More so than any previous generation, Gen Z places great importance on brand purpose. While the construct of the belief-driven buyer is not necessarily new, Gen Z has taken it to staggeringly new levels with 92% stating that they need to share values with a brand to buy from it.
The equation for marketers though is not so simple as exhibit brand purpose = earn Gen Z’s trust and loyalty. For one, Gen Z’s trust is not gained easily, and they occupy a very nuanced path to purchase. Winning with Gen Z looks different.
While a sale has always been the conventional success metric, and it remains so, getting Gen Z to that point, in their ever hyperconnected world, requires a renewed embrace of brand purpose, KPIs and an updated measurement framework that will end up defining Gen Z’s relationship with brands.
So, what are the new KPIs Gen Z is grading brands against? And how can marketers measure this sentiment?
- Authenticity & Trust: Authenticity will never not exist as a value benchmark for this consumer group. The only way in which brands can build trust and truly give off main character energy will lie in their ability in building an ecosystem that is 100% authentic. Brands must remember that Gen Z is always looking for something different, yet something that is real. And a brand’s authenticity will thereby lie in its distinctiveness. It can be authentically serious, authentically comical, authentically audacious, or authentically absurd. There’s no one size fits all. This journey will transform owned communications and content into shareable and earned content that will earn loyalty and social currency.
Measurement Matrix: Undertake an Experience Territory Matrix to discern customer centricity and company perception along with primary work to understand where Gen Z would like for brands to show up regarding authenticity and trust benchmarks levels. Track shifts in brand trust through brand health measurement, tying those changes to specific moments in time. Leverage active engagement measures such as shares and saves in the context of content reach to understand how your strategic approach can be optimized to content development.
- Relevancy & Advocacy: Gen Z is living in a world that is changing by the second, with an information overload constantly delivered through their screens. From geo-political escalations, increasing gender-based violence, pressing policies on marriage equality, the wealth gap to the lowdown on the Eras Tour, brat summer, weekly streaming watchlists and the latest brand campaigns – it’s all being dissected and discussed by Gen Z as it unfolds. To build relevance and advocacy, brands must sync their communication to what is happening in the ‘now.’ How does one get there? Given Gen Z’s consumption preferences, social is the only way to understand what is happening in culture or they risk developing disconnection with this audience group. Brands that don’t have a take on current news and cultural trends, in a manner that is inclusive and true to their ethos, will inadvertently not make the cut into what Gen Z will ‘vibe’ with.
Measurement Matrix: Utilise social listening tools to understand cultural relevance in an ever-evolving landscape as a method to identify trends that can be tapped into. Refine content strategy leveraging both performance metrics and attitudinal testing through the adoption of an Active Index to better understand consumer resonance. The target audience’s consumption and interaction with content will aid in promoting organic growth through a platform’s algorithm.
- Unified Continuity: Getting it right for just one campaign or one aspect of a brand’s purpose manifesto will not impress Gen Z. Brands must look beyond the traditional spaces they occupy. Gen Z has always looked at the bigger picture, explaining their engagement with brands. They’re prone to analysing it all – from advertising, employee and community welfare, sustainability in production and distribution, to product innovation or even upcoming milestones the brand is aiming at. Due to Gen Z’s constant interactions with brands over social media, they expect steadiness and dependability when it comes to action. Upon coming across a piece of communication or initiative that goes against their core values or societal issues they’re protective about, this group will be the first to call you out. Brand trust will therefore also be measured through action by Gen Z with an increased need for transparency. Brands must demonstrate how they’re contributing to change (impact programs, partnerships, direct engagements, donations etc.) to show up front and centre or they risk being criticised for purpose washing.
Measurement Matrix: Integrated and holistic measurement at both a high level and granular view would be required to understand the full picture of performance and the impact the work in totality is having on Gen Z audiences. Connection across stakeholders and consistency in measurement is key to unlocking opportunities for evolution and fueling the fly wheel. Findings from primary work can serve as KPIs for future analysis that can showcase how brands are engaging with Gen Z in a way that matters to them and the result this has on brand reputation.
The genesis of brand advocates whose endorsement is led by purpose, could be a game changer in brand building and creating challenger brands. The equation for getting there is based on an always-on, impact-first strategy that will also address how purpose resonance can be tied directly to sales, (currently solved for by attitudinal testing). Cementing this relationship with Gen Z is key to how they will trust brands and purchase from them - having a multiplier effect on other generations that Gen Z wields influence over.
By Vaidehi Bhatia, Account Manager, Edelman India.