Whether you call them zoomers, post-millenials, or digital natives, Generation Z represents a population of young people who are just coming into adulthood. And that makes them a prime target for your marketing strategy.

Gen Z, AKA anyone born in the time period between the mid-1990s and early 2010s, was born into the digital age. Most don’t know what life was like before the Internet. They’re the most racially and ethnically diverse generation, and they’re on track to be the most well-educated.

Basically, Gen Z is very different from the millennials, Gen Xers, and boomers who preceded them.

So, when it comes to marketing to this generation of young people, businesses have to adopt new strategies to connect with these consumers. And with Gen Z being the largest generation in American history, the potential rewards for focusing on this population are vast.

Need more proof? Here are a few reasons why Gen Z is such an important target market:

Why should your business market to Gen Z?

You’re probably in the business of making money and building revenue. That means you want to reach as many consumers as you can.

And chances are you’re already thinking about how you can appeal to Gen Z. We’ve talked about the sheer size of their generation (they currently make up 27% of the U.S. population). And members of Gen Z already make up 40% of all global consumers.

So, reaching out to this huge number of potential consumers is a no-brainer. But there’s more to it than that.

It’s not just important to have a large number of customers — it comes down to what they’re willing to spend. And Gen Z is expected to spend big. Based on a 2018 study, when the oldest Gen Zers were still just in college, zoomers had a spending power of $143B. And that number has recently gone up to $360B.

Compared to millennials’ spending power in 2020 (it was $600B, if you're curious), Gen Z may not appear to be a very powerful force in the consumer market. But consider this — even now, the youngest members of this generation are still in grade school. Think about the potential spending power they’ll have in a few years' time.

Plus, Gen Z consumers have a special interest in small businesses. In a survey from Sendinblue and CITE research, 46% of Gen Zers stated they purchased more from small businesses compared to pre-COVID.

When you add all these factors together, the importance of appealing to Gen Z consumers becomes clear. And since Gen Z hasn’t reached the peak of their spending power yet, there’s still time for your business to reach out and build strong brand relationships with this special group of consumers.

We compiled some tips on how SMBs can appeal to their younger audience:

1. Meet Gen Z where they’re at — online.

We mentioned it before: Gen Z has become synonymous with the Internet. And more specifically, social media.

And the numbers back it up. As of November 2021, the top three social media platforms amongst Gen Z included Snapchat (with an average of 42M Gen Z users monthly), TikTok (37.3M), and Instagram (33.3M).

Gen Z uses social media to create connections with other people, share content, and perhaps most importantly for marketing purposes, consume multimedia. From ads to reviews to videos, that consumption affects their shopping habits.

Almost 40% of adult Gen Zers stated that their purchasing decisions were most strongly influenced by social media. That beat out online reviews and recommendations from friends and family.

So, if you haven’t already, start investing more time and money into your social media strategy. Download TikTok and start a regular posting schedule on Instagram. These social media platforms are getting more popular by the day, so don’t wait too long to get involved.

2. Open yourself to communication.

Just posting on social media isn’t enough. Now more than ever, we have a generation of individuals who not only expect companies to reach them, but also respond to their questions, comments, and feedback.

In a study by IBM, 60% of Gen Z respondents said that it was important for brands to value their opinions. They place a lot of emphasis on their interactions with companies and want to have their voices heard when it comes to areas of improvement.

Thankfully, based on reports from the same IBM study, members of Gen Z are twice as likely to provide positive feedback compared to complaints. When it comes to your business, your Gen Z customers want to help you succeed and do better.

So, respond to those comments on your Facebook, Instagram, and TikTok platforms. Watch out for emails from customers offering feedback on how to improve your product or service and reply in a timely manner. Because we can all agree that no one likes to be ignored.

3. Be authentic and transparent.

The last tip: build relationships with your customers through authenticity and transparency. Meaning, be straightforward about who you are and why you do what you do.

Gen Z is looking beyond what they can buy from your business; they want to know your company’s purpose, your mission, and why you’re the one they should go to for a certain product or service.

They don’t want to see brands hide behind the surface-level advertisements that have been around forever. As good as a sale is, Gen Z would prefer to see the value that your company brings.

It’s time to get personal. Be proud of where your business started and where you’re going. If there’s a social cause you care about, invest in those opportunities.

And never hide who you are. If you make mistakes or know you have room for growth, be transparent about what you’re doing about it. Members of Gen Z have grown up in the age of “fake news;” they’ll call out your BS.

At the end of the day, you know the value of your business and how important you can be to your specific industry. So, when it comes to marketing to the newest generation of consumers, practice open communication and authenticity. And tinker with that new TikTok account.