By Nicole Guedes   

Editorial Assistant at Essence Branding   

  

In recent times, much has been said about Generation Z, which includes people born between 1997 and 2012. As their relevance and influence grow, their impact on consumer trends is also becoming increasingly significant. But how does this affect business strategies and the market as a whole?   

  

We know that communicating with such a complex generation isn’t an easy task. However, beyond merely finding ways to engage with them, it’s crucial to understand how they function and how well your company truly connects with this audience.   

  

Here are some strategic elements that can be helpful in working with a brand in a precise way for this segment, without losing sight of your essence and history:   

  

1. Understanding the generation’s behaviors and preferences   
2. Understanding the company’s target audience   
3. Analyzing the current consumption profile of the business   
4. Clear and well-positioned communication   
5. Market and trend analysis  
6. Continuous innovation   

  

1. Understanding Generation Z   

According to Vogue’s report, “Gen Z Broke the Marketing Funnel,” Generation Z’s consumer behaviour challenges the traditional “sales funnel” concept, which describes the buying process as a linear sequence moving from awareness, discovery, evaluation, intention, purchase, and loyalty. In contrast, Generation Z operates in a continuous cycle of inspiration, exploration, community engagement, and loyalty. Understanding this new dynamic is essential for comprehending how this generation consumes products and services.   

  

Constantly bombarded with information, Generation Z faces a high volume of simultaneous stimuli. Therefore, knowing when and how to approach these individuals in the best possible way is crucial for ensuring effectiveness.   

  

Some of Generation Z’s main concerns with current brands are purpose and authenticity, diversity and inclusion, social responsibility, personalized experience, community, digital engagement, and innovation.   

  

• Purpose and authenticity: It’s important for businesses to understand their mission, vision, and values, aligning every aspect of their operation with them. A purpose-driven brand is unique and authentic, allowing it to stand out in a crowded market.   

• Diversity and inclusion: These are increasingly prominent discussions today, and they are priorities for much of Generation Z when choosing which company to buy from.   

• Social responsibility: Generation Z tends to buy from brands that raise and advocate for social causes of interest. In this case, purchasing is seen as an act of engagement.   

• Personalized experience and community: In a world with more and more stimuli, creating a unique experience where the user feels a distinct difference in a particular business is essential. Additionally, Generation Z is strongly characterized by their deep engagement with brands they admire, seeking to be part of the community built around them.   

• Digital engagement and innovation: Immersed in technology, it’s no surprise that Generation Z values companies that stand out for their good use of digital platforms and constant innovation. Regardless of a business’s size, it’s essential to stay alert to market updates, trends, and innovations.   

  

Want to learn more about these and other characteristics of Generation Z’s behaviour? Access our Brand Insights 2024, which gathers deep analyses and our insights on what to expect in the world of brands over the year. Through 6 key insights, we guide leaders and managers in working with their brands, keeping them ahead of the market.   

  

2. Understanding and Reaffirming My Target Audience   

We recognize the relevance of Generation Z as today’s consumer audience, but it’s worth remembering that each company must know its own target audience and understand how much attention and communication should be directed to this new generation. That is, brands need to reflect critically: How much does Generation Z represent in my target audience? How can I communicate with them without straying from my essence and compromising the coherence of my positioning? How can I reinvent and adapt to the new market needs while honouring my history?   

  

A solid company’s role is to position itself appropriately, understanding that it doesn’t necessarily need to adapt 100% of its behaviour to reach Generation Z.   

  

3. How Much Does Generation Z Represent My Target Audience?   

To understand how much your company’s communication should be geared toward Generation Z, the first step is conducting an in-depth analysis of your brand’s current consumption profile, aiming to measure this audience’s representation among your clients. This can be achieved through market research, demographic data, and insights.   

  

It’s also essential to assess Generation Z’s growth potential within your target audience and its alignment with the brand’s values and objectives. Is it a strategic opportunity to expand your reach? Or would focusing on other segments yield more return for the company? Always keep these questions in mind before deciding whether to broaden your communication to this audience.   

  

4. How Can I Communicate with Generation Z Without Compromising the Brand’s Essence and Positioning?   

Ensuring that the brand’s core aspects aren’t lost in the effort to connect with a specific audience is essential. A brand that is committed to its essence and positioning is authentic and capable of building organic relationships of trust with its stakeholders. Therefore, a company looking to communicate more effectively with Generation Z should seek points of intersection between what this audience values and what the brand already represents. In other words, it’s crucial to understand which aspects of the business naturally resonate with this new generation.   

  

From there, the company can adjust language, content formats, and communication channels to reflect this segment’s preferences without sacrificing the brand’s core values.   

  

5. Analyzing Market Trends   

We know that positioning in the market requires keeping up with current trends, always seeking to understand the new needs and demands of the consumer audience. But how can this be done effectively? Staying alert to trend reports, professionals, and trusted platforms that bring new topics and insights can be extremely valuable strategies. Even if they aren’t directly within your segment, different business and market perspectives can be essential for building cultural knowledge and critical thinking. Moreover, they can serve as a source of inspiration for new ideas.   

  

6. Renewing and Innovating   

Standing out in a market full of stimuli and information isn’t an easy task, but cultivating critical thinking and creativity can be helpful in this journey! Thinking “outside the box” requires curiosity, presence, an open mind, and practice. By building an increasingly rich and diverse repertoire, inspirations and insights will naturally emerge.   

  

With all their particularities, Generation Z is becoming increasingly important in the consumer landscape. Therefore, understanding how they think and act is crucial. However, a critical perspective is necessary to ensure that a company’s purpose, mission, and values aren’t distorted. Essence should be the heart of a brand and must never be sacrificed for other concerns.