How to Cater to Gen Z this Holiday Season
Although they are young, Generation Z has considerable buying power and influence. Gen Z will account for 40% of all consumers by the year 2020. Tweens today wield $43 billion in annual spending and influence another $150 billion.
Having grown up during Facebook, Twitter, and even the iPhone, Gen Z members are tech savvy and expect nothing less from the retailers they shop with. If you’re a retailer feeling overwhelmed and unable to be seen or heard over the constant onslaught of selfies and snapchats, don’t fret. Here are four ways to better reach Gen Z this holiday season:
1. Move Over, T-Swift - The Online Celebrity is King
Retailers need to be aware that tweens these days are less influenced by pop stars and actors and more influenced by stars who have built their own brands. YouTube stars, fashion bloggers and the like are all the rage amongst Gen Z. This holiday season, redefine your marketing strategy and go after influencers with values and audiences that coincide with your brand.
2. Stay Savvy and Socially Aware
Because of their deep knowledge of technology, members of Gen Z will research your brand and make their own decision about whether or not they want to shop with you before they’ve ever set foot in your store. Technology has morphed Gen Z into autodidacts by giving them the ability to find information on their own. It’s important that retailers maintain a consistent brand and user experience, both in-store and online, in order to appeal and properly market to this generation.
Gen Z also loves to support socially responsible brands that are making an impact on the world. Eyeglasses brand Warby Parker has taken a different approach to the “buy one, get one” concept. The consumer buys a pair of glasses and Warby Parker makes a monthly donation to their nonprofit partners based on the number of glasses sold, covering the sourcing cost for the amount sold. The nonprofit then trains people in developing countries to give eye exams and sell glasses at lower rates to their communities.
The key takeaway here is that retailers should consider starting a marketing campaign that allows and encourages Gen Z consumers to give back while they shop this holiday season.
3. Memories > Prizes
Members of Gen Z value experience over cash prizes. They don’t want to be wooed with money but with memories. They want the opportunity to buy a gift for a friend or family member while also making a memory that they can cherish for years to come. At Redpepper, we designed and enacted a successful campaign for jewelry store Claire’s called the Claire’s Project BFF. The campaign gave girls the chance to design their own pair of best friend necklaces via a Web app.
The girls were then encouraged to share their creations on social media and invite their friends to vote for their designs. Whoever garnered the most votes became Claire’s newest jewelry designer, with her necklaces on store shelves worldwide. Throughout the course of the campaign, the Project BFF website saw 277,120 page views, with an average visit of more than four minutes. Social audiences boomed for Claire’s with over 28K new Facebook followers and a boost of 27% on Instagram.
4. Keep an Eye on the Competition
Just like any teenagers, Gen Z consumers have a desire to fit in and be a part of the group – they want the same clothes and gadgets that their friends have. Yet they also desire to be individuals and stand out of the crowd.
One way that retailers can target this generation this holiday season is through promotions that allow Gen Z to participate with their friends while also showcasing their creativity. Word-of-mouth is key to getting members of Gen Z to open their wallets. But they aren’t willing to dole out just any amount for the latest trend.
Gen Z members have a tight hold on their wallets and prefer to hunt for the best price. Their tech savviness allows them easy access to compare prices between companies and find the best deal. Retailers need to keep an eye on their competition’s pricing and make sure they offer the most compelling price.
There are different life stages of Gen Z, so don’t assume they can all be addressed the same way. Different platforms should be used to reach each life stage. The key takeaway is this: Be authentic. Cater to their needs and watch your holiday sales climb.