing to pay more for better customer service, a higher percentage than Baby Boomers and Gen Xers.
As Gen Z scrolls through their social feeds, they’re sure to see tons of unboxing reviews and videos. This shows that social media is a useful channel for raising awareness (68% of Gen Z discover new brands this way

FACT

11. Almost half (46%) of Gen Z consumers search or look for reviews on social media when shopping.

TAKEAWAY

While scrolling down through their social feeds, they’re sure to see tons of unboxing reviews and videos. This shows that social media is a useful channel for raising awareness (68% of Gen Z discover new brands this way).

CREATE LOYALTY WITH GEN Z

As relatively new consumers, Gen Z may not have had time to develop brand loyalty yet. However, the same factors that drive purchases, such as thrift and the desire for positive experiences, can also drive brand loyalty.

FACT

12. Gen Z loves the word “free”. The most attractive offer for them is free shipping (60%) and getting a free gift with purchase (52%).

TAKEAWAY

Surprise and delight this group with a free game and build excitement with the promise of more freebies in the future.

FACT

13. Gen Z clearly loves social media, with the top three platforms being YouTube (over 80% say they are users), Instagram (75%) and TikTok (69%). They mainly use social for entertainment (68%), and when it comes to influencing purchase intent, 53% said a video review led to a purchase. 10. They also want to add entertainment elements to ads: 52% of Gen Z prefer creative and interesting ads, and 43% enjoy funny ads.

TAKEAWAY

The best results come from creating content that showcases your products in a fun, entertaining, and sometimes humorous way, and strategically placing that content on the social platforms that Gen Z interacts with the most.

FACT

14. When making a purchase decision, 32% always or often check Gen Z discounts before making a purchase, and 62% of Gen Z students always or often check student discounts.

TAKEAWAY

Make sure you cater to Gen Z’s desire for savings and offer discounts designed specifically to fit their needs. Also, remember that email is the preferred channel for notification of these deals.

FACT

15. For 59% of Gen Z, knowing that they are instantly eligible for a Gen Z-only offer, without having to upload proof of age and having their data kept private has a positive impact on their willingness to redeem offers.

TAKEAWAY

Build loyalty by making it easy to shop and take advantage of customers’ desire for online security. Don’t make Gen Z go through the proverbial hoop every time they want to take advantage of a discount or make them choose between great deals and privacy.