Gen Z Broke the Marketing Funnel
The reason we're in marketing is because we loveeee the drama. The constant shifts in trends and technology that keep every day interesting. And we've reached a moment where a real big swing is happening.
Gen-Z has officially broken the marketing funnel.
For years, we've understood the marketing funnel to be a predictable path to purchase. It's a roadmap for us marketers to speak to your people at the stage they're in on their journey that will resonate most and encourage them to shift toward action.
So you can imagine why this news is a BFD for us.
But what exactly has broken?
Vouge partnered with Archrival, a US-based youth culture agency to really understand how social media is truly influencing the purchase behavior of Gen-Z & Millennials. And they found that these platforms have turned a triangle into a circle.
The new funnel is cyclical, making it unpredictable at which point someone hops on or off. The cycle is governed by inspiration, exploration, community and loyalty. Let's break that down.
Inspiration
We're at a point in time when we now have access to more options than we've ever had before–which might feel overwhelming to some. But this type of environment is where Gen-Z grew up, so they're more open to the idea of discovering something new than say the more brand loyal baby boomers who had only a few options on the shelf. Instead of overwhelm, according to the study “Gen Zs want to find the gold among the clutter.”
They're digging for gold strategically by carefully curating their social algorithms to show them the brands and creators that most closely resonate to their interest. 45% of Gen-Zers trust their algorithm to serve them content they'll like.
So what does this mean for brands/creators? Niche down and be an expert at your expertise.
Exploration
70% of Gen-Z says they will conduct research on a brand/product/service before they purchase. But this type of due diligence is different from the past marketing funnels in that they are turning to trusted influencers, consumer reported reviews and even mood-boarding on Pinterest before they make a final decision.
46% say they will not make a purchase if they can't find any independent info or reviews on the brand. So, as a business owner it's extremely crucial to keep a solid reputation and encourage your happy consumers to share about their experience with you on their respective outlets. Kiss goodbye the days of brand-reported testimonials, as 56% of Gen-Z say they feel they can't be trusted.
Community
Gen-Z is reported to be the loneliest generation. Between the internet era & a global pandemic, we're searching for ways to participate in something outside of ourselves.
It's time to break down the barriers and steer outside of your lane. There's an opportunity to invite the entirety of yourself as a business owner to your brand. No more glossing over mental health or side-stepping political issues. Gen-Z wants you to wear your heart on your sleeve. In fact, 45% say challenging social norms makes a brand even cooler.
So don't be afraid to incorporate the things that excite you beyond your core offering into your business. There's a full story to be told. Say you're a nutritionist and your core offering is one-on-one clients. Maybe you also release a merch line with quirky puns about veggies or blood sugar balance. Maybe you collab with mental health experts on social to speak to your people about the psychological ways to approach eating habits. Maybe you release a food pyramid tarot deck. The rules are meant to be broken.
Loyalty
In the past, people considered themselves brand loyal if they were to simply continuously purchase from that brand. But now, the expectation is a true relationship: the loyalty is reciprocal. Gen-Z expects brands to incentivize them, even if they aren't yet purchasers. So you best get your freebie formula in check (don't worry–we've got you covered there!!)
The idea is that if you love up on Gen-Z, they'll love up on you. With influencer culture, talking about a brand online keeps the person involved in the brand story post purchase. Which means they'll want to stay part of the storyline beyond this once. And here we have the circle back to exploration, where brand loyalty feeds the cycle for more and more people to jump on board with your business.
Ok, so admittedly at first we were a bit nervous hearing that the marketing funnel had broke. BUT, in learning all of this we took a major exhale. Because here at Authentic Audience we've already been instituting a majority of these practices into our client strategies. And the way this article wraps sums up perfectly our own ideology:
In the old world, brands were at the centre of the consumer journey — today, people are (and, you could argue, always should have been).
We encourage your authenticity to remain the core of your business. Stay focused on your expertise, but don't be afraid to bring more of yourself into the fold. Create a story about your business that people want to feel part of, and invite them in. Love up on your people and they will love up on you.
