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If you could understand and influence human emotion, could you use this ability to increase sales and identify the most compelling advertisements, the perfect price point, or the most flawless product mix?

While advertisers, psychologists, and salespeople have understood this connection for years, only a few have been able to use it to their advantage. Fortunately, neuromarketing is putting the ability to understand consumer behaviour and create compelling marketing tactics into the hands of many.

In the modern business landscape, with constantly changing consumer preferences, companies must understand what drives consumer behaviour to stay ahead of the curve.

“People buy on emotion and justify on logic.” Zig Ziglar

Recent research has revealed that emotional decisions are not irrational or flawed, and our unconscious mind has its own logic. It processes millions of bits of data seamlessly without becoming overwhelmed, unlike our conscious mind, which has a bottleneck due to the limited capacity of our working memory to process only 3-4 pieces of new information at a time.

However, the unconscious mind’s brilliance stems from its lifetime of learning from our successes and failures, and it makes decisions based on heuristics that have evolved. These decisions are often successful, leading experts to rely on their intuition or “gut feelings.”

The Iowa Gambling Task study highlights the effectiveness of the emotional brain. In this study, subjects were given a fixed budget and four decks of cards to draw from to win as much money as possible. The decks were arranged so that two offered consistent wins, while the other two had high payouts but carried significant risks. Although it took about 50 cards for people to stop drawing from the dangerous deck, it was on the 80th card that they could explain why. On the other hand, the subjects’ anxiety levels were tracked using a device that measured the electrical conductance of their skin, revealing that their hand trembled when they reached for the risky deck after drawing only ten cards. Hence, our intuition or unconscious mind quickly senses danger and makes decisions. On the contrary, logic is slow.

Marketing is all about understanding and influencing consumer behaviour. For years, brands have relied on traditional market research methods to understand customers’ needs and preferences. However, with advancements in neuroscience, researchers can now use cutting-edge tools and techniques to gain deeper insights into consumer behaviour.

This blog post will explore neuroscience applications in marketing, its history, and the tools used to study consumer behaviour. We will also discuss the use cases of neuroscience in marketing, the new methods in consumer neuroscience research, and the future of neuromarketing.

What is neuromarketing?

Neuromarketing or Neuroscience marketing involves utilising physiological and neural data to understand the drivers behind customers’ choices, inclinations, and decisions. By applying this knowledge, brands can enhance their advertising, product development, pricing, and other marketing strategies.

As a multidisciplinary field, there are many definitions of the term, but in simple terms, it is a form of decision science applying neuroscience ideas to the marketing field.

In a nutshell, neuroscience applications in marketing refer to using neuroscience techniques and tools to understand consumer behaviour and develop effective marketing strategies.

The concept is based on the idea that a person’s behaviour is driven by their brain activity and that marketers can use this knowledge to create more effective marketing campaigns.

Neuromarketing and neuroeconomics have been used interchangeably, confusing their differences. Many experts consider neuromarketing a subgenre of neuroeconomics that studies neuroscience in decision-making. But others argue that neuromarketing should be considered independent since it focuses on marketing.

History and Origins of Neuroscience for understanding consumer behaviours

The origins of neuroscience can be traced back to the early 19th century when researchers began studying the nervous system’s structure and function. Over time, the field has expanded to include studying brain activity and its impact on behaviour. In the 1990s, researchers began using brain imaging techniques such as fMRI and EEG to study brain activity and its relationship to behaviour.

The term “neuromarketing” was popularised by Dutch marketing professor Ale Smidts in 2002; however, the field’s roots date back to the 1990s when rigorous research and experimentation began. Among the pioneers was US marketing professor Gerald Zaltman, who filed a patent for the Zaltman Metaphor Elicitation Technique (ZMET) four years before the term “neuromarketing” was coined. ZMET is a marketing research tool that delves into people’s conscious and subconscious thoughts using carefully curated image sets to elicit positive emotional responses and potentially influence purchasing decisions.

The use of neuroscience in marketing began in the early 2000s, with companies like Coca-Cola and Frito-Lay using fMRI to study consumers’ responses to their products.

One of the earliest recorded neuromarketing experiments occurred at Baylor College of Medicine in 2003, led by Professor of Neuroscience Read Montague. The study was an extension of a 1975 taste test challenge between Pepsi and Coca-Cola, where participants blindly tasted and selected their preferred drink. Although the results showed Pepsi as the winner, Coca-Cola continued to dominate the cola market share. Curious, Montague repeated the experiment, using fMRI scans to track participants’ brain activity this time.

The study revealed that different parts of the brain lit up depending on whether participants were aware of the brand they were consuming. Coca-Cola triggered responses from the medial prefrontal cortex associated with attention and short-term memory. When aware of the brand, participants preferred Coca-Cola over Pepsi, but when oblivious to the brand, they preferred Pepsi, as indicated by the ventral putamen, responsible for decision-making and reward perception.

Using neuroscience tools to sweeten market research

Consumer neuroscience tools are the instruments used to study brain activity and behaviour. These include biometric tools like eye tracking, facial recognition software, and imaging tools like EEG and galvanic skin response. Each tool has its inherent strengths and limitations, and usage would depend largely on the study’s goals.

Eye tracking

Eye tracking is a tool used to measure eye movements and gaze behaviour. It is used to study how people process visual information and can help marketers understand which elements of their advertising or website design are most effective.

Facial recognition software

Facial recognition software analyses facial expressions and emotions. It is used to study consumers’ emotional responses to products, advertising, and other marketing materials.

fMRI

Imaging techniques such as fMRI are used to measure brain activity. They study how the brain processes information and responds to various stimuli.

ECG

ECG is used to measure heart rate and heart rate variability. It is used to study the emotional response to marketing materials.

Electroencephalography

Electroencephalography (EEG) is a neuromarketing research method used to measure cognitive processes, such as calculations, to predict consumer behaviour.

Galvanic skin response

Galvanic skin response is used to measure changes in skin conductance.

Tests used to understand consumer behaviour

Neurolinguistic programming (NLP)

Neurolinguistic programming (NLP) focuses on the relationship between language, behaviour, and the brain. It operates under the belief that language can shape thoughts and emotions and that modifying language can change thoughts and emotions. NLP is commonly used in marketing research to investigate how language and framing influence consumer behaviour and decision-making. For instance, it can be used to analyse how the language used in an advertisement affects the emotional response of consumers or how presenting a product in a specific manner can impact purchasing decisions.

Implicit association tests (IATs)

Implicit association tests (IATs) are psychological assessments that measure unconscious biases and attitudes by analysing the time it takes a person to associate a particular word or image with a specific category. In marketing research, IATs are often employed to study consumer attitudes and preferences and detect potential biases in decision-making processes. For example, IATs can be conducted to examine consumer attitudes toward various brands, products, or marketing messages.

NLP and IAT can provide valuable insights into consumer behaviour and decision-making processes and can be used with other neuroscience marketing research methods.

Uses cases and applications of Neuroscience in Marketing

Several applications of neuroscience in marketing include advertising, branding, website optimisation, pricing, product development, and product experience.

For example, eye tracking can identify the most effective placement of ads on a webpage, while facial recognition software can identify the emotional response to an ad.

New Methods in Consumer Neuroscience Research

Recent advancements in technology have opened up new avenues for consumer neuroscience research. Virtual Reality (VR) can create realistic environments for studying consumer behaviour, while mobile EEG devices allow researchers to study brain activity in real-world settings.

Another exciting development is using machine learning algorithms to analyse large datasets of brain activity. This approach can help identify patterns and relationships between brain activity and behaviour, providing deeper insights into consumer behaviour.

Limitations of neuromarketing

Limited Sample Size

Neuromarketing research often requires expensive equipment and specialised expertise, which limits the number of participants involved in the study. This limited sample size could lead to biased results and generalisation errors.

Difficulty in Interpretation
The interpretation of brain data is a complex process requiring the expertise of specialised neuroscientists. There often needs to be explicit agreement on what a particular brain activity pattern means, which can interpret neuromarketing data as challenging.

Lack of Real-Life Relevance
Most neuromarketing research is conducted in laboratories and may not accurately reflect real-world scenarios. In real-life environments, consumers’ behaviour is often influenced by several external factors, such as culture, social norms, and personal experiences.

High-Cost
Neuromarketing research requires expensive equipment and specialised expertise, which can be cost-prohibitive for small and medium-sized businesses. As a result, only large corporations can afford to invest in such research.

Ethical Issues
Neuromarketing research raises ethical concerns, such as the possibility of manipulating consumer behaviour and invading their privacy. Consumers may be unaware of the research’s purpose, and their data could be misused for commercial gain.

Ethical considerations

Informed Consent
Consumers should be fully informed about the research’s purpose and the data collection process. They should have the right to opt out of the study and have their data removed.

Privacy
Neuromarketing research involves collecting sensitive personal information, requiring adequate data security measures to prevent breaches and unauthorised access.

Transparency
The results of neuromarketing research should be transparently communicated without manipulating the data or using it to mislead consumers.

Fairness
Neuromarketing research should not be used to exploit vulnerable consumers or unfairly target specific groups.

Responsibility
Brands should take responsibility for their actions and use neuromarketing research ethically without manipulating consumers or promoting harmful products.

The Future of Neuroscience in Market Research

With the advancement of technology, neuroscience in marketing is expected to become even more prevalent. Gaining deeper insights into consumer behaviour can help brands create more effective marketing campaigns, improve product development and enhance the overall customer experience.

However, as detailed above, there are concerns about the ethical implications of using neuroscience in marketing. Critics argue that using these techniques can be invasive and that there are potential risks to consumer privacy.

As with any technology, using neuroscience in marketing responsibly and ethically is paramount. By doing so, brands can harness the power of neuroscience to gain deeper insights into consumer behaviour while respecting consumer privacy and autonomy.

Neuroscience applications in marketing offer exciting opportunities to gain deeper insights into consumer behaviour. As technology evolves, new consumer neuroscience research methods are emerging. The future of neuroscience in marketing looks promising, offering new ways to improve the customer experience to drive business success.

Kadence International helps leading brands make game-changing decisions. If you are looking for a research partner to help better understand your customers, we would love to help. Simply fill out our Request for a Proposal here.

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Have you ever found yourself hesitating before making a purchase? You may have been unsure about the quality of the product or whether you could afford it. Or maybe you were simply feeling uncertain about the future and didn’t want to commit to something that might not be a wise investment.

Whatever the reason, you’re not alone. Uncertainty is a common experience for many consumers and can significantly impact buying decisions. It’s important to understand uncertainty’s role in consumer behavior and how we can respond to it to better meet our customers’ needs.

In this article, we’ll explore the fascinating world of consumer psychology during times of uncertainty. We’ll delve into the effects of uncertainty, how consumers respond to it, and what marketers can do to adjust their strategies accordingly.

We’ll also discuss market research’s crucial role in understanding and responding to uncertainty and provide some practical tips for conducting research during uncertain times.

So buckle up and get ready for a deep dive into the unpredictable waters of consumer purchasing behavior!

The Concept of Uncertainty

Let’s break down the different types of uncertainty.

Economic uncertainty is perhaps the most well-known and pervasive form of uncertainty. It can arise from various factors, such as recessions, inflation, or changes in government policies. When consumers are uncertain about their financial futures, they may be more cautious about spending money and prioritize essentials over luxury items.

Social uncertainty, on the other hand, can arise from changes in social norms or cultural values. For example, the #MeToo movement sparked a reckoning in many industries as consumers became more aware of issues related to sexual harassment and assault. This led to increased uncertainty about what behavior is considered acceptable in the workplace and beyond, which may have affected consumer preferences and buying decisions.

Personal uncertainty can stem from various sources, such as health concerns, relationship issues, or significant life transitions. When consumers are experiencing personal uncertainty, they may be more likely to prioritize products or services that offer a sense of stability or comfort, such as self-care products or experiences that provide a sense of escapism.

The Effects of Uncertainty

For one thing, uncertainty tends to make consumers more cautious about spending money. Consumers may be more likely to save their money for a rainy day when the future feels unpredictable rather than splurge on non-essential items. This can be especially true during times of economic uncertainty, such as recessions or market crashes, when consumers may be worried about losing their jobs or experiencing a decline in their financial well-being.

Uncertainty can also lead consumers to seek out products or services that offer a sense of stability or security. For example, during social or political uncertainty, consumers may be more likely to support brands or businesses that align with their values or offer a sense of community or belonging. Similarly, during times of personal uncertainty, consumers may be drawn to products or services that provide a sense of comfort or escape, such as luxury goods or experiences.

The effects of uncertainty on consumer behavior can be complex and multifaceted. Still, uncertainty can significantly impact consumers’ willingness to take risks and make purchases. It’s essential for brands to be aware of these effects and to adapt their strategies accordingly. By understanding how uncertainty affects consumer behavior, we can better tailor our messaging, products, and services to meet the needs of our customers, even in the most uncertain of times.

Consumer Response to Uncertainty

Consumers may respond in various ways when faced with uncertainty, depending on their personal circumstances and individual preferences. However, some common patterns tend to emerge when consumers feel uncertain about the future.

One of the most notable responses to uncertainty is a tendency to seek more information before purchasing. When consumers feel uncertain about the quality, safety, or value of a product, they may be more likely to do their research and read reviews before making a decision. This can be especially true during times of uncertainty, when consumers may be more risk-averse and less willing to take chances on products they need to learn more about.

Another common response to uncertainty is a preference for familiar brands or products. Consumers may be more likely to stick with brands or products they know and trust when the future feels unpredictable rather than experimenting with new or unfamiliar options. This can be especially true during times of economic uncertainty, when consumers may be looking for ways to save money and reduce risk.

Additionally, during times of uncertainty, consumers may be more likely to prioritize practical needs over aesthetic or luxury desires. For example, during a recession, consumers may be more likely to purchase essential items like food and clothing rather than splurge on expensive vacations or high-end fashion items.

Implications for Marketers

As we’ve seen, uncertainty can significantly impact consumer behavior, affecting everything from purchasing decisions to brand loyalty. For marketers, it’s important to be aware of how uncertainty affects their target audience and to adapt their strategies accordingly.

One key implication for marketers is the need to reassure consumers during times of uncertainty. This can involve emphasizing the quality, safety, and reliability of products and services and addressing any concerns or questions consumers may have. By providing clear and transparent messaging, marketers can help build trust and loyalty among consumers, even during times of unpredictability.

Another critical consideration for marketers is pricing strategy. During times of uncertainty, consumers may be more price-sensitive and risk-averse, making it challenging to attract and retain customers. To address this, marketers may need to adjust their pricing strategies to reflect changing consumer behavior, such as offering discounts or promotions to incentivize purchases.

Additionally, marketers must be more flexible and adaptable in their approach, as consumer behavior can shift quickly in response to changing circumstances. This may involve experimenting with new marketing channels or tactics or being open to adjusting messaging or product offerings as needed.

Lessons from Past Uncertain Times

The 2008 Financial Crisis

During the financial crisis of 2008, many consumers became more cautious about spending money, particularly on luxury goods and services. As a result, brands that relied heavily on discretionary spending, such as high-end fashion labels and luxury hotels, saw a significant decline in sales. At the same time, consumers became more interested in value-driven products and services, such as budget airlines and discount retailers.

Many luxury fashion brands responded by offering affordable options like diffusion lines and collaborations with fast fashion retailers. For example, designer Versace partnered with H&M, a popular fast fashion brand, to reach a wider audience and appeal to price-sensitive consumers. Similarly, many luxury hotels responded by offering promotions and deals to attract customers looking to save money.

The COVID-19 Pandemic

The COVID-19 pandemic has significantly impacted consumer behavior, as many people have experienced economic, social, and personal uncertainty. During the pandemic, consumers have been more cautious about in-person shopping and have increasingly turned to online retailers for their purchases. Additionally, consumers have become more interested in health and wellness products, home improvement, and DIY products as they spend more time at home.

For example, beauty brand Sephora launched a virtual makeup try-on tool, allowing customers to test out products from the comfort of their own homes. Additionally, many brands pivoted their messaging to emphasize safety and hygiene, such as restaurant chains highlighting their contactless delivery options or airlines emphasizing their cleaning procedures.

The #MeToo Movement

The #MeToo movement has profoundly impacted consumer behavior, particularly in the fashion industry. Brands perceived as promoting unrealistic beauty standards or perpetuating gender stereotypes saw a decline in sales, while brands that embraced inclusivity and diversity saw increased demand.

For example, lingerie brand Aerie launched a campaign featuring unretouched photos of models with a range of body types to promote body positivity and self-confidence.

The Role of Market Research

Market research is a crucial tool for understanding consumer behavior, particularly during times of uncertainty. By gathering data and insights on how consumers respond to changing circumstances, market researchers can help marketers develop effective strategies that meet the needs of their target audience.

One of the main benefits of market research during times of uncertainty is the ability to identify changing consumer needs and concerns. For example, during the COVID-19 pandemic, market research has helped brands understand how consumers adjust to working from home, their concerns about public health and safety, and what products and services they are most interested in. By gathering this data, marketers can develop messaging and products that resonate with consumers’ changing needs and priorities.

Another role of market research during times of uncertainty is to identify changes in consumer behavior. Brands that use market research can identify trends and patterns that may indicate more significant shifts in consumer behavior by analyzing purchasing patterns, brand loyalty, and other key metrics. This can help marketers anticipate changes in the marketplace and adjust their strategies accordingly.

Finally, market research can help marketers develop messaging and branding that resonates with consumers’ emotions and values. During times of uncertainty, consumers may be more sensitive to trust, safety, and social responsibility issues. Market research can help identify the most effective ways to communicate these values to consumers.

Overall, market research is a crucial tool for navigating the complex and unpredictable world of consumer behavior during times of uncertainty. By gathering data and insights on consumer needs, behavior, and values, marketers can develop effective strategies that meet the changing needs of their target audience and build long-term success.

Key Takeaways

Uncertainty is a fact of life that can significantly impact consumer behavior. From economic downturns to social movements to global pandemics, uncertainty can make consumers more cautious, risk-averse, and focused on practical needs. However, by understanding how uncertainty affects consumer behavior, marketers can develop effective strategies that meet the changing needs of their target audience and build long-term success.

Key takeaways include the importance of reassurance, adaptability, and flexibility in uncertain times. Marketers must be attuned to their target audience’s changing needs and concerns and be willing to adjust their strategies accordingly. Additionally, market research is crucial for understanding how consumers respond to uncertainty and can provide valuable insights into changing behavior and priorities.

Moving forward, brands should prioritize building trust and loyalty among their target audience, emphasizing practical needs and value-driven products and services, and remaining flexible and adaptable in the face of changing circumstances. By doing so, marketers can weather even the most uncertain times and emerge stronger and more resilient.

So, let’s approach uncertainty with optimism and confidence. By embracing change, staying attuned to consumer needs, and remaining flexible and adaptable, we can build a more resilient and successful future for ourselves and our brands.

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In the current digital marketing landscape, social media is one of the most powerful tools for marketers to engage with their target audience. For Gen Z consumers, social media is not just a means of communication but an integral part of their lifestyle, shaping their behaviour and influencing their purchasing decisions.

It’s crucial for brands to understand how social media plays an essential role in Gen Z’s purchasing decisions and why it matters for their marketing strategy. In this article, we will explore the impact of social media on Gen Z’s purchasing behaviour, the social media platforms that Gen Z uses the most, the rise of influencer marketing, the importance of user-generated content, and social media advertising.

Who is Gen Z?

Gen Z, born between 1997 and 2012, is the generation that succeeded Millennials. They are the first generation born and raised in a digital era, shaping their unique characteristics and preferences.

Gen Z values inclusivity, diversity, and social causes more than previous generations. They are also more likely to value experiences over material possessions and prefer brands that align with their values.

85% of Gen Z consumers are more likely to support a brand that supports a social cause they believe in, according to a study by DoSomething Strategic.

Gen Z consumers also have significant purchasing power. Gen Z’s global spending power will reach $33 trillion by 2030, making them the fastest-growing consumer segment in the world. They also influence their parents’ purchasing decisions, with 93% of parents saying their Gen Z children have at least some influence on family spending, according to a study by Harris Poll.

Case Study: Nike

Nike is a brand that has successfully targeted Gen Z consumers with its inclusive and diverse marketing campaigns. The brand’s “Dream Crazier” ad, featuring female athletes breaking barriers, was well-received by Gen Z consumers for its message of empowerment and inclusivity. Nike’s approach has paid off, with the brand experiencing an 11% increase in sales following the campaign, according to a report by Edison Trends.

Social Media Platforms Used by Gen Z

Gen Z is a generation that grew up with social media, and it has become a crucial part of their daily lives.

According to a report by GlobalWebIndex, 98% of Gen Z consumers have a social media account, and they spend an average of 2 hours and 22 minutes daily on social media platforms.

So, what social media platforms do Gen Z use the most? Let’s take a look:

Instagram: Instagram is the most popular social media platform among Gen Z consumers worldwide. According to Statista, 79% of Gen Z consumers aged 16 to 24 use Instagram, and 65% use the platform multiple times daily. Instagram is a visual platform that allows users to share photos and videos, making it an ideal platform for brands to showcase their products and engage with consumers.
TikTok: TikTok has exploded in popularity among Gen Z consumers worldwide, with a 325% increase in downloads in 2020 alone, according to a report by App Annie. In the UK, for example, 70% of Gen Z consumers use TikTok, with 54% using the platform daily, according to a report by GlobalWebIndex. The platform’s short-form videos, music, and user-generated content have made it a go-to platform for Gen Z entertainment and product discovery globally.
Snapchat: Snapchat has been popular among Gen Z consumers for years worldwide. According to a report by GlobalWebIndex, 56% of Gen Z consumers use Snapchat, and 29% use the platform multiple times a day. Snapchat’s ephemeral nature, augmented reality features, and user-generated content make it a unique platform for brands to engage with consumers.
Twitter: Twitter may not be as popular as other social media platforms among Gen Z consumers, but it still has a significant presence globally. In India, for example, 50% of Gen Z consumers use Twitter, with 34% using the platform daily, according to a report by GlobalWebIndex. Twitter’s real-time conversations, hashtags, and brand engagement make it a valuable platform for brands to connect with consumers.

As you can see, Gen Z uses a variety of social media platforms to discover, engage with, and purchase products worldwide. The following section will explore how social media influences Gen Z’s purchasing behaviour.

The Impact of Social Media on Gen Z’s Purchasing Behaviour

Social media has profoundly impacted how Gen Z consumers shop, their decision-making process, and their brand loyalty. Here are some ways in which social media has influenced Gen Z’s purchasing behaviour:

Product Discovery: Social media has become a primary source of product discovery for Gen Z consumers. According to a report by GlobalWebIndex, 41% of Gen Z consumers worldwide use social media to learn about new products or services. Social media allows brands to reach Gen Z consumers where they are most active and showcase their products in a way that resonates with them.
Reviews and Recommendations: Social media has also become a platform for Gen Z consumers to seek peer reviews and recommendations. 75% of Gen Z consumers worldwide rely on social media to make purchasing decisions, and 61% have bought a product after seeing a social media ad. Social media influencers also play a significant role in Gen Z’s purchasing behaviour, with 68% of Gen Z consumers saying they trust influencers more than traditional celebrities, according to a study by Morning Consult.
Brand Loyalty: Social media has made it easier for Gen Z consumers to connect with their favourite brands and develop brand loyalty. According to a report by Accenture, 65% of Gen Z consumers globally feel that brands should offer a personalised experience, and social media allows brands to tailor their messaging and engage with consumers on a more personal level. Social media is also a platform for Gen Z consumers to voice their opinions and connect with brands that share their values and beliefs.
Influencer Marketing: Social media influencer marketing has become popular for brands to engage with Gen Z consumers. Influencers allow brands to reach Gen Z consumers authentically, driving brand awareness and sales. According to a report by Influencer Marketing Hub, the global influencer marketing industry was valued at $13.8 billion in 2021 and will grow to $22.3 billion by 2025.

Social media has become an essential tool for brands to influence Gen Z’s purchasing behaviour. Social media allows brands to showcase their products, engage with consumers, and develop brand loyalty. The next section will explore how product marketing managers can leverage influencer marketing to reach and engage with Gen Z consumers.

Influencer Marketing

Influencer marketing has become a popular strategy for product marketing managers to engage with Gen Z consumers. Influencers, who are social media personalities with a large following and a significant impact on their followers’ behaviour, provide product marketing managers with an opportunity to reach and engage with Gen Z consumers in a more authentic and relatable way.

Here are some ways in which influencer marketing impacts Gen Z’s purchasing decisions:

Authenticity: Influencers are known for their authenticity and relatability, which is particularly important for Gen Z consumers. According to a report by Morning Consult, 90% of Gen Z consumers say authenticity is essential when deciding which brands to support. Influencers provide an opportunity for product marketing managers to reach Gen Z consumers in a genuine and trustworthy way.
Product Discovery: Influencers also play a crucial role in product discovery for Gen Z consumers. According to a study, 44% of Gen Z consumers globally discover new brands and products through social media influencers. Influencers allow brands to showcase their products in a way that resonates with Gen Z consumers through sponsored content, product reviews, and giveaways.
Trust: Influencers are trusted by their followers, and their recommendations can significantly impact Gen Z’s purchasing decisions. According to a report by Morning Consult, 54% of Gen Z consumers have made a purchase based on a recommendation from a social media influencer. Influencers can allow brands to drive sales and build brand loyalty by leveraging their influence and connecting with Gen Z consumers.

Here are some ways in which product marketing managers can leverage influencer marketing to reach and engage with Gen Z consumers:

Find the Right Influencer: The key to successful influencer marketing is finding the right influencer who resonates with your brand and target audience. Brands should look for influencers with a large following, a high engagement rate, and a similar brand ethos. The influencer should also have a genuine interest in the product and be able to promote it to their followers authentically.
Set Clear Goals and Objectives: Brands should set clear goals and objectives for their influencer marketing campaign, such as increasing brand awareness, driving sales, or building brand loyalty. They should also measure the campaign’s success through metrics like engagement rates, clicks, and sales.
Collaborate with Influencers: Brands should collaborate with influencers to create sponsored content that resonates with Gen Z consumers. The content should be authentic, visually appealing, and aligned with the brand’s values and messaging.

Case Study: Gymshark

Gymshark, a UK-based fitness apparel company, is a prime example of a brand that has successfully leveraged influencer marketing to attract a Gen Z audience. The company was founded in 2012 by Ben Francis, who was only 19 years old at the time, making him a relatable figure for Gen Z consumers.

Gymshark has worked with a variety of social media influencers to promote its products, from fitness personalities to fashion bloggers.

One of the most successful influencer campaigns was with Nikki Blackketter, a fitness influencer with over 1 million Instagram followers. Gymshark sponsored Blackketter’s workout videos and provided her with clothing to wear during her workouts, which she promoted to her followers.

The campaign was a huge success, with Gymshark experiencing a 214% increase in sales in the US during the first month of the campaign. The company also gained over 100,000 new Instagram followers thanks to the exposure from Blackketter’s followers.

Gymshark has continued to work with influencers to promote its products, but the company has also leveraged user-generated content to engage with its Gen Z audience. The company encourages its customers to share photos and videos of themselves wearing Gymshark apparel on social media, which the company then shares on its social media accounts. This approach has successfully created a community around the brand and built brand loyalty among its Gen Z audience.

Gymshark has successfully leveraged influencer marketing to attract a Gen Z audience and has continued to engage with its audience through user-generated content. The company’s approach has been authentic and relatable, making it a go-to brand for Gen Z consumers interested in fitness apparel.

Influencer marketing has become a popular strategy for product marketing managers to engage with Gen Z consumers. Influencers provide an opportunity for brands to showcase their products, drive sales, and build brand loyalty in a way that is authentic and relatable. In the next section, we’ll explore the importance of user-generated content in engaging with Gen Z consumers.

User-Generated Content (UGC)

User-generated content (UGC) is any content created by consumers rather than brands. UGC can take many forms, such as photos, videos, reviews, and social media posts. UGC is becoming increasingly crucial for brands who want to engage with Gen Z consumers, as it allows consumers to connect with brands on a more personal level.

Here are some reasons why UGC is essential for brands:

Builds Trust: UGC is an effective way to build trust with Gen Z consumers. 68% of Gen Z consumers trust online reviews and UGC more than brand-generated content. UGC provides a sense of authenticity and transparency, which is particularly important for Gen Z consumers who value honesty and realness in their interactions with brands.
Increases Engagement: UGC also increases engagement with Gen Z consumers. According to a report by Stackla, UGC is 20% more likely to influence a purchase than brand-generated content. UGC is more likely to be shared, liked, and commented on, making it a powerful tool for product marketing managers to drive brand awareness and sales.
Builds Brand Loyalty: UGC is also an effective way to build brand loyalty among Gen Z consumers. According to Adweek, 76% of Gen Z consumers have posted about a brand on social media, and 60% have created content about a brand. Encouraging UGC can create a sense of community around a brand and foster a sense of loyalty among Gen Z consumers.

Here are some ways in which brands can incorporate UGC into their marketing strategy:

Social Media Contests: Brands can host social media contests that encourage consumers to create UGC. For example, a fitness apparel brand could host a contest asking consumers to post photos of themselves working out in the brand’s apparel. This approach creates a sense of community and fosters engagement with the brand.
Hashtags: Product marketing managers can create branded hashtags encouraging consumers to post UGC on social media. For example, a beauty brand could create a hashtag asking consumers to post photos of themselves using their products. This approach makes it easy for brands to track UGC and engage with consumers creating content about the brand.
Reviews and Testimonials: Brands can incorporate UGC into their product pages, such as reviews and testimonials from satisfied customers. This approach provides social proof that can increase trust and confidence in the brand.

Case Study: Starbucks

Starbucks, the global coffee giant, has successfully incorporated user-generated content into its marketing strategy. The company has a massive social media presence, with over 20 million followers on Instagram and over 35 million on Facebook.

Starbucks has encouraged UGC by creating hashtags that customers can use to share their photos of Starbucks products. One of the most successful campaigns was the “Red Cup Contest,” which asked customers to share photos of themselves with the iconic red holiday cup on social media. The campaign generated over 40,000 UGC posts on Instagram and Twitter and increased engagement with the Starbucks brand during the holiday season.

Starbucks has also leveraged UGC in its product development, using customer feedback to create new products and flavours. For example, the company’s Pumpkin Spice Latte was inspired by customer requests for a fall-themed drink.

The company’s approach to UGC has successfully built trust and loyalty among its Gen Z audience. According to a report by Sprout Social, Starbucks is the second most loved brand among Gen Z consumers, after Netflix.

UGC is an effective way for brands to build trust and increase engagement and brand loyalty among Gen Z consumers. Incorporating UGC into a marketing strategy can create a sense of community around a brand and foster more authentic and transparent interactions with consumers. In the next section, we’ll explore the future of social media and its impact on Gen Z’s purchasing behaviour.

Social Media Advertising

Social media advertising is a powerful tool for brands to reach Gen Z consumers. Social media platforms like Facebook, Instagram, TikTok, and Snapchat offer a variety of ad formats and targeting options that can be tailored to a brand’s specific needs.

Here are some types of social media ads that brands can use to reach Gen Z consumers:

Sponsored Posts: Sponsored posts are ads that appear in a user’s feed and are designed to look like organic posts. Sponsored posts can increase brand awareness, promote a specific product or service, or drive sales.
Stories Ads: Stories ads are full-screen ads that appear in a user’s Stories feed. Stories ads can be used to showcase a brand’s products or services in a visually engaging way and can be especially effective in driving sales and conversions.
Influencer Ads: Influencer ads are created and posted by social media influencers rather than the brand itself. Influencer ads can be a powerful tool for product marketing managers to leverage the influence of popular social media personalities and reach Gen Z consumers in an authentic and relatable way.

Here are some best practices for social media advertising to reach Gen Z consumers:

Be Authentic: Gen Z consumers value authenticity and transparency and can quickly spot fake or misleading ads. Brands should aim to create genuine, relatable, and visually engaging advertisements.
Use Influencers: As we discussed earlier, influencers can be a powerful tool for reaching Gen Z consumers. Brands should collaborate with influencers who resonate with their brand and target audience and who can create content that is both visually appealing and authentic.
Be Mobile-First: Gen Z consumers spend significant time on their mobile devices, so brands should ensure that their ads are optimised for mobile. Ads should be visually engaging, easy to read and load quickly.
Use Targeting Options: Social media platforms offer various targeting options that can reach specific audiences. Brands should use targeting options like age, location, interests, and behaviours to ensure their ads reach the right audience.

Case Study: Shopee

Shopee, a Singapore-based e-commerce platform, launched a successful social media advertising campaign targeting Gen Z consumers in Asia.

The company, founded in 2015, has become one of Southeast Asia’s most popular e-commerce platforms, with a strong presence in Singapore, Malaysia, Indonesia, and the Philippines.

Shopee’s social media advertising campaign focused on the “Shopee 9.9 Super Shopping Day,” a major annual shopping event. The campaign used a variety of social media ad formats, including sponsored posts, stories ads, and influencer ads, to promote the event and drive sales.

One of the most successful aspects of the campaign was using influencer ads. Shopee collaborated with popular social media influencers in Southeast Asia, such as Siti Badriah in Indonesia, Jannine Weigel in Thailand, and Phan Kim Liên in Vietnam, to create ads that showcased the platform’s products and promotions in an authentic and relatable way.

The influencer ads were a hit with Gen Z consumers, generating over 20 million views and 6 million engagements on Instagram and TikTok. The campaign also successfully drove sales, with Shopee reporting a 150% increase in orders during the “Shopee 9.9 Super Shopping Day” compared to the previous year.

Social media advertising is a powerful tool for product marketing managers to reach Gen Z consumers. By using different types of ads and targeting options, and following best practices like authenticity, influencer marketing, and mobile optimisation, product marketing managers can engage with Gen Z consumers in a way that resonates with them. In the next section, we’ll explore the role of social media in the future of commerce and how product marketing managers can prepare for it.

Key Takeaways

In today’s digital age, social media is essential for brands to reach Gen Z consumers. From influencer marketing to user-generated content, social media offers a variety of opportunities for brands to engage with their target audience and drive sales.

Here are some key takeaways from this article:

Gen Z consumers are digital natives who value authenticity, transparency, and realness in their interactions with brands.
Social media platforms like Instagram, TikTok, Snapchat, and Twitter are the most popular among Gen Z consumers.
Influencer marketing is a powerful tool for brands to leverage the influence of social media personalities and reach Gen Z consumers in an authentic and relatable way.
User-generated content effectively builds trust, increases engagement, and builds brand loyalty among Gen Z consumers.
Social media advertising offers a variety of ad formats and targeting options that can be tailored to a brand’s specific needs.

Here are some actionable tips for brands to effectively leverage social media in their marketing strategy:

Be authentic and transparent in your interactions with Gen Z consumers.
Use influencers and user-generated content to create an authentic and relatable brand image.
Incorporate social media advertising into your marketing strategy to reach a wider audience.
Be mobile-first and use targeting options to ensure your ads reach the right audience.
Use social media analytics to track your performance and adjust your strategy as needed.

By following these tips, brands can effectively leverage social media to engage with Gen Z consumers and drive sales. Social media is constantly evolving, so staying up-to-date with the latest trends and best practices is essential to succeed in this dynamic landscape.

Want to learn more about Gen Z? Download The Definitive Guide to Gen Z.

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According to a recent survey, 73% of Gen Zers are willing to pay more for sustainable products. This statistic reveals a significant shift in consumer behaviour and highlights the importance of sustainability in marketing to this eco-conscious generation.

As the first generation to grow up with climate change as a defining issue, Gen Z is deeply concerned about the environment and expects companies to prioritise sustainability in their business practices. As such, marketers must understand the values and preferences of Gen Z regarding sustainability to connect with this growing consumer group effectively.

In this blog, we’ll explore why Gen Z values sustainability and the benefits of incorporating sustainable practices in business strategies. We will also provide tips on effectively marketing to this eco-conscious generation. By understanding the values and priorities of Gen Z, marketers can build trust with this demographic and tap into a growing market of consumers who prioritise sustainability.

The eco-conscious generation

Gen Z, born between 1997 and 2012, is the most diverse and digitally connected generation in history. They are growing up in a world of climate change, pollution, and plastic waste, and they are acutely aware of the impact that humans are having on the environment.

As a result, Gen Z has a strong commitment to sustainability, with 82% expressing concern about the state of the planet. They are willing to take action, with 72% saying they have already changed their behaviour to reduce their impact on the environment.

Regarding spending habits, Gen Zers are willing to put their money where their values are. According to a 2020 study, 66% of Gen Zers are willing to pay more for sustainable or environmentally friendly products, and 73% are willing to pay more for ethically sourced products.

In addition, Gen Zers are looking for brands to take a leadership role in sustainability. According to a report by IBM, 56% of Gen Zers believe that businesses should take responsibility for environmental issues, and 72% believe that companies should be held accountable for their environmental impact.

To connect with Gen Z, brands must prioritise sustainability and communicate their efforts transparently.

Patagonia has made environmental sustainability a core part of its mission. It regularly shares information about its sustainability efforts on its website and social media channels. As Patagonia’s founder, Yvon Chouinard, said: “The hardest thing we’ve ever done is take full responsibility for the entire life cycle of our products.”

The business case for sustainability

In addition to meeting the expectations of eco-conscious consumers, businesses can also benefit from incorporating sustainable practices into their operations. Here are some of the main benefits that sustainability can bring to brands:

Increased customer loyalty: Most Gen Zers are willing to pay more for sustainable products. By prioritising sustainability, businesses can differentiate themselves from competitors and build a loyal customer base. A survey by Cone Communications found that 91% of consumers are likely to switch to a brand that supports a good cause, and 62% are willing to pay more for products from such a brand.
Cost savings: Implementing sustainable practices can also lead to business cost savings. For example, reducing energy consumption, waste, and water usage can lower operating costs and increase efficiency. According to the Carbon Trust, businesses can save up to 20% on their energy bills by implementing energy-saving measures.
Improved brand reputation: Sustainability is increasingly becoming a key factor in shaping a brand’s reputation. Businesses prioritising sustainability can differentiate themselves as responsible and forward-thinking, which can help attract and retain customers. A study by Nielsen found that 81% of global respondents felt strongly that companies should help improve the environment, and 73% said they would change their consumption habits to reduce their environmental impact.
Attracting and retaining employees: Gen Zers also prioritise sustainability in their job searches, with 75% saying they want to work for an environmentally responsible company. By implementing sustainable practices, businesses can attract and retain top talent, increasing productivity and innovation.

One example of a business that has successfully incorporated sustainability into its operations is IKEA. The company has committed to becoming climate positive by 2030. It has implemented a range of sustainability initiatives, such as using renewable energy and sourcing sustainable materials. According to IKEA’s Chief Sustainability Officer, Pia Heidenmark Cook, “The more sustainable we become as a business, the more we grow.”

Sustainability can bring a range of benefits to companies, from increased customer loyalty to cost savings and improved brand reputation. By prioritising sustainability, businesses can meet the expectations of eco-conscious consumers and drive positive impact and growth.

Tips for marketing to Gen Z

As a marketer, it’s essential to understand how to effectively communicate with Gen Z and appeal to their eco-conscious values. Here are some practical tips to consider:

Prioritise sustainability in product development: When developing products, consider using sustainable materials and designing environmentally friendly products. This can differentiate your brand from competitors and appeal to Gen Z’s values. For example, the shoe brand Allbirds uses sustainable materials like eucalyptus and recycled water bottles to create products. The company has positioned itself as a leader in sustainable footwear.
Use transparent messaging: Gen Z values transparency and authenticity, so it’s important to communicate your brand’s sustainability efforts transparently. For example, the beauty brand Lush uses its website and social media channels to share detailed information about its sustainability initiatives, such as its commitment to using ethical and sustainable ingredients.
Consider sustainable packaging: Gen Z is concerned about plastic waste, so consider using sustainable packaging options like biodegradable materials, recycled content, or reusable containers. For example, Trader Joe’s grocery chain has committed to reducing its plastic packaging and has introduced initiatives like compostable produce bags and reusable food storage containers.
Support environmental causes: Gen Z values brands that take a leadership role on environmental issues, so consider supporting environmental causes that align with your brand values. For example, the clothing brand Reformation partners with non-profit organisations like the National Forest Foundation to support reforestation efforts.
Engage with Gen Z on social media: Gen Z is a digital-first generation, particularly active on social media. By engaging with them on social media platforms like Instagram, TikTok, and Twitter, you can build a relationship with this demographic and effectively communicate your brand’s sustainability efforts. For example, the cleaning brand Method has built a loyal following on social media by sharing visually appealing and engaging content about its sustainability initiatives.

By prioritising sustainability in product development, using transparent messaging, considering sustainable packaging, supporting environmental causes, and engaging with Gen Z on social media, brands can effectively connect with this eco-conscious generation and build a loyal customer base.

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Case studies from around the world

There are many examples of companies around the world that have successfully marketed to Gen Z by highlighting their sustainability credentials. Here are a few examples from different regions, along with the lessons that other businesses can learn from them:

United Kingdom

The fashion brand Stella McCartney has long been known for its commitment to sustainability. The brand uses sustainable materials like organic cotton and recycled polyester, and its website provides detailed information about its sustainability efforts. By prioritising sustainability and transparency, Stella McCartney has built a loyal following of environmentally conscious consumers.

The Lesson

Prioritise sustainability in all aspects of your business and communicate your efforts transparently.

Europe

The beverage company Innocent Drinks has positioned itself as a socially responsible brand that supports environmental and social causes. The company donates a portion of its profits to charity and has committed to using sustainable materials and reducing its environmental impact. Innocent has built a strong brand reputation and a loyal customer base by connecting with consumers on a values-driven level.

The Lesson

Support causes that align with your brand values and communicate your impact to consumers.

India

The sustainable fashion brand Bhu:Sattva uses natural and sustainable materials like organic cotton, hemp, and linen to create its products. The brand has also implemented sustainable production practices like water-saving dyeing techniques and minimising waste. By offering high-quality and sustainable products, Bhu:Sattva has built a loyal following of eco-conscious consumers in India.

The Lesson

Prioritise sustainable materials and production practices in your products.

Japan

Karimoku, specialising in wooden furniture, has implemented sustainable practices throughout its supply chain. The company sources wood from sustainably managed forests and has committed to reducing its environmental impact. By prioritising sustainability and quality, Karimoku has built a strong brand reputation and a loyal customer base in Japan.

The Lesson

Prioritise sustainable sourcing and production practices to reduce environmental impact.

USA

The clothing brand Re/Done has built a loyal following of Gen Z consumers by using sustainable and ethical production practices. The company sources vintage denim and reworks it into new pieces, reducing waste and extending the material’s lifespan. Re/Done also uses organic and recycled materials in its products and has committed to minimising its environmental impact. By prioritising sustainability and transparency, Re/Done has gained a reputation as a socially responsible brand and has attracted a loyal following of eco-conscious consumers.

The Lesson

Use sustainable and ethical production practices, and consider extending the lifespan of materials to reduce waste. Communicate your sustainability efforts transparently to build a strong brand reputation.

Mexico

The cosmetics brand Reforestum has gained a following of environmentally conscious consumers in Mexico by using sustainably sourced and organic ingredients. The company has also committed to reforestation efforts in Mexico, helping to offset carbon emissions and promote biodiversity. By prioritising sustainability and social impact, Reforestum has built a loyal customer base and a strong brand reputation in Mexico.

The Lesson

Consider using sustainable and organic ingredients in your products and supporting local environmental causes.

Canada

The outdoor gear brand Arc’teryx has prioritised sustainability in its production practices, using recycled materials and minimising waste. The company has also committed to reducing carbon emissions and supporting environmental causes like reforestation. By communicating its sustainability efforts transparently and building a reputation as a socially responsible brand, Arc’teryx has gained a following of eco-conscious consumers in Canada and worldwide.

The Lesson

Use sustainable materials and production practices, and communicate your sustainability efforts transparently to build a strong brand reputation.

These case studies highlight the importance of prioritising sustainability and transparency, supporting causes that align with brand values, using sustainable materials and production practices, and offering innovative and sustainable packaging options. By implementing these strategies, businesses can effectively connect with Gen Z and build a loyal customer base.

Gen Z is a highly eco-conscious generation that values sustainability in their purchasing decisions and expects brands to take the lead on environmental issues. By prioritising sustainability in their business strategies, brands can differentiate themselves from competitors, build a loyal customer base, and drive positive impact and growth.

To appeal to Gen Z, businesses should consider using sustainable materials and production practices, communicating their sustainability efforts transparently, and supporting environmental causes that align with their brand values. By engaging with Gen Z on social media and building a relationship based on shared values, businesses can connect with this growing demographic and drive long-term success.

As marketers, staying informed about the latest trends and insights on Gen Z and sustainability is important. By deepening our understanding of this demographic and its values, we can create effective marketing strategies that resonate with Gen Z and drive positive impact for our businesses and the planet.

Want to learn more about Gen Z? Download The Definitive Guide to Gen Z to discover what other values are important to this generation with our full report.

Move over Millennials; there’s a new kid in town – Gen Z. By 2026, this demographic will account for over a quarter of the world’s population and become the largest consumer group globally, with a purchasing power of over $44 billion. As a marketer, understanding the unique characteristics of this generation is crucial in creating impactful and effective marketing strategies. As the famous quote goes, ‘The future belongs to those who prepare for it today.’ So, let’s dive in and gain insights into the newest consumer market – Gen Z.

Gen Z Demographic Profile

Gen Z, also known as the iGeneration or Post-Millennials, includes individuals born between 1997 and 2012. As of 2023, the oldest members of this generation are 26 years old, and the youngest are just 11 years old.

Gen Z is a highly diverse generation with members from different cultural, social, and economic backgrounds. They are the first generation to be truly digital natives, growing up in a world that has always been connected by technology.

Gen Z is also a socially conscious generation with a strong emphasis on diversity, inclusion, and sustainability. In a global study by The Center for Generational Kinetics, 70% of Gen Z respondents said they believe in equal rights, regardless of race, gender, or sexual orientation. Furthermore, a survey found that 66% of Gen Z respondents in the United States prefer to buy products from companies that prioritise sustainability.

Gen Z Around the World

North America

In North America, the demographic profile of Gen Z varies significantly by country. According to a study by the US Census Bureau, the percentage of the population aged 15-24 in the United States is 13.6%, while in Canada, it is 12.9%. The ethnic composition of Gen Z in North America also varies, with the United States having a higher proportion of non-white populations compared to Canada. Gen Z in North America is highly diverse, with a growing number of individuals identifying as multiracial or belonging to minority groups.

Gen Z in North America is highly educated, with a more significant percentage pursuing higher education than any previous generation. According to a report by the National Center for Education Statistics, 59% of high school graduates in the United States enrolled in college in 2019, which is projected to continue to rise. A similar trend is seen in Canada, with 56% of high school graduates enrolling in college or university in 2018.

Overall, marketers targeting Gen Z in North America need to be aware of this generation’s demographic diversity and high levels of education. By understanding the unique characteristics of this generation, marketers can create impactful campaigns that resonate with Gen Z and build long-term brand loyalty.

In the UK, Gen Z constitutes roughly 16% of the total population, with an estimated 11.2 million individuals in this age group. According to a report by Kantar, the ethnic diversity of Gen Z in the UK is higher than in any previous generation. Approximately 54% of Gen Z in the UK come from non-white backgrounds, with 18% identifying as Asian, 16% as Black, 11% as mixed, and 9% as other ethnic groups. Regarding gender, Gen Z in the UK is evenly split between males and females.

Europe

In Europe, the demographic profile of Gen Z varies significantly by country. According to the statistical office of the European Union, the percentage of the population aged 15-24 ranges from 8.8% in Italy to 18.9% in Cyprus. The ethnic composition of Gen Z in Europe also varies, with countries such as France, Germany, and the Netherlands having a higher proportion of non-white populations compared to countries such as Hungary, Poland, and Romania. Gen Z in Europe is generally highly educated, with a greater percentage pursuing higher education than any previous generation.

India

Gen Z represents the largest demographic group in India, with an estimated 472 million individuals aged 24 and below. The demographic profile of Gen Z in India is highly diverse, with a variety of languages, religions, and cultures represented. Gen Z in India are bilingual, with English and Hindi being the most commonly spoken languages. Regarding gender, there are slightly more males than females in this age group.

Southeast Asia

In Southeast Asian countries such as Indonesia, Malaysia, and the Philippines, Gen Z constitutes a significant portion of the population. According to the Asian Development Bank, the percentage of the population aged 15-24 in Southeast Asia ranges from 14% in Thailand to 22% in the Philippines. The ethnic composition of Gen Z in these countries is diverse, with a variety of ethnic groups and languages represented. Regarding gender, there are slightly more females than males in this age group in some countries, such as the Philippines.

Gen Z Behavioural Trends

Gen Z has grown up in a world where digital technology is ubiquitous. As a result, they have a strong preference for digital communication channels, such as social media, messaging apps, and video conferencing.

According to a report by Snapchat, Gen Z spends an average of 3.4 hours per day on social media, and 63% of this generation prefers to interact with businesses through social media channels. This trend presents an excellent opportunity for marketers to reach Gen Z effectively by creating engaging content for social media platforms.

Another major behavioural trend among Gen Z is their interest in social and environmental issues. Gen Z is more socially and environmentally conscious than any previous generation, and they expect businesses to take a stand on issues that are important to them. According to research, 62% of Gen Z respondents worldwide believe that companies have a responsibility to take a stand on social and environmental issues. This trend presents an opportunity for marketers to align their brands with causes that matter to Gen Z and to communicate their social and environmental impact effectively.

Gen Z also values personalisation and authenticity. They expect businesses to tailor their products and services to their individual needs and preferences, and they respond positively to authentic and transparent brands. A survey found that 53% of Gen Z respondents in the United States are more likely to buy from brands that provide personalised recommendations, and 72% are more likely to buy from brands that are transparent about their business practices.

Case Study: Nike

Nike’s “You Can’t Stop Us” campaign is an excellent example of a marketing campaign that successfully targeted Gen Z by addressing their behavioural trends. The campaign highlighted Nike’s commitment to social issues, including racial justice and gender equality, while emphasizing personalisation and authenticity.

As demonstrated through split-screen video edits, the campaign’s message of resilience and determination resonated well with Gen Z, resulting in increased engagement and brand loyalty.

Case Study: Greggs

Greggs is a UK-based bakery chain that successfully targeted Gen Z by aligning its brand with social and environmental issues. In 2019, Greggs launched its vegan sausage roll, which became a viral sensation on social media, with the hashtag #vegansausageroll trending on Twitter. The launch of the vegan sausage roll was part of Greggs’ broader strategy to appeal to Gen Z, who are more likely to follow a plant-based diet than any previous generation. The vegan sausage roll’s success helped Greggs increase its sales and improve its brand perception among Gen Z, who saw the company as innovative and socially responsible.

Case Study: Grab

Grab is a ride-hailing and food delivery company that successfully targeted Gen Z in Southeast Asia by focusing on personalisation and authenticity. Grab’s “Personalise Your Journey” campaign aimed to show Gen Z that the company understands its individual needs and preferences. The campaign involved a series of short videos highlighting how Grab’s services can be tailored to each user’s preferences, such as music and temperature settings in the car. The campaign increased engagement and loyalty among Gen Z users, who saw Grab as a brand that values their unique identity and preferences.

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Gen Z Consumption Habits

Gen Z has a unique set of consumption habits shaped by their digital upbringing, interest in social and environmental issues, and focus on personalisation and authenticity. Understanding these consumption habits is essential for marketers who want to engage effectively with this generation.

Preferred Shopping Channels

Gen Z prefers to shop online and is likelier to use their mobile devices than any other generation. According to a survey by Hootsuite, 54% of Gen Z respondents in the United States prefer to shop online, and 72% use their mobile devices to make purchases. This trend presents an opportunity for marketers to create mobile-optimised e-commerce websites and mobile apps that provide a seamless shopping experience for Gen Z.

In addition to online shopping, Gen Z also values physical stores that provide a unique and immersive experience. A survey found that 59% of Gen Z respondents in the United States prefer to shop in stores that offer an immersive experience, such as augmented reality or virtual reality. This trend allows marketers to create innovative, engaging in-store experiences that resonate with Gen Z.

Products They Buy

Gen Z has diverse interests and preferences regarding the products they buy. They are more likely to purchase products that align with their values and beliefs, such as social and environmental issues. A survey by NPD Group found that 83% of Gen Z respondents in the United States are more likely to buy products that support social and environmental causes. This trend allows marketers to create products and services that align with Gen Z’s values and beliefs.

Decision-Making Process

Social media and peer recommendations heavily influence Gen Z’s decision-making process. According to a survey by Common Sense Media, 43% of Gen Z respondents in the United States trust peer recommendations over advertising when making purchase decisions. This trend allows marketers to leverage influencer marketing and user-generated content to effectively reach and engage with Gen Z.

Case Study: Fabletics

Fabletics is a women’s activewear brand that has successfully targeted Gen Z in the US by aligning its brand with the consumption habits of this generation. Fabletics’ subscription model and personalised shopping experience have resonated well with Gen Z, who value convenience and personalisation.

Fabletics offers a monthly subscription service that provides members with personalised activewear outfits based on their style preferences, body shape, and fitness goals. The company also allows members to skip a month or cancel their subscription anytime, providing a flexible and convenient shopping experience that resonates well with Gen Z.

Fabletics’ focus on diversity and inclusivity has also resonated well with Gen Z. The company offers a wide range of sizes and styles, including a plus-size collection that promotes body positivity and inclusivity. Fabletics also partners with non-profit organisations that support women’s health and wellness, aligning the brand with social issues that matter to Gen Z.

Fabletics’ success with Gen Z is reflected in its highly engaged social media following, with over 2 million followers on Instagram and a highly active community of brand advocates. By aligning its brand with the consumption habits of this generation, Fabletics has become a popular choice for Gen Z women who value convenience, personalisation, and inclusivity.

Case Study: Zomato

Zomato is a food delivery and restaurant discovery platform that has successfully targeted Gen Z in India by aligning its brand with the consumption habits of this generation. Zomato’s user-friendly mobile app and website have resonated well with Gen Z, who value convenience and personalisation. In addition, Zomato’s focus on sustainability and ethical sourcing has appealed to Gen Z’s interest in social and environmental issues. Zomato’s success with Gen Z is reflected in its rapidly growing user base, with over 80 million monthly active users as of 2022.

Case Study: Depop

Depop is a fashion marketplace that has successfully targeted Gen Z in the UK by aligning its brand with the consumption habits of this generation. Depop’s mobile app allows users to buy and sell unique, vintage, and sustainable fashion items, which aligns with Gen Z’s interest in personalisation and sustainability. In addition, Depop’s focus on community building and peer-to-peer selling has appealed to Gen Z’s desire for authentic and transparent shopping experiences. Depop’s success with Gen Z is reflected in its rapidly growing user base, with over 30 million registered users as of 2022.

Understanding the consumption habits of Gen Z is crucial for marketers who want to engage this generation effectively. Gen Z prefers online shopping and values physical stores that provide an immersive experience. They are more likely to buy products that align with their values and beliefs, such as social and environmental issues. Social media and peer recommendations heavily influence their decision-making process. Marketers can create impactful campaigns that resonate with Gen Z by aligning their brands with these consumption habits.

Gen Z Marketing Strategies

Gen Z has a unique set of consumption habits, which requires marketers to use innovative and effective marketing strategies to reach and engage with this generation. Here are some of the most effective marketing strategies for targeting Gen Z:

Social Media Marketing

Social media marketing is one of the most effective strategies for reaching and engaging with Gen Z. This generation spends an average of 3.4 hours per day on social media, making it an excellent platform for marketers to reach them. To be successful, social media marketing needs to be personalised, engaging, and authentic. Marketers must create content that aligns with Gen Z’s interests and values, such as social and environmental issues, diversity, and inclusivity.

Influencer Marketing

Influencer marketing is another effective strategy for reaching and engaging with Gen Z. This generation trusts peer recommendations over advertising, making influencer marketing a powerful tool for marketers. Influencers are highly influential among Gen Z, and they can help brands reach this generation in an authentic and engaging way. However, working with influencers who align with the brand’s values and messaging is essential to avoid being inauthentic or disingenuous.

Experiential Marketing

Experiential marketing is a highly effective strategy for engaging with Gen Z, who value unique and immersive experiences. This strategy involves creating brand experiences that provide a tangible and memorable connection with the brand. For example, a pop-up store or event can create a powerful connection with Gen Z by delivering an immersive and engaging experience. This strategy can build brand awareness and loyalty among this generation.

Case Study: Taco Bell

Taco Bell is a fast-food chain that has successfully targeted Gen Z using innovative marketing strategies, including social media, influencer, and experiential marketing. Taco Bell’s highly engaged social media presence has helped it to connect with Gen Z, who value personalisation and authenticity.

The company has also leveraged influencer marketing to reach this generation in an authentic and engaging way. For example, in 2019, Taco Bell partnered with influencer David Dobrik to launch the “Belluminati” campaign, which generated over 3.4 billion impressions on social media.

Taco Bell has also used experiential marketing to create unique and immersive brand experiences that resonate with Gen Z. In 2019, the company opened a hotel in Palm Springs, California, which provided a highly immersive and engaging experience for fans of the brand. The hotel sold out in just two minutes, demonstrating the power of experiential marketing in engaging with this generation.

Marketers need to use innovative and effective marketing strategies to reach and engage with Gen Z. Social media marketing, influencer marketing, and experiential marketing are some of the most effective strategies for targeting this generation. By creating personalised, authentic, and engaging marketing campaigns, marketers can build brand awareness and loyalty among this highly influential generation.

Gen Z Campaigns from around the world

These examples demonstrate how successful marketing campaigns targeting Gen Z require creativity, authenticity, and a focus on emotions and experiences.

Using tactics such as social media challenges, short films, and humour, these brands engaged with Gen Z meaningfully and created strong connections with this generation. The outcomes achieved, such as increased sales and widespread media coverage, show the power of effective marketing in reaching and engaging with this highly influential generation.

India – Lays

Lays’ “Smile Deke Dekho” campaign targeted Gen Z in India by focusing on humour and creativity. The campaign involved a social media challenge that encouraged people to create and share their own funny videos using a Lays chip packet. The campaign was highly successful, with over 7 million views on YouTube and widespread social media engagement.

China – Pepsi

Pepsi’s “Bring Happiness Home” campaign targeted Gen Z in China by focusing on family and community. The campaign featured a short film that showed a young man using Pepsi to connect with his family and bring them together. The campaign also involved a social media challenge encouraging people to share their family stories and experiences. The campaign was highly successful, with over 10 million views on YouTube and widespread media coverage.

Japan – McDonald’s

McDonald’s “Fry Thief” campaign targeted Gen Z in Japan by focusing on humour and creativity. The campaign featured a series of short films that showed people stealing fries from each other in various settings, from a park to a beach. The campaign also involved a social media challenge encouraging people to share their “fry thief” moments. The campaign was highly successful, with over 3 million views on YouTube and widespread social media engagement.

Understanding Gen Z as a consumer market is essential for marketers who want to engage with this highly influential generation effectively. By aligning their brands with the consumption habits and marketing preferences of Gen Z, marketers can create impactful campaigns that resonate with this generation and build long-term brand loyalty.

Are you ready to take your marketing to the next level by understanding Gen Z as a consumer market? Download “The Definitive Guide to Gen Z” This guide is packed with valuable insights and data to help you create effective marketing campaigns that resonate with Gen Z.

In September 2022, Kadence partnered with tSurvey, an Indonesian online panel firm, to examine how individuals reacted to digital and non-digital ads. The participants came from 10 big cities in Indonesia, with Jakarta holding the biggest percentage of this study at 44 percent.

According to the findings, 45% of the respondents watched ads on their social media accounts. Among the 88% of people who had Instagram accounts, 40% didn’t skip the ads on the platform. Likewise, from the 62% of respondents with YouTube accounts, 28% didn’t skip the ads. Yet, the number decreased to 21% for the 40% of the respondents with Facebook accounts.

By age, the 26-30-year-olds had the highest viewership percentage of ads on their social media compared to other age groups.

Respondents highlighted the following three reasons why they watched the ads: they planned to buy the product (58%), they found the visuals captivating (55%), and the duration was short (40%).

Lastly, the most watched product category was automotive advertising, with 57% viewership, followed by body care (56%) and face care (50%).

ad-viewing-behavior-spcoal-media-indonesia

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Customer journey mapping is the process of creating a visual representation of the steps and touchpoints a customer goes through in their interaction with a company. It aims to understand the customer’s needs, emotions, and motivations at each stage of the journey.

The importance of customer journey mapping lies in its ability to improve the customer experience by identifying pain points and opportunities for optimization. By mapping the journey, companies can comprehensively understand the customer’s perspective and use this information to enhance the overall experience, increase customer satisfaction, and drive loyalty.

Customer journey mapping helps companies to align their operations and messaging with customer expectations, leading to more efficient and effective communication and improved customer experiences.

“The customer journey map is a tool to help you understand what your customers are thinking and feeling as they engage with your company.” – Jeannie Walters, customer experience consultant and author of “The Customer Journey: Mapping the Future of Your Brand.”

The concept of customer journey mapping has its roots in the fields of marketing and customer experience design. It is a relatively recent development, with the first recorded use of the term dating back to the early 2000s. However, the practice of mapping customer interactions with a company can be traced back to the early days of market research and customer satisfaction studies.

Other names, including customer experience mapping, customer journey design, and customer journey visualization, sometimes refer to customer journey mapping.

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Regardless of the name, the underlying process and goals remain the same: to create a comprehensive understanding of the customer’s experiences and use this information to improve the customer experience.

It has become an increasingly important tool for companies looking to improve the customer experience and is widely recognized as a valuable method for understanding and optimizing customer interactions.

Signs a Brand Would Benefit from Customer Journey Mapping

Decreased customer satisfaction: If a brand is experiencing a decrease in customer satisfaction or loyalty, it may be a sign that the customer journey needs to be reevaluated.
Increased customer complaints: An increase in customer complaints can indicate pain points in the customer journey that need to be addressed.
Decreased conversion rates: A decrease in conversion rates can indicate issues in the customer journey that prevent customers from making a purchase.
Increased churn: An increase in customer churn can indicate that the customer experience is not meeting expectations and needs to be improved.

Touchpoints and Pain points

The customer journey refers to a customer’s experiences with a company, from initial brand awareness to post-purchase evaluation. Understanding the customer journey is critical for companies looking to improve the customer experience and increase customer satisfaction.

The key components of the customer journey include touchpoints and pain points. Touchpoints are the moments of interaction between a customer and a company, such as a visit to a website, a phone call, or an in-store purchase.

Pain points are the parts of the customer journey that cause frustration or dissatisfaction. These can include long wait times, confusing navigation on a website, or poor product quality.

Understanding touchpoints and pain points are essential to map the customer journey effectively. Touchpoints provide insights into the customer’s motivations and needs at each stage of the journey, while pain points indicate areas for improvement. By identifying and addressing pain points, companies can create a more seamless and enjoyable customer experience.

Here’s a fictional example of a customer journey map for a company that sells luxury skincare products:

Industry: Luxury Skincare Marketing Personas:

Persona 1: “The Health-Conscious Beauty Enthusiast” – A young professional who values natural and organic products and prioritizes self-care.
Persona 2: “The Anti-Aging Advocate” – A mature individual who is looking for skincare products that address ageing and wrinkling.

The Customer Journey:

Awareness: The customer becomes aware of the company through social media, influencer partnerships, and recommendations from friends.
Consideration: The customer starts researching the company’s products and reviews online. They may also attend a skincare event or visit a store to try the products.
Purchase: The customer purchases online or in-store and receives personalized recommendations based on their skin type and concerns.
Delivery: The customer receives the products and begins using them, receiving regular follow-up emails and phone calls from the company to ensure satisfaction.
Loyalty: The customer continues using the products and becomes loyal, referring friends and family to the company.
Advocacy: The customer may become a brand advocate, sharing positive reviews and experiences online and attending events on behalf of the company.

Pain Points:

Difficulty finding the right products for their skin type and concerns
Lack of personal attention and support during the purchasing process
Lack of clear instructions and usage guidelines
Inconsistent results with the products

Key Touchpoints:

Social media and influencer partnerships
In-store events and product demonstrations
Personalized recommendations and follow-up calls
Clear instructions and usage guidelines

The Benefits of Customer Journey Mapping

One of the key benefits of customer journey mapping is increased customer satisfaction. By identifying and addressing pain points, companies can create a more seamless and enjoyable customer experience. This can lead to higher levels of customer satisfaction and improved brand loyalty. Customers with a positive experience with a company are more likely to return and recommend the brand to others.

Another benefit of customer journey mapping is improved brand loyalty. By understanding the customer’s experiences, companies can align their operations and messaging with customer expectations. This can lead to more efficient and effective communication and a stronger emotional connection between the customer and the brand. This, in turn, can drive customer loyalty and encourage repeat business.

The benefits of customer journey mapping are evident, from increased customer satisfaction and improved brand loyalty to more efficient operations and better communication. By mapping the customer journey, companies can gain a comprehensive understanding of the customer’s experiences and use this information to drive improvements and create a more positive customer experience.

Gathering Customer Feedback

Gathering customer feedback is an essential component of the customer journey mapping process. It provides valuable insights into the customer’s experiences and helps companies understand their needs, motivations, and pain points. Customer feedback is a powerful tool for informing the customer journey mapping process and driving improvements in the customer experience.

There are various methods for gathering customer feedback, including surveys, focus groups, and online reviews. Each method has its strengths and weaknesses, and the best approach will depend on the specific goals and needs of the company. For example, online reviews can provide a wealth of information about customer experiences, while focus groups can offer more in-depth and personalized insights.

It is important to use customer feedback to inform the customer journey mapping process. Companies can use this information to identify pain points and opportunities for improvement, as well as to gain a deeper understanding of the customer’s needs and motivations. By incorporating customer feedback into the customer journey mapping process, companies can create a more accurate and comprehensive representation of the customer’s experiences.

By using customer feedback to inform the customer journey mapping process, companies can create a more accurate and comprehensive representation of the customer’s experiences and drive improvements in the customer experience.

The Importance of Empathy in Customer Journey Mapping

Empathy is a critical component of customer journey mapping, as it allows companies to understand the customer’s experiences from their perspective. Empathy helps companies to understand the customer’s needs, motivations, and pain points and to create a more accurate representation of the customer journey.

By incorporating empathy into the customer journey mapping process, companies can understand the customer’s experiences more deeply. This can lead to more accurate and comprehensive mapping and improved customer experience design. Companies can use this information to identify pain points and opportunities for improvement and create a more seamless and enjoyable customer experience.

Empathy can also help companies to build stronger emotional connections with their customers. By understanding the customer’s experiences and needs, companies can align their operations and messaging with customer expectations. This can lead to more efficient and effective communication, improved brand loyalty, and increased customer satisfaction.

Brands that use Customer Journey Mapping

These are just a few examples of well-known brands that have used customer journey mapping to improve their customer experience and drive business success. Using this approach, these brands have identified areas for improvement, created more meaningful and memorable experiences for their customers, and ultimately differentiated themselves from their competitors.

Starbucks: Starbucks used customer journey mapping to understand its customers’ experiences with its mobile ordering app. By mapping the various touchpoints, the company could identify areas for improvement, such as reducing wait times and improving the ordering process. As a result, Starbucks improved the customer experience and increased customer satisfaction.
Amazon: Amazon is known for its exceptional customer experience, and customer journey mapping has been a key component of this. The company maps the customer journey across multiple touchpoints, including its website, delivery process, and customer service. By using customer journey mapping, Amazon is able to identify areas for improvement, such as streamlining the checkout process and improving delivery times.
Nike: Nike used customer journey mapping to understand its customers’ experiences in China. By mapping the customer journey, Nike identified areas for improvement, such as simplifying the online ordering process and improving product availability. These insights helped Nike to create a more seamless and personalized customer experience, increasing customer satisfaction and loyalty.
Apple: Apple has a reputation for delivering an exceptional customer experience, and customer journey mapping has been a key component of this. By mapping the customer journey across multiple touchpoints, such as its retail stores and online support, Apple is able to identify areas for improvement, such as streamlining the product return process and improving the in-store experience.

Creating a Customer Journey Map

Creating a customer journey map is crucial in improving the customer experience. By visualizing the customer’s experiences, companies can gain a deep understanding of the customer’s needs, motivations, and pain points and use this information to drive improvements and create a more positive customer experience.

Here is a step-by-step guide for creating a customer journey map:

Identify your customer segments: Start by identifying your key customer segments. This will help you to understand the different types of customers and their unique needs and experiences.
Gather customer feedback: Use various methods to gather customer feedback, such as surveys, focus groups, and online reviews. This information will provide valuable insights into the customer’s experiences and help you to identify pain points and opportunities for improvement.
Map out the customer journey: Create a visual representation of the customer’s experiences, including all key touchpoints. This can be done using various tools, such as flowcharts, diagrams, or mind maps.
Identify pain points: Use the information gathered from customer feedback to identify pain points in the customer journey. These are the points in the customer’s experience where they encounter frustration, confusion, or other negative emotions.
Analyze the data: Analyze the information gathered from customer feedback and the customer journey map to identify patterns and trends. This will help you to understand the customer’s needs and motivations and to create a more accurate representation of the customer journey.
Drive improvements: Use the information gathered from the customer journey mapping process to drive improvements in the customer experience. Identify opportunities to streamline processes, improve communication, and address pain points, and use this information to inform your customer experience design.

The Role of Data in Customer Journey Mapping

Data plays a critical role in customer journey mapping. There are a variety of data sources that companies can use to inform their customer journey mapping.

Some common sources of customer data include:

Surveys: Surveys can be used to gather customer feedback and insights into their experiences. This can include their motivations, pain points, and overall satisfaction with the customer experience.
Behavioural data: Behavioral data can be collected from a variety of sources, including website analytics, customer service logs, and sales data. This data can provide valuable insights into the customer’s actions and behaviours and help identify trends and patterns in the customer journey.
Customer feedback: Customer feedback can be collected through various channels, such as online reviews, focus groups, and customer service interactions. This information can provide valuable insights into the customer’s experiences and help to identify pain points and opportunities for improvement.

By collecting and analyzing customer data, companies can gain a deeper understanding of the customer’s experiences and use this information to improve customer experience. Data can inform your understanding of the customer journey and help create a more accurate representation of the customer’s experiences.

Implementing Changes Based on Customer Journey Mapping

Using the information gathered from the customer journey mapping process, companies can identify opportunities for process improvements and product modifications to help drive customer satisfaction and brand loyalty.

Here are some steps for implementing changes based on customer journey mapping:

Prioritize changes: Based on the customer journey map and the feedback gathered, prioritize the changes that will significantly impact the customer experience. This can include process improvements, product modifications, or changes to the customer service experience.
Design new processes and products: Use the insights gained from the customer journey mapping process to design new processes and products that address the customer’s pain points and meet their needs.
Test and iterate: Implement the changes in a controlled environment and gather customer feedback to evaluate the impact. Use this feedback to refine the changes and make further improvements.
Roll out changes: Once the changes have been tested and refined, roll out the changes to the entire customer base. Continuously monitor customer feedback to evaluate the impact of the changes and make further improvements as needed.
Stay flexible: The customer journey constantly evolves, and customer needs and expectations change over time. Stay flexible, gather customer feedback, and improve the customer experience as needed.

Companies can drive customer satisfaction and improve brand loyalty by prioritizing changes, designing new processes and products, testing and iterating, and continuously monitoring customer feedback.

Best Practices for Customer Journey Mapping

While customer journey mapping can be an effective tool for improving the customer experience, it is important to follow best practices to ensure success.

Here are some best practices for customer journey mapping:

Involve key stakeholders: Involve key stakeholders in the customer journey mapping process, including representatives from sales, marketing, customer service, and product development. This will ensure that all perspectives are considered and that the customer journey map accurately reflects the customer experience.
Use a data-driven approach: Use data to inform the customer journey mapping process. This includes customer feedback, website analytics, and sales data. This data can provide valuable insights into the customer’s experiences and help to identify pain points and opportunities for improvement.
Test changes before implementation: Before making any changes based on the customer journey map, it is crucial to test them in a controlled environment. This will help evaluate the changes’ impact and refine them before they are rolled out to the entire customer base.
Continuously monitor customer feedback: The customer journey constantly evolves, and customer needs and expectations change over time. Continuously monitor customer feedback to ensure the customer journey map accurately reflects the current customer experience.
Foster a customer-centric culture: Foster a customer-centric culture within the organization by prioritizing the customer journey. This includes regularly reviewing and updating the customer journey map and improving the customer experience as needed.

Negatives of Customer Journey Mapping

Time-consuming and resource-intensive: Customer journey mapping can be a time-consuming and resource-intensive process, especially for larger organizations with complex customer journeys.
Limited to current understanding: Customer journey mapping is only as good as the data and information used to create it. A brand needs to fully understand its customers and their journeys so that the resulting map accurately reflects reality.
Can be subjective: Customer journey mapping is often created by a team, which can lead to subjectivity and bias in the final map. To minimize this, it’s important to involve multiple stakeholders and gather data from various sources.

Frequency of Customer Journey Mapping

It’s recommended that a brand conduct customer journey mapping regularly, at least once a year or as needed, based on changes in the market, customer behaviour, and the brand’s offering. The frequency of customer journey mapping will depend on the size of the brand, the complexity of its customer journeys, and the speed at which the market and customer behaviour are changing.

What to Consider before Embarking on Customer Journey Mapping

Data collection: Before conducting customer journey mapping, it’s important to have a solid understanding of your customers, including their behaviours, preferences, and pain points. This information can be collected through surveys, focus groups, and customer interviews.
Stakeholder involvement: To ensure that customer journey mapping is comprehensive and accurate, it’s important to involve key stakeholders, including representatives from sales, marketing, customer service, and product development.
Clear goals: Before conducting customer journey mapping, it’s important to have clear goals and objectives, such as identifying areas for improvement, increasing customer satisfaction, or improving the overall customer experience. This will help guide the process and ensure that the resulting map is actionable and relevant.

The Role of Market Research in Customer Journey Mapping

Market research plays an important role in customer journey mapping. By gathering customer feedback and data, brands can gain a deeper understanding of their customer’s needs, motivations, and behaviours. This information can then be used to inform the creation and refinement of the customer journey map, ensuring that it accurately reflects the customer experience.

Customer journey mapping is a critical component of a brand’s customer-centric strategy, and market research is essential in ensuring that it is based on accurate and up-to-date information. By combining these two approaches, brands can create a customer experience that exceeds customer expectations and drives business success.

When the US home improvement retailer Home Depot attempted to enter the Japanese market in the 1990s, it failed to gain traction due to intense competition from local retailers and cultural differences. And when UK supermarket giant Tesco attempted to enter the Japanese market in 2003, it failed to gain a foothold and eventually withdrew from the market in 2011.

These examples demonstrate that foreign brands must understand the local market and consumer preferences to be successful in Japan. Brands must also be willing to make the necessary adaptations and investments to succeed in this highly competitive market.

Japanese consumers have unique cultural and societal influences that differentiate them from consumers in Western countries like the United States and the United Kingdom.

Brands looking to succeed in the Japanese market should consider these differences when developing their marketing and product strategies. Here are some key differences:

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Brand loyalty: Japanese consumers are often highly loyal to specific brands and may be more likely to purchase products from established brands they trust.

Attention to detail: Japanese consumers are known for their attention to detail and appreciate well-designed and well-crafted products. They also place a premium on functionality and practicality.

Quality expectations: Japanese consumers have high expectations for quality and place a premium on well-made and durable products.

Technical sophistication: Japanese consumers are known for their technical sophistication and are often early adopters of new technology and products.

Environmentalism: Japanese consumers are increasingly environmentally conscious and may be more likely to purchase environmentally friendly products.

Retail culture: Retail culture in Japan is different from that in Western countries, with a strong emphasis on in-store experiences and customer service.

Fashion and beauty: Japanese consumers place a strong emphasis on fashion and beauty, and they are known for their unique and eclectic sense of style.

Below are eight important considerations brands should research and understand before launching their product or service into the Japanese market.

1. Cultural sensitivity: Understanding Japanese cultural norms and customs is crucial for a successful product launch.

Cultural sensitivity is an important consideration for brands looking to bring a product into Japan, as cultural norms and values play a significant role in shaping consumer behaviour.

Brands should take the time to understand the local culture and customs and tailor their offerings accordingly.

Here are some key points to consider when it comes to cultural sensitivity in the Japanese market:

Respect for tradition: Japan has a rich cultural heritage and tradition, and brands should respect and be mindful of these cultural values.
Attention to detail: Japanese consumers have high expectations for detail and quality in products, packaging, and marketing materials. Brands should ensure that their offerings meet these expectations.
Honorific language: In Japan, it is important to use appropriate honorific language when communicating with consumers, especially in advertising and marketing materials.
Social customs: Understanding and respecting social customs, such as gift-giving, is important in building relationships with customers.
Sensitivity to local customs: Brands should be sensitive to local customs, such as the preference for modesty in dress and advertising, and avoid causing offense.

2. Local regulations: Familiarising with the local laws and regulations regarding product labelling, packaging, and marketing materials.

Local regulations are important for brands looking to bring a product into Japan as they impact product labelling, packaging, and marketing materials.

Brands must comply with local regulations when bringing a product into Japan. This helps avoid legal and financial issues and ensures that the product is well received by the market.

Here are some key points to consider when it comes to local regulations in the Japanese market:

Product labelling: Labeling requirements in Japan are stringent, and brands should ensure that their products meet all the required regulations, including health and safety standards, labelling information, and warnings.
Packaging regulations: Packaging regulations in Japan are also strict, and brands should ensure that their packaging is compliant with local standards and regulations.
Marketing materials: Marketing materials such as advertisements and promotional materials should also comply with local regulations, including guidelines on product claims, testimonials, and endorsements.
Import restrictions: Brands should also be aware of import restrictions on certain products, including food, pharmaceuticals, and chemicals.
Environmental regulations: Japan has strict environmental regulations, and brands should ensure that their products and manufacturing processes meet these standards.

3. Distribution channels: Identifying and partnering with the right distribution channels in Japan is crucial.

Identifying and partnering with the right distribution channels is crucial for brands looking to bring a product into Japan as it affects the reach and success of the product in the market.

Choosing the proper distribution channels is critical to the success of a product in the Japanese market. Brands should carefully consider their options and build strong relationships with their distribution partners to ensure the product reaches the right customers.

Here are some key points to consider when it comes to distribution channels in the Japanese market:

Retail landscape: Japan has a complex retail landscape, with a mix of large chain stores, speciality stores, and online retailers. Brands should understand the different channels and choose the most suitable ones for their product.
Wholesale vs. Direct Sales: Brands should consider selling their products directly to consumers or through a wholesale distribution channel. Direct sales may offer more control over pricing and product positioning, but wholesale distribution can provide a wider reach and lower costs.
Importance of relationships: In Japan, relationships play a crucial role in business, and brands should take the time to build strong relationships with distribution partners.
E-commerce: Online retail is becoming increasingly important in Japan, and brands should consider an e-commerce strategy as part of their distribution plan.

4. Consumer behaviour: Understanding Japanese consumers’ unique buying habits and preferences can help a brand tailor its offerings accordingly.

Understanding consumer behaviour is crucial for brands looking to bring a product into Japan, as it can impact product positioning, marketing, and sales.

Brands should research consumer preferences, trends, and buying habits to ensure that their product offerings resonate with the local market.

Here are some key points to consider when it comes to consumer behaviour in the Japanese market:

Brand loyalty: Japanese consumers tend to be highly loyal to brands and often make purchasing decisions based on brand reputation and quality.
Quality over price: Japanese consumers place a high value on quality and are often willing to pay a premium for products that meet their expectations.
Attention to detail: Japanese consumers are known for their attention to detail, and they appreciate well-designed and well-made products.
Health and wellness: Health and wellness are important concerns for Japanese consumers, and brands should consider these needs when developing their products.
Trends: Keep up-to-date with the latest consumer trends in Japan, as they can change quickly and impact consumer preferences.
Advertising: Advertising and marketing strategies should be tailored to meet the needs and preferences of Japanese consumers.

5. Language: Communication in the local language is key, and translated materials should be culturally appropriate and high-quality.

Language is an important consideration for brands looking to bring a product into Japan as it impacts product labelling, packaging, marketing, and customer service.

Brands should ensure that they communicate effectively with customers, use the appropriate language, and adapt their products to meet local preferences. This can build trust and credibility with Japanese consumers and ensure a successful product launch.

Here are some key points to consider when it comes to language in the Japanese market:

Official language: Japanese is the official language of Japan and is widely spoken by the population. Brands should ensure that their product labelling, packaging, and marketing materials are translated accurately into Japanese.
Localisation: Brands should also consider localisation, which means adapting the product to meet the cultural and linguistic norms of the local market. This can include changing product names, packaging design, and marketing materials to reflect local preferences.
Customer service: Brands should ensure that they have a customer service team that can communicate effectively with Japanese customers in their language.
Language skills: Brands should invest in language training for employees working in the Japanese market to ensure effective communication and a smooth transition.

6. Product adaptions: Packaging size, product specifications, and ingredients may need to be adapted for the Japanese market.

Product adaptation is the process of modifying a product to meet the specific needs and preferences of a local market and is an important consideration for brands looking to bring a product into Japan.

Brands should take the time to understand local consumer preferences and requirements and make the necessary adaptations to ensure that their products meet local needs and regulations. This can build trust and credibility with Japanese consumers and increase their chances of success in the market.

Here are some key points to consider when it comes to product adaptation in the Japanese market:

Cultural differences: Brands should be mindful of cultural differences in Japan and how they may impact product design and features. For example, products may need to be modified to fit smaller living spaces or meet local safety regulations.
Consumer preferences: Brands should conduct market research to understand local consumer preferences and make necessary product adaptions to meet their needs. For example, local consumers may prefer different colours, sizes, or materials.
Technical requirements: Brands should ensure that their products meet the technical requirements in Japan, including certifications and regulatory approvals.
Local suppliers: Brands may need to source local suppliers for raw materials or components to ensure that the product is manufactured in compliance with local regulations.
After-sales support: Brands should also consider after-sales support when making product adaptations, as local consumers may have different expectations for customer service and repair services.

7. Quality expectations: Japanese consumers have high expectations for product quality, so brands need to ensure that their offerings meet these expectations.

Quality expectations are critical for brands looking to bring a product into Japan, as they can significantly impact product success.

Brands should ensure that their products meet Japanese consumers’ high standards, focus on building a positive brand image, and provide excellent after-sales support to meet customer needs. This can help to build trust and credibility with Japanese consumers and increase their chances of success in the market.

Here are some key points to consider when it comes to quality expectations in the Japanese market:

High standards: Japanese consumers have a high expectation for quality, and they place a premium on products that are well-made and durable. Brands should ensure that their products meet these quality standards to succeed in the market.
Attention to detail: Japanese consumers are known for their attention to detail, and they appreciate well-designed and well-crafted products. Brands should focus on ensuring that their products are of the highest quality, emphasizing attention to detail.
Brand reputation: Quality expectations are closely tied to brand reputation in Japan, and consumers will often make purchasing decisions based on a brand’s reputation for quality. Brands should focus on building a positive brand image to increase their chances of success in the market.
After-sales support: Quality expectations also extend to after-sales support, and Japanese consumers expect that their products will be repaired or replaced if they fail. Brands should have a robust after-sales support system to meet these expectations.

8. Marketing strategies: Developing a marketing strategy that resonates with Japanese consumers is important, including considering local social media and influencer marketing.

Marketing strategies are an important consideration for brands looking to bring a product into Japan, as they can significantly impact product success.

Brands should take the time to understand local consumer behaviour and cultural differences and tailor their marketing strategies accordingly. This can help to build brand awareness and reach the right target audience, increasing the chances of success in the market.

Here are some key points to consider when it comes to marketing strategies in the Japanese market:

Cultural differences: Brands should be mindful of cultural differences in Japan and tailor their marketing strategies accordingly. For example, marketing materials may need to be modified to reflect local preferences and cultural norms.
Consumer behaviour: Brands should conduct market research to understand local consumer behaviour, including purchasing habits and preferred marketing channels. This information can be used to inform the development of a targeted marketing strategy.
Local media: Brands should consider using local media, such as television, newspapers, and magazines, to reach their target audience in Japan.
Digital marketing: Digital marketing is becoming increasingly important in Japan, and brands should consider using digital channels, such as social media, email marketing, and search engine optimization (SEO), to reach their target audience.
Influencer marketing: Influencer marketing is also becoming popular in Japan, and brands may consider partnering with local influencers to reach their target audience.

Market research can help companies and their brands understand the unique business landscape in Japan. For more information on how to develop a successful market entry strategy for Japan, read our blog, How to Develop a Market Entry Strategy in Japan

If you are interested in Kadence’s market research capabilities in Japan, download our agency credentials document here or submit a Request for Proposal here.

A Summary of our latest report —Feeling Good: Powering the Next Generation of Fitness and Medtech.

Today’s consumer is spending less on acquiring things and more on doing things, and this trend is making its way into the fitness and medical industries.

Research shows that when consumers feel good about their fitness regimen, they are more likely to continue the program. In short, the outcome consumers are looking for is not just looking good; but also feeling good.

So what do consumers want from their fitness routines? And what do they want from their gym experience?

Download our complete report, “Feeling Good: Powering the Next Generation of Fitness and Medtech”, to find out now.

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This report examines the top technology trends in the health, fitness, and medical industries. Download the complete report here.

Trend 1: Wearing your heart on your sleeve

You will see wearable fitness devices on professional marathon runners, casual gym-goers, and even those attempting to become more active.

The simple steps tracker has evolved into our trusted health advisor, dietician, and fitness trainer.

It is no wonder, then, that worldwide shipments of wearable devices from 2020-2021 showed an increase of 27.2 percent.

The increased use of the Internet, 5G technologies, and constant innovations have made North America the dominant market, with a 38.6 percent market share. The Asia Pacific is the fastest-growing market.

Consumers are taking charge of their well-being with wearable technology.

Rising health awareness, a sedentary and hectic lifestyle, increasing healthcare costs, the growing prevalence of chronic diseases like diabetes and obesity, and the increasing popularity of the Internet of Things (IoT) are driving the market. As health and fitness took centre stage during the pandemic, it accelerated the adoption of wearable fitness trackers.

Trend 2: The growing application of wearable technology in the medical device Industry

The healthcare industry has seen the growing popularity of wearables significantly impacting the prevention and treatment of many chronic diseases.

The pandemic has changed our relationship with sleep and its therapeutic benefits. Consumers are more aware of the health benefits of quality sleep and are using sleep-tracking technology to understand their sleep patterns better.

Download the complete report to discover Oura ring’s foray into Health and Medtech

The Future of Holistic Healthcare Smart Wearable Devices.

Wearables have many life-altering benefits that make them invaluable in the medical field.

Download our complete report to learn the various use cases of wearable devices in diagnosing, monitoring, and treating chronic diseases.

Initially, North America led the world with the highest share of wearable device sales; however, the Asia Pacific region has recently grown leaps and bounds, becoming the fastest-growing region.

Download our complete report to learn more about the leading countries in the sector.

Trend 3: Taking the gym home

The trend of bringing home the gym with smart home equipment took off during the lockdown as gyms had to shut down worldwide.

Download the complete report to find out what happened to the at-home gym equipment market after the lockdown as people returned to in-person fitness centres.

Also, read an in-depth analysis of why 1.4 million users are paying a premium for the Peloton bike.

Trend 4: Fitness apps and AI-powered personal trainers

The lockdown forced people to shift from physical gyms and fitness studios to virtual fitness classes, which led to a considerable number of apps being downloaded, giving an impetus to the fitness app market.

The increased prevalence of chronic diseases or diseases that prevail over the long term, like diabetes and obstructive pulmonary disease, is driving the growth of fitness and nutrition apps.

Download the complete report to see how these apps are proven to help people better manage their symptoms and conditions.

Trend 5: Mental health goes digital

In 2020, we saw an uptick in downloads of mental wellness apps, as the pandemic and its repercussions propelled this growth. Developers of apps are delivering on market demand, as 20,000 mental apps are available for download today.

Many of these apps emphasise mindfulness and meditation and go beyond providing support from a traditional therapist. Mental health apps also offer professional online therapy sessions on the go.

While the number of app downloads is a good metric, returning users is the fundamental metric for an app’s success.

Download the report to discover how the UK-based mindfulness and meditation app, Headspace increased users and retention rates using a data-driven approach.

Trend 6: Entering the fitness metaverse

Companies are creating immersive fitness experiences by partnering with premium gaming and fitness brands.

This is bringing about a trend in fitness gamification, a new generation of immersive exercises and workouts using music, visuals, wearables, and instructors to offer users an exciting, immersive experience.

Download the full report to learn how Hong Kong-based brand, OliveX incentivises users by rewarding them for their workouts using blockchain technology.

Putting our bodies (and data) out there

Data security risks are one of the biggest challenges we face as we move mountains in the fitness tech industry. These trackers can allow hackers to intercept personal data, and if the data is not adequately protected, it can make us vulnerable to unauthorised users accessing our information.

}The future of wearable technologies is in the health and medical sectors. Although some companies, like Apple, have tight privacy controls for users, there is not enough research on wearable tech for digital health technologies’ security, data rights, and ethics.

The ubiquitous use of the Internet and smartphones and the shifting tendency toward healthier lifestyles and increased wellbeing have sparked significant growth in the global fitness and medical device technologies market.

Download the complete report to discover the biggest trends in the Fitness, Health, and Medtech industries.

“People buy on emotion and justify on logic.” Zig Ziglar

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Gen Z Consumption Habits

Gen Z Marketing Strategies

Gen Z Campaigns from around the world

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Signs a Brand Would Benefit from Customer Journey Mapping

Touchpoints and Pain points

The Benefits of Customer Journey Mapping

Gathering Customer Feedback

The Importance of Empathy in Customer Journey Mapping

Brands that use Customer Journey Mapping

Creating a Customer Journey Map

The Role of Data in Customer Journey Mapping

Implementing Changes Based on Customer Journey Mapping

Best Practices for Customer Journey Mapping

Negatives of Customer Journey Mapping

Frequency of Customer Journey Mapping

What to Consider before Embarking on Customer Journey Mapping

The Role of Market Research in Customer Journey Mapping

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1. Cultural sensitivity: Understanding Japanese cultural norms and customs is crucial for a successful product launch.

2. Local regulations: Familiarising with the local laws and regulations regarding product labelling, packaging, and marketing materials.

3. Distribution channels: Identifying and partnering with the right distribution channels in Japan is crucial.

4. Consumer behaviour: Understanding Japanese consumers’ unique buying habits and preferences can help a brand tailor its offerings accordingly.

5. Language: Communication in the local language is key, and translated materials should be culturally appropriate and high-quality.

6. Product adaptions: Packaging size, product specifications, and ingredients may need to be adapted for the Japanese market.

7. Quality expectations: Japanese consumers have high expectations for product quality, so brands need to ensure that their offerings meet these expectations.

8. Marketing strategies: Developing a marketing strategy that resonates with Japanese consumers is important, including considering local social media and influencer marketing.

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A Summary of our latest report —Feeling Good: Powering the Next Generation of Fitness and Medtech.

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Trend 1: Wearing your heart on your sleeve

Trend 2: The growing application of wearable technology in the medical device Industry