New Kids on the Block
How Gen Z affects today’s business landscape
Young, ethnically diverse, digitally skilled, and growing in purchasing power, the newest generation is poised to disrupt the business landscape. According to the Pew Research Center, Generation Z or iGen is a racially and ethnically diverse body of people born in 1997 or later. Due to growing up in an era where technology and media have quickly evolved, Gen Z is adept at, and addicted to, using smartphones and laptops along with their associated media content. In fact, 98% of people in the Gen Z category own a smartphone and over half of Gen Z spends 10 hours or more a day on those devices and others. Lastly, Gen Z has the money. With $44 billion in buying power, Gen Z is a worthwhile target for marketing initiatives.
Okay, so reaching out to this group should be easy, right? Just engage the audience on social media, make sure to include diversity in any promotional content, and…reap the benefits? Nope. There’s a lot more to Gen Z than meets the eye. In the following paragraphs, we’ll look at some challenges and associated opportunities awaiting businesses when it comes to reaching the newest generation.
Challenge #1: Ethics and Business
Gen Z is highly concerned with how ethics intersects with their consumption. They expect brands to believe in something and stand on it. The risk? Sending a discriminatory or unfavorable message to this generation through products, commercials, or other channels, whether intentionally or unintentionally, will lead to a loss of business. According to McKinsey & Company, over 75% of Gen Z’ers “will stop buying [from] brands and spread the word about companies whose campaigns they regarded as ‘macho,’ ‘racist,’ or ‘homophobic.”’ Look at Pepsi and H&M for example.
Challenge #2: Grabbing & Holding Their Attention
If you have not noticed, the media landscape is full right now. At any given point in time, there are a million different products, advertisements, apps, and experiences that can pull someone’s attention. This begs the question; How do you set yourself apart? Shaun Buck of Entrepreneur Magazine puts it like this: “If I have options and you bore me, it is easy to simply change the channel. Odds are I can find something that will amuse me, which means you have a very short period of time to entertain me or I’m off to the next option.”
Challenge #3: Go-to Influencers
Choosing the right person to be the face of your marketing campaign can be difficult. According to Mediakix, over 60% of Gen Z would rather see “real people” instead of actors in a company’s advertisements. Additionally, 60% of Gen Z prefers to see social media influencers in ads vs 37% for celebrities. Lastly, and most importantly, Gen Z values genuineness and authenticity. They can tell when something is scripted and not rooted in reality.
With these challenges, opportunities arise in which we are able to target our products and messaging to our customers and improve our brand image.
Opportunity #1: Picking The Issue That Aligns with Your Brand
According to Michael Gordon, CEO of strategic communications firm Group Gordon, it’s essential for audiences to see you as a genuine advocate, not an opportunistic business. In other words, be thoughtful about the issue on which you provide commentary. If you’re a clothing or accessory business, for example, environmental sustainability in product assembly is relevant to you. Craft a message that supports eco-friendly business initiatives. Back it up with action. See Jaden Smith and the JUST brand whose innovative Water Box helped address the Flint water crisis and solidify an association with environmental sustainability and change.
Opportunity #2: Creating an Unforgettable Experience
A full media landscape breeds opportunities for creativity. How are you going to differentiate yourself? Are you going to grab someone with the allure of your logo and packaging? Brick-and-mortar store experience? Compelling ad campaigns? Personalized products? The choice is yours. Apple is a good example of a company that excels in most or all of these areas.
Opportunity #3: Darryl the Delivery Boy or Dwayne “The Rock” Johnson
Who should be the face of your brand? A local, everyday neighbor? A celebrity? Maybe you use both. The Nike Dream Crazy campaign highlighted both sports superstars and unknown athletes establishing an image that dreaming crazy is for everybody. Maybe, you can apply the same message to your brand? All in all, the important thing is to understand what your company stands for and who can best fit the mold in promoting the brand.
Keeping Gen Z in mind when creating your communications and marketing plan is critical to your company’s success. By seeing the vast opportunities within the challenges of reaching Gen Z, you can develop thoughtful, innovative solutions and stay ahead of the corporate curve.
