During a client pitch, an executive asked, “How do we acquire Gen Z subscribers?”. Initially, I had interpreted this as a trick question, but the executive continued with similarly themed questions making it clear that they were being earnest. Unfortunately, it isn’t easy, nor in some cases, even possible to “get” a generational audience. Every generation acts and behaves differently, and unless your company or product matches the taste of that generation, then a broadly applied marketing strategy alone will likely not get you there. This is especially true with Gen Z.
Millennials vs Gen Z
Every generation has its characteristics shaped by a wide variety of influences. Assuming that buying behaviors are universally shared across generations is a common misconception. Comparing Millennials and Gen Z, there are shared traits in the behaviors between these generations, but also significant differences due to characteristics like technological and socio-economic changes throughout their lives. If I were to highlight defining characteristics, the following comes to mind.
- Millennials grew up during the development of the internet and most of the generation was significantly impacted by a global recession either through their own experiences or their families.
- Gen Z grew up with a fully matured internet with smart devices always within arms reach, and many experienced pivotal moments in their young lives during the global pandemic.
These are just a few events and technological changes that have defined these generations and have shaped people’s relationships with themselves, others, and the world. This is not opinionated as research has shown that the early patterns defining Gen Z versus previous generations by behaviors related to these examples. Gen Z fare better than Millennials in terms of employment with youth unemployment across developed countries as low as 13%, levels that haven’t been seen since 1991. They are also more integrated with social media platforms for all facets of life, spending more time on these platforms than any other generation.
Gen Z’s consumerism has evolved alongside the development of these platforms with a rise in the number of members entering the workforce coinciding with social media platforms becoming closely intertwined with commerce. Where millennials have largely leaned on traditional media, word of mouth, and digital media to discover new brands/products and shop, Gen Z spends most of its time on social media, and relies on the medium’s unique communities for purchasing decisions, breaking away from the traditional marketing funnels that characterized the behaviors of the millennial generation and generations before that.
They don’t fit a traditional marketing funnel
Businesses cannot simply advertise in the places where their audience spends time, and expect a return. As Vogue Business summarized in a survey that largely inspired this connection to my pitch experience, Gen Z is one of the most informed, and least committal generations. They consume based on inspiration, exploration, community, and loyalty. 70% only trust a brand after carrying out their own research, looking to content creators, UGC, comments sections, and even mood board collages to make a purchase. Even after that purchase, loyalty isn’t guaranteed to follow, as they look to corporations to win their loyalty through a sense of community and innovation. Buyer behaviors put the connection with content creators, and their friends at the center of their influence when making a purchase, with brands on the outside fighting their way in with efforts including advertising to get their attention. It is a large disconnect from brands owning every stage of the marketing funnel from discovery to purchase to retention.
Rethinking your approach to appealing to Gen Z
What all of this means is that companies cannot be naive and expect a straightforward answer to the question, “How do we get Gen Z subscribers?”. Traditional marketing tactics alone won’t be as effective in acquiring customers and gaining loyalty as they were with previous generations. There is a significant emphasis on your brand and values like mission, community, and innovation to appeal to and align with Gen Z's needs. It isn’t about satisfying basic needs, but rather feeling a part of something. While the digital marketing handbook doesn’t have to be thrown out to achieve this, thinking about acquiring these users in a linear fashion like the traditional funnel won’t yield the same understanding of your marketing and business impact, as it had before. You must be open to adopting new methods of marketing and create a deep connection with this audience to be successful.