• A good or bad omen for marketers? 

A new generation entered the global workforce in 2017 at the age of 21-22. That is Generation Z (Gen Z) born in and around 1995-2012. Until recently, organisations have not thought of them as employees nor planned to recruit, manage, motivate, or retain them. 

Millennials were considered the results of technological advancement, were highly anticipated, and was the most-discussed generation. By now they have grown, matured, and launched their careers and are the parents to Gen Z. 

Since Generation Z has now made their presence known by entering the workforce, leaders and organisations cannot afford to ignore them. However, treating them by the same measure as millennials will be a big mistake, according to the Institute for Corporate Productivity (i4cp) in its 2016 ‘Gen Z @ Work’ survey.

Gen Z grew up with technology, the internet, and social media, which sometimes made them be stereotyped as tech-addicted, antisocial, or ‘social justice warriors’. It revealed that they are focused and prepared for their careers at a young age. 

I have experienced this with my two granddaughters who chose their professions even before their Advanced Level Examinations and all their efforts were directed to achieve that target. They were very antisocial when they worked towards their projects or targets and refused to socialise regardless of the event. As grandparents, we were hurt when they refused to meet us, but eventually realised that it is a trait of the whole generation and they are part of this generation.

The oldest members of Gen Z would have entered the workforce during the Covid-19 pandemic and working remotely would have matched their expectations, allowing them to pursue other activities and modes of socialising. 

This will be the working model (either hybrid or remote) that they expect from organisations and unless this is allowed, they will not consider that organisation as a good place to work. Nearly half (46%) of Generation Z workers are freelancers, a number that is only projected to grow in the next five years.

A few common characteristics are identified among Gen Z, which will help reveal who they are and how they behave in an organisational environment. While millennials and Gen Z share some similarities, the two generations may differ on some important points.

1. One of the characteristics of Generation Z is their acceptance of diversity. They have grown up in a period where diversity is highest in all aspects of life. They may have schooled, played, tripped, danced, slept, and grown up with multicultural families, diverse family structures, single parents, LGBTQ+ families where gender roles are not clear or are blurred, or friends from all sectors of society and income levels. 

This background has created a group of people who are more liberal, generous, sensitive, and emphatic and likely to advocate for equality and inclusiveness, according to McKinsey.

How does this relate to or affect sales and marketing is the question. Brands that don’t embrace diversity will be ignored by this generation. This was evident in the high rate of growth in social media activities and the comments, feedback posts, and support given to the Aragalaya in the recent past, where some sites have more than 10,000 subscriptions, indicating their desire to participate in social justice and equality.

1. This group was born during the period of technological innovation, where information was immediately accessible and presented to them by their parents. They were fans of these technological advancements and the latest music groups such as BTS and Hemlocke Springs, social media, Twitter, comfort, authentic food, and many such preferences. All these habits and behaviours have both positive and negative effects on Gen Z’s learning and unlearning.
2. There is an abundance of information at their fingertips, allowing Gen Z to broaden their knowledge and be proactive in their learning. On the other hand, too much screen time can compound feelings of isolation and lead to underdeveloped social skills in this group. 

They are very reluctant to share things with others, even a book, and are very protective of their belongings, relationships, and feelings. Offering customised products or services is the best strategy to motivate Gen Z in their purchasing decisions.  

1. The attention span of a Gen Z is just eight seconds – that’s four seconds less than their millennial counterparts. Therefore, first impressions really do count. Make your marketing communication message simple, informative, and creative to grab attention – for example, like Zomato, a food delivery and dining app. 
2. They believe in the power of ‘we’ and want to fix the wrongs they see in the world. This trait is very visible in the participants and organisers of protests we experience daily.
3. They are more competent and private than other generations, which could be an advantage or a disadvantage based on the organisational requirement. Competence in handling and achieving results will be an advantage, while a private person may not be able to build relationships for achieving results.

How do you market your product to Gen Z? 

• Selling authenticity and ethics

From a marketing perspective, knowing specific generational behaviours, values and aspirations, and concerns faced by this specific generation, the influence of brands, social media, and technology will be highly relevant. Not only that, a 2010 Statista study revealed that their purchasing decisions are influenced by micro and macro environmental, operationalised, and governance factors.

• Create value 

Gen Zs are not as loyal to brands as their parents; brand switching is very fast and they unfollow, hide, or block brands on social media if they think that the entity is under a cloud. This perception of right and wrong needs nurturing by emphasising values, authenticity, and other benefits to the customer. Marketers should follow the motivational quote “Make a customer, not a sale” by Katherine Barchetti, a retail leader who knew the secret to success was to make a customer and that loyalty would follow later. 

A 2022 Forbes Magazine story agrees with this: “Younger generations are more likely to tie a brand or company’s real-world impact on society to their shopping decisions. They are looking at everything from ethical manufacturing practices to treatment of employees and from eco-friendly initiatives to sustainability.”

• Use influencers

This is a generation that is known for influencer marketing, usually referring to TikTok. According to a 2021 Statista study, TikTok is the third most influential advertising channel for Gen Z females’ purchasing decisions. 

Real-life experiences and Instagram advertisements rank higher than Facebook or Twitter. When Gen Z shoppers see that their favourite influencers or family members/friends are promoting certain products and services, the company should be able to increase its conversion rate.

Trust plays a prominent role in influencer marketing where Gen Z wants to buy from brands they trust and they hear about brands they trust from people they trust.

• Use short-form content

Since they experienced the ‘always on’ phenomenon associated with constant online connectedness from childhood, their attention span is short compared with millennials. Various forms of clinical research have concluded that for certain activities, Gen Z has an eight-second attention span. Millennials have a 12-second span (The College Investor, 2023). 

Therefore, marketers needed to think about how to use short-form content to grab and hold their attention. This means that each word in your marketing campaign is inherently more valuable and has an even shorter amount of time to grab their attention. If you want to make inroads with this generation, keep your content short.

• Reminders and feedback

Gen Zs are avid communicators and find reminders (i.e., for products, events, and application deadlines) helpful. There can be frustration from the perspectives of both the consumer and producer if there is a missed connection; clarify in your messages if a response is needed to foster a feedback loop. Stay in touch through messages and event invitations. 

In addition, they are more likely to be swayed by the recommendations of real-life users than by celebrity endorsements, use social media to communicate their interests, create their own personal brand, and influence their purchasing decisions by reflecting their values and identities. 

Conclusion 

When targeting Generation Z, marketers should adopt an empathetic marketing strategy on par with their core values. Gen Z will refuse to join an organisation if they are not sure about the job description and the task to be performed. HR departments should not put the common general clause of ‘any other job allocated by the management’ in the job description, which may arouse the Gen Z ‘know it all’ mindset and also does not fit well with their concern for social justice.

Gen Z employees’ performance will depend on the wages and other benefits that they are getting and will be limited to the times given in the contract. Do not expect them to attend unnecessary meetings, since from their perspective, these are unpaid extra assignments and fake social gatherings. They will not be there. 

For organisations, the best approach is to empower workers to manage their own time and work outcomes. Evaluations should be based on results and not facetime. Many organisations are getting the services of Gen Z as interns by providing ‘convenient’ perks, such as free food and stipends for commuting costs. 

Gen Z is the next big wave of young employees and they bring with them changes in organisations. Marketers should be able to adapt to the changing paradigms rather than resist potential success for the organisation with this group of energetic, passionate, concerned, and sometimes self-centred group of people.

(The writer is the Founder of the Asia Pacific Management Institute, a Visiting Lecturer at the University of Colombo, and a Board Director of the Professional Business Coaches Association [PBCA])

Source: Morning Consult