Digital Marketing

Your Comprehensive Guide on Marketing to Generation Z LoyicaBlog

In light of the significant changes in the consumer landscape, how can companies adjust their marketing strategies to adapt to the


Loyica Team
Mar 03 2020
Your Comprehensive Guide on Marketing to Generation Z

In light of the significant changes in the consumer landscape, how can companies adjust their marketing strategies to adapt to the new consumer’s needs?

A big buying group is set to overtake Millennials and they hold billions in buying power. The Generation Z, people born between the mid-1990s and mid-2000s, are expected to change the consumer landscape as they wield an estimated US $44B in spending power and are set to reach 2.6 billion in population by 2020. They outpaced Millennials by 3 million, according to population estimates, and differ in consumption habits. As people from this generation are starting to enter into workforce and earn, companies have to be able to adapt to the difference in demands, buying practices, and consumer values, putting supply chain practices into a test.

To make things clearer, by 2020, Generation Zers will be around 15 to 23 years old. They have been pioneers of some social movements, influential in the digital space, and have created trends that have massively affected users of the internet. Members of Generation Z are also estimated to have started college by 2020 or even will enter the workforce this year. Each year, they are becoming more and more powerful in terms of spending power and will eventually overtake Millennials.

 To make sure that your marketing strategy is updated to cater to the needs and interests of the members of the Generation Z, here are six things post-millennial consumers care about the most and how to deal with them:

  1. Experience matters more

 Gen Z shoppers want seamless shopping experiences, both in-store and online. They’re inclined to shop with retailers that offer cutting-edge technology, especially when it offers a sense of personalization. A retailer, in fact, used an AI to build item recommendations based on a customer’s purchasing behavior, catering to the modern omnichannel shopping experience they desire. This means that companies must be able to provide access to a wide variety of products, acquire intelligence about new impulse product demand, and have the ability to quickly onboard and offer trending products. 

  1. They love digital shopping tools but they shop in-store

Around 60% of the technologically-savvy Gen Z shoppers still prefer to purchase in-store and 46% will check in-store to get more information before making an online purchase. So while offering an efficient online shopping experience is important, it is equally important to offer a satisfying physical store experience. In fact, 58% of the teens surveyed said that they wanted to see and feel the product. Because of this, retail chains have invested heavily in introducing self-service technologies, such as self-cash desks, interactive displays equipped with touch screens, digital signage and applications for mobile phones, among others.

  1. Value for money

The Generation Z was born during the recent Great Recession hence they spend their money differently. They tend to be more financially cautious, putting premium on getting good value for their money. According to a survey, 60% out of 400 members of Generation Z said they already have saving accounts and 71% said they are focused on saving for the future. When it comes to technology, they tend to be savvy about their approach to purchasing electronics, preferring the constant stream of new and inexpensive options over the latest, priciest products.

  1. They are willing to pay more for ethically sourced and sustainable products

 Post-Millennials care about a company’s sustainability and ethical sourcing efforts and this is a growing area of opportunity for businesses. According to a study, 52% said they would pay more for food and beverage products that were sourced under ethical and sustainable means and around 44% said they would pay more for ethically sourced over-the-counter pharmaceuticals. Moreover, 87 percent of Gen Z said it is important for businesses to focus on giving back to their communities. This conscious perspective challenges businesses to reflect upon their social footprint.

Gen Zers place a lot of importance on what organizations do to give back to communities outside of their immediate line of work or industry. As a result, it would be best to find a marketing platform with such initiatives in place; or to use whatever system you have to pursue these initiatives for them. 

  1. They prefer crowd-sourcing or cross-collaboration

 This generation is collaborative by nature. They emphasize the need for cross-creation, creating solutions by enlisting the services of people from the Internet. This, in fact, created 270,000 jobs in 2014 and injected more than the US$65B into the economy. Crowdsourcing has famously disrupted the business model of current traditional taxi and hotel businesses and it could permeate to other industries as well.

Gen Zs enjoy being in the thick of things. Once they feel that their work is meaningful, they become highly motivated to create change in the workplace all by themselves. It is important to hear them out whenever they have any concerns or issues that need to be addressed. This desire to be heard is also reflected in how they interact with other people outside of the organization; with that said, a marketing strategy should be sensitive when it comes to keeping a record of your customer’s concerns and keeping track of how the product or service has made an impact on their lives.


It is important to understand that there is a generational shift in purchasing willingness and power right now. The biggest spending demographic are the generations Y and Z who might now have the most in financial savings but have proven to be the biggest and loose spending generation as opposed to the previous generation. More than that, these consumers are very drawn to a convenient, efficient, and accessible buying experience which is best achieved online.

A few years ago, this generation of consumers was viewed to be a specific niche market with unique needs that allowed the need to create separate and targeted marketing strategies, this is not the case anymore. Millennials right now are even considered to be the core demographic in the market, which is why marketers have put more attention in catering to this specific consumer needs.

Statistically, by 2019, Millennials have outnumbered baby boomers. The boomers are consumers we assume to reject digital marketing and online purchasing because of the inherent distaste towards new things and technology. However, many studies have proven that there is a significant percentage of boomers that have embraced the online space, and have become digital consumers as well. The increase in the number of consumers and the incredible reach of the internet is why many successful companies are aggressively marketing their products and services online. 

As the youngest employees in the workforce, the future of work falls on this generation’s personal preferences and priorities in life. Having been born into a world that already had the technology, they are known to be keen when it comes to online knowledge and internet learning. In addition, there is a hunger for work to be more than just an avenue for money; to Gen Zs, it should also be an outlet for their passion in life.

Just as the Millennials overtook the Generation X, the growing purchasing power of the Generation Z provides a test and an opportunity for companies to harness. The difference in social values and preference challenges contemporary supply chain models including eCommerce because they often only cater to Millennials and ignore this burgeoning market comprised of Generation Z members. 

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