When marketers look to entice a certain customer segment, they tend to think in terms of channels, especially when it comes to Gen Z, the first digital native generation. But if marketers don’t bring the right offer, it won’t matter which channels they select. When it comes to marketing to Gen Z shoppers, success isn’t just about reaching them on TikTok — it’s about the promotion and positioning, whether it be a student discount with free shipping or green products.
And, unsurprisingly, the offers that appeal most to Gen Z are the ones customized to them. In fact, when asked what motivates them to buy from a new brand, 45% of Gen Z respondents to a recent SheerID survey named exclusive discounts and personalized offers.
Here’s more on the types of offers that appeal to Gen Z shoppers — and how retailers can tailor their promotions to Gen Z without making a cookie-cutter appeal.
Gen Z values free perks
Gen Z shoppers crave offers exclusive to them such as student offers or offers for customers aged 18-26. And they particularly prize offers with free benefits. This is likely driven by their economic pessimism and price sensitivity. SheerID’s Gen Z survey found that 40% of respondents are either pessimistic or very pessimistic about the economy, and 42% said that economic conditions have led them to tighten their budgets.
In terms of the types of exclusive offers that Gen Z would find the most appealing, free shipping ranked the highest (over 60% of respondents selected it) followed by a free gift such as a sample product or a small gift when making a purchase. These free benefits outranked flat-cash discounts, buy one, get one free deals, and early access to online sales, underscoring just how much Gen Z shoppers value free perks.
Retailers should align their offers with Gen Z’s values
In addition to meeting Gen Z where they are economically by competing on price and offering free perks, retailers can craft effective campaigns for Gen Z shoppers by creating emotional connections with them. And a large part of fostering emotional connections with Gen Z is aligning with their values and identities.
For example, brands with a real environmentalist track record should consider amplifying those credentials to inspire loyalty among a generation that is especially concerned about climate change.
Take the beauty retailer Ulta Beauty for example. In 2020, the U.S. retailer started marketing its Conscious Beauty program, which features brands that meet at least one of five criteria: vegan, cruelty-free, clean ingredients, sustainable packing, and positive impact. Since 2020, Ulta has amplified promotions for its Conscious Beauty program in-store, online, and through owned and paid marketing channels — and now ranks first in unaided awareness of a retailer carrying clean beauty products, according to the company’s latest ESG report.
By aligning genuinely socially beneficial practices with its marketing program, Ulta is giving itself a chance to win not just on product quality and price, but also by supporting the environmental values that are core to the identities of many Gen Z shoppers.
Not all Gen Z shoppers are students
When retailers tailor their Gen Z offers, most tend to focus on marketing to college students. Because of this, SheerID’s survey suggests, some retailers leave the 40% of Gen Z who aren’t in college untapped.
For years, college students have expected brands to give them exclusive discounts. Gen Z who aren’t students don’t share that same expectation, and yet 60% of them check to see if a brand offers a Gen Z discount before purchasing from it, and 69% said they would be more likely to purchase from a brand that gave them an exclusive offer.
To date, many of the offers that target Gen Z consumers have college students in mind. But retailers have a prime opportunity to reach non-college student Gen Z shoppers by introducing, say, youth offers tailored to shoppers in the Gen Z age range, not just offers tailored to their college student counterparts.
To satisfy Gen Z, align your brand ethos with your target audience
The channels brands have traditionally used to reach Gen Z are incredibly important: Gen Z shoppers won’t hear you if you’re not in the same rooms as they are. But unless you have something compelling to say, it won’t matter which channels you’re on. Start with your script and then find the best theaters to stage it in, not the other way around. It’s about creating offers that feel personal and exclusive to Gen Z — and that resonate with their identity as young adults, their preferences, and corresponding values.
