Why should brands make an effort to get to know Gen Z? 

It’s a simple question with a seemingly simple answer: As the largest generation in the U.S. Gen Z is set to be a brand’s biggest audience. Gen Z may not be on your brand’s radar just yet, but as its members continue to emerge into adulthood and their buying power increases, it certainly will be soon.  

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Acxiom Digital Thoughts: Generation Z

But there’s also a more complex answer to the same question. 

It’s easy to look at any emerging generation and assume it’s just a younger version of what came before – perhaps with different hair styles, inexplicable music tastes, or questionable fashion sense. 

However, with Gen Zs there’s been a step change. They’ve been born into a completely different world – a digital world of endless complexity and contradiction. They’re growing up with the expectation of seamless, digital-first experiences tailored to the individual. With zero tolerance for substandard experiences, Gen Zs may give brands  only one shot at engaging them. 

In this context, it’s vital for brands to take the time to understand Gen Zs, the world they’re experiencing, and their values and behaviors. For brands to succeed tomorrow, they need to identify, understand, and engage Gen Zs as they start their customer journey today. 

Let’s explore some of the contextual factors that set Gen Z apart: 

No-fear digital natives

Gen Zs are truly digital first. While other generations are adopting and adapting to technology, most Gen Zs have never known a time when a smartphone wasn’t within reach. 

This doesn’t just mean they’re good with gadgets, although – let’s be honest – they are. It means their entire lives are conducted in the digital realm. Socializing happens online – whether through social media platforms, instant messaging, or virtual gaming environments – and everything Gen Zs need to manage their lives is on their mobile device.   

It also means they have access to a far greater range of content than previous generations. Whether for entertainment or information, ubiquitous digital and mobile connectivity provides a gateway to anything and everything. Gen Zs often rely heavily on the recommendations of trusted online influencers to help them navigate this endless sea of information and make choices about what to watch, buy, or believe. 

Identity and acceptance 

In this world where everything is at their fingertips, it’s easy to assume Gen Zs are better informed, which could – in turn – make them more understanding and accepting of others. On the other hand they are maturing at a time when opinions are increasingly polarized, media is divisive, and social echo chambers make it hard to achieve a balanced view. All this has the potential to make Gen Zs less tolerant. 

Many were figuring out what’s important to them during the COVID era. This limited their real-world social interactions and may have delayed establishing their sense of self, but it equally could have made them more grounded and compassionate than older generations. Overall, the boundary-less virtual and digital worlds Gen Zs inhabit seem to make it easier for them to connect with like-minded people and find acceptance without being restricted by physical geography. 

Economic headwinds

Finally, Gen Zs are emerging into adulthood during a time of economic uncertainty with rising inflation and sky-high living costs. The fact that their median household income is around 25% lower than the U.S. average isn’t unexpected given they are the youngest generation, but it will make it harder for them to establish themselves in this unstable environment. 

Gen Zs often hit traditional milestones later than their predecessors – whether due to increased parental support or pandemic-related delays. This could mean they are more mature as they start their first job, or move out of the family home to rent their first apartment. But it could also impact their access to traditional credit markets and advanced banking products, leaving them widely underbanked.  

Getting to know Gen Z

To help brands understand Gen Zs (and ultimately help Gen Zs find their brands), we’ve analyzed Acxiom InfoBase® data from more than 16 million U.S. households headed up by Gen Zs. 

The result is our new report, The Inside Track on Gen Z. It features 10 top insights on Gen Zs, from their entertainment choices, financial priorities, and shopping habits, to their living situations and their attitudes about health and data privacy. 

Take a look for yourself, and gain the intelligence your brand needs to acquire, retain, and grow relationships with this unique generation.

Read the Report