Head of Brand Partnerships at Wattpad, the world’s largest storytelling platform with 80+ million people.
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After months of lockdowns around the world, many countries are starting to cautiously reopen. Our collective emergence will be slow and tentative, but it’s already clear that Covid-19 has changed the world outside our homes, with new public safety guidelines that could be in place for a long time to come.
What does this mean for brands? Well to start, after working to understand the newest generation of consumers, Generation Z, I believe marketers may find they have new behaviors and habits. As economies start to slowly reopen, Gen Z may emerge different from when the world began to quarantine.
This past spring, near the beginning of pandemic’s stay-at-home orders in North America, Wattpad, the company I work for as head of brand partnerships, began research to identify and understand the lasting impact the crisis could have on Gen Z. The shifting tides of sentiment are clear, and our research shows that Gen Z is reevaluating every aspect of how they live, work and buy. Just how big could this change be? Well, today, 41% of the Gen Zers we surveyed say they’re reevaluating their careers, and 69% are reevaluating their education.
But most importantly, our research indicates that nearly one-third are now less trustful of brands. That’s right: In an era when consumer trust in brands, media and institutions was already precarious, the impacts of the pandemic have eroded trust in brands even further. For reference, according to a December 2019 survey, more than two-fifths (42%) of Gen Z adults already said they tend to not trust average American companies. The ultimate impact of this decrease in trust is impossible to know.
Over the last four months, brands have experienced one of the largest shifts in how they can connect with consumers. As we begin to see what a post-pandemic world might look like, brands that want to thrive in the new normal will have to understand Gen Z today.
Appealing To A New Set Of Expectations
From saving more money to spending more time communicating with friends in person, our survey found that there are significant shifts in how Gen Zers plan to live and spend their time after the pandemic. This desire for more in-person connections and experiences is notable — and perhaps expected. So, while the world becomes more comfortable with digital experiences, connecting in person, in the “real” world, will likely matter more than ever.
The focus on brand purpose will remain, and possibly even grow stronger, in the future. Having an innovative, cool or desirable product no longer makes the cut. We’re finding that this generation, along with other consumers, is looking for companies that embody a clear purpose and positive social mission.
As brands began to proclaim that we’re “all in this together,” I noticed that many media outlets and consumers noted how hollow these words sounded when not coupled with actions to help people. Brands that made meaningful contributions to their communities won much-deserved praise.
Designer Christian Siriano revamped factories to make masks and gowns for hospital workers that were in short supply. Etsy was lauded for its quick pivot to help all sellers make simple and affordable masks, in addition to the millions of dollars it invested to support small businesses during the pandemic. Actions made a more lasting and positive impression than words.
Further, brands like Microsoft — which committed $150 million to programs that will diversify its workforce, suppliers and partners — are making their mark and gaining support. And looking at Ben & Jerry’s and its response to social issues, it’s no secret this brand is a media and consumer darling.
This isn’t a new trend, however. Last year, one study revealed that “69% of [Gen Zers] are more likely to buy from a company that contributes to social causes, while 33% have stopped buying from a company that contributes to a cause with which they disagree.”
For brands today, it’s important to take a stand and stick by their company beliefs — something that became even more apparent amid recent world events. If you’re going to do so, don’t sugarcoat language. Speak to your consumers as trusted friends. Take after Ben & Jerry’s and build a fanbase with a much deeper investment and stronger relationship than your standard ice cream lover. These are the types of real-world contributions Gen Z expects from brands today and will continue to expect into the future.
The Brands Of Tomorrow
The need for a value-driven mission is not new. But in the midst of a global pandemic — and global protests against systematic racism, police brutality and the oppression of all marginalized communities — telling people your brand is here to support them is different than showing them exactly how you can help and making real, material investments.
Many consumers, especially Gen Z, want you to know that they expect more than words. In fact, even in the midst of a pandemic, Gen Zers see hope on the horizon. Forty-three percent of those we spoke with are optimistic that society will come together and build a better world after the pandemic.
Brands of the future won’t be judged by how many clicks their funny memes generate. The true test of a brand will be how it understands and responds to consumers’ values of today. Consider how your brand can be a true partner in making the world a better place.
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