Seemingly just as businesses and marketers have become comfortable understanding and reaching Millennials, a new generation is coming of age as the newest moneymakers. This post-Millennial cohort is Gen Z. Certainly there are many similarities between Millennials and their younger counterparts, but marketing to this new crop of earners requires some finesse and a focus on all things digital.
So who makes up Gen Z and what makes them tick?
- People born in the mid-1990’s to the mid-2000’s
- They’re the first generation born fully in the digital/internet era
- They’re confident, natively tech savvy and social media fluent
- The majority are children of Gen X and are concerned about finances as they grew up in the wake of the 2008 Recession
- They’re independent and entrepreneurial, yet risk averse
According to the US Census Bureau, in the United States ,Gen Z makes up 25% of the population, making them a larger group than Millennials or Baby Boomers. With numbers like that, this cohort of young Americans possesses major purchasing power and will need to be the focus of marketing efforts.
To reach this segment as they begin to move away from home and start renting for the first time, companies should keep the following things in mind.
Everything that’s digital is gold.
Gen Z was born into a world filled with digital technology. They gravitate towards eye-catching, engaging graphics and consume digital media in small snippets. So think videos, pictures, rapid-fire text. What’s more, all digital content should be easily shareable and authentic. This is a no nonsense group, so be clear and honest about offerings, deals, amenities and the value they provide.
Everything is social.
If a tree falls in the woods and no one is there to film it and share it on Facebook, did it really happen? For Gen Z, the answer is no. This cohort is innately social and everything they do ties back to social media platforms. They are hyper focused on community and are a generation that values sharing content, opinions and suggestions. Being active on social media, creating highly sharable content and generating strong word of mouth recommendations is the key to thriving with Gen Z.
Whole package lifestyle.
While the amenities that a rental property offers are certainly important to prospective Gen Z tenants, what may be more important is how the property enhances their overall lifestyle. How close are you to coffee shops and nightlife? Is there quick access to parks and green spaces? Does the building support green energy initiatives? Gen Z will gravitate towards properties that align with the overall lifestyle they envision for themselves. A highly optimistic generation, Gen Z also wants to be inspired, so illustrate how the property can help them reach their goals and offer amenities to back it up. Think communal gathering spaces, weekly how-to lunch and learns, and game rooms.
The most important thing to keep in mind about Gen Z is that they expect technology to be integrated into everything they do. To best reach Gen Z, focus on engaging, sharable digital content and creating an environment to foster inspiration and self-improvement.