A recent collaborative article from Vogue and Archival titled “Gen Z Broke the Marketing Funnel” suggests that Gen Z has effectively shattered the old marketing funnel. And honestly? I couldn't agree more. But here's the twist — it's not just Gen Z; it's everyone. Millennials, Gen Xers, Boomers — we're all changing how we consume, and businesses need to catch on, fast.
The traditional marketing funnel, rooted in the AIDA model from the late 20th century, has long been the go-to guide for marketers. But as consumer behaviours evolve, it's clear that change is necessary. Enter Gen Z, the generation of transformation, who are set to revolutionise how we view and navigate the shopping journey. With their unique priorities, influences, and tech-savvy approach, Gen Z is leading the charge in reshaping the conventional consumer funnel.
According to the Vogue and Archival article, Gen Z's consumption journey has evolved into an infinite loop, flowing seamlessly from inspiration to exploration, community, and loyalty.
This dynamic landscape blurs the traditional lines, creating a fluid dance between discovery and engagement.
Each stage of this loop is crucial for understanding the new shopping behaviour, presenting both challenges and opportunities for brands.
“Gen Zs are reinventing the very notion of brand loyalty. They’re largely open to it, but they expect brands to earn it — and to continue to win them over in new and innovative ways for the long haul.”
Ben Harms — Chief Growth Officer at Archrival
Gen Z, the younger generation, has a whole new set of priorities, influences, and tech tools compared to the rest of us. This has blurred the lines of their buying journey, making it far less predictable — or “traditional,” if you prefer. Join us as we dive into Gen Z's shopping habits and uncover how this new consumer journey is impacting everyone.
Inspiration Stage
In this stage, we see Gen Z's digital fluency taking the spotlight. This generation, practically born with smartphones in hand, views social media not just as a tool, but as a trusted companion, especially when seeking inspiration. Online platforms are their virtual runways, where they both draw and share inspiration. It's no surprise that nearly half of them report shopping or browsing for items to purchase on social media at least once a week.
97% of Gen Z consumers rely on social media as their go-to source for shopping inspiration.
Source: Status of Social Commerce Report,The influencer Marketing Factory
In a world where content floods our feeds, standing out is a challenge for brands. But Gen Z, digital natives that they are, are up for it. As Ben Harms, Chief Growth Officer at Archrival, puts it, "They consider inspiration and discovery foundational to their experience and even core to who they are."
Yet, the real challenge is delivering that inspiration precisely when and where it's needed. Platforms like YouTube, Instagram, TikTok, and Snapchat dominate Gen Z's digital world, but simply being present isn't enough. Authentic connection is key.
Creators also play a crucial role in this journey, with 7 out of 10 Gen Z users finding TikTok creator content relatable and attributing social media creators to setting new trends. Moreover, Gen Z values diversity, preferring brands that collaborate with a wide range of creators.
Exploration Stage
As social media became a bigger player in inspiring purchases, everyone thought Gen Z would be all about impulse buys with those convenient "swipe to buy" options. That's how social commerce platforms like TikTok Shop came into being. But it turns out, Gen Z isn't as impulsive as you might think.
68% of Gen Zers read or watch at least three reviews before a first-time purchase.
Source: Status of Social Commerce Report,The influencer Marketing Factory
They’re all about doing their homework before committing to a purchase, treating social media like a search engine. According to TikTok's Head of Luxury and Auto Brand Partnerships for Global Business Solutions, the platform's search volume has increased "dramatically" over the last two years, showing just how much Gen Z relies on social media to seek out product information and gather insights from others.
Even though they're glued to their screens, Gen Z still appreciates the in-store experience. It's not just about the transaction; it's about personalization, socialisation, and self-expression. For Gen Z, the in-store experience fosters a sense of community, serving as a powerful means of forging connections. When it comes to converting Gen Z, it's all about hitting the right notes with your messaging. If they feel like you're not speaking their language, they won’t hesitate to check out what others have to offer.
Community Stage
The secret to success for brands today lies in fostering a sense of community. It's not just about selling products anymore; it's about making shoppers feel like they're part of something bigger and more meaningful. Brands that excel at this stage go above and beyond by engaging Gen Z with experiences that resonate deeply.
After all, 64% of customers say shared values are what create a trusted bond with a brand.
What makes a brand stand out? It goes from offering exclusive content to challenging social norms, engaging in the comments, and sponsoring events that their audience loves. Brands that evoke strong emotional connections receive three times more word-of-mouth recommendations than those that don’t.
Gen Z certainly values community, but they expect brands to continuously earn it by providing engaging experiences over time. That means offering a diverse range of touchpoints for exploration beyond mere transactions in the realm of Gen Z shopping.
While community isn’t necessarily synonymous with loyalty, when done right, it can certainly foster it. Brands need to invite Gen Z into a community where they feel valued, understood, and motivated to stick around. The best way to do this is through brand ambassadors who embody the brand's values, solidifying the community bond.
Loyalty Stage
Once you've built your community, cultivating loyalty becomes easier. While loyalty metrics usually focus on repeat sales, it's wise for brands to broaden their view, especially with Gen Z. This generation seeks a more reciprocal relationship, where loyalty extends beyond transactions.
For Gen Z, loyalty isn’t just about making purchases. According to Archrival, it's about genuinely loving a brand, even if they haven’t bought anything, and actively engaging on social media. So, it's all about building real connections and keeping the conversation going.
40% of customers follow brands they like on social media.
39% of customers will spend more on a product if they are loyal to a brand.
Market Data Report 2024,Gitnux
Another big factor in keeping Gen Z hooked is user-generated content (UGC). It creates a sense of belonging and involvement, allowing consumers to stay connected to the brand even after a purchase. That's why brands need to prioritise creating authentic, high-quality, and innovative content strategies to retain Gen Z's loyalty over time.
And let’s not forget about values. Gen Z is known for being conscientious and socially aware. According to the PDI Business of Sustainability Index, 91% of Gen Z say they want to buy from sustainable companies, and 77% are willing to pay more for it. Diversity, ethics, and sustainability are critical factors for Gen Z when choosing which brands to support. They won't hesitate to drop a brand if it doesn't align with these values. Transparency is essential here, as Gen Z expects brands to walk the talk when it comes to important issues.
Stay true to who you are and show Gen Z that you're on the same page, and they'll stick around.
Social media isn't just a place for selfies anymore. It's become Gen Z's go-to for entertainment, socialising, learning, and staying updated on the latest news. It's also where societal issues are highlighted in real time. This blend of roles has turned the shopping experience into a mix of different influences and perspectives. No wonder online retailers like Temu and Shein are thriving — they've become an integral part of their customers' online lives.
"Consumption today is an infinite loop of inspiration, exploration, community, and loyalty," says Archrival.
And you know what? They're absolutely right.
For many traditional, well-established companies, this means stepping out of your comfort zone and getting comfortable with being uncomfortable.
To thrive in this ever-changing landscape, brands can partner with experts like 365 Digital. From igniting initial interest to nurturing community connections and building lasting loyalty, 365 Digital provides an all-encompassing solution.
Collaborate with us to tap into the power of authentic social content to fully engage with Gen-Z at every stage of their shopping journey.