Gen Z Broke The Marketing Funnel

I just stumbled upon this fantastic Vogue Business article that I couldn't wait to share with you all. I have summarised it so you don’t have too, but you can read the full report here. It dives deep into understanding Gen Z's consumer behaviour and how brands can effectively engage with this elusive audience. From their preference for social media inspiration to their desire for seamless online and offline experiences, the article offers valuable insights into Gen Z's mindset.

What's particularly interesting is the emphasis on building loyalty beyond just the initial purchase. It highlights the importance of creating a holistic brand experience that extends well beyond transactions. As marketers, this challenges us to think creatively about how we can craft compelling narratives and touch points that resonate with Gen Z.

Gen Z has disrupted the traditional marketing funnel, which use to follow a linear customer journey from awareness to purchase and if you’re marketing your business to Gen Z (Anyone born between 1997 and 2012 ages 12yrs-27yrs) you need to adapt your strategies.

The typical old school marketing funnel is:

That consumer funnel was build for the old world, but Gen Z doesn’t live there anymore as the path to purchase has been shorten. For example if something goes viral it sells out quickly.

This generation are growing up with radically different priorities, influencers and technology than previous generations causing their path to purchase blur.

They’re grappling with the fact that their primary marketplace — social media — is also their entertainment centre, social hub, learning platform, and news source, making shopping a medley of influences and mindsets.

WITH THAT, THEY DISCOVERED THAT CONSUMPTION TODAY IS AN INFINITE LOOP OF INSPIRATION, EXPLORATION, COMMUNITY AND LOYALTY.

INSPIRATION

Social media, especially platforms like YouTube, TikTok, and Instagram, is their go-to for fashion and beauty inspo. But with so much content out there, it's tough for brands to stand out. Still, Gen Z craves discovery and loves finding new and inspiring stuff. Influencers are huge in this space, with many Gen Zers believing they set the trends. Celebs like Hailey Bieber are masters at launching micro-trends through social media, driving buzz for their brands. And thanks to platforms like TikTok, culture is more accessible than ever, sparking new trends left and right. But here's the kicker: Gen Z still values real-life experiences. They prefer trying before buying, making in-store experiences key to their shopping journey. So while online research is vital, the in-store experience seals the deal.

WHERE GEN Z LEARN ABOUT NEW BRANDS, PRODUCTS, SERVICES AND EXPERIENCES.

EXPLORATION

Gen Zs want the nitty-gritty product details now — the price, the fit, the materials, the mechanics. And they’re looking for frictionless access from brands, and beyond.

In reality, many Gen Z consumers aren’t buying products impulsively at the point of inspiration. In fact, young people are increasingly using social media as a search engine, to research products they’ve seen online or IRL and hear from others about the item’s fit, quality, packaging and more.

In today's digital era, building an email list is an essential aspect of any successful marketing strategy. By knowing your ideal client, offering something of value, making it easy to subscribe, and providing consistent value, you can build an engaged and loyal audience that will not only support your business but also spread the word about your offerings.

THE RESEARCH PHASE IS CRUCIAL FOR BRAND TRUST: 70 PER CENT OF GEN Zs AND 69 PER CENT OF MILLENNIALS ONLY TRUST A BRAND AFTER CARRYING OUT THEIR OWN RESEARCH.

Gen Z's unique approach to buying is shaping the way brands do sales and marketing.

As business owners, you can step up as educators during the research-to-buy journey, by providing helpful content, engaging with reviews, and creating a seamless online/offline experience. Gen Z loves to switch between online and offline, so it's essential you keep up. Plus, their hunger for info means they're super savvy about value.

Gen Z are still very much driven by price. “Because they’re price-conscious and value-driven, tangible rewards, discounts and exclusive access via loyalty programmes are all pretty effective.

COMMUNITY

THE SECRET SAUACE FOR BRANDS TODAY IS MAKING GEN ZS FEEL THAT THEY’RE PART OF A COMMUNITY - AND INVITING THEM TO EXPLORE A WHOLE UNIVERSE OF RELEVANT TOUCHPOINTS.

Simply selling a product isn’t enough — brands need to build a universe. 54 per cent of Gen Zs say that their favourite brands are the ones that make them feel like they’re part of a community.

When it comes to winning over Gen Z's loyalty, it's all about the journey, not just the destination. Brands that truly connect with Gen Z understand that loyalty goes beyond the initial purchase. They create a whole world of experiences for their customers to explore and engage with, building meaningful connections that last.

LOYALTY

Gen Zs seek brand relationships that feel a little more reciprocal. While the loyalty programmes, discounts and early access to products that brands have always offered customers are still important to this generation, they expect brands to offer them benefits, even if they’re not customers (yet).

When asked about the most important ways to show loyalty, Gen Zs said simply loving the brand even if they don’t purchase it (40 per cent) and following the brand on social media (29 per cent).

In the old world, brands were at the centre of the consumer journey — today, people are (and, you could argue, always should have been).

Brands need to be where the people are: traversing the infinite loop of inspiration, exploration, community and loyalty.

If you’re target audience is Gen Z, you need to start thinking differently with your marketing. You need to meet them where they’re at. If you need some help in mapping out a marketing plan I can help.