Is your company looking to attract Generation Z? It is estimated that this generation will be the largest and wealthiest, with a purchasing power reaching $12 trillion, according to the latest report from World Data Lab and NielsenIQ, titled “Spend Z: Gen Z Changes Everything.”
Consequently, this report states, that this generation will have a significant influence on the products that manufacturers and retailers will sell in the near future. Is your company prepared to capture this generation? Then it is vital to know the details of this generation born between 1997 and 2012, which represents about 30% of the world’s population and has approximately US $360 billion in income, according to a Bloomberg publication.
The impact of Generation Z on the company
This generation is known as “digital natives”: the first to grow up with the Internet. A qualification affirmed by Morning Consult, a leading e-commerce platform, which revealed that 54% of those in this generational group spend four hours or more a day on social media; a statistic that highlights the importance of interacting on these platforms.
They are the ones who usually turn to the Internet to search for any type of information, whether work, academic, or daily life, before making a purchase. Hence, they have an intrinsic relationship with technology.
Analyses also affirm that Generation Z transforms the consumer landscape with distinctive behaviors and values.
A NielsenIQ study highlights that Generation Z spends more per capita than any other generation of the same age. Furthermore, in the next six years, their per capita spending will grow faster.
Under this approach, brands and/or companies with a digital presence optimized for mobile devices may be able to effectively attract this demographic, which also gives special relevance to what is authentic, diverse, and socially responsible. Therefore, they are inclined towards brands that support social causes and reflect their values.
If discussing Generation Z’s preferences, their dependence on social media micro-influencers to heed product recommendations must be mentioned. That is, through them, they seek to know experiences, success stories, before the final purchase decision.
What are the preferred platforms?
This generational group, already known as digital natives, is climbing positions in companies and making key purchasing decisions, hence their expectations and values are essential for establishing strategies. Which platforms to consider?
Generation Z’s presence on professional and emerging platforms is active, including LinkedIn and YouTube, as well as those they consider relevant to their industry niche.
According to LinkedIn, young professionals from Gen Z interact 20% more with video content than other generations. Additionally, they value transparency and experience, so content that educates, informs, and solves real problems is preferred.
However, spending a significant period on TikTok and Instagram is also part of their preferences. According to studies, TikTok has become one of the most influential platforms for this generation, with a high percentage of users discovering new products and trends.
According to Morning Consult, the preferred platforms for this generation are YouTube, Instagram, and TikTok.
What does Gen Z look for on social media?
Authentic influencer marketing
Gen Z values authenticity and distrusts traditional advertising. Influencers who connect with their values and generate valuable content have great influence.
A Morning Consult study, titled “Gen Z Influencer Trust,” shows that Generation Z trusts influencers more than traditional celebrities.
Interactive and experiential content (augmented reality, short videos)
Their constant search on social media is focused on immersive experiences and content that allows them to interact and participate. Short videos and augmented reality are formats that capture their attention and generate engagement.
According to Snapchat studies, 73% of Generation Z is interested in using augmented reality to try products before buying them.
Personalized products and services
Personalization and co-creation are aspects considered to achieve feeling unique and express their identity; thus, seeking products and services adapted to their needs will be among their preferences.
Similarly, they demonstrate an inclination toward content related to environmental and social problems, and this goes hand in hand with their consumption decisions.
What is the lesson?
Adapting to Generation Z in the B2B environment requires a mindset change and a transformation of sales and marketing strategies. Companies that manage to understand and meet the expectations of this generation will be better positioned to build solid and lasting relationships, driving their long-term growth and success. It’s time to act, is your company ready for the future?
