Gen-Z and Brand Loyalty - a tale of oxymorons

The other day my daughter barged into my room armed with her phone, brimming with excitement. “Ma, take a look at this. Isn’t this top really cool?” She thrust her phone in my face. I quickly glanced at the name of the brand and realised that it was an instagram handle and not even that of a well known brand. When I asked her which brand it was from, she merely shrugged, “It’s not a brand mom! It’s a local thrift store that sells stuff online - but look, they have like a million followers. They resell really cute stuff, and it’s not expensive!” - that last part was directed at me, of course.?

You might be wondering where I am going with this story.??

?Typically, we think of a Gen Z-er as someone who’s always on Instagram, scrolling through reels and memes. We may also feel that they are especially vulnerable to peers and influencers. For example, if a Gen Z-er’s friend or favourite influencer recommends a product, they jump into making a purchase without another thought.?

For this reason, many think that Gen Z-ers keep switching brands in a jiffy and brand loyalty doesn’t exist in their realm.?

But is this really true?

Well, Gen Z-ers are actually one of the most informed and careful customers out there. We need to consider that the internet brought up these kids. They are much more informed than we were at their age. Sure, they may swipe through reels faster than Speedy Gonzales, but that does not mean they swipe through brands the same way.?

?Though there are a plethora of brands out there today, Gen Z’s are relentlessly loyal to brands that understand and meet their values, ethics and complex needs. But hold your horses -? passing the Gen Z sniff test is not going to be a walk in the park.??

We need to flush the traditional ways down the drain and create new distinctive experiences to woo this generation. And for that we first need to understand their ethos.

1. We want deep personalisation - a “one size fits all” brand won’t work

Gen Z-ers want brands to understand them as individuals, rather than mass consumers. They want their voices to be heard. Brands that empower Gen Z to make a contribution have a mighty edge. So it’s super important to co-create what the brand means to Gen Z.?

?This is where deep personalisation comes into the picture. There are tons of social listening tools that let brands pick up Gen Z conversations, analyse them and craft tailor made responses. Take for example the Socialbakers tool - it uses artificial intelligence to customise solutions across every stage of a consumer journey.?

Remember, Gen-Z-ers are very well informed when it comes to digital experiences and brands need to consistently deliver solutions that blow their minds.

2. We want diversity and inclusion

Gen Z-ers are reshaping societal norms. If you ask Gen Z-ers to fill out a generic form, they would most likely say something like “shouldn’t the gender options include more than the standard binary “man” or “woman?”. Concepts like gender, race, ethnicity, beauty standards, body positivity, accessibility, neurodiversity and other pressing social issues play a massive role in making or breaking a brand’s reputation.

Not surprisingly, according to the Quantilope study, nearly 80% of Gen Z-ers said that it’s important for brands to address diversity and inclusion. With the cancel culture becoming more real than ever, fashion labels like Christian Dior, Givenchy, Yves Saint Laurent and Gucci have already signed up to stop hiring excessively thin models. And after receiving consistent firing for ignoring body positivity, Victoria's Secret welcomed its first plus-size model.

The bottomline is, if brands are not aligned to the Gen Z ethos, they get cancelled. It’s as simple as that.

3. We want a culture of accountability?

This demographic is a highly ambitious lot, they want to do something game changing and earth shattering. They want to feel like they’re a part of something much bigger than them. For instance, they understand that climate change is more real than ever and they want to actively contribute towards saving the planet.?

?Brands that advocate minimal product waste and biodegradable products will take the win. Hence my daughter’s love for thrift stores. It’s no wonder that? thrift stores are replacing fast fashion brands by the dozen. Even the big players are latching on to this ethos. The luxury resale market is booming, with conglomerates like Kering kicking off the resale race with a 5% stake in the French luxury resale platform Vestiaire Collective in 2021.?

?On the other hand, nobody likes “greenwashed brands” - the proof is in the pudding. Gen Z-ers prefer small players over bigger brands, as they are considered to be more transparent with their stance on sustainability. It’s easier for this generation to connect with them and find them trustworthy.?

?In fact, the majority of Gen Z shoppers are even willing to spend 10% more for eco-friendly products. Additionally, 3 out of 4 Gen Z consumers prioritise sustainability over brand name when it comes to making a purchase (First Insight study).?

?4. We want to be socially “in”

We know that Gen Z-ers largely rely on peer and influencer reviews before buying a product. Which is why many brands are including all the kids on the block, even ones who don’t have many followers, in their campaigns - check out Jones Road’s strategy where they pay TikTokers to post videos about their products.?

?User-generated content is a highly effective way to reach this demographic. Fampay, a payments platform targeted towards teenagers, created a social media campaign that went viral. Rather than getting influencers to become brand ambassadors, they opened up the criteria to any school-going students aged 13-18. They gave away heaps of pocket money, vouchers and discounts to participants for referring friends. The campaign spread like wildfire. ?Gen Z’ers got to be recognised as brand ambassadors among their peers and also win perks - it was a win-win.?

Building brand loyalty in an ever changing world is hard.With Gen Z-ers being a digital native generation, they have their finger on the pulse and require instant gratification. To really stand out in the clutter, brands need to up their game and realign longstanding marketing strategies to what matters most to Gen Z.?? And you better do it fast because time and Gen Z-ers wait for none!