Is gen Z rewriting the rules of the marketing funnel?

Is Gen Z is rewriting the marketing funnel, what will that do to your marketing strategy and how to market to Gen Z and upcoming generation Alpha?

A recent article publish by Vogue Business revealed that Gen Z has completely changed the way we understand the marketing funnel and that the traditional path customers take towards a purchase isn't the same anymore.

You need to forget about the linear model, because successful brands today should focus on building community, exploration, inspiration, and loyalty with their customers. You need to create seamless brand experiences that resonate with Gen Z. 

In this blogpost, we will dive deeper into the article and what generation Z (and probably future generation Alpha) expects from brands and companies in order to purchase. 

Content:

1. Decoding Gen Z - Marketing in a new era

2. What is Marketing Funnel?

3. How Do We Reach Them?

4. The Alpha Generation

Decoding Gen Z: Marketing in a New Era

Gone are the days of straightforward marketing funnels! If you're a business owner scratching your head about how to reach younger audiences, you're not alone. Gen Z, the generation born between the mid-1990s and 2012, has thrown a wrench into traditional marketing strategies. This generation is different from Millennials in how they consume content. They seek inspiration to discover brands, often through social media. This puts pressure on companies to create high-quality, inspirational content to attract new customers. Everyone in marketing needs knowledge on how to not only understand Gen Z, but also the even younger Alpha generation (born 2010 onwards).

Understanding Gen Z: More Than Just Demographics

Gen Z isn't just a demographic – they're a generation shaped by the digital revolution and social awareness. Here's some key notes about Gen Z:

• Digital Natives: They've grown up with constant connectivity and are comfortable navigating the online world. This means social media is their primary stomping ground, and they expect seamless digital experiences from brands.
• Skeptical Consumers: Bombarded with information, Gen Z has a keen eye for inauthenticity. They don't trust flashy ads or celebrity endorsements – they crave genuine connections and transparency.
• Value-Driven: Social justice, environmental consciousness, and ethical practices are important to them. They'll gravitate towards brands that align with their values and take a stand on issues they care about.
• Experience Seekers: Products are just one part of the equation. Gen Z craves immersive experiences that go beyond a simple purchase. Think user-generated content (UGC) campaigns that allow them to participate and connect with your brand.

What's the Marketing Funnel, anyway?

Imagine a funnel, wide at the top and narrow at the bottom. That's kind of like the marketing funnel. Customers are at the top, and as they learn more about a brand and its products, they move down the funnel towards a purchase.

The marketing funnel helps businesses understand the different stages that customers go through before they buy something. This way, businesses can create targeted marketing campaigns for each stage.

There are four main stages in the marketing funnel:

1. Awareness: This is when customers first learn about a brand or product. Businesses can do this through advertising, social media, or content marketing.

2. Consideration: This is when customers are thinking about buying a product and are considering different brands. Businesses can educate customers about their products and why they are the best choice.

3. Conversion: This is when customers decide to buy a product. Businesses can make this stage easy by having a user-friendly website and a clear sales process.

4. Loyalty: This is when customers become repeat customers and recommend the brand to others. Businesses can build loyalty by providing excellent customer service and offering rewards programs.

The marketing funnel is a helpful tool for businesses to understand their customers and create marketing campaigns that are more likely to be successful.

Why Doesn't it Work for Gen Z?

The traditional marketing funnel doesn't work for Gen Z compared to Millennials because Gen Z's path to purchase is more complex. Gen Z doesn't follow a neat, linear path to buying. They're bombarded with information and have a nose for inauthenticity. Forget flashy ads and celebrity endorsements – Gen Z craves real experiences and connections.

So, How Do We Reach Them?

Social media is both a source of entertainment and inspiration, and young consumers use it to research products before buying. They are also more likely to trust reviews from user-generated content than celebrities or brands. This generation doesn't just follow trends; they create them. They rely heavily on social media for inspiration, with TikTok (53%) and Youtube (57%) being the top places to discover new brands and products. Interestingly, influencers are seen as the biggest trendsetters (51% of Gen Z), followed by social media algorithms (implicitly trusted by Gen Z) and even surpassing celebrities (21%).

Here's how to adjust your strategy:

• Welcome to the Community: Gen Z values belonging. Build a community around your brand that reflects their values. Think social media interaction, user-generated content campaigns, and fostering a shared purpose.
• Content is King (and Queen): Social media is Gen Z's hunting ground for new brands. They seek inspiration, not sales pitches. Up your content game with high-quality, engaging posts that showcase your brand's personality and resonate with their interests.
• Authenticity is Key: Ditch the fake influencer marketing. Gen Z connects with real people using and enjoying your products. Partner with micro-influencers or everyday people who genuinely align with your brand.
• Focus on Inspiration Over Selling: Don't bombard Gen Z with sales pitches. Instead, create inspiring content that educates, entertains, and showcases the value proposition of your products in a natural way.

The Alpha Generation: A Glimpse into the Future

Even if the focus today is on Gen Z and how to advertise towards them, marketers and companies will one day need to focus more on generation Alpha and then it is just as important to check their habits, needs and wishes from the companies. Alpha kids are growing up even more digitally native than Gen Z. While marketing to them is still evolving, the focus on authenticity and community will likely remain crucial. 

Here are some additional tips:

• Think mobile-first: Alphas are growing up with smartphones and tablets in hand. Ensure your brand experience is seamless and engaging on mobile platforms. 
• Embrace the fun and educational: Combine entertainment with learning to capture their attention. Think interactive games or educational content that aligns with your brand values.

Key Takeaways:

Are you ready to take your marketing to the next level? Or just want to learn more about marketing?

Then you should:

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2. If you want further knowledge about email marketing and marketing, don't hesitate to contact us! 

3. Do you want to connect on Linkedin? You can find me here! I am here to support you and want to help you through this exciting new marketing journey! Let's start your marketing journey! 🌟🌟

/ Sofia Johansson - Digital Growth Marketing Specialist 🥰