The conversation about Gen Z's impact on marketing is one that you can't escape. They’re the largest growing demographic with increasing buying power, the new golden child of consumer goods. And they have a new way of doing things. The central premise of this different breed of consumer is that brands are no longer the focal point of a marketing strategy; instead, it’s the community. While some may argue that Gen Z has broken or flipped the marketing funnel on its head, the truth is that the fundamentals remain unchanged; it’s just that the funnel is not a linear journey anymore but instead an infinite loop with no clear starting or end point. This means the end goal for brands – sales – remains the same, but the path to getting there has evolved.
To fully grasp this shift, you need to understand who Gen Z is. They are a cohort that knows who they are, and are confident in their priorities, values and boundaries. They have an infinite source of knowledge at their fingertips and are experts at navigating through the saturation of content to find what’s important to them. They are raised and connected by technology and see social media as a single hub for everything – entertainment, connection, learning, and news.
The traditional marketing funnel with stages like awareness, consideration, intent, and purchase – the linear journey – simply won’t work for Gen Z. They demand a new framework. One that looks like this: inspiration, exploration, community and loyalty. It reflects how the marketing funnel and consumer journey are now intertwined, as Gen Z actively participates and contributes to the marketing strategy.
But, as a brand or marketer, to really understand this framework we need to dive a little deeper.
Inspiration
The shift from awareness to inspiration signifies a fundamental change in how brands need to engage with Gen Z. It's no longer enough to simply be seen; brands must earn their place in the cultural conversation by aligning with the values and interests of their audience. This requires a deeper understanding of what drives Gen Z and a willingness to invest in authentic, relatable content that resonates on a personal level.
The rise of micro influencer campaigns is significant in showing success comes from meeting consumers where they are—both in terms of platform and mindset—and offering solutions that feel tailored and relevant. Brands that can inspire and empower their audience will not only capture attention but also foster loyalty in a generation that values connection and authenticity above all else.
An unexpected brand engaging Gen Z is Aldi, with recent campaigns across TikTok and Instagram around “The 5 day dinner challenge” or “Frozen feasts” leveraging the shopping haul trend online by delivering key messages through extremely relatable micro Gen Z creators. Their messaging of "how I can get more for less" resonates with the average consumer facing similar issues when it comes to groceries.
Exploration
In the exploration phase, consumers no longer just show interest – they need to know how a product caters to their exact needs. Personalisation is paramount. Gen Z won’t just pick any moisturiser off the shelf because it’s great value and good quality; they want to know if it’s suitable for oily, dry, or combination skin, and how and if it works with other skin products. Not to say that other generations don’t do this, but Gen Z in particular are searching for first-hand reviews. It’s not about just reading the packaging and believing the “tried and tested” label on the box; it’s about seeing the product work in real time on their own skin type. They need proof and visual undoctored confirmation. Authenticity, in the exploration phase, plays a huge role in influencing purchase decisions; critique is just as important as positive feedback. They seek honesty and reviews that aren’t trying to sell but to inform.
A standout quote from Gen Z broke the marketing funnel in Vogue Business says that “The research phase is crucial for brand trust: 70% of Gen Zs and 69% of Millennials only trust a brand after carrying out their own research.” That is 100% correct. Look at TikTok, which has overtaken Google as the search engine for younger generations. Research from the same article shows that 40% of Gen Z looks for reviews from online influencers, seeking validation beyond the brand itself. They are in a constant state of searching, exploring and validating their interests.
Despite misconceptions that social media trends like "TikTok made me buy it" indicate impulse buying, it’s actually driven by Gen Z’s research-driven approach. They actively engage with creator content, seeking honest opinions and feedback before making a purchase. That creates fertile territory for brands to play into this space, by providing relevant product information and reviews in the right spaces.
Community
For Gen Z, being part of a community means having "skin in the game". They want to be seen, heard and involved with their chosen communities, which often are businesses and brands that they like. Brands that highlight, share, and collaborate with their communities will thrive.
One such example of this is Brittney Saunders, the founder and owner of the Australian women’s fashion label FAYT, who is also a mega influencer often seen sharing behind the scenes and “a day in the life” of her brand’s warehouse on social media. This type of exclusive and insider content she offers engages her community deeply, making them feel involved, valued, and a part of the brand’s journey.
Brands must look to move beyond transactional relationships and instead at fostering genuine connections with their audience. Influencers play a crucial role in this dynamic by acting as trusted voices that bridge this gap quite nicely between brands and their communities.
Loyalty
Loyalty is no longer just about repeat purchases; it’s about advocacy and the mutual value shared between the consumer and the brand. Consumers want to be acknowledged and rewarded, whether through loyalty programs, public recognition, by or brands taking their feedback seriously.
Influencers are pivotal in this new loyalty landscape, serving as both advocates and intermediaries who amplify consumer voices. They can help brands maintain a pulse on their community’s sentiments and ensure that consumer concerns are addressed in real-time.
The backlash against Witchery’s “fresh design direction” and new collection with reduced size range – dressed up as a rebrand – shows the importance of not only listening to consumer concerns, but taking action on it. Ignoring these can disrupt the community and diffuse brand loyalty, which takes time far longer to build than to destroy. What this means is, put your money where your mouth is.
Gen Z is the first generation in a long time who are inherently different to previous ones. Brands can no longer make slight adjustments and expect to get the similar results with consumers. As a brand or marketer, you need to change your strategy for Gen Z. The marketing funnel isn’t dead, it’s just redefined. It’s dynamic, the journey is continuous and the consumer is community-driven. The end goal is the same, you just need to change the way you get there.
Emma Woods, Account Director, Social Soup