From Funnel to Infinite Loop: How Gen Z Disrupted Seemingly Evergreen Marketing Concept

Step into the future of marketing where Generation Z is rewriting the rules. Gone are the days of linear consumer funnels; Gen Z has unleashed an era of infinite loops, redefining inspiration, exploration, community, and loyalty.

Understanding the Shift

In a recent study conducted by Archrival, a US-based youth culture agency, and industry experts, insights into Gen Z's consumer behavior were uncovered. Through a combination of qualitative and quantitative research, including surveys and focus groups with Gen Z and millennial cohorts, it became evident that traditional marketing funnels no longer apply.

Inspiration: Where it All Begins

For Gen Z, social media serves as a multifaceted platform, influencing not only their entertainment and social interactions but also their shopping habits. The study revealed that 3 in 10 Gen Z individuals rely on social media for inspiration, with platforms like YouTube, TikTok, and Instagram leading the way.

Despite the overwhelming amount of content bombarding them, Gen Z seeks genuine inspiration and discovery. Brands must navigate this landscape by delivering relevant content at the right moments. Influencers play a significant role in shaping trends, with platforms like TikTok serving as powerful channels for inspiration.

Exploration: Beyond Impulse Purchases

Contrary to assumptions, Gen Z consumers aren't making impulse purchases based solely on social media content. Instead, they use these platforms as research tools, seeking out product details, reviews, and feedback from their peers. This research phase is crucial for building trust, with a majority of Gen Z individuals relying on their own investigations before making a purchase.

Brands must adapt by becoming educators during this process, providing informative content and engaging with user-generated reviews and communities. Tangible rewards, discounts, and exclusive access also play a significant role in capturing Gen Z's attention during the exploration phase.

Community: Building Universes, Not Just Brands

To Gen Z, brand loyalty goes beyond repeat purchases; it's about feeling connected to a community. Brands that succeed in creating this sense of belonging are more likely to win their loyalty. Whether through physical events, online communities, or immersive experiences, brands must create a universe that extends beyond products.

The study highlighted examples like Madhappy and Represent, which prioritize community-building alongside their product offerings. These brands provide mental health support, host community events, and engage with their audience on a deeper level, fostering a sense of belonging.

Loyalty: A Two-Way Relationship

Unlike previous generations, Gen Z defines loyalty in terms of mutual relationships rather than transactional interactions. Loyalty isn't solely based on purchases but also on advocacy and engagement. Brands that offer benefits, even to non-customers, stand a better chance of earning Gen Z's loyalty.

User-generated content (UGC) plays a vital role in community building and brand advocacy. Brands like Refy and The Frankie Shop leverage UGC to showcase real-life experiences with their products, fostering authenticity and trust.

Embracing the Infinite Loop

In today's consumer landscape, there's no distinct start or end point to the purchasing journey. Gen Z consumers continuously inspire, explore, engage with communities, and demonstrate loyalty throughout the process. Brands must adapt their strategies to traverse this infinite loop successfully.

By understanding Gen Z's preferences, embracing authenticity, and prioritizing community building, brands can thrive in 2024 and beyond. As Kristina Karassoulis of TikTok emphasizes, it's about entertainment, participation, and connection. Brands that prioritize these elements will undoubtedly resonate with Gen Z consumers and emerge as winners in the ever-evolving marketing landscape.