Decoding Zoomer Habits: Gen Z Audience Analysis
Written by Anjali Barnabas, Rosecliff Summer Intern
Generation Z (also known as Zoomers) includes anyone born between 1995 and 2010. In the US, many grew up during a recession, so this group tends to be more pragmatic and focused on saving money, but that doesn’t mean they dream small. Gen Z is becoming the most entrepreneurial and creative generation yet, with 72% of current high school students and 64% of current college students aspiring to found their own business (Workplace Intelligence).
By the end of 2020, Gen Z will represent 40% of all consumers, spending a whopping $143B a year (Forbes). Companies are scrambling to appeal to this immensely powerful generation which is both the present and the future of the economy. According to GlobalWebIndex, Gen Z is most likely to delay purchases during COVID-19, therefore, brands should focus on building brand fidelity with younger customers.
So, what should businesses be doing to grab Gen Z’s attention?
Gen Z Values Authenticity
When the COVID crisis hit, Allbirds’ buy a pair-give-a-pair initiative gifted trainers to front line medical workers. This resonated with Gen Z consumers because of its genuine support for medical workers who are on their feet all day working to keep our communities safe and healthy. In order to craft a more ‘authentic’ message, consumer brands can work with influencers and consumers from this demographic to create new initiatives that involve community building and charitable work (McKinsey).
Furthermore, Zoomers call for companies to rethink major influencer campaigns, as many young people find celebrities inauthentic and un-relatable. In fact, a survey performed by Fullscreen and Shareablee found that, only 26% of Gen Z made a purchase recommended by a celebrity. However, micro-influencers drive 60% higher engagement levels and are 6.7 times more cost-efficient per engagements (Markerly).
The takeaway? Gen Z will market for you if you have excellent customer experience and communicate with your consumers. By allowing social media savvy Gen Z to become ambassadors for your brand, they will enthusiastically spread brand awareness and get all their friends to join in.
For example, Bang Energy, a beverage company, offered sponsorship deals to many rising TikTok stars, many of whom are now associated with popular content creation havens such as the Hype House. As a result, Bang Energy gained more traction amongst this audience by targeting them through ‘authentic’ influencer-created content.
Gen Z Expects Personalization
Gen Z has only known a world where — with a tap of a button from their bed, a user could have access to 5000+ shows and movies — instantly. Instant gratification and efficient service is the norm. This demographic views consumption as “access rather than possession” (McKinsey & Company). They value experiences, whether that be opening an aesthetic package or choosing from a catalog of movies and TV shows.
Most importantly, brands must communicate with consumers through social media platforms and personalized communication. 76% of Gen Z have stated that they want companies to respond to feedback and use companies’ responsiveness to assess authenticity (Gen Z Insights).
Over the past few months, Rumble Boxing did weekly Instagram Live workouts and promoted trainers’ TikTok videos on their official social media platforms. By interacting with customers through a variety of social media channels, personalized emails, and timely content, Rumble continued to engage their growing fan base while offering something in return for quarantined fans — free, accessible classes for anybody to try, anywhere.
Gen Z Demands Data Transparency
Drawing the line between what information to share online is a concern of many. Interestingly, Gen Z deals with this privacy paradox in a very balanced way. Many Gen Z users understand that the customization they demand requires them to share their data. When data makes the user’s experience more enjoyable, Gen Z will trust companies with their personal information. Savannah Rabin, Strategist for R/GA notes, “Gen Z appreciate it when data adds value to their lives — [but] hate it when it fuels predatory practices by big tech companies” (R/GA).
In a survey conducted by IBM, less than one third of teenagers share their private information online. However, if they reportedly ‘trust’ a brand, 61% of these same teens would share personal information beyond contact information. Furthermore, 88% of Gen Zers believe that privacy is a critical issue that corporations should address (NGen).
Despite growing up with social media, Gen Z is actually very cautious with who sees what they post online, and for how long. Gen Z prefers private content apps like Snapchat but will find creative ways to make public applications a little more private. For example, on Instagram, many Zoomers have created “finstas” — private accounts that only friends can view. Gen Z recognizes what they post will always be on the Internet, but limiting the people who can access their information assures a sense of privacy.
The Gen Z demographic is truly a moving target for brand builders and founders alike. In fact, nearly ⅔ of Gen Z have changed brands during the pandemic (PRNewswire). It is undeniable that Generation Z wields large purchasing power, spending $143B a year, and that companies should and will adjust their strategies to continue targeting this formidable generation of consumers.
This article was written and researched by Anjali Barnabas, a Rosecliff Summer 2020 Intern.
Links for Further Reading
Vogue Business (22 April 2020): Marketing to Gen Z during Covid-19
Gen Z Insights (1 Feb 2019): Crucial Gen Z Stats
McKinsey (12 Nov 2018): True Gen: Gen Z and its implications for companies
NGen (Oct 2017): Gen Z: A Generation To Look Up To (National Survey)
