Franchise Update Magazine Issue IV, 2016 | Page 28
CONSUMER MARKETING
Millennials
Gen Z on the Rise
Millennials are sooo last generation
BY TODD JUNEAU
T
oday’s media darlings, the Millennials (Gen Y) were born beginning
in the 1980s. For better or worse,
we all seem to get a generational label
these days to describe who we are, and
how we should be dealt with from business, economic, and social perspectives.
I am in the group labeled Generation X
(born in the 1970s) and have contributed
two individuals to Gen Z.
As progressive, controversial, and
populous as Gen Y is today, they may be
no match for the coming Generation Z,
which is poised to change everything once
again. Gen Z is on the verge of becoming the next big spender and driver of
business and social change. Outnumbering Millennials by more than 1 million
according to recent census data, Gen Z
members are the first truly digital natives.
The context in which I now describe
and opine about Gen Z is based mainly
on looking at my own children, aged 11
and 13. Born after the 9/11 terror attacks,
they are smack in the middle of the Gen
Z age group. My kids, like many, influence mom and dad’s purchasing decisions
and have access to real-time information
that energizes their needs and wants like
no generation before.
To understand them, we must
first acknowledge how
these digital natives
are engaging with
online content: their
expectation is to have
it available across all
their devices, wherever
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they are, 24/7. Augmented reality, thanks
to Pokémon Go, is becoming part of their
everyday reality (and it’s just begun).
Virtual reality experiences are becoming
more common as technology, devices,
and content evolve. Their expectations
as consumers are fueled by 360-degree
virtual views of places to go and make
purchases. Wherever they are, they can
pinch and pull visual imagery to explore
and zoom in on something of interest, and
everything is romanced in high-definition.
Think next of the buying habits being created by the immediacy and realtime nature of goods and services fulfillment. My kids can order what they want
through Amazon Prime and have it the
same day. They can order food from an
app and have it delivered anywhere they
are. And soon they will be the first generation of drivers who may not rush to
get their licenses and instead be taking
autonomous cars hailed from an app to
get them where they need to go—without parking hassles and those expensive
monthly car and insurance payments.
How they communicate is evolving,
with texting currently their default. Apps
such as Snapchat and Whisper allow them
to have private conversations that are not
public-facing or influenced by advertising (yet). Yes, they still watch TV,
but streaming on their laptops
or phones, with on-demand as
a standard expectation, preferably with the ability to upgrade and skip ads. They listen
to music on paid, ad-free subscription services instead
of terrestrial radio. And
apps that create entertainment and utility
are eclipsing webbased usage.
To truly intersect with this next generation of consumers, advertisers will have
to invest time and research to understand
the technology ecosystems Gen Z uses—
and go far beyond their current methods
of promoting a product or service on a
website or search engine.
As this generation enters the workforce, factors that didn’t exist or matter
before will be significant for businesses
of the future. This generation is already
ahead of all others for producing entrepreneurial activity: more kids under 20
have their own companies now than any
other generation before them. Their experiences of what a company should be
will be greatly influenced by technology and global information. They are
keenly aware of being raised in a time
of war and economic uncertainty. They
believe companies should have a purpose
and social responsibility as part of their
everyday practice, and it had better be
about making the world a better place.
Never before has a generation placed
so much emphasis on social awareness
and global issues. They will seek more
balance in their workplace environment,
and will be critically aware of their options to improve on what is most desirable to them. To fulfill their hunger for
hyper-paced development and innovation,
virtual work options and collaboration
will be commonplace. The 9-to-5 job
and slow-to-react business practices will
not suffice for Gen Z.
Companies will have to accept this
change and evolve their business model
and operations to account for this coming entrepreneurial and labor stream.
Their expectations will be different, and
if met will likely yield one of the most
passionate and productive generations
ever seen. Born with technology at their
fingertips, they will change what consumers and entrepreneurs are. Today’s
companies must go deep to understand
how to communicate their advertising
message and how to offer up entrepreneurial opportunities that will engage
and resonate with Gen Z. n
Todd Juneau is managing director at Mindstream Interactive in San Diego. To learn
more, call 614-754-2035 or email biz@
mindstreaminteractive.com.
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