What Does Gen Z Really Want from Brands?

A recent international study of Gen Z conducted by The Center for Generational Kinetics and commissioned by WP Engine reveals how Generation Z’s expectations for brands differ in comparison to other generations, including millennials, Gen X and baby boomers.

If there is one thing that 2020 has taught us, it's that the digital world is more important than ever. In the past few weeks, countless people have shifted to online work, shopping, communication and more. Now, after years of slowly developing digital strategies, the pandemic has forced franchise brands to not only accelerate those plans but put them into immediate action. 

Gen Z, comprised of individuals born between 1996–2015, is the most Internet-dependent generation and values technology more than any other group. This emphasis on the digital world is key to how brands can reach this important audience.

The franchisors that will succeed in this new world are those who have reimagined services that were typically done in the physical world as digital experiences, whether that be home workouts, order-ahead grocery pickups or even virtual discovery days. 

In order to reach Gen Z consumers — a demographic that is spending more money every day — this digital strategy is especially important. Generation Z is the first demographic group born after the internet was commercialized, making digital experiences a key part of their upbringing. Franchisors need to be mindful of how Gen Z's familiarity with technology shapes their attitudes toward brands, advertising and shopping experiences. As the study reveals, about two-thirds (65%) of Gen Z use the internet for entertainment, making digital media channels a key way to reach younger audiences. 

“Gen Z are digital pioneers in that they charted the path for the rest of the world to go fully digital, and marketers ignore that path at their own peril,” said Mary Ellen Dugan, Chief Marketing Officer for WP Engine in a press release. “The pandemic caused a profound change in the way we do everything, from shopping to eating to engaging with friends and family. Gen Z was already comfortable in that new paradigm, so if you meet the digital needs of Gen Z, you’re ahead of the rest of the world.”

In general, Gen Zers have an optimistic view of how technology will improve their lives, with 64% of the group saying artificial intelligence (AI) will have a positive effect on the world. An equal percentage of Gen Zers said they believe the internet will determine what they do on a daily basis in five years, making digital connections central to their future. Nineteen percent of respondents said tech-savviness was the most important value, quality or attribute of Gen Z, compared with 22% who rated freedom as most significant.

When it comes to establishing trust in a brand, the report notes that Gen Z consumers want three things: “a quality product, positive online ratings/reviews and strong customer service.” Gen Z has grown up in an era of hyper-personalization, selfies, influencers and Instagram profiles. These experiences extend to their preferences in shopping. In fact, 75% of Gen Z is more likely to buy a product if they can customize it. According to the study, 82% said they trust a company more if it uses images of real customers in its advertising, while 72% said they're more likely to buy from a company that contributes to social causes.

One way brands can establish this kind of trust is through social media. Since Gen Z was raised on social media, they expect the broader digital world to know what their likes, wants and interests are and don’t see this is an invasion of privacy. In fact, they see it as a way to minimize some of the daily decisions they have to make so they can focus on the more important topics. 

This expectation extends beyond just social media. Seventy percent of Gen Zers said they believe a brand’s website will know what they're looking for before they tell it, while 66% believe that all websites will "talk" to each other to create a personalized experience among websites, apps and appliances, the survey found. 

When it comes to finding Gen Z franchisees, the study also shows that Gen Z is a generation of “pragmatists, self-starters and entrepreneurs.” If it doesn’t exist, Gen Z will build it, the report notes. More than any other generation, a higher percentage of Gen Z (62%) plans to start, or possibly start, their own business sometime in the future. Additionally, reflecting their preference for all things digital, 62% of those Gen Zers said they would start their business online. 

In the past, Gen Z has been notoriously difficult to reach, both from a consumer angle and from a franchising mindset. As COVID-19 continues to change the industry, Gen Z is shaping up to be an integral player in the space and one that brands need to take seriously if they hope to succeed.