Do Companies Have a Gen Z Problem?
With each new generation questions arise about their ambitions, experience, unique aspirations, and shifting priorities. For companies, understanding and effectively engaging with these changing demographics is crucial for long-term success. So, the question arises: Are companies facing a Gen Z problem?
Generation Z, is coming of age in a time of unprecedented technological advancement and societal change. Unlike the generations before them, investing in property and following traditional financial pathways is not realistic. Therefore, they’re looking for new ways to secure their financial futures.
According to a Motley Fool survey, Gen Z are the generation most likely to invest in individual stocks and they are more likely to invest in individual stocks than any other type of investment (mutual fund, crypto, pension etc). This means there’s a huge opportunity to companies to step in and build meaningful relationships with potentially long-term investors.
With access to vast amounts of information at their fingertips, Gen Zers are more informed, connected, and empowered than ever before.
However, despite their potential as investors and consumers, many companies are struggling to connect with Gen Z on a meaningful level. This disconnect stems from various factors, including differences in values, communication preferences, and financial priorities.
One key area where this divide is evident is in the realm of investing. While previous generations may have prioritised traditional investment vehicles or relied on financial advisors, Gen Z is forging their own path. With the rise of commission-free trading platforms, accessibility of information via social media and accessible investment apps, Gen Zers are increasingly taking control of their financial futures.
Yet, despite their growing interest in investing, many companies have yet to fully tap into this demographic. From outdated communication strategies to a lack of relevant content, companies often fail to engage Gen Z in a meaningful way.
So, what can companies do to better connect with Gen Z investors?
First and foremost, companies need to recognise their role in improving financial education. Access to financial markets has never been better, but the younger generation needs to be empowered, through education, to take the step to invest.
We have to place emphasis on demystifying personal finance and investing. But we also need to make it fun. At TEA, we’re calling on companies to understand how different generations consume educational material, and when engaging with Gen Z, to invest in ‘edutainment’ – to explain complex concepts clearly, with a level of gamification.
Companies also need to play catch-up and leverage digital platforms and social media channels to reach Gen Z where they are. With platforms like TikTok, Instagram, and YouTube dominating Gen Z’s online landscape, companies must adapt their communication strategies to meet these preferences.
Ultimately, instead of seeing Gen Z as a problem. As a demographic that’s unreachable. Companies must recognize the value and potential of Gen Z investors and take proactive steps to engage with them authentically and meaningfully.
By understanding their unique preferences, priorities, and aspirations, companies can build lasting relationships and secure their financial futures.
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