Often described as the most disruptive generation, Generation Z is changing the world of marketing through the way they engage with brands. Currently, we have six generations: the silent generation, baby boomers, Generation X, Generation Y (millennials), Generation Z, and Generation Alpha. Each generation functions with its own preferences and behaviors when engaging with brands. Baby boomers are highly brand loyal and unlikely to consider peer recommendations. Gen Xers are hesitant to try new products and value authenticity and nostalgia. Millennials are influenced by word-of-mouth advertising and value brand reliability and social advocacy. Gen Z, however, brings an alternative perspective to the marketing table.

Gen Zs are digital natives born between the mid-1990s and early 2010s, and they carry a unique understanding and keen interest in integrating their physical lives with their digital worlds. They represent 40% of consumers in the United States and are en route to surpassing the earnings of millennials by 2031. This generation has spending power and is careful about the ways they use it. Studies show that Gen Z prefers to support agile, cost-effective, and community-oriented brands that are conscious of social issues. They value authenticity, making it crucial for brands to represent their values effectively through how they market their products. How should brands adapt their marketing strategies to suit the preferences and behaviors of Gen Z?

How Gen Z is Changing Marketing

Agile

Gen Z strongly identifies with the agility that has come with the digital era. This generation never knew the pains of dial-up internet or the struggle of waiting longer than two days for shipping. Every need or desire they have is accessible at their fingertips, and at lightning speed. For example, the food delivery market has expanded in the past decade. What once was limited to pizza delivery or Chinese takeout can now be anything from a 5-course luxury meal to a burger from your favorite fast food joint delivered right to your doorstep. Everything from order placement to delivery is done digitally and as fast as possible. This desire for efficient shopping expands beyond the food industry. 79% of Gen Z respondents told Klarna that they shop more often on their mobile phones than not. Why go to a physical store when you can access every product through a mobile app? Gen Z desires an agile and effective shopping experience, and brands have been quick to integrate digital avenues of engaging with their products.

Consider Instacart, a grocery shopping delivery company that prides itself on fast service. They offer a selection of more than 500 retailers that can do same-day delivery to customers’ homes, and in some cases, they deliver in less than 2 hours. Brands like Instacart have revolutionized the way that people grocery shop, and with the COVID-19 pandemic increasing the need for everyday tasks to be done digitally, it provided the perfect soil for brands like this to gain success among younger, tech-savvy generations. Instacart combines digital and physical worlds by providing a way for consumers to order their groceries at any time through their app or their website, to any place they desire. Additionally, customers can pick up their orders at a physical store if they choose to. Instacart is a great example of how a weekly chore such as grocery shopping can be digitized and automated to be faster and more efficient. Gen Z has been able to experience this grocery shopping revolution from seeing their parents adjust to it or from adopting it themselves as young adults.

Thrifty

Gen Z has also contributed to the major shift towards second-hand shopping because of their desire for cost-effectiveness and their efforts to care for the environment. Second-hand shopping, or thrifting, is currently a $30 billion industry that is projected to reach $77 billion by 2025. Gen Z accounts for over 40% of global consumers and has embraced both buying and reselling used items as an extra source of income. The thrifting industry creates a space for Gen Z to adopt the nostalgic styles of the 1980s, 1990s, and early 2000s, all while saving money and reducing waste, which are important values for this generation.

For example, Depop is a community-powered “circular fashion” marketplace used to buy and sell clothing, acquired by Etsy in 2021. 90% of Depop’s active users are under the age of 26, meaning that most of the second-hand clothing marketplace users are Gen Z. On their website, users are able to search for clothing by type, brand, size, price, color, or condition, similar to most online shopping experiences. Not only is Depop a tool for buying and selling second-hand clothing, but it also acts as a community. Their website invites consumers to “be part of the community that’s transforming fashion one item at a time,” encouraging them to joina fashion movement rather than a simple buy or sell. Companies like Depop are transforming the way young consumers engage with fashion by combining a familiar experience with a community that values unique fashion.

Conscious

Gen Z values brands that have moved towards sustainable and ethical practices for creating and distributing their products. 65% of Gen Z individuals say that they research where and how a product was made before buying it. The digital world has enabled Gen Z to have access to this valuable information and helps inform consumers about the practices of brands they love. Over 90% of Gen Z say that they prefer products that promote sustainable and ethical business practices. This generation values recyclable, compostable, good quality, and ethically sound products, and will make their purchasing decisions based on these factors. Environmental sustainability, in particular, has become a significant priority for young consumers.

H&M, an internationally recognized fashion brand, has pivoted their marketing to show consumers that they adhere to sustainable and ethical practices. They have implemented Conscious Points, which are earned every time customers purchase a Conscious Item, bring their own bag, choose Climate-Smart Delivery, or use their Garment Collecting program. Conscious points can be collected and redeemed as vouchers for the customer’s next purchase. Additionally, H&M aims to create all of its products from recycled or sustainably sourced materials by 2030. Some of the materials they have used in the past include pineapple leaves, hemp waste, shoreline waste, and recycled glass. They even have a secondhand line, where consumers can buy or sell any brand of clothing. Sellers either receive a direct deposit or an H&M gift card with an extra 20% added on to it. H&M rewards customers for engaging with their sustainability line and offers a transparent and ambitious strategy to make fashion sustainable and sustainability fashion. This is exactly what Gen Z is looking for in large brands. They want to see that brands aren’t afraid to step out and make a difference in the world.

Value Driven

Lastly, Gen Z appreciates brands that are community-oriented and value driven. A survey from PSFK shows that 57% of Gen Z seek out like-minded communities that share their passions. Moreover, 61% of Gen Z say that they associate their identity with online communities, showing that Gen Z intertwines their digital life with their physical world. To Gen Z, brands are more than just companies that sell products; they are avenues for world change. This generation is more likely to be loyal to a brand that represents values that they align with.

For example, Ben & Jerry’s is an ice cream brand that is outspoken about its values, stating on its website that they “believe that ice cream can change the world.” Specifically, their core values include Human Rights & Dignity, Social & Economic Justice, and Environmental Protection, Restoration, and Regeneration. They engage in these values by creating economic opportunities, minimizing their environmental impact, and promoting safe food production methods. For example, Ben & Jerry’s promoted a campaign to “Stand with Grassy Narrows”, a First Nations community in Northern Canada. They invite supporters to join a march to raise awareness about the long-lasting impact of mercury poisoning in the community. Among other calls to action, they also educate their customers on climate change, and invite them to demand climate justice by emailing the Prime Minister of Canada. Through these initiatives, Ben & Jerry’s invites consumers to join a community that’s making a difference in the world.

Additionally, Ben & Jerry’s offers a rewards program in which loyal customers can sign up and receive rewards such as 10% off their order or a free cone on their birthday. By explicitly sharing their brand’s values, inviting consumers to take action, and providing a rewards program for customers to engage with, Ben & Jerry’s does an incredible job of appealing to Gen Z.

Step-by-Step Guide for Marketing to Gen Z

1. Choose an initiative

Brands that want to connect with a Gen Z audience should focus on choosing an initiative that aligns with what they care about as a company. The key is to choose something that fits with the direction your brand is going in. For instance, choosing to focus on being carbon-neutral only makes sense if that is possible for your product and may not be the right choice for some. For example, Apple outlined their commitment to inclusion and diversity on its website and displayed statistics that reflect how they implement those values in their hiring practices. Choosing an initiative that suits the direction you want your brand to go in is the first step to drawing a Gen Z audience.

2. Find a partner

Finding an organization to partner with whose work aligns with your initiatives can be helpful for both brands. If another organization is dedicated to your value or initiative, it can save you time and benefit the organization by pointing your consumers towards them. Ben & Jerry’s, for example, partnered with the Children’s Defense Fund, Rock the Vote, and MyClimate to see their values reflected in the world around them. Alternatively, the LEGO Group partnered with UNICEF and the World Wildlife Fund to give action to their values of empowering children through play and lowering carbon emissions. Partnering with organizations like these can help your brand to build a community with similar values, passions, and goals. A good partner can help you utilize your brand’s audience to make an impact on your chosen initiative and nurture loyal customers.

3. Be intentional about brand messaging

Be clear and intentional about how you bring your consumers into your brand’s initiatives. Tell your customers what your goal is, who you’re partnering with, and how they can help you achieve your goal. For example, you can launch a joint gift with purchase promotion that donates a specified dollar amount to your brand’s partner when your customer spends a certain amount on your products. Additionally, your brand could create a points-based loyalty program, where they earn points for engaging with content about your chosen initiative or can donate $5 to your partner after earning a certain amount of points. This gives consumers both a sense of direction and a sense of community, which may lead them to become loyal customers and advocates for your brand.

4. Get creative

Don’t be afraid to have fun with the way you present your brand's values and initiatives. Create a loyalty program that consumers can engage with, or launch a marketing campaign that shows people who your brand is and why you support the initiatives you support. Tell the story of how your brand is going to change the world with these initiatives and how your customers can join them in this worthy cause. This can be done through a social media campaign that introduces your partner, your initiative, and invites the consumer to earn rewards by sharing content on their platforms. Or, you could launch an email campaign that calls consumers to action, such as through donations or word-of-mouth. Be authentic to who your brand is, and create a space for people to engage, connect, build communities, and advocate for your brand and its values.

Create Marketing Promotions to Foster Gen Z Consumer Loyalty

Gen Z cares about more than your brand solving a problem with your product; they care about your brand going beyond the product and being a part of the solution for problems the world is facing. This generation is looking for agile, effective, environmentally aware brands that are conscious of social issues. They want to know that brands are thinking about how their products affect the world and how their influence can impact the world. Furthermore, Gen Z consumers are ready to engage with brands that share their values. Brands should partner with organizations that align with their passions and invite their consumers to engage in supporting their chosen initiatives.

With 3 tier logic’s PLATFORM³, brands can identify, target, and connect with Gen Z consumers through loyalty programs, SMS marketing, gamification strategies, gift with purchase promotions, and more. Modules like Dynamic Messaging, Points and Gamification, and Data Capture & Analytics give marketers the knowledge and capabilities they need to create brand communities of loyal consumers that advocate for their brand's values and initiatives. To learn more about driving sales, ROI, and long-term customer loyalty, chat with an expert today.