The latest generation to hit adulthood, Gen Z, is changing how we work, communicate, and spend. This fascinating group is diverse, opinionated, and refuses to be pigeonholed. They are even starting to run for political office. With their unique behavior, marketers and brands must understand them and their impact on purchasing behaviors and brand loyalty.
According to recent Shopper Influence research, traditional metrics such as awareness and familiarity are quickly losing relevance, especially among Gen Z. Only 37% of Gen Z consumers are considered brand loyalists, meaning they bought a product from the same brand they were considering at the start of the shopping journey. This starkly contrasts with 56% of baby boomers who are considered brand loyalists. There is a steady decline in brand loyalty with each generation.
There are three key things to remember when planning product development, marketing, and market research strategies for Gen Z. Firstly, they are digital natives and have always had online shopping as an option. This has permanently changed their shopping habits and contributes to their lack of brand loyalty. Secondly, they do more research before making a purchase and use many online sources. Lastly, they shop based on their values, personality, and beliefs and are more likely to tie a brand’s real-world impact on society to their shopping decisions.
With these insights, nonprofits and purpose-driven businesses need to pivot to stay relevant and meet the changing expectations of younger generations. Market research should take a consumer-centric approach, and traditional brand loyalty metrics should not be relied upon for decision-making. It’s important to understand the unique characteristics and values of Gen Z and address issues such as ethical manufacturing practices, treatment of employees, eco-friendly initiatives, and sustainability.
Charitable giving trends in the United States have been changing as well. Data shows that younger generations are more likely to give to causes they care about and seek transparency and impact from the organizations they support. Nonprofits and purpose-driven businesses need to adapt to these changes in giving trends and effectively communicate their mission and impact to attract the support of younger generations.
With Gen Z’s rise and unique purchasing behaviors and values, nonprofits and purpose-driven businesses need to pivot to stay relevant and meet their changing expectations. By understanding their characteristics and values and effectively communicating their mission and impact, organizations can continue to make a difference and achieve their goals.
Our team of experts is equipped to help you navigate these changes and find new ways to engage your target audience. We offer a range of services, including social media management, search engine optimization, and content creation, that can help you streamline your workload and increase your impact. Whether you’re looking to reach a younger generation or want to improve your return on investment, we can help.
Pivot with DJK
Don’t let the changing landscape of brand loyalty and charitable giving catch you off guard. Reach out to DJK Consulting today and let us help you thrive in this new world.