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MANAGEMENT DIGEST

GENERATIONAL MARKETING

CATERING TO GENERATION Z         

Manilka Ediriweera explains how Gen Z is breaking the marketing funnel

There was a time when marketers worshipped the marketing funnel, also known as the consumer funnel, as it was the holy grail of their trade.

So what is this marketing funnel?

It’s a linear, predetermined path that leads people from awareness through interest and a desire to action. The goal is to draw attention, build curiosity, stir emotion and convince customers to make a purchase.

This method worked well for a long time. Whether it was shopping online or offline, marketers looked at the marketing funnel as a straightforward sequence of steps.

However, it seems that those days are over – because Generation Z is refusing to play along. Due to their need for instant gratification, short attention spans, endless scrolling, feeds and meme loving ways, the old funnel is cracking.

Gen Zs are proving that it was built for the old world, not one that has radically different priorities, influences and technology. The path to purchase has blurred because their primary general marketplace – i.e. social media – is also where they post life updates, laugh, learn, argue and pass the time.

With purchasing tangled up with everything else now, it is no longer a straight path… it’s an infinite loop of inspiration, exploration, community and loyalty. And the brands that stick are those that get this mix right.

INSPIRATION To understand how Gen Z decides, it’s important to start with their constant state of inspiration. In other words, it’s about understanding how social media acts as their main source of inspiration.

From fashion and beauty to recipes and lifestyles, inspiration is gathered using their devices.

With so much content in the digital space however, marketers are faced with the challenge of attracting their attention and showing up in the right way at the right moment.

Influencers, creators and cele­brities still play a major role in this process. To be honest, their influence is easy to spot; because with one post or concept, a new aesthetic is born before a product can hit the shelves.

And these trends don’t simply appear; they multiply through algorithms by blending culture and commerce as they reshape marketing.

EXPLORATION As social media becomes important to the inspiration phase, these platforms assume the next logical step, which is instant gratification and impulse buying – see it, like it, buy it!

This phase is also seeing almost all social media platforms rolling out ‘in app’ shopping features to facilitate smoother customer experiences.

However, this is producing mixed results because Gen Zs aren’t really engaging in impulse buying. They’re investigating and exploring on social media, and seeking details from reviews on quality and more – and they want these now!

They don’t believe in a brand without undertaking their own research.

So where do they conduct this research?

Anywhere and everywhere online – including the comments section, which has become the new customer service desk.

Brands can capitalise on this by explaining, demonstrating and engaging with reviews rather than simply promoting a product or service. The icing on the cake is that user generated content (UGC) shows how products really look and feel.

COMMUNITY The brands that get it right don’t simply sell things – they build communities.

So how does this work?

The secret to winning Gen Z shoppers is to make them feel like they belong. For most of them, their favourite brands are those that make them feel like part of a community.

Gen Z is always buying into something rather than simply purchasing products. This process triggers loyalty towards the brand; and loyalty is about shared identity rather than repeat purchases.

And Gen Z also expects brands to earn loyalty by continuous innovation, engagement and showing up. A brand has to think bigger than its product drops, and create an ecosystem of experiences, touchpoints and values.

LOYALTY Previously, the idea of brand loyalty meant repeat purchases. However, Gen Zs expect more. They want rela­tionships with brands to be two-sided and their measure of loyalty is though connection.

While discounts and offers still matter, Gen Z expects brands to offer something real (whether it’s an experience, a conversation or content) without asking for money first. And they want to see the brand grow, stretch and surprise them.

UGC helps feed into this demand and brands can leverage it to let consumers see themselves in the bigger picture.

The new dynamic is that people themselves are at the centre of the journey rather than the brands. And the path from awareness to purchase isn’t linear anymore. It’s a loop that never really ends – from inspiration to exploration, community and loyalty, and back again. Brands that understand this and build for it will win with Gen Z.

Gen Z is always buying into something

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