Do you hear the footsteps? Generation Z is at the door. They were born between 1997 and 2012, they number about 72 million and they have an estimated annual buying power of nearly $300 billion. Perhaps most notably, they’re the first generation to never know a world without the internet; they grew up with cellphones and their virtual lives seem as real as IRL. The oldest of them are about 25 and getting ready to enter jobs where they might be able to influence decision-makers. So maybe it’s time for Freelancers to get to know Generation Z?

They’re not the same as their predecessors, the Millennials, who grew up in more stable financial times and have a different outlook on life and different spending habits. Defining memories of particularly the older Gen Z cohort members were formed during the Great Recession of the 2000s and it wasn’t pretty.

Tough times were waiting for us when the new millennium arrived, bringing the one-two punch of the market-crashing dot-com sell-off that was soon followed by the September 11, 2001 attack on the World Trade towers. A few years later, the subprime mortgage scam and real estate market collapse in 2007 caused thousands to lose their homes and their money. Remember also the the demise of the Bear Stearns and Lehman Brothers investment houses in 2008 and a few months later, the exposing of Bernie Madoff’s Ponzi scheme, when even Stephen Spielberg took a hit.

Many Gen Z members were raised in families that had financial worries, if not hardship, and they’re made of different stuff than Millennials who, on average, experienced a more supportive economy. Experience seems to have given Gen Z a practical, cautious and even skeptical bent. For example, they are often concerned about the values and beliefs of those they do business with. They are also price conscious.

Affinity for small business

Since January 2020, Gen Z increased its small business spending by more than 260% according to Afterpay, an Australia-based payment platform that’s designed to be supportive of the credit-building needs of its users (and seems so totally aligned with the Gen Z style). Afterpay reports that Gen Z small business purchases were 80% higher than Millennials. This is being interpreted as a response to the pandemic, since it was well known that thousands of small businesses were struggling or going under.

Gen Z prefers online shopping and not only for the convenience. Marketing survey results show that most were driven by the ability to contribute to the local economy, with 77% of Gen Z customers reporting that online shopping allows them to discover products from new or small companies they wouldn’t be able to find in person. Only 38% say they prefer in-store shopping. A June 2021 survey conducted by the France-based marketing company Sendinblue and CITE Research, the survey and research marketing firm, found that 46% of Gen Z shoppers had purchased more items from small businesses than they had before the pandemic.

Another interesting insight is that Gen Z customers are more willing to share their data with small businesses that they frequent, in exchange for discounts and deals. However, they insist that the business inform them of how the information will be used. That’s great news for Freelancers and small business owners and leaders who are figuring out how to reach and persuade Gen Z prospects to become customers.

Finally (and no surprise), a 2021 Consumer Culture Report compiled by PR and marketing firm 5W Public Relations showed that Gen Z gravitates to electronics and technology. Health and wellness emerged as their second favorite category. While the Zs are financially cautious and love a bargain, they can be persuaded to make larger purchases that offer fun experiences or improve their daily lives. They like video games.

It’s important for Freelancers and marketers in general who want to reach Gen Z to create content that demonstrates usefulness to cohort members. Make clear why they might need the product or service by communicating how it will improve their life, for example, improve health or promote fun, and also explain why your product or service is better than what competitors offer.

Thanks for reading,

Kim

Image: Fortnite™, the video game favored by Generation Z