Is Your Direct Marketing Ready for Generation Z?

Generation Z is arriving in the marketplace. Gen Z includes young people born in the mid-1990s to early 2000s, who are now graduating and getting their first jobs. They not only make up 25.9% of the U.S. population but will account for 40% of all consumer markets in 2020, with annual purchasing power of $44 billion and growing. But wooing Gen Z will require marketers to amend their playbooks. Oberlo, an e-commerce agency, and IWCO Direct, a direct marketing agency, recently discussed Gen Z marketing challenges in blogs, with similar conclusions. First, Gen Z members have a short attention span; marketers have only about 8 seconds to capture their notice, which is even shorter than the 11 seconds required to grab the attention of the typical Millennial. This means content must be targeted, relevant, to the point and quick to engage. Second, Gen Zers have a higher number of technological devices and are constantly jumping from one device to another. While Millennials bounce between three screens at one time, Generation Z can use up to five screens at the same time. Multi-channel, multi-platform, mobile-optimized campaigns are required. Third, Gen Z young adults have strong opinions and, raised to expect personalization, demand customized experiences. They will be critical of advertising that fails to meet their standards for authenticity and meaningful interaction. For example, Gen Z members want to buy from companies that support their values; 55% of Gen Z chooses brands that are eco-friendly and socially responsible. Yet Gen Z has less brand loyalty than prior generations and is less motivated by traditional loyalty programs, although they can be wooed with interactivity, such as online games or events. And while Gen Zers are definitely social media fans, they use social platforms differently. A study by Response Media found that Gen Z favors Snapchat to showcase real-life moments, gets news from Twitter and gleans some information from Facebook, although they see Facebook as a platform for older people. Market Wired research shows that Instagram is their most popular app for brand discovery, with 45% using it to find new products. YouTube video is another way to reach Gen Z. However, direct mail marketers shouldn't assume only a digital strategy can work with Gen Z. As IWCO Direct points out, Gen Z actually finds print media more trustworthy. An MNI Targeted Media study found that 83% surveyed said they turn to printed newspapers for trusted news instead of the Internet. Gen Z does not trust information on the Internet unless it comes from a website ending in .org or .edu. In fact, since Gen Z is online so often and using multiple devices, the biggest challenge is making a lasting impression, which is where trusted print material, such as direct mail, which can be physically touched and revisited, offers an edge as part of an omnichannel campaign. For more insights, see https://www.acculist.com/is-your-direct-marketing-ready-for-gen-z/

Fundraising Challenged by Gen Z, E-mail, AI

For nonprofit fundraising, 2019 will be another challenging year. Successful direct marketers will need to adapt to changes in demographics, technology and donor targeting, to name just a few trends recently cited by the Donorbox Nonprofit Blog. For example, Donorbox is sounding the alert ahead of the next demographic wave. While the Millennial generation is still the biggest cohort in the workforce, Gen Z is arriving. Born after 1996, they now make up an estimated 27% of the population and will account for 40% of all consumers by 2020. How are they different? The "2017 Global Trends in Giving Report" found that Gen Z members are interested in giving to many different causes, especially those involving youth, animals and human services. But to win the attention of these digital natives, messaging must be concise and engaging, offering an immediate experience that cuts through the marketing noise they routinely filter out. Gen Z is also the first mobile-only generation, so website, e-mail and donation forms must all be optimized for mobile. Meanwhile, remember that today's donors expect a personalized, targeted approach that takes into account demographics, giving history, etc. That means segmenting donor and prospect lists for specialized messaging to account for generational differences and other demographics. It means tailoring the "ask" to the prospective donor's income and giving history. It means refining giving/donation pages to highlight projects and wording that will resonate with the target donor group. E-mail is a channel that can be easily personalized, and despite its recent bad rap, a revisit of e-mail strategy is worthwhile. Research shows that donors willing to donate through e-mail rose from just 6% in 2012 to 28% in 2018. Second, low-cost e-mail has an ROI of 122%, much higher than direct mail, social media and paid search. Finally, fundraisers need to make more use of Artificial Intelligence (AI), perhaps by creating a chatbot to interact via messaging services like Facebook Messenger, Slack, Telegram, etc. to handle donations, register members and distribute information about programs and services. AI also can personalize donor journeys based on real-time behavior to encourage contributions and can weaponize data for more cost-effective donor development. For example, a donor's giving and volunteering history, event attendance, affiliations, relationships, and data from wealth screening tools can all be analyzed to predict a potential donor’s likelihood to give a major gift. For more, see our website blog at https://www.acculistusa.com/fundraising-challenges-include-gen-z-e-mail-ai/

Is Your Marketing Ready for Generation Z?

Much has been said about marketing to Millennials, but what about the next "Generation Z" of 16- to 19-year-olds just entering the marketplace? Even if you aren't in the youth market, it's time to plan for a new approach to these current and future consumers. Why? First, the so-called Generation Z makes up the largest percentage (25.9%) of the U.S. population. Second, they are different from their consumer predecessors on key marketing parameters. An infographic from Marketo, passed along by MarketingProfs, shows how. As Marketo sums up, "This generation knows the ins and outs of the Internet, shops online, and is ambitious about work." So if you want to inform Gen Z, go digital: 52% do research assignments via social media or YouTube, 33% watch lessons online, and 20% read textbooks on tablets. This is a resourceful DIY group (76% wish their hobbies would turn into full-time jobs, compared with just 50% of Millennials) characterized by self-directed, ambitious work aspirations (72% want to start their own businesses). Good news for nonprofits: Gen Z is also a cohort of do-gooders, with 76% concerned about humanity's overall impact on the planet and 60% wanting their jobs to positively affect their world. If you want to communicate with them, you'll have lots of options: Gen Z prefers to multitask with up to five screens (mobile, TV, laptop, iPod, etc.), compared with Millennials' two-screen world. But that multitasking means short attention spans, so focus on quick-read, attention-grabbing visuals since Gen Z prefers to communicate with images instead of text. Just got your Facebook marketing down pat? You'll miss the boat with many 16- to 19-year-olds: Only 23% used Facebook in 2014, down from 42% in 2012. Many have migrated to image-heavy Instagram and more privacy-oriented platforms like snapchat. For more on Gen Z consumers, go to http://www.marketingprofs.com/chirp/2014/26050/get-to-know-generation-z-marketings-next-big-audience-infographic