Just when we thought we had perfected the digital marketing funnel…
A new generation brings along new technology, new social platforms, and etiquette that changed the game as we know it.
So what exactly changed? And how are brands changing their marketing to serve Generation Z and Millennials?
The Digital Marketing Funnel: Then Vs. Now
Traditionally, the digital marketing funnel for online shopping was simple, organized…
And reliant on a clear start and end point.
Brands have relied on this model for decades. The model essentially followed the path of the consumer…
From first becoming aware of the product, to finally taking it home. It went as such:
- Awareness
- Interest
- Desire
- Action
This model, with a clear beginning and end, in a traditional setting did what it needed to do: get more people interested in buying a brand’s product.
Now… the landscape is anything but traditional…
And users on social platforms are inundated with advertisement after advertisement. The new model for digital marketing is no longer linear…
NOW IT’S CYCLICAL AND FOCUSED ON THE CUSTOMER’S NEEDS INSTEAD OF THE BRAND’S NEEDS.
With a flood of brands trying to break into the Gen Z and millennial customer base, and increasingly skeptical consumers…
The latest iteration of the digital marketing funnel prioritizes the following:
- Inspiration
- Exploration
- Community
- Loyalty
Because Gen Zers are digital natives, brands are more likely to market on the social platforms these younger crowds spend their time on.
The only issue with that approach is that these social platforms aren’t just marketplaces. They’re also places for social connections…
News outlets…
Entertainment centers…
And learning platforms.
Now, companies need to go above and beyond to retain younger shoppers.
Inspiration
Originally, the digital marketing funnel as most people know it begins when the customer notices the product. Now…
IT ALL DEPENDS ON WHEN THE SHOPPER NEEDS SOME INSPIRATION.
On average, Gen Zers spend 3 hours a day on social media. So it only makes sense that that’s where they turn when they need inspiration. Three in 10 Gen Zers use social media to figure out their next purchases.
Based on the latest trends and micro trends, younger shoppers are more inclined to follow “mainstream” tastes.
And brands can take advantage of this.
Take Hailey Bieber’s company, Rhode. Bieber will coin a phrase like “strawberry girl summer”, which inspires a microtrend. Then, her skincare label will use that trend, and mirror it in their product offering.
Essentially, you have to pay attention to what customers are looking for, instead of trying to attract their attention the hard way.
This is what makes the Gen Z digital marketing funnel distinct.
Yet despite their residency in online spaces…
Most Gen Zers and Millenials prefer shopping in brick-and-mortar stores.
You’d think this wouldn’t be the case…
But even those who do most of their shopping online will still perform thorough research regarding their purchases.
Exploration
Another big shift in younger shoppers is their skepticism. According to the traditional digital marketing funnel, once the shopper is interested in a product, they are one step closer to buying.
And that was the mindset adopted by many contemporaries in marketing. They assumed that because Gen Zers were spending so much time online, they would be impulse shopping more often than the average consumer.
This line of thinking could not be further from the truth.
IN FACT, GEN ZERS AND MILLENNIALS ARE MORE SKEPTICAL OF WHAT THEY GET MARKETED ONLINE.
70% of Gen Zers and Millennials only trust a brand after conducting their own research on their products and offerings.
This involves:
- Reading Product Reviews
- Comparing Prices
- Looking for secondhand versions of the item
- Seeing if an influencer has reviewed it
Here, brands can work with the new digital marketing funnel by becoming educators about their products. Nowadays no one is going to flat-out trust your brand…
But you can give them a reason to trust you.
Community
We’ve heard it before, but Gen Zers are the loneliest generation on record…
With 7.5% of Gen Zers reporting that they feel lonely most, if not all the time.
But what does this mean for brands? It means that selling a product is not enough anymore…
You need to create a space that people want to participate in and be a part of.
IN OTHER WORDS, “COOL” BRANDS ARE THE ONES ENGAGING THIS GENERATION WITH FAR MORE THAN JUST PRODUCT.
Vogue Business
But what does it mean to create a community within your company, or even be a “cool brand”?
It’s all about creating a lifestyle around your offerings.
Creating events…
Active online spaces…
And collaborations with other people your base would be interested in…
Seeing all contribute to this aspect of the new digital marketing funnel.
This is another way this new model of marketing is different from that of the old world. The old method simply focused on the marketing aspect of your company…
However, the approach that Gen Z takes is much more holistic and involves every aspect of your brand.
Loyalty
A lot of companies understand that brand loyalty is defined by customers coming back over and over again.
But for Gen Zers and their new digital marketing model…
LOYALTY GOES BEYOND JUST SHOPPING HABITS.
In fact, loyalty means a reciprocal relationship between the company and the consumers.
For younger shoppers, they express brand loyalty by
- sharing the product or recommending it to friends
- Loving the brand, even if they don’t purchase it often
- Posting about the brand on social media
(In fact, if you’re clever enough, you can get your audience to do the marketing for you.)
But Gen Zers expect brands to do more for them than just give them exclusive discounts every blue moon.
To earn the loyalty of young consumers, brands need to be prepared to engage customers for the long haul.
The New And Improved Digital Marketing Funnel
As aforementioned…
The new digital marketing funnel does more than just sell products.
It re-centers the consumer in the marketing cycle. Putting their needs first.
Who knows if this style of marketing will stick and be the industry standard…
But for now, it seems like Gen Zers and Millennials have their shopping routines in order.
It just all depends on whether industry giants can adapt to the new generations and their future.
Be Great,
GCTV Staff
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