Win over Gen Z: The promotional strategies that work

In the ever-evolving world of consumer behaviour, Gen Z stands at the forefront with their unique characteristics. Born between 1997 and 2010, the first generation of digital natives is rewriting the rules of engagement for brands and marketers.

As they enter adulthood, their purchasing power and influence grow exponentially, presenting a promising opportunity for businesses. The findings in the latest UNiDAYS Student Insights Report reveal that Gen Z consumers are not just optimistic; they’re brimming with excitement as we head into the new academic year.

Supporting Gen Z in moments that matter

Students have a lot going on in the coming months, and – given the timing of the first student loan drop – they are investing in the products and services they prioritise. Starting with back-to-campus, Gen Z will be stocking up on essentials from school supplies to groceries, fashion, self-care and tech.

Gen Z will also leverage Black Friday and Cyber Monday to obtain wishlist items. For instance, almost half say they’ll synchronise big tech purchases of laptops and mobiles with the sales event, and over a quarter will take the opportunity to purchase holiday gifts.

What’s vital to note is the difference in spending between Gen Z and older consumers. With an income stream largely dependent on family, student loans, savings, part-time work and side hustles, students deploy buying tactics that maximise their budgets. That’s why a considerable proportion will use the event as a way to acquire products and services across key verticals, including fashion (60%) and beauty (45%), enabling them to live the life they seek.

Brands must consider strategies that incorporate these intentions and drivers to meet students at their passions, helping them secure those wishlist items during these important moments. Early engagements that respect Gen Z realities are crucial and the first proactive step towards winning this demographic. Sneak peeks at upcoming sales items, countdowns that let them know when to expect offers and early sign-up options will help keep brands front-of-mind once they’re in a position to purchase.

Resonating with Gen Z shoppers

The vast array of available options means capturing and keeping Gen Z consumers’ attention can be challenging. In contrast to previous generations, these young shoppers aren’t married to particular brands yet. Still, our research shows time and again that there are ways to engage them and consistently unlock a lifetime of their loyalty.

Hit key purchase drivers

Akin to older buyers, price and quality are the main factors influencing Gen Z purchases. However, as our research shows, brands need to go further to strike a chord with Gen Z’s risk-averse nature. One way to engage Gen Z is to enable them to make informed decisions. In practice, this means providing transparent and relevant information so it’s easy to see and compare brand differentiators and the value add -not just the value off.

Ecommerce sites, like Amazon and eBay, are increasingly displaying ‘compare to’ options, which show cheaper or more highly rated equivalents. Strategically, this isn’t just to appease Gen Z, who like to weigh options meticulously; it actually leads to fewer cart abandonments, higher conversion rates and more positive word-of-mouth recommendations.

Gen Z is also constantly searching for great deals. In instances where product comparison functions are infeasible, brands should foreground value and quality in product and more comprehensive marketing messages – emphasising how they go above and beyond, for example, with hassle-free returns, virtual try-ons or minimum service guarantees.

Demonstrate responsibility and inclusivity

A commitment to diversity and inclusion is essential to the conscious Gen Z consumer. However, a finely tuned authenticity radar means paying lip service won’t cut it for this judicious cohort. Instead, brands must reinforce inclusivity throughout marketing materials. Using real or relatable representations in campaigns is one way of achieving this. The enduring gold standard, Dove’s Real Beauty Pledge, which integrates authentic consumer stories and user-generated content, epitomises capturing audience attention on issues they care about.

Dove’s 20-year campaign stands as a shining example of how brands can strengthen their authenticity and connection. It also demonstrates the power of consistently reinforcing and repackaging messaging. The recent commitment to never use AI to represent real women in its ads not only resonates with the social media generation but also keeps its value proposition relevant and top-of-mind. The same can be said when communicating broader brand ethics and corporate responsibility.

The resurgence of fair trade and sustainable buying decisions across the generations not only shows Gen Z’s concern for the planet but also demonstrates the disruptive influence the younger generation has on older demographics. As sustainability champions, they’re propelling others into making more responsible buying decisions -something brands must be mindful of by proactively meeting these youth demands with initiatives like eco-packaging and fair labour practices.

Offer experiences and incentives that truly appeal

Gen Z grew up immersed in digital experiences, which shaped their identities, so online shopping is second nature. We know social media is a way of life, with platforms like YouTube, Instagram, and TikTok providing go-to virtual communities for entertainment, self-expression and communication. So, it’s no wonder these sites are in the top-five list for brand discovery, or that three in four say online search is where they look to uncover new products.

Still, the growing youth demand for in-real-life experiences suggests that for brands to connect with students where they want to be connected, incorporating the in-store experience is just as critical. Coming second in the list, 58% choose the high street and physical outlets to explore brand offerings. The option for in-person is especially important for freshers, those eyeing fashion and anyone looking for holiday gifts. It’s a similar story when it comes to hearing about offers.

Gen Z has a slightly higher preference for finding out about offers and discounts via digital channels, with emails, social media and apps ranking the highest. However, we also see loyalty card schemes and in-store signage in the mix. In fact, Gen Z’s channels of choice fall broadly in line with older generations of shoppers, telling us that an omnichannel approach is the way forward for brands wanting to cut across other demographic differences.

When it comes to messaging, one winning strategy is to keep Gen Z up to date with news about upcoming releases and sales so they can plan ahead of time. Push notifications and ad-hoc emails are the best way to notify them of limited-time offers. This cohort of shoppers also craves personalised experiences. Using data-driven insights to tailor recommendations and offers is another great way to reach them. Above all else, student-specific offers are the best way to attract Gen Z shoppers.

Three-quarters agree a student discount is enough to influence them when deciding to purchase. Beyond discounted prices, exclusive invitations, early access, loyalty programmes, no-obligation trials, free delivery and returns, complimentary add-ons, prizes, deals and giveaways are not only compelling incentives but also a sure-fire way to grab the attention of Gen Z when promoted through the channels where they wish to connect with you, and they build a relationship that keeps Gen Z coming back to your brand during their student years and beyond.

As the Gen Z experts, UNiDAYS understands students’ key moments – like back-to-campus – and knows what it takes to connect brands with students through their passions. For more information, you can download our Student Insights Report by visiting https://corporate.myunidays.com/q4-2024.

Derek Morrison is MD of Retail Marketplace at UNiDAYS.