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By Chloe Cheimets, VP of Research, Perksy
In times of social change, brands – and by extension the consumer researchers who advise them – are faced with a difficult set of choices. Speak out and risk overstepping your credibility or stop communicating and potentially alienate consumers with your silence. COVID-19 and the current movement for racial justice have renewed the urgency of these choices. Over the last five months, Perksy has been measuring sentiment around brand communication with a focus on the feelings of Gen Z, a generation notoriously difficult to reach on traditional platforms. Our research shows that Gen Z consumers not only expect brands to communicate more during these difficult times, but also to meaningfully contribute to the solving of social issues.
So, who are Gen Z, the generation emerging into adulthood in the midst of this enormous uncertainty? Born after 1996, they are, according to a Pew study published in May, the most diverse generation in the United States, composed of only a thin majority (52%) of non-Hispanic white people. They are also poised to be the most educated generation, with 57% of current 18-21-year-olds enrolled in college. Crucially, Pew states that 70% of Gen Z believe that the government should do more to solve problems, the highest proportion of pro-government sentiment in any generation. In Perksy’s research, we’ve found that among Gen Z, this desire for institutional intervention in social problems extends past the government to brands.
At the start of the pandemic, Gen Z felt least vulnerable to the effects of the disease. In late March, when cases had begun to rise, Perksy data showed that only 19% of Gen Z respondents were very worried about the effects of COVID-19, compared to 24% of Millennials, 37% of Gen X and 40% of Baby Boomers. Despite this skepticism, Gen Z were more likely than older generations to want communication from brands during this time. Fifty-six percent of Gen Z (compared to 46% of Millennials) wanted brands to communicate more during the pandemic. Gen Z also wanted brands to directly address the pandemic in their marketing materials. Forty-nine percent of Gen Z consumers wanted to see communications addressing COVID-19 compared to only 33% who wanted communications that did not.
As the pandemic progressed and the movement for racial justice grew, Gen Z consumers’ lives changed drastically. They underwent personal and familial job loss, witnessed the scope of racial and economic inequality and found their educational futures disrupted. Our research shows that these experiences have changed them more than any other generation. Fifty-nine percent of Gen Z report being more aware now of racial injustice than before the pandemic (compared to 48% of Millennials) and 47% more aware of income inequality. A change in attitudes about brands has accompanied this shift in perspective. Gen Z consumers are more likely than any older generation to believe that the role of brands has changed since COVID-19. For example, 36% of Gen Z believe brands are creating community during this time, compared to 30% of Millennials and 19% of Gen X. Gen Z is also optimistic about the impact brands can have on injustice. Sixty-eight percent of Gen Z consumers believe brands can make real change regarding racial inequality.
In the future, attracting and maintaining Gen Z consumers will require regular communication about pressing issues and a dedication to making the world a better place. As time passes and the Gen Z generation becomes an increasingly powerful share of the economy, successful brands must adapt to the role this generation expects them to play in their lives.
To learn more, visit www.getperksy.com.