How to Sell to Gen Z: What Small Businesses Need to Know

Members of Generation Z (sometimes called Zoomers) are coming of age. The leading edge of the generation is entering the workforce and ready to spend money. But before you can sell to them, you need to know what Gen Z cares about and how they shop.

Insider Intelligence recently talked to Zoomers to find out what motivates them to spend.

How to sell to Gen Z: Find out what motivates them to buy

Sustainability on a budget

For years we’ve been told that Gen Z is “one of the most sustainability-minded generations.” But most Zoomers are still teens or in their early twenties. And while they care about the environment, they’re on a budget and are “choosy” about how they spend their money.

Insider Intelligence says this mindset is one of the reasons secondhand retail has become so popular, giving Zoomers the ability to buy the brands they like while also being environmentally conscious by keeping an item from being thrown away.

Brand awareness

Consumers, particularly Gen Z, are more aware of the actions and views of corporate brands because they keep tabs on them using social media. This can be beneficial for companies, especially small businesses, that are able to show the human side of their company, which makes them more relatable. Insider Intelligence says, “Being on social media adds a human element, making [your business] about the people more than the products.”

However, it can also expose views and actions that Zoomers don’t agree with that can quickly turn them off your brand and in search of a company that more closely matches their values.

Whom do they trust?

TikTok is extraordinarily popular with Gen Z—it is indeed their “platform of choice to discover new products, especially in the beauty category.” One Zoomer told Insider Intelligence that TikTok gives them more current content and exposes them to more new products or ones that have gone viral than YouTube does.

But like most consumers of all ages, Zoomers say recommendations from friends and family influence them the most when making a purchase.

They’re less loyal

Since Gen Zers are “uber-conscious about how much they consume,” they’re less loyal than older generations. One Zoomer said she “veers away from loyalty programs that make you try to buy more.” Instead, she chooses loyalty programs that focus on sustainability or offer discounts.

They’re not shopping in the metaverse

While there’s been a lot of buzz about the metaverse, Zoomers aren’t shopping there—yet. Some believe the metaverse will “evolve” into something they may use one day. But Insider Intelligence says to keep an eye on the next generation (Generation Alpha), who may be more eager to shop in the digital universe.

Another survey, Square and Afterpay’s State of Retail Report, shows that younger consumers (Zoomers and millennials) are increasingly shopping via mobile commerce. It reports, “In the past year, two-thirds of Afterpay online transactions from millennials and Gen Zers were made on mobile devices, with the volume of Afterpay transactions up 196% since 2020.”

These younger consumers are also using their mobile devices “as their primary customer support tool.”

“Buy now, pay later” has arrived

The retail report also shows that while Zoomers and millennials are the primary users of “buy now, pay later” (BNPL) services today, Gen Xers and baby boomers are increasingly using BNPL options.

One reason Zoomers embrace BNPL is that they’re buying more luxury items, which obviously cost more money. Gen Z’s share of luxury item spending is now 16%, up from 13% in 2019, while millennials’ luxury spend has decreased from 56% to 45% from 2019 to 2023. This is fueled, in part, by the post-pandemic return to the office. Square reports a year-over-year increase in sales of work clothes like dress shirts, oversized blazers, and dress sneakers.

Conscious consumerism

The retail report also covers sustainability and says that so far this year, millennials and Zoomers have a 69% share of spend on eco-friendly products. It suggests businesses “establish partnerships with sustainable brands by collaborating on give-back programs, marketing campaigns, and stocking their products.”

Insider Intelligence advises business owners that to attract Zoomers and millennials, they “need to be intentional about running their businesses in an environmentally conscious way without being seen as performative.”

How To Get Influencers To Promote Your Product

By Brett Farmiloe

For promoting a brand, influencer marketing has become a key tool for digital marketers. So how can a small business find influencers and what are best practices to get them to promote your brand and company? From ensuring that your product aligns with the influencer’s brand to making them the protagonist of your compelling story, 14 entrepreneurs and marketers share their best advice.

How to get influencers to promote your business

1. Turn to influencers in compatible industries

“To find influencers to promote your product, you need to find people in similar industries who have similar target audiences. For instance, if you’re a healthy food and beverage company, it makes sense to partner with an Olympic athlete. Or, if you sell products for the home, then a partnership with a well-known interior designer would be a good fit. Create professional relationships with compatible influencers and it won’t be a hard sell for them to promote your brand.”

Melanie Edwards, Olipop

2. Send PR packages to influencers

“For any new product launch, be sure to add influencers to your send-out list. In the shipment, include a handwritten note to the influencer so your message feels more personal than a sales pitch. List the benefits of your product and how to use it, as well as the social media handle, so they can tag you in their post if they do decide to promote it.”

Natália Sadowski, Nourishing Biologicals

3. Utilize a bespoke affiliate marketing strategy

“Many influencers will not work with affiliate programs on traditional commission structures, and are far more likely to respond positively to a proposal of a bespoke commission structure from the outset. Higher commission rates encourage them to mention or review your product across their entire sphere of influence, meaning that you as the business owner can get a better understanding of which medium of promotion is best suited to your affiliates based on the metrics that matter to you.”

Andy Way, PartyLite

4. Ensure your product aligns with the influencer’s brand

“Figure out what exactly a particular influencer represents and if your company’s cause aligns. If your product or service addresses a specific problem, you should be able to answer the question “How would this influencer pitch this?” before even reaching out. The creative potential should feel obvious and organic.

“For our hands-free shoes, it was easy to determine that “momfluencers” always on the go could easily speak to the benefits of our product. After all, influencers understand better than anybody how much authenticity matters; otherwise, they stand to lose followers. They will appreciate your company for understanding their brand before taking the time to pitch.”

Monte Deere, Kizik

5. Speak the influencer’s language

“Lead with the data that supports a successful partnership when contacting potential influencers. Hard data is the proof in the pudding that makes business sense, and gives a great first impression that you respect the influencers’ time. Speaking their language goes a long way, since many companies make the mistake of underestimating influencers’ business acumen.

“Take the time to do the research and analyze your crossover followers and other statistics that show how this partnership can be mutually beneficial. Before you get the chance to talk creative, influencers like to know you can first talk business.”

Theresia Le Battistini, Fashion League

6. Use influencer marketing platforms

“Using influencer marketing platforms is the best way to get influencers to promote your product or service. It eases the selection process by analyzing the provided information of influencers on the platform. In addition, platforms provide various options of influence for your product and service. For example, AspireIQ, a marketing platform, can help you get influencers for brand events and solicit customer reviews. In addition, it allows you to collaborate with influencers on content for YouTube, Instagram, Facebook, Snapchat, and blogs, so you can quickly produce leads.”

—Karen Cate Agustin, Investors Club

7. Make them the protagonist of your compelling story

“You stand to enjoy the best returns in your influencer marketing if your influencer is emotionally engaged in your project—and not just drawn in by the dollars. Make your project their project by internalizing them into your brand story. This is more than just getting them to smile with your product for their audience. It’s blending your compelling brand story with them so that they tell their story to their audience through you. Get to know your influencer. Was there a critical point of their life (or journey to the top) that they can recreate with your product for their audience?”

Lotus Felix, Lotus Brains Studio

8. Give influencers access to your products

“Provide influencers with the tips and tricks to achieve the best results using your products. For example, we sell teeth-whitening kits. Providing these kits to influencers and explaining to them the appropriate way to use our products helps ensure they receive maximum results. We have found that when influencers are impressed with the results they see, they are happy to promote our products. Not only are they able to promote the items, but they are able to share the correct way to use the products to ensure their followers get the same results. This is a critical step because if a product is not used as directed, results will vary, which can lead to less-than-stellar reviews.”

Caroline Duggan, Lumineux

9. Offer incentives

“The way we approach influencer marketing and the way we get influencers to promote our website is by offering them a percentage of our earnings as an incentive. Think of it like this: if you give an influencer $1,000 to promote your product, they will likely create some content, post it, and forget about it. However, by offering them incentives to earn back a percentage of total earnings, they will be very motivated to create great posts and continue promoting your product for months to come.”

Gilad Zilberman, SeatPick

10. Use the Instagram Shopping feature

“The best way to get influencers to promote your product is by giving them a code for their followers so they can earn a commission on purchases. For example: if an influencer promotes one of your products on
Instagram Shopping, customers can buy your product instantly without ever having to leave the app. The process is seamless and highly effective.”

Cayla Gao, Depology

11. Put effort into maintaining relationships with influencers

“Cold messaging can work to secure influencer promotions, but you’ll land more yeses if you’ve already established a relationship with them. You should always keep influencer leads warm, even while you’re not actively building an influencer campaign or looking for promotions. Like and interact with posts, stay present in the comments, and cross-promote their user-generated content across your social media channels. When influencers see you working to elevate their platform, they’ll be more open to doing the same for you.

“You’ll want to build a solid Rolodex of influencer friends you can call on when you’re ready to promote. Influencers that already know your product and feel positive about your brand will make for faster and easier negotiations!”

Maximilian Wühr, FINN

12. Find an influencer who’s also a customer

“For an influencer to promote your product or service authentically, partner with one who already uses your products. If you find someone who is like-minded, has a large following and is already a fan of your products, then it will be easy for them to promote what you sell. Also, any influencer you partner with should have a target audience with similar values to those of your customers. The partnership should make sense.”

Kim Walls, Furtuna Skin

13. Build relationships with influencers

“Don’t expect influencers to promote your products without establishing a real relationship with them first. Of course, some will advertise anything for a fair amount, but this shouldn’t be your goal. A perfect influencer is a brand ambassador who understands your company’s goals and mission, and can identify with it and your products.

“So start with reaching out to influencers from your niche and ask them about products they use, whether they have ever come across your brand, and whether they would be interested in trying your products. If you receive a positive response, send them free samples for testing. That is one of the best ways to get someone on board.

In the meantime, arrange a meeting during which you feel the mutual flow or find a common vibe. Now is the time to create a genuine business relationship and offer commercial cooperation. Present your expectations, listen to the influencer’s requirements, and move forward with your joint advertising campaign. The deal is sealed.”

Nina Paczka, LiveCareer

14. Host a launch party

“Host a launch party and invite influencers to the event. Not only is this a great
marketing tactic, but also helps with public relations as you can also invite magazine editors as well. Consider hosting a dinner party or a fun, unique event where influencers can interact with your product. This creates a more organic approach to encouraging influencers to promote products while having fun doing it.”

Lindsay Malu Kido, Empower Pleasure

About the Author

Post by: Brett Farmiloe

Brett Farmiloe is the founder and CEO of Terkel, a Q&A site that converts insights from small business owners into high-quality articles for brands.

Company: Terkel.io

Website:
www.terkel.io

Connect with me on
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