Exploring the New Consumer Journey: Gen Z's Influence on Marketing

We're diving into an insightful research by US-based youth culture agency Archrival. They conducted a qualitative and quantitative research study with Gen Zs (13-25) and their millennial (26-40) counterparts in the US. According to the findings the traditional consumer funnel, guiding shoppers through stages of Awareness, Interest, Desire, and Action, no longer fits the bill, especially with Gen Z. This generation, deeply entrenched in a digital landscape, navigates a path to purchase that's anything but linear. Instead, their journey is an infinite loop of inspiration, exploration, community, and loyalty.

Let's take a look...

The Power of Social Media Inspiration

For young consumers, social media is ground zero for inspiration, especially in fashion and beauty. Platforms like YouTube, TikTok, and Instagram reign supreme, with Gen Z devouring content to inform their purchasing decisions. However, with the overwhelming amount of content out there, brands face a challenge in cutting through the noise. According to Archrival’s data, 77% of Gen Zs and 79% of millennials in the US are actively seeking style inspiration at least monthly and almost half of those are looking for it on social media.

Influence of Celebrities and Influencers

Despite the digital age, influencers and celebrities still wield significant influence over Gen Z's purchasing decisions. From setting trends to endorsing products, these figures play a pivotal role in shaping consumer preferences. Gen Zs (51%) believe social media influencers create new trends (versus 36% of millennials). It was also found that 21% of Gen Zs and millennials credited celebrities with creating new trends, compared to 15% who said brands do.

The Importance of In-Person Experiences

While online platforms dominate the inspiration phase, Gen Z still values in-person experiences, particularly when it comes to fashion and beauty. Bricks-and-mortar stores remain vital, offering tangible experiences that digital channels can't replicate. 73% of Gen Zs prefer making a purchase in-store while shopping, compared to the 27% of Gen Zs who prefer to make a purchase on social media. 68% of Gen Zs prefer to try before they buy (versus 61% of millennials), and only 32% prefer to buy without trying.

The Rise of Social Commerce

Social commerce features like Instagram Shop and TikTok Shop created for seamless in-app shopping, once hailed as the future of online shopping, haven't quite lived up to expectations. Instead, Gen Z consumers prefer to use social media as a research tool, seeking out reviews and opinions before making a purchase. It turns out that 70% of Gen Zs and 69% of millennials only trust a brand after carrying out their own research. And 56% of Gen Zs have said brands are dishonest, compared with 47% of millennials. 40% of Gen Zs look for reviews from online influencers (versus 31% of millennials), per Archrival.

Building Brand Communities

For Gen Z, brand loyalty isn't just about repeat purchases; it's about feeling connected to a community. Brands that foster a sense of belonging through exclusive content, loyalty programs, and engagement initiatives are more likely to win the hearts of young consumers. Unlike previous generations, Gen Z defines brand loyalty in more nuanced terms. Loyalty isn't necessarily tied to purchases; it's about advocating for brands, engaging with them on social media, and feeling a genuine connection. This is where you need to be if you want to win Gen Z customers.

Gen Zs' (54%) favourite brands are the ones that make them feel like they’re part of a community, according to Archrival. 84% saying they’re more likely to purchase from “cool” brands. This means that brands should consider benchmarks other than repeat sales when it comes to loyalty. If the old model of brand loyalty centred on how the consumer served the brand through repeat purchases, Gen Zs seek brand relationships that feel a little more reciprocal.

According to Gen Z simply telling your friends about a brand (54%) shows loyalty. Simply loving the brand even if they don’t purchase it (40%) and following the brand on social media (29%) is also enough for Gen Z to show support.

The Role of User-Generated Content

UGC plays a crucial role in community building, allowing consumers to remain part of a brand's story even after making a purchase. If you embrace UGC content you can empower your customers to become brand ambassadors, which will drive engagement and loyalty. People are at the centre of your purchasing path and the most vital element to keep them is connection.

Adapting to the New Normal

In today's digital landscape, brands must adapt to the ever-evolving consumer journey. By embracing social media, fostering brand communities, and prioritizing authentic engagement, brands can connect with Gen Z on a deeper level and inspire lasting loyalty.