Unlocking the Spending Power of Gen Z: What Marketers Need to Know

Who is Gen Z and What Makes Them Different from Other Generations?

Generation Z is defined by anyone born between the years of 1995 and 2015. And with an estimated $360 billion (2021 Bloomberg) in disposable income, they are well on their way to becoming the most powerful consumer group of all time. 

Marketers must take note and create strategies that will effectively reach and engage this demographic. This article will explore the spending habits of Gen Z, what makes them unique from other generations, and how marketers can leverage these insights to unlock their spending power. 

Understanding Gen Z’s Unique Shopping Habits & Preferences

The Gen Z consumer that has grown up in an era of rapid technological advancements and digital transformation. They are also the first generation to have access to technology from an early age. This factor alone has undoubtedly shaped their buying behavior significantly. Here are 3 notable takeaways on the shopping habits of Gen Z and what it means for your marketing strategy.

Gen Z Shoppers Are Ready and Willing to Conduct Extensive Product Research 

Generation Z shoppers are tech-savvy and have high expectations for convenience when it comes to their shopping experience. However, it may come as a surprise to you that they are also extremely cautious and humble when it comes to their spending decisions. They are not afraid to ask questions or compare products online before making a purchase. With the rise of social media and online reviews, Gen Z shoppers have access to more information than ever before, allowing them to make smarter decisions about their purchases. 

Marketers need to be mindful of their needs and the platforms they use when searching online in order to ensure that they get the most out of their shopping experience.

Gen Z Shoppers Have a Strong Desire to Connect with a Company’s Core Values & Morals

The core morals and values of a company have a huge influence on how Generation Z spends their money. As the most socially conscious generation, Gen Z is more likely to boycott products if they don’t agree with the company’s values. Even if they are attracted to the product, they will not buy it if it goes against their principles.

Marketers should be aware of how they are representing their brand in order to captivate the attention of Gen Z consumers. By understanding the messages they send out and the perception this creates, companies can successfully engage with this demographic.

Gen Z Shoppers Have Are Heavily Influenced By Social Media

According to a Creatopy survey, almost 90% of US Gen Z adults spend more than one hour per day on social media, and nearly half spend three or more hours on these platforms. Social media has undoubtedly had a massive impact on Gen Z’s purchasing behavior. With the rise of platforms like Instagram, YouTube, and TikTok, Gen Zers are now exposed to more products and services than ever before. This has resulted in a sharp increase in online shopping trends and e-commerce sales among this demographic. Furthermore, social media influencers have become increasingly important when it comes to influencing Gen Z’s purchasing decisions.

Savvy marketers need to stay on top of this trend in order to develop and deploy marketing strategies that will ensure they are targeting the right audience with the right message at the right time. This is essential for creating successful campaigns and staying ahead of their competition in terms of capturing audience attention and driving conversions.

How Can Marketers Utilize these Findings?

Generation Z do their homework when it comes to product research before making a purchase. Businesses need to be aware of both what they are looking for and the platforms they are conducting their research on when they shop online.

Generation Z has an uncanny ability to filter content, making it essential for brands to capture their attention in 8 seconds or less. With a short attention span and a desire for fresh, creative content, businesses need to adapt their strategies and create engaging content that speaks directly to them. By understanding Gen Zers’ needs and creating meaningful experiences tailored specifically for them, brands can ensure they are reaching this critical consumer demographic and build lasting relationships.

Generation Z values fairness, realness, and acceptance above all else. Businesses must be transparent in their messaging if they want to reach this group of consumers. To stay relevant, companies must demonstrate that they are open and honest with their customers by providing accurate information about their products or services, being upfront about pricing, and maintaining an authentic voice in all communications.

At Brkthru, all of these factors are taken into account when creating our marketing strategies tailored towards this new generation of consumers. We understand that Generation Z needs to be heard, and we’re all ears!