Last class
we discussed about the relevance of Social Media and some of the most popular
platforms out there.
I wanted
today to talk not about SM but about whoever is behind those screens, the type
of consumer he/she is, and how is affecting the businesses, and specially marketing efforts.
Many
business people, have opined that with the increased acceptance and convenience
of online shopping and social media interaction, consumers will eventually
cease to visit retail stores altogether and instead shift their shopping
online, specifically through mobile devices and apps.
No
generation will more contribute to this shift than Generation Z. Roughly
defined as anyone born in the mid- to late-1990’s, they are estimated to have
an average allowance of $70 a month, which equates to an annual purchasing
power of $44 billion. As they start to hit legal employment age, their
influence will increase dramatically.
Generation
Z, however, will likely have no brand loyalty.
They are
reported to prefer and lean toward companies that produce goods and services
that have real rather than perceived value, and they more readily rely on the
opinions and recommendations of their peers when making a purchasing decision.
To take
advantage of Generation Z’s inconstancy, and assure that you do not become a
victim of it later, here are a few business strategies to consider.
1. Presence. Generation Z will be a completely social and
mobile generation, relying on mobile devices almost entirely for content
consumption, browsing and shopping, as well as social media for interacting
with friends. For this reason, your strategy needs to prioritize mobile
marketing and social media.
2. Value. Creating value in your products,
through better quality design and manufacturing, will elevate the reputation of
your company, an important attribute to Generation Z. It will no longer be
enough to create value through branding alone, as this generation will see
through this and ultimately call you out.
3. Transparency. Generation Z will demand that
companies be honest and transparent. With social media and peer reviews,
companies will be unable to hide from negative comments or controversies.
4. Tastes. These future consumers are unique
in that they respect and value individuality while placing a great deal of
importance on group acceptance.
Embracing these new and unique
tastes will help your company better connect with this generation. A good
advise will be for your company to consider hiring and nurturing individuals
from this generation as part of your marketing team (when they are old enough,
of
5. Convenience. This generation will demand the convenience
of browsing, shopping and receiving customer service through mobile and
social-media channels, so your strategy, from marketing to operations to
human-resource management, needs to consider this.
6. Privacy. Collecting and using
data has been a hot and sensitive topic. While many companies collect
and regularly use customer data to tailor shopping experiences, Generation Z
will be much more tech savvy, understanding better than most how to control the
data that they share. Businesses will need to respect privacy to a greater
extent or risk losing customers to other companies who will.
It is clear that Generation
Z is posing immense challenges and headaches to businesses. For companies that
have the patience and the plan to deal with them, a huge market of consumers
with growing purchase power and no brand loyalty are just waiting for a company
to court them
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