Gen Z is fundamentally reshaping consumer dynamics. As this generation emerges as a dominant force in spending power and influence, brands are forced to adapt their marketing and engagement strategies to build trust and future-proof their businesses.
You might be thinking, “Gen Z is not my target audience, so this email is not for me!”. But before you delete this, hear me out:
Gen Z is influencing the way all of your customers interact with brands.
According to Edelman, 68% of consumers say that teenagers and college-aged people (AKA, Gen Z) influence where and how they shop.😯
So even if you don’t think you’re selling to Gen Z, you better understand their values and buying behaviors if you want to stay relevant with your audience.
In this article, I’m highlighting three insights I’ve learned about Gen Z and what they mean for your brand moving forward.
Who is Gen Z?
Before we dive into Gen Z’s consumer behaviors, it’s important to understand who, exactly, makes up this generation. Generation Z encapsulates those born between 1997 and 2012. In 2024, Gen Zers are between the ages of 12 and 27 years old. Gen Z is unique because they are truly the first generation to grow up in the digital age. Moreover, many people in this generation experienced the COVID-19 pandemic in their formative years (between the ages of 8 and 23).
Gen Z Craves Authenticity
Gen Z values authenticity and is quick to engage with brands that demonstrate commitment to their principles. This savvy and skeptical generation can see through traditional marketing tactics in the blink of an eye. Having grown up on social media, they meticulously monitor every aspect of your brand—your past posts, comments, and the social issues you address (or ignore). The moment there’s a mismatch between your message and actions, they’re quick to call you out (case in point: customers are returning Blake Lively’s new hair products to Target after It Ends With Us controversy).
What Gen Z truly craves is genuine experiences that align with their values, such as sustainability, inclusivity, and social responsibility. They want to feel connected to brands that reflect their beliefs and support meaningful causes.
What this means for you
Your messaging must be transparent and your actions consistent. Gen Z consumers are quick to highlight discrepancies between what you say and what you actually do. Before you immediately post an Instagram story about a social issue, have a strategic conversation about it. Do you plan to actually support the cause, or just post something about it? If you post about one topic, will your brand be expected to continue posting about every related news story? If you don’t speak up about something, will your customers be angry?
Additionally, incorporating authenticity into your organic content strategy is crucial. Research shows that 61% of Gen Z prefers User-Generated Content (UGC) over any other type. By encouraging your customers to share their experiences and stories, you’ll foster a sense of community and involve them in your success. This approach not only celebrates authenticity but also amplifies your brand’s voice through the genuine expressions of your consumers.
Sustainability Matters
Gen Z is the most knowledgeable generation on sustainability, and it shows in their shopping habits:
- 62% of Gen Z consumers prefer to buy from sustainable brands (FirstInsight)
- 59% of Gen Zers will pay more for sustainable products (Deloitte)
- One in three Gen Zers abandoned a brand last year due to its reputation for sustainability (Afterpay)
Moreover, Gen Z’s views on sustainability are positively influencing older generations. According to an Edelman report, 73% of millennial respondents say that Gen Z has influenced their expectations for a product’s environmental friendliness (56% of Gen X participants and 53% of baby boomer participants said the same).
What this means for you
As a business owner, I know it’s not as easy as just telling someone to “be more sustainable.” It can require a lot of time, research, and resources that you just don’t have. However, it’s no longer a nice-to-have; it’s a need-to-have. If you don’t prioritize sustainability now, your business will soon fall behind.
Policies aimed at reducing environmental impact are becoming more common. Investors increasingly favor companies with strong sustainability initiatives. Reducing waste and enhancing resource management can lower operational costs in the long run. Plus, focusing on the environment is the right thing to do!
My advice? Start small. Look for really simple ways that you can be more environmentally friendly… because to Gen Z, these would be considered red flags. 🚩(And, don’t worry, the “red flag” is one of the emojis we haven’t ruined for them yet.)
Here are a few suggestions:
- Stop buying bulk plastic water bottles for the office (even if they’re for clients!)
- Use recyclable or compostable materials wherever possible
- Incentivize “green” behaviors for employees, such as paying for bus passes or bike repairs. Offer preferred parking spots for carpoolers.
- Encourage customers to bring their shopping bags
- Switch to motion-sensor lights
- Limit the amount of printing in the office, and offer digital receipts and paperwork whenever possible.
After crossing the basics off the list, gradually audit other parts of your business operation for ways to be more sustainable. Create a task force among your employees to get them involved, or challenge other entrepreneurs in your community to hold each other accountable for reducing waste.
Whether you’re pledging to go paperless or upgrading your entire supply chain, make sure you’re overly transparent in communicating your goals and plans. Don’t underestimate this generation’s ability to detect greenwashing.
Gen Z is Not As Brand-Loyal
Research shows that Gen Z is much more inclined to shop around than to remain loyal to a particular brand. This may sound a bit confusing – especially since this is the generation that cares more about social responsibility and authenticity. You’d think that, once consumers find a brand whose values align with their own, they’d want to remain loyal. However, I think there are a few things to point out that may help you make sense of this:
- Price is still a leading factor in this generation’s buying decisions. According to Survey Monkey, 62% of Gen Zers say that affordability is important, compared to 53% for all other generations.
- Younger consumers are researching brands post-purchase. They may buy something from your brand because an influencer told them to do so. Then, after finding out more about you, they decide to try another option next time.
- With influencers constantly trying new products and promoting the next best thing, it only makes sense that Gen Z tends to shop around, too (BTW, some research suggests that Gen Z values recommendations from influencers more than those from friends or family 😬).
What this means for you
Please don’t go slashing your prices to beat your competition. Instead, work on building more trust with your customers. Stay engaged long after they’ve made a purchase with you to remind them why they chose you in the first place. Share helpful resources about the products they’ve purchased to mitigate any buyer’s remorse. Reply to their comments on social media and show them that you care about them as people, not just transactions. Finally, reward your loyal customers so the thought of price shopping doesn’t enter their mind.
The Bottom Line
Gen Z is dictating the way brands interact with all customers. To succeed, brands must adapt to these changing habits by being authentic, transparent, and trustworthy. Staying attuned to Gen Z’s preferences is not just advantageous—it’s essential for long-term success.
