28th May 2024
GenZ is reshaping the marketing landscape. Born mid 90s to early 2010s, they have grown up with the internet, social media, and mobile technology as a complete given (meanwhile this Millennial remembers the day the internet came to Regent House Grammar). GenZ’s unique behaviours and preferences are challenging traditional marketing funnels and prompting a shift towards more dynamic, interactive customer journeys. Marketers need to adapt their strategies to stay relevant and effectively engage with this increasingly influential generation (and not fight it). I’ve read a few interesting pieces over the last few months and wanted to consolidate my learnings of how Gen Z is changing the marketing funnel and offers insights into creating impactful campaigns that resonate with them.
Understanding the Traditional Funnel
The traditional marketing funnel, a staple in marketing theory, outlines a linear path from awareness to purchase. These models assumes consumers move through distinct stages: Awareness, Interest, Desire and Action if referring to AIDA or Reach, Act, Convert, Engage if referring to RACE. While effective for past generations, this linear approach is increasingly out of sync with Gen Z’s behaviours.
How Gen Z Broke the Funnel
Gen Z’s digital nativeness (is that a real word?) means they interact with brands in a non-linear, often unpredictable manner. They seamlessly switch between platforms, seeking authentic and personalised experiences rather than being herded through a rigid funnel. According to Vogue Business, Gen Z values transparency, authenticity, and social responsibility, influencing their purchasing decisions beyond traditional advertising techniques .
Embracing the Infinity Loop
The infinity loop model offers a more accurate representation of Gen Z’s buying journey. This model acknowledges the cyclical and interconnected nature of modern consumer behaviour, where engagement can happen at any stage and loop back in various directions. PR Daily emphasizes that the infinity loop reflects continuous engagement, where post-purchase experiences are as crucial as pre-purchase interactions . I feel this holds true to the RACE model and in marketing in general – once we buy, don’t we all want a good product and after care? Isn’t that what brings us back to the same product / brand / service time and time again?
The Role of Social Media and Influencers
Social media platforms, particularly TikTok, play a pivotal role in Gen Z’s path to purchase. Britopian highlights that TikTok’s algorithm-driven content discovery fosters spontaneous brand interactions, making traditional funnel stages irrelevant. Think about scrolling on your ‘For You’ and an outfit popping up that you like. You click on the creator’s Like to Know link and buy that item from a brand you’ve not heard of before from a content creator you don’t follow…here the influencer is a trusted voice that drives engagement and credibility. Aspire.io notes that influencers’ authentic connections with their followers can significantly impact Gen Z’s purchasing decisions, reinforcing the need for genuine brand-influencer partnerships .
We’ve all heard that Gen Z craves authenticity and transparency ( I feel we all do tbh). Brands must communicate their values clearly and align with causes that resonate with this generation. Authentic storytelling, behind-the-scenes content I feel is key, and genuine interactions can build trust and loyalty. Marketing campaigns should focus on real-life applications and testimonials rather than polished, overtly commercial messages. Think about how put off you are when an ad you’ve seen on TV appears on TikTok or Instagram…. create content for the platform you’re on, not just for the audience you’re targeting.
2. Leverage User-Generated Content
User-generated content (UGC) is a powerful tool for engaging Gen Z. Encouraging customers to share their experiences and featuring this content in marketing efforts can enhance authenticity and relatability. UGC fosters a sense of community and allows potential customers to see real-life applications of products and services, driving higher engagement and trust.
3. Personalisation and Interactivity
Personalisation goes beyond using a customer’s name in an email. For Gen Z, it means tailored content, recommendations, and experiences based on their preferences and behaviours. Interactive content, such as polls, quizzes, and augmented reality (AR) experiences, can capture their attention and encourage deeper engagement. GenZ has seen it all and they want to be wowed.
Data Privacy Concerns
While GenZ is open to personalised experiences, they are also highly conscious of data privacy. Brands must be transparent about data usage and prioritise protecting customer information. Gaining and maintaining trust is essential, and mishandling data can lead to significant backlash.
Keeping Up with Rapid Trends
GenZ is known for their (very) short attention span and quick adaptation to new trends. Marketers need to stay agile and responsive, continuously monitoring trends and being ready to pivot strategies as needed. This requires a deep understanding of the platforms GenZ frequents and the content they consume. I’m not saying you HAVE to be on TikTok but you should be somewhere they can find you, speaking a language they can understand and want to engage with.
Conclusion
The rise of Gen Z is transforming the marketing landscape, rendering traditional funnels obsolete and paving the way for more fluid, dynamic customer journeys. Marketers must embrace authenticity, leverage user-generated content, and prioritise personalisation and interactivity to effectively engage this generation. By understanding and adapting to Gen Z’s unique behaviours and preferences, brands can build meaningful connections and foster long-term loyalty in an ever-changing digital world. Frankly you don’t have a choice, they’re not going to go away.. they are, and will be, your customer and the sooner we all embrace this new form of marketing the better.
I’ve referenced a few articles throughout and they’re all worth reading in their own right. Some critique eachother, others simply support.