In today's rapidly evolving market landscape, there is no definitive playbook for building lasting relationships with generation Z. This generation is overwhelmed with way too much information and product options, which also has resulted in developing the attitude to approach brands with a critical eye, valuing what a brand shares and believes in over what it sells. To resonate with Gen Z, brands must embrace authenticity, inclusivity, and social responsibility. For them, it is the brand value that counts.
Interestingly, while Gen Z may have a favorite brand, they are always on the lookout for alternatives for better options. They are not here to settle and would prefer to keep exploring and shifting to new products that are relevant to them. Gen Zers are willing to switch if they find another brand that offers better quality or lower prices. Additionally, Gen Z has a strong affinity for gamification—integrating game-like elements such as rewards and points into non-game contexts making it more crucial for brands to keep themselves on their toes.
Brands and advertisers have understood that the era of aggressive product pushing is over and now the approach has to be shifted.
The shift in consumer behaviour
Gen Z's purchasing decisions are significantly shaped by social causes, inclusivity, and transparency. This generation is acutely aware of the brands they align with and the individuals behind these brands. They seek out brands that share their values and exhibit genuine concern for societal issues. According to a special report from the Edelman Trust Barometer, brand trust is paramount for Gen Z, with 79% of Gen Zers stating it has become more important to them, compared to 61% of baby boomers. Furthermore, 62% of Gen Z believe that if a brand doesn't communicate its actions on addressing issues, it's either doing nothing or hiding something.
The role of social media
Social media platforms have become the primary marketplace and a cost-effective channel for reaching Gen Z. These platforms serve multiple roles: entertainment hubs, social networks, learning platforms, and news sources. This multifaceted use of social media makes shopping an amalgamation of various influences and mindsets, presenting both opportunities and challenges for brands.
Big companies are increasingly turning to young influencers and content creators to navigate this complex environment and avoid missteps that could alienate Gen Z. By leveraging the authentic voices of these influencers, brands can craft resonant content strategies that align with Gen Z values. The competition is fierce as companies strive to connect authentically with this generation.
Engaging with Gen Z
To engage with the newly entering workforce of Gen Z, brands must invest heavily in understanding their unique psyche. Traditional marketing teachings are now outdated. The most effective way to understand what Gen Z expects from businesses is to engage with them directly and ask. This direct engagement helps brands tailor their messaging and actions to meet the expectations of this discerning consumer base.
Embracing diversity and inclusivity
Gen Z is known for its staunch support of diversity and inclusivity. This support prompts many companies to adapt their language and communication strategies to reflect these values. Ensuring that content is inclusive and diverse not only demonstrates social responsibility but also resonates deeply with Gen Z consumers. Brands that embody and promote genuine values aligning with Gen Z principles are more likely to build lasting relationships with this generation.
The power of fandom and technology
The evolving technology landscape is reshaping fans' relationships with their favorite creators, artists, and entertainment channels. Advanced AI and new video tools have made content creation more accessible and engaging, allowing creators and brands to produce high-quality videos and share them with a global audience. This democratization of content creation has empowered Gen Z to express their creativity and connect with like-minded individuals, fostering a sense of community and belonging.
The coming of virtual influencers
One of the most exciting developments in reaching Gen Z is the rise of hyper-realistic virtual influencers. India's new breed of these digital personas, residing in the multiverse of social media, represents a novel avenue for brand engagement. These virtual influencers, with thousands of followers, offer brands a unique opportunity to hitch their products to digitally powered personas, enhancing their reach and resonance with Gen Z.
With more virtual influencers emerging on Instagram, brands are queuing up to get involved with this futuristic means of marketing. These digital influencers are meticulously crafted to engage with their audience, seamlessly blending into the social media landscape. They offer a perfect blend of creativity, technology, and strategy, making them appealing to Gen Z.
In essence, to connect effectively with the digitally savvy Gen Z, brands must embody and promote genuine values that align with this generation's principles. By embracing authenticity, supporting social causes, engaging directly with consumers, and leveraging the power of technology and influencers, brands can build meaningful and lasting relationships with Generation Z. These strategies have become essential for businesses aiming to stay relevant and drive growth in today's competitive market.
The article has been authored by OpraahFx chief business officer Mansi Gupta.
