According to the Frost & Sullivan study, reaching a new generation of customers with the environment and the common good
Generation Z, following Millennials, is the future – also as customers. To reach these young people, social media is becoming a critical business and marketing channel, according to Frost & Sullivan .
In the analysis “Generation Z as Future Customers, Forecast to 2027”, the analyst firm looks at which strategies are promising for brands. It therefore makes sense, for example, to focus on issues such as the environment, health and the common good.
Huge market potential
Generation Z, defined by Frost & Sullivan as those born between 1993 and 2007, makes up almost a quarter of the world's population and will have increasing purchasing power in the coming years. Accordingly, it is becoming increasingly important for brands to adapt to the needs of this generation.
“Gen Z prefers brands that enable user-generated content and rely on social media influencers in marketing,”
says Lynne Goulding, Principal Consultant, Visionary Innovation Group. Companies that focus on authenticity, transparency and outstanding user experiences appear to be well positioned.
“Gen Z’s need for speed, accuracy and convenience will make mCommerce and mobile payment systems popular,”
said Goulding. To appeal to the generation, Porgnose says it would make sense to develop strategies for popular platforms such as SnapChat, Secret and Whisper. But according to the forecast, social media is not only more important for marketing, but also as a direct sales platform for goods and services.
“Businesses need to ensure seamless, fast and engaging mobile experiences.”
Good reputation
According to Frost & Sullivan, good reputation is even more important when dealing with Generation Z, in two ways. On the one hand, it is important that brands build a positive digital reputation, as Gen Z likes to be guided by user reviews, product information or retailer ratings when making considered purchasing decisions.
On the other hand, there are many in the emerging generation of customers who want to show a social conscience. According to Frost & Sullivan, addressing this part of Gen Z requires environmental and social strategies.
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