Unintended consequence

“Unintended Consequence.” This is a term used by marketing guru Mark Schaefer in describing the current situation as shuffled and reshuffled by the pandemic. He says: “The people of the world have been whacked out by the fear, grief, and upheaval of a pandemic. Some of the consequences are obvious. We’ve learned new ways to work, shop, learn, connect, date, work out, and entertain ourselves, to name a few. But perhaps our marketing future will be determined by unintended consequences we can’t fathom at the moment.

It will take a long time to sort out what goes back to normal and what new norms transcend the pandemic.”

Perhaps Shaeffer has a flair for the dramatics and theatrics being a marketing person, but he makes a lot of sense.

Then in one of his recent articles, Schaefer says: “Enter the bizarro world of the next-generation consumer.” This one caught my immediate attention by becoming acquainted and involved with the retail industry. Michael Schaefer challenges the readers with the following.”

Take a look at this demographic profile. This group of consumers:

• Prefers a physical retail experience over online shopping.

• Loves physical goods over experiences.

• Likes paying with cash.

• Is by far the least loyal to brands.

• Are less physically active than other generations.

What would you guess? Baby Boomers? And with his flair for the dramatics, Schaefer says: No, it’s Gen Z, and this demographic insight comes from a fascinating new report from GWI, an excellent source of market research.

Gen Z, our next-generation consumer, will soon rule the world. At 32 percent of the world population, they will represent most of the workforce by 2030. They are the first digitally immersed generation and already have an outsized voice in taste, culture, and civil activism. They know they can change the world, and they’re on the march.

And then Schaefer breaks it down into the following Generation Z trends:

Loving the mall

Gen Zs spend almost all their time online, so surely they’d be most eager to shop online as well? Not true. The next-generation consumer may be digitally immersed, but when it comes to their shopping experiences, they’re more likely to prefer physical settings. One of the reasons is that they love to gather in places with friends to document their shopping experiences to take selfies.

Preference for products

The fact millennials prefer purchasing experiences over products has become a well-known cliche. The generation has given life to the experience economy. But while millennials strive for memories over memorabilia, Gen Zs haven’t followed suit. Gen Z, especially those younger than 20 years old (many of whom are still in school), are more likely than any other age group to say they would opt for products over experiences. They need physical products to display in their selfies, for example.

Cash, please

Gen Z is an impulse-buying generation, and they don’t like credit.

Gen Z are well-acquainted with online shopping and mobile payment services, their interpretation of “cash” might not be physical per se, but funds they can immediately access. In other words, these youngest consumers simply aren’t spending on traditional lines of credit.

Less loyal to brands

Gen Zs may be more inclined than older consumers to shop in-store, but they’re also introduced to a more extensive list of brands online. They’re the most likely generation to discover new brands on digital channels, from social media to ads on websites and apps, and they’ve become much less loyal to brands. They seem to be immune to discounts and reward programs.

Put simply; brands will have to turn their playbook upside down to hold onto Gen Zs as customers. A new type of marketing will have to emerge. I think the focus will be on genuine connection and “belonging” instead of “loyalty.”

The most important lesson here is not assuming Gen Z will follow the same path as millennials. They will seek refuge in safe online communities and organizations that embrace them on their terms. This is a complex generation forged from ubiquitous accessible technology, a dangerous and polarized world, and the consequences of a once-in-a-lifetime pandemic. Interesting times says Mark Schaefer, and here I end his material.

The question now is, “How do leaders lead them?” Hiring managers are eager to find candidates who are dependable, resilient, and good communicators. Curiously, one industry magazine said very recently, “The most in-demand skills are soft skills, according to a recent global report about the future of work. Now you know why Schaefer calls these “Unintended Consequences.” Yes. These are interesting times.

(Francis Kong runs his highly acclaimed Level Up Leadership 2.0 Master Class Online this Aug. 17-19. For inquiries and reservations, contact April at +63928-559-1798 or and for more information, visit www.levelupleadership.ph).