Why they are so different? | What Gen-Z Wants: Insights and Strategies | Dark Truth of Gen-Z

Summary

This video explores the mindset of Generation Z, born between 1996 and 2010, highlighting their tech-savviness, financial awareness, and significant influence on consumer decisions. With a strong emphasis on privacy and brand loyalty, Gen Z values personalized experiences and gated content, responding positively to reward systems and social responsibility. Marketers and parents are advised to respect their privacy, understand their values, and support their entrepreneurial spirit, as Gen Z is already shaping the future with their socially conscious and independent attitudes.

Takeaways

• 📅 Gen Z is defined as those born between 1996 and 2010, and understanding their mindset is crucial for marketers and business people.
• 🛍️ Gen Z prefers in-person shopping and is the most tech-savvy and financially aware generation, with significant purchasing power.
• 💰 A report by Fidelity Investments shows that Gen Z's average financial balance grew by 34% in one year, indicating their growing economic influence.
• 🔒 Gen Z values privacy highly, with 87% being more concerned about privacy than social media likes, and they are cautious about sharing personal data.
• 🏅 Loyalty is a key trait of Gen Z; once they trust a brand, they are likely to remain loyal and spend more, offering high long-term value to businesses.
• 💼 Gen Z is entering the workforce and is already earning and freelancing at a young age, showing a strong desire for independence and self-sufficiency.
• 🌳 Gen Z is socially responsible and considers the impact of products on society and the environment, favoring brands that demonstrate ethical practices.
• 🎁 This generation responds well to reward systems and exclusive offers, valuing personalization and recognition for their loyalty.
• 🚫 Gen Z is selective about the brands they choose and are not easily swayed by price alone, unlike previous generations.
• 🔒 Snapchat is popular among Gen Z due to its privacy features and reward system, which aligns with their preferences for secure data and recognition.
• 📚 Gen Z is focused on upskilling and self-improvement, with 62% stating that their success is important to them, and many are already participating in the gig economy.

Q & A

What is the time frame for being considered part of Generation Z?

Generation Z includes individuals born between 1996 and 2010.

What is the significance of understanding the mindset of Generation Z for marketers and businessmen?

Understanding the mindset of Generation Z helps marketers and businessmen to grasp consumer psychology and tailor their strategies to appeal to this influential generation.

According to the script, how does Generation Z differ from previous generations in terms of shopping preferences?

Contrary to the expectation of digital natives, Generation Z prefers shopping in person, and they are the youngest generation to enter the workforce.

What does the report by Fidelity Investments reveal about Generation Z's financial awareness?

The report shows that the average balance of Generation Z grew by 34% in one year, indicating a high level of financial awareness and savvy among this generation.

How do Generation Z's attitudes towards privacy differ from those of older generations?

Generation Z is significantly more concerned about their privacy, with 87% valuing it more than social media likes and 75% not sharing their location on mobile apps.

What can marketers learn from Generation Z's attitudes towards privacy?

Marketers should respect Generation Z's privacy by not collecting excessive data points and valuing their security and consent when obtaining information such as email IDs.

How does Generation Z's loyalty to brands differ from that of previous generations?

Once Generation Z selects a brand, they tend to be very loyal and are willing to spend extra money for it, unlike previous generations who were more concerned about price.

What role does the reward system play in Generation Z's brand loyalty?

A reward system can significantly enhance loyalty among Generation Z, as they appreciate recognition and incentives for their loyalty, such as birthday offers or discounts.

Why is the subscription model growing rapidly among Generation Z consumers?

The subscription model is growing because Generation Z is interested in exclusive, gated content and personalized offers that cater to their specific needs and interests.

What advice does the script offer to parents regarding their Generation Z children's desire for independence and work?

The script advises parents to motivate their Generation Z children in their desire to work and be independent, rather than discouraging them or focusing solely on academic pursuits.

How does Generation Z's concern for social responsibility impact their purchasing decisions?

Generation Z considers the social and environmental impact of products, favoring brands that contribute to social causes or demonstrate environmental responsibility.

Outlines

00:00

🔒 Understanding Gen Z's Privacy and Loyalty

This paragraph delves into the mindset of Generation Z, emphasizing their concern for privacy and loyalty to brands. Gen Z values their privacy significantly, with 87% placing it above social media likes and 75% opting to not share their location. They are cautious about data sharing without consent. Marketers and parents are advised to respect this privacy. Additionally, Gen Z is noted for their brand loyalty once trust is established, often leading to higher lifetime value for businesses. The paragraph also touches on their preference for rewards and the influence they have on family purchasing decisions, highlighting the importance of understanding their mindset for effective marketing and parenting strategies.

05:04

🛍️ Gen Z's Embrace of Subscription Models and Social Responsibility

The second paragraph focuses on Gen Z's consumer behavior, particularly their interest in subscription models and gated content, which offers them exclusivity and personalized experiences. It discusses the rise of identity marketing, which tailors offers to specific groups or individuals, such as students. The paragraph also highlights Gen Z's inclination towards working at a young age and their desire for independence and self-improvement. Furthermore, it points out their social consciousness and preference for brands that demonstrate social responsibility, such as contributing to environmental causes or supporting ethical practices. The importance of recognizing and leveraging these traits in marketing strategies and parenting approaches is underscored.

Keywords

💡Gen Z

Gen Z refers to the demographic cohort following the Millennials, typically those born between 1996 and 2010. In the video, Gen Z is characterized as the most tech-savvy and financially aware generation, with significant influence over consumer decisions and a unique mindset that marketers and parents should understand. For instance, the script mentions Gen Z's loyalty to brands and their preference for privacy as key aspects of their consumer psychology.

💡Mindset

The term 'mindset' in the video refers to the underlying attitudes, beliefs, and values that shape Gen Z's behavior and decision-making. It is central to understanding how this generation thinks and acts, especially in the context of consumer behavior and social interactions. The script emphasizes the importance of recognizing Gen Z's mindset to better comprehend their preferences and actions, such as their concern for privacy and loyalty to brands.

💡Consumer Psychology

Consumer psychology is the study of the cognitive processes and behaviors that consumers exhibit in the marketplace. In the video, understanding Gen Z's consumer psychology is crucial for marketers and business owners to tailor their strategies effectively. The script discusses Gen Z's unique consumer behaviors, including their preference for in-person shopping, loyalty to brands, and their influence on family purchasing decisions.

💡Privacy

Privacy is a significant concern for Gen Z, as highlighted in the video. It is defined as the state or condition of being free from being observed or disturbed by others. The script provides statistics showing that a large percentage of Gen Z values their privacy more than social media likes and are cautious about sharing their location or data without consent. This emphasis on privacy is a key aspect of Gen Z's mindset and influences their interactions with brands and technology.

💡Loyalty

Loyalty in the context of the video refers to the strong allegiance and faithfulness Gen Z has towards the brands they choose. It is a key concept because once Gen Z trusts and selects a brand, they are likely to remain loyal customers, spending extra money for the brand and staying with it for a long time. The script illustrates this with examples like the preference for Apple products and the use of Snapchat, which offers privacy and a reward system.

💡Reward System

A reward system is a mechanism that provides incentives or recognition for certain behaviors or achievements. In the video, it is mentioned that Gen Z responds positively to reward systems, such as receiving special offers or discounts for their birthdays. This concept is used by marketers to foster loyalty and by parents to encourage desired behaviors in their children.

💡Gated Content

Gated content refers to digital content that is only accessible to users who have subscribed or registered, often providing a sense of exclusivity. The video script indicates that Gen Z is interested in gated content, which is part of the reason why subscription models are growing in popularity. This preference for exclusive content aligns with Gen Z's desire for personalized and unique experiences.

💡Identity Marketing

Identity marketing is a strategy that tailors marketing messages and offers to specific groups or identities, such as students or professionals. The video script describes how this approach can be effective with Gen Z, as they appreciate personalization and targeted offers that resonate with their specific needs and interests, such as discounts on educational courses.

💡Gig Economy

The gig economy is a labor market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs. The video script notes that a significant portion of Gen Z is involved in the gig economy, reflecting their desire for independence, flexibility, and the opportunity to earn and spend their own money.

💡Social Responsibility

Social responsibility in the video refers to the Gen Z generation's concern for the impact of products and services on society and the environment. They prefer brands that demonstrate a commitment to social and environmental causes, such as donating profits to education or practicing cruelty-free and eco-friendly operations. This sense of social responsibility is a key driver of Gen Z's consumer choices and values.

Highlights

Gen Z, born between 1996 and 2010, is the most influential generation to date with significant purchasing power and financial awareness.

Gen Z values privacy highly, with 87% being more concerned about privacy than social media likes and 75% not sharing their location in mobile apps.

Marketers should respect Gen Z's privacy and focus on building trust to gain their loyalty, which can lead to high long-term value.

Gen Z is brand-loyal, often choosing to spend extra for brands they trust and value.

The previous generation was more price-sensitive, while Gen Z prioritizes brand loyalty and values over cost.

Gen Z appreciates privacy-focused platforms like Snapchat, which offers secure data handling and a reward system.

Marketers can leverage the power of rewards to build loyalty with Gen Z, such as offering discounts or exclusive content for birthdays.

Gen Z prefers gated content and subscription models, valuing exclusive access to premium offerings.

Identity marketing, which tailors offers to specific groups like students, is highly effective with Gen Z.

Gen Z is proactive about earning money from a young age, with many already working part-time or freelancing.

Encouraging Gen Z's entrepreneurial spirit and independence is beneficial, as they seek to control their own financial destiny.

Gen Z considers the social and environmental impact of products, with a preference for brands that demonstrate social responsibility.

Marketers should incorporate social responsibility into their branding and product offerings to appeal to Gen Z's values.

Parents and businesses should understand and respect Gen Z's socially responsible mindset and encourage their values.

Gen Z's consumer psychology is a blend of privacy concerns, brand loyalty, financial awareness, and social responsibility.

Understanding Gen Z's mindset is crucial for marketers, businesses, and parents to effectively engage with this influential generation.

Transcripts

If you were born between 1996 and 2010, then you are Gen Z.

In this video, we will understand what is the mindset of Gen Z,

how does Gen Z think,

if there is a Gen Z in your network,

then you will be able to understand them better.

If you are Gen Z yourself, then you will be able to understand

yourself better.

This video is for marketers and businessmen as well.

You will be able to understand consumer psychology of the Gen Z

audience.

New data shows that most of Gen Z are shopping in person.

They are the youngest generation to enter the workforce.

They are the most tech savvy generation.

They are the most financially aware one too.

A report by Fidelity Investments reveals that

the average balance of this generation grew 34% in one year.

Gen Z generation is the most influential generation till date.

This is the generation who had internet since childhood.

Who had technology since childhood.

Today, Gen Z has the most purchasing power.

It's not necessary that they have the most money.

But they influence a purchasing decision in their home.

If parents want to buy an appliance, they ask their kids.

Why? Because kids have more knowledge of technology than them.

If we talk about Gen Z, they don't talk to their parents.

Because they feel that the generation gap has increased.

You don't understand me.

And parents also feel that I am trying to explain my point of

view to the kid.

But he is not able to understand me.

Why? Because you don't know his mindset.

You can't force a dream on someone else, dad.

Yes, I can. I can force a dream on you.

Why are you yelling?

Because it's a good dream.

First, let's understand the mindset of Gen Z generation.

It will be helpful for marketers.

If you are from the marketing community, try to understand it carefully.

First of all, Gen Z is very concerned about their privacy.

87% of Gen Z is more concerned about their privacy

than social media likes.

75% of Gen Z doesn't share their location in the mobile app.

They prefer to switch off their location.

38% of Gen Z users are afraid of sharing their data without their

consent.

What can we learn from this?

As a marketer, we can understand that we have to give them privacy.

We don't have to take a lot of data points.

It doesn't mean that we can't do email marketing.

It doesn't mean that we can't take their numbers.

They are ready to give their email ID with consent.

So, you value their security and privacy.

Now, if I talk about parents,

they have to understand that their children like privacy.

It's not just about social media.

It's about real life.

You don't have to go deep into their lives.

Let them do what they want.

Let them explore the world.

Who are you talking to?

Dad, there's something called privacy, okay?

The generation that fights with their parents about privacy,

you have to understand that your parents didn't have privacy.

They try to make you grow up the way they did.

Next, Gen Z is very loyal about brands.

They select a brand after a lot of thinking.

And when they select, they become loyal.

Gen Z is ready to spend extra money for a brand.

If you make a Gen Z your loyal customer,

they won't leave you.

Here, your LTV is very high.

The customer will stay with you for a long time.

First, Gen Z won't trust you.

You have to gain their trust.

But once you gain their trust,

they will become loyal to you.

Marketers, business owners, and parents can understand this.

I won't say that the previous generation wasn't loyal.

Yes, they weren't loyal about the products.

They were concerned about the price.

They want a cheap product.

If they get the same thing in a cheap price,

they like to run for it.

If we talk about Gen Z,

they have chosen a brand.

Even if they are taking it higher,

they are going for it.

They are not concerned.

This is the reason why we see an iPhone in Gen Z.

They are Apple lovers.

They are happy with Apple products.

They are also offered Apple privacy.

If we talk about Snapchat,

Gen Z uses Snapchat a lot.

Because there are two things.

First, there is privacy.

Your data is secure.

If you send a photo to someone,

it gets deleted after a while.

If someone takes a screenshot, you get to know.

Second, there is a reward system.

If you do something,

you get a streak after completing a task.

If you want to make this generation loyal,

give them a reward.

Is it your birthday?

Here is a free burger for you.

Is it your birthday?

Here is a 30% discount for you.

These offers work for Gen Z.

There is an advice for parents.

You can also use a reward system to control your kids.

The previous generation didn't work on reward systems.

But this generation works on reward systems.

I would like to tell you something for the market and business

owners. This generation likes gated content.

Everyone is getting what is available on YouTube.

If you subscribe, you will get a premium thing.

They are interested in that.

They are interested in things that are not known to the world.

This is the reason why we are seeing

that the subscription model is increasing rapidly.

Because Gen Z is playing a big role in the decision making process.

If you want to market Gen Z,

you have to do identity marketing.

What is identity marketing?

If you are working in this field,

then this is a special offer for you.

If you are doing this, then this is for you.

Basically, they like personalization.

If you can do personalization marketing, then it's great.

It doesn't mean that you are downloading their data

and then misusing it.

You need a basic point that

if you are a student,

then you need a specific offer for the student.

For example,

when we launched our digital marketing course,

we offered 50% off in the beginning.

We had an offer that

if your offer is less than 75%,

then we have an offer for you.

We did identity marketing for the course that is less than 75%.

I knew two things here.

One, recently we got the result of 10th and 12th class.

And there are many people whose offer is less than 75%

and they can potentially buy our product.

So, I did identity marketing here.

I will tell you one more important thing.

Gen Z people like to work first and earn money.

If I talk about my previous generation,

I think the first time I started earning money from a proper

job

was when I was 24-25 years old.

I started freelancing earlier.

I didn't know that it is called freelancing.

I just used to work to earn money.

But today's generation is very updated.

Today's generation is 16-18 years old.

They are working, earning money and freelancing.

A survey was conducted where 62% of the people said

that their success matters for their life.

They work on their upskilling.

They like to level up.

I want to be better than what I am today.

If we talk about Gen Z, they are already working.

If we talk about 10%, they are working full-time.

Almost half of the Gen Z population is in the gig economy.

Right now.

The reason is that they want an independent environment.

They want an environment where they can earn and spend.

If I talk about my generation,

I was dependent on my parents for 24-25 years.

I thought that my parents are there.

Today's Gen Z people want to control everything.

They want to earn and do something for themselves.

They want to give a party to their friends with their money.

I have a big advice for parents.

If your children are in Gen Z

and they want to work,

motivate them.

Don't tell them to study first.

Don't tell them what they are doing.

This won't help.

Motivate them.

You can do something.

Because this generation is going to set fire.

It is already setting fire.

It will set fire in the future.

The next point is for marketers.

Gen Z generation considers

the impact of the products.

5% of the profit goes to girls' education.

There are many brands that say

that they have planted trees,

they have done cruelty free,

they have not killed animals.

Why are they doing this?

Because the Gen Z generation cares for these things.

If we talk about the previous generation,

they want cheap products.

The impact doesn't matter.

This generation is very conscious about these things.

How will our future be?

How will our environment be?

This is called social responsibility in marketing.

The Gen Z audience is socially responsible.

We can catch this as a marketer.

If we talk about parents,

you have to understand that

your children are socially responsible.

They don't like you throwing garbage on the road.

They don't like you cutting trees.

They don't like you spoiling nature.

They like it when you do something good for nature.

This video ends here.

I hope you understood consumer psychology.

If you are Gen Z,

tell me in the comments

what are the things that are valid for you.

I hope 4 out of 5 points are valid for you.

Maybe 5 out of 5.

If you have a Gen Z in your network,

send this video to them.

If you don't have parents,

send this video to them

so that they can understand you better.

If you have a Gen Z in your network,

send this video to them.

This video ends here.

I hope you enjoyed it.

Like, share and subscribe to our channel.

Bye, good night, good morning, good afternoon whenever you are watching this video.

Jai Hind Vande Mataram.