Born during a period of rapid technological growth and economic challenges, Generation Z is quick to adopt new technology and is cautious with their finances. They grew up immersed in advanced technology from a young age, making them more tech-savvy than previous generations. At the same time, they witnessed their families struggle during economic recessions, which has made them more focused on financial planning.
These factors distinguish Generation Z from millennials. For direct selling companies, it’s important to note that Generation Z is now entering their prime working years. According to the US Bureau of Labor Statistics, Generation Z currently makes up 11% of the American workforce, a figure expected to rise to 30% by 2030.
To attract and retain Generation Z as distributors or customers, companies need to conduct thorough research to understand their ideas, perspectives, and how they value brands.
Key Traits of Generation Z
Before building a distributor base with Generation Z, consider these six core personality traits:
– They value individuality and freedom of expression.
– They resist being defined by a single stereotype.
– They are committed to social causes.
– They believe in resolving conflicts through dialogue.
– They make decisions based on careful research and understanding.
– They are more selfless compared to millennials.
These traits shape their character and play a crucial role in onboarding, training, and engaging them as direct-selling distributors.
Onboarding Generation Z in Direct Selling
Generation Z values flexibility and the freedom to work at their own pace. Direct selling, which offers these benefits, can be an attractive option if presented in a way that resonates with them. Currently, entrepreneurship and flexibility are key selling points.
What Appeals to Generation Z
A study by Nielsen found that 54% of Generation Z wants to start their own businesses, and another survey by Bankrate and YouGov Plc revealed that 62% prioritize flexible job opportunities.
Generation Z is the most ethnically and racially diverse generation. They enjoy working with people from different backgrounds, so they are likely to be attracted to companies that prioritize diversity and inclusion.
They are also selective about brands, choosing those that deliver quality and value. Flashy advertisements and empty promises do not appeal to them; they care about the substance behind the brand.
Preparing to Onboard Generation Z
– Make the distributor onboarding process quick and easy.
– Include a comprehensive introduction to your brand.
– Familiarize them with your brand’s values.
Training and Engaging Generation Z in Direct Selling
As tech-savvy individuals, Generation Z requires little technical support to succeed. They adapt quickly to new tools and technologies, but it’s important to keep them engaged.
Direct selling companies should upgrade their business practices across social, digital, and mobile platforms. Generation Z values ease of access and staying up-to-date.
They also appreciate opportunities for skill development, which aligns well with the growth potential offered by direct selling. Revamping training modules to include interactive and gamified content can keep them engaged.
Generation Z prefers working in teams and looks to mentors for support. Creating support communities can help boost their confidence and engagement.
As Generation Z begins to surpass millennials as distributors and consumers, launching innovative and high-quality products, along with sustainable business practices, will help your brand appeal to this younger generation.
Insights from the DSA Survey
In a recent survey by the Direct Selling Association (DSA), companies were asked about their success in appealing to Generation Z. Here are some key findings:
– 43% believe digital, mobile, and social channels are most effective in attracting Generation Z.
– 14% think that simplicity, ease, or quickness is the best approach.
– Another 14% do not consider Generation Z as their primary audience.
– 10% cited various factors that appeal to Generation Z, including reasonable pricing, personalized service, new or quality products, remote or flexible work opportunities, and a brand with a clear purpose or cause.
Popular Social Media Platforms Among Generation Z
Social media plays a significant role in the lives of Generation Z. They use it to build connections, play games, and share content, making it an essential part of their daily routine.
Catering to Generation Z Customers: The True Digital Natives
Catering to Generation Z can be challenging because they are pragmatic and less tolerant of differing viewpoints. They value practical and holistic approaches.
A recent study by McKinsey highlights how Generation Z’s relationship with brands differs from that of earlier generations. The study offers three suggestions for building long-term customer relationships with Generation Z:
– Consumption as access rather than possession: Generation Z values products as services rather than something to own. They appreciate brands that provide excellent service and are likely to share their positive experiences within their social circles.
– Consumption as an expression of individual identity: Like millennials, Generation Z enjoys expressing their individuality through the brands they choose. They prefer brands that offer personalized experiences and align with their sense of identity.
– Consumption as a matter of ethical concern: Generation Z upholds high ethical standards in both their personal and professional lives. They expect the same from the brands they support, favoring those that align with their ethical values.