With everyone’s focus is on the millennials and the obsession to reach them and connect with them, marketers and business executives have overlooked the emerging generation, Generation Z.
Generation Z, also known as the Post-Millennials, the Internet-Generation, or the Google Generation, is the generation born after the millennials. Although there is a lack of consensus among experts with respect to the year range they were born precisely in, most of them agree that their population range lies between 1996 to 2012.
With marketers’ extreme fixation on the millennials for over a decade, this generation is now the most researched in history. However, what the marketers and researchers do not seem to comprehend is that they need to shift focus from millennials to the next big thing in the marketing world, Generation Z.
Though their oldest group just turned 19 and graduated from high school, they make up more than a quarter of America’s population at 25.9%. By 2020, they are forecasted to make up almost 40% of all consumers. With significant purchasing power, they hold the key to unlocking boundless wealth
and riches for market researchers and business analysts, provided that they understand what makes Gen Z so different than the millennials and adjust and cater to their needs and wants.
If marketers and researchers continue paying attention to the millennials, reasoning that Generation Z will fall under the same group as them, they are in for a shock. Gen Z is not only different from their previous generation – these two generations are polar opposites with very little in common with their counterparts.
There are a certain things that researchers need to know about the individuals of Generation Z in order to reach them.
How Are They Different?
As marketers try to figure out the members of Generation Z, there are some facts that they need to be aware of. These facts will aid them in understanding what they value as well as figuring out the most effective strategy to reach the consumers in this cohort and accommodate their needs.
Their influence on purchases
Despite individuals of Generation Z not being independent and barely out of high school, they do have quite an influential impact on various household purchases. More than 84% of mothers feel that their Generation Z child affects their purchases when getting a toy, while 69% believe that their Gen Z child influences their purchases when buying some kind of entertainment.
Their addiction to and usage of internet
Members of Generation Z haven’t ever known a world without the internet, computers, and cell phones. Thus, they are extremely dependent on it for all kinds of research as well as buying products from online websites. Almost more than half of them use YouTube for research purposes.
According to JWT, 55% of Generation Z prefers buying clothes online, 53% would prefer buying books and electronics, and 60% prefer to buy sports equipment online. These figures reveal how and on what Generation Z spends their time and money.
Their purchasing power
Individuals of Generation Z receive $16.90 per week in allowance, which makes for $44 billion a year total. Moreover, according to the US Chamber Foundation, Generation Z accounts for a $43 billion combined buying power and also indirectly influences family spending of $600 billion. Their purchasing power exceeds the buying power of any other generation previously.
Marketers need to keep in mind that although they have a significant foothold in the current consumer market, they still have a number of years left before they finally reach the peak of their purchasing power. This shows that Generation Z is indeed in the process to become the next big thing in the marketing world.
Their values and moral codes
Generation Z is the most practical of the generations. They seek reality rather than optimistic fantasies like those of Generation Y. They do not believe in and follow the mainstream concept of the American Dream.
Their parents push them to be independent, providing them with space and encouraging them to find their own answers. Many students among Generation Z feel that their parents pressure them to acquire professional experience at an early stage. Thus, they are impatient to start off their practical lives and acquire key skills from a young age. 89% of individuals from Generation Z spend part of their free time in activities they consider productive and creative instead of just “hanging out.“ This shows that from a very young age they invest time in activities which are productive.
Their social circles are global
Having spent so much time surfing the internet and social media websites such as Google Hangout and Facebook, members of Generation Z are connected with people globally. They are likely to spend around 8 to 9 hours a day keeping in touch with and logged into at least one social media website. Cell phones and around the clock internet service has made it easy for them to make connections globally.
Why Are They Different?
Having established that Generation Z is distinct and has very little in common with any of the previous generations, we will discuss what exactly has led them to be who they are.
Generation of digital age
They are the first generation to be born in a true digital age, surrounded by smart phones. While millennials have embraced the digital age, people from the Generation Z cohort are what you could call true digital natives. Multi-tasking comes easily to them – they can edit their blog post, take a selfie, and upload it to Instagram all at the same time.
Members of Generation Z are thoroughly surrounded by technology and social media. 4D and 3D are their norm, making them think in spatial terms. This instant access to anything has led them to be impatient. Though they absorb the information instantly, they also tend to lose attention just as quickly.
Social media networks and other virtual platforms have led them to be aware of the social issues that surround them. The digitalized environment has also led them to develop their own language. They send messages mostly consisting of visuals and acronyms.
Since they have evolved differently than the millennials, they require a media rich environment to thrive and succeed.
Generation of crisis
This population group has been brought up in a post 9/11 world. They have seen how the two economic crises of 2000 and 2008, followed by a recession, has led their older siblings (the members of Generation Y) to suffer financial instability and lose jobs. Therefore, growing up in such an instable economic environment and witnessing the chaos, struggle, and volatility has strengthened their resolve to do things differently.
Even the movies that they watch, like The Maze Runner and The Hunger Games, involve the struggle of teens to survive. It is no surprise that they have found a way to cope and succeed.
Generation with a distinctive childhood
Children among the Generation Z have perhaps experienced the most distinctive and versatile childhood. They are the product of different races and cultures mixed together. The last 30 years have seen an increase in black and white marriages by 400%.
Not only have they seen the deep-rooted view of race and ethnicity being challenged, they have witnessed an era when gay marriages have been accepted and legalized by the state. Many celebrities, social workers, and athletes have played a vital role to blur these human-established boundaries.
Parents of individuals of Generation Z have also changed their parenting styles. Having seen how hovering around their kid and always coddling them results in adverse affects, they have now left their Generation Z kids to their own devices (no pun intended). With the absence of their parents, members of Generation Z spend their time using digital media, doing research, and looking for answers on their own. This has resulted in them developing the ability to direct and rely on themselves.
How Do You Connect With Them?
Marketers generally seem to think that they can categorize the youths from different generations, be it Generation X, Generation Y, or Generation Z, in the same group and cater to them the same way. This is a misconception. Though individuals of a similar age bracket do share some similar characteristics, the changes in the environment and technology do not allow marketers to adopt similar approaches.
It is important that they try to connect with today’s under 20s and comprehend their differences, as they are about to make major part of the workforce and the consumer market.
Understand—they are NOT millennials
Blending Generation Z with the millennials is bound to get marketers and researchers in trouble. As mentioned, these individuals think in 4D and communicate with images. They are very mature and focused for their age. Their different experiences while growing up have led them to define success differently from what millennials would define.
Communicate with them in their language
Technology has led the members of this generation to establish their own vocabulary and language. Understanding their language and then communicating in it is the key to connecting with them.
Generation Z does not respond to advertisements and appreciate them like their predecessors did. Rather, they would prefer an eye catching visual image or a symbol along with a short message that instantly connects with them. Instagram, Snapchat, and YouTube are some platforms where you can communicate with them using smart and witty visual images.
Also, they take their research seriously before buying a product. This means that they are more likely to read up on expert reviews and blog posts about your product. They will also seek validation from friends before buying your product.
Maintain their interest
Individuals of Generation Z are known to process vast information instantly; however, they also tend to lose focus and attention just as quickly. This poses the real challenged faced by marketers – how to keep interest focused on their brand. You should deliver information to them frequently but make sure that it is short, so that they retain it.
However, researchers have found out that it is not that Generation Z’s attention spans are getting shorter; in fact, they are blessed with an 8 second filter. With mountains of information available, the individuals of Generation Z are said to have adapted to prioritize and sort out the information based on the most relevant and trusted content. Thus, marketers need to figure out a way to optimize their information and search results on the internet to make it past Generation Z’s first line of defense against irrelevant information.
Surpass their expectations
It is no secret that Generation Z has high expectations from brands. They have seen the rise of technologies and witnessed their high points. It is only natural that they form high expectations. Surpassing those expectations and running the most creative marketing techniques will make them pay attention to your brand.
Talk to them about value and social issues
Generation Z is known to appreciate brands which support the environment and the community at large. They deeply care about the social costs incurred and admire brands which take responsibility.
Marketers who incorporate Generation Z in their realm and focus on strategies to connect with them are certain to unlock the key to the future and succeed in the next decade and beyond. Making this great opportunity as your greatest responsibility will earn you the respect of Generation Z as well as open up possibly the largest potential consumer market. The key is to understand that the members of this generation are a diverse group and go to them rather than make them come to you.
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