“We definitely need more empathy towards all generations.” Anna Petrescu, Strategy Director working with Don’t Panic, is calling time on the rinse-repeat cycle of stereotyping generational cohorts.

“Every generation has been labelled in a negative way at some point in time. Baby Boomers were selfish, Millennials were lazy and now we have all the stereotypes surrounding Generation Z,” she explains. These stereotypes matter because not only do they stop people from achieving their full potential, they stop marketers from making a meaningful connection with consumers. Stereotypes are never a shortcut to sales. This is why the sharp-thinking Petrescu is focused on helping brands look beyond them.

That shift starts with the basics. Petrescu explains: “Something that often surprises my clients is the reminder that Gen Z are not that young. The oldest members of this generation are pushing 28, meaning they aren’t just university students.” She continues: “Many of them have been part of the professional world for some time and have very real challenges such as building families, working and dealing with financial anxiety.”

This is the challenge of looking at age as a key differentiator. She explains: “Looking at any generation as a homogenous group is a big issue in itself. It is important to remember that if you’re struggling to engage with Gen Z audiences, the problem isn’t them, it's you.”

Curiosity is the differentiator 

In place of the usual empty stereotyping that accompanies age-based analysis, Petrescu is laser-focused on surfacing the nuances in Generation Z’s experience. From the Great Recession to the Covid pandemic, a new Trump presidency and Charli XCX’s Brat Summer, this generation has been at the sharp edge of culture.

At the same time, the AI revolution comes hand in hand with anxiety. According to Don’t Panic’s research, 53% of Generation Z say that AI makes them more anxious.

Petrescu is keen to underline that it is important not to look at Generation Z’s tech anxiety in isolation. “The industry has a tendency to talk about the online pressures facing Gen Z more than the financial strain they are facing, when that is a very real problem that is impacting this generation far more,” she explains.

The unhappiness epidemic

Supporting individuals to solve their problems, as well as addressing bigger societal issues such as climate change, is important for Generation Z. In order to do this, brands need to be less judgmental and meet this generation where they are.

According to Don’t Panic’s research, 51% of UK Generation Z feel they are less happy than their parents were at the same age. 

Yet, while anxiety and loneliness are very real challenges, it is important to recognise that change does not happen in just one direction. While the shape of relationships has changed, 61% of UK Generation Z consumers disagree that marriage is irrelevant. “The notion that this generation is inherently liberal is another stereotype, the reality is that they are often as politically polarised as other generations,” says Petrescu.

In fact the issues that Generation Z care about are also inherently the same as the issues other generations cared about. From the climate to war, inequality and women’s rights, Gen Z do not have the monopoly on caring. “The difference is they have more access to information and a way of sharing their opinion to more people than their immediate friends at a dinner party,” explains Petrescu.

Closing the empathy gap

For marketing leaders seeking to better connect with this diverse group of consumers, it is important to look beyond broad-brush conclusions and be empathetic. “This generation is still experimenting with who they are, so it is entirely normal that what constitutes brand loyalty is very different when compared to Millennial consumers,” Petrescu explains.

In practice, this means that brands need to recognise that driving awareness in isolation is not enough. Instead, marketers need to open their minds to the fact that they might need to leave space for Generation Z consumers to experiment, co-create and give feedback transparently.  

“The biggest challenge is that lots of brands are scared of saying the wrong thing and find it difficult to be authentic in their advertising and marketing,” explains Petrescu. She continues that there are also significant differences in how this generation shows up in the workplace: “The way that Generation Z works is very different to the way other generations work. They don’t have a work identity and a personal identity, they just have one identity.”

This is linked to this generation’s broader awareness of the downsides of skepticism and cynicism. They have a strong awareness of the fact that corporations are often exploiting their workforce, or misusing their date. Their hyper awareness and education mean there is no hiding shady supply chains from their gaze.

The activist generation

Generation Z has very different expectations of the workplace. This is a generation which is not afraid to speak up about issues and injustice that previous generations have been content to sweep under the carpet. They also have no qualms in using their voice to speak up for themselves and ask for a well-deserved promotion. Their voice has a value, which also extends to the way in which this generation interacts with charities and causes.

“Charities are used to seeing donations or regular giving as the only way of support, but as a financially strained generation, they can’t be pressured to give in the same way,” adds Petrescu. 

Yet when they do give, they give more, and it is not always financial. This generation is prepared to donate their time, energy and social currency. As she explains: “The reality is there are so many more roles we can give Gen Z. As a charity, you have the opportunity to get young people to become part of the solution in so many different ways.”

The power of simplicity 

In an industry where it is so easy to overcomplicate strategies, Petrescu urges marketing leaders to focus on the two pillars of authenticity and transparency.

She explains: “Take responsibility for what you, as a brand, are doing. For example, what tangible way are you tackling climate change?” Petrescu believes it is important to make these actions both tangible and accessible. For example, a brand could take action to make Battersea Park plastic-free, rather than simply making a statement on eliminating plastic production across the world. 

On the flipside, she urges brands to take a less simplistic view of Generation Z’s purchasing behaviour. For example, don’t fall into the trap of assuming these consumers are not loyal to a brand, a charity or cause because they are not regularly donating. “This generation is loyal to brands in more ways than just purchasing their products or donating,” she explains, continuing: “They will advocate for them in closed rooms, they will volunteer, they will participate in brand content.”

Building friendships, not followers

In practical terms this participation demands a step change in brands towards being what Petrescu describes as ‘culturally fluid’. This means when seeking to connect with Generation Z, it is crucial to involve creators in the very early stages of content creation, rather than just giving them a script.

She urges brand leaders to consider their community as the most expensive customers they will ever have. She points to the example of activewear brand Tala as an example of how to successfully build new products based on community feedback. Ensuring that brands actively engage, rather than simply speak at this generation is core to success. 

This approach could then come alive in storytelling and content creation. “Building a whole world around your brand isn’t reserved just for collabs and partnerships, impact on the communities around you should also be part of this world,” she adds.

In addition, doubling down on experiential activations and ensuring Generation Z can earn rewards if they are part of it is crucial.  

She explains: “It is important to create more free benefits of being part of your brand community. For example, if I speak to my friends about it, I post about it, what do I get for being part of that community? Brands need to build friendships, not followers.”

This give and take mindset is important at a moment in marketing history, at a time when subscription overload is coming to the fore. “The subscription model is very overwhelming and data shows that Gen Z don’t love subscriptions; they want more flexibility,” Petrescu adds.

This understanding can help power a more mindful approach to marketing, which in turn can build more loyalty. For example, while it might feel counterintuitive, organic food brand Riverford regularly emails customers ahead of a food box delivery to ensure they still need it. “It is important not to have guilt attached to pausing a subscription and ensure customers have that flexibility so they don’t feel like they are being scammed by a brand,” she adds.

Puncturing the perfection myth

While embracing this level of honesty might give some marketing leaders anxiety, the good news is that hope still floats for this generation. 

As Petrescu explains: “We often hate perfect, if something is perfect, we subconsciously distrust it. We want to see brands as a work in progress.” As always when it comes to this generation exceptions apply, for example beauty brand Rhode is highlighted by Petrescu as a beauty brand delivering the right shade of aspiration. 

She believes that embracing personalisation is not about hopping on the latest trend but really looking at the white spaces in the market. 

For example, in the era of Ozempic, is there an opportunity for fashion or skincare brands to talk about normal bodies and tackle the issue head on? “There are huge gaps in the market for hopeful storytelling,” she explains. A shift that she believes demands moving beyond the tick box approach of simply using ‘real people’ as a marketing tool in their own right. Instead, brands need to understand the problems they may have created or amplified through the media. Then in turn recognise how you can be honest about that problem and also take steps to solve it.

Redefining what it means to be a challenger brand

While Generation Z faces many specific challenges, for marketers embracing the adaptability, empathy and open-mindedness needed to connect with this generation demands embracing a challenger brand mentality to stereotype smashing. Doing things differently is crucial to success.

According to Don’t Panic’s research 85% of Gen Z consumers will purchase from a brand that did something that shows their solidarity with their audience.

“Fairness and equality still matter,” says Petruscu, continuing: “Don’t just add to the noise, be very clear about what it is you stand for.” 

At a time when many brands are seeking to act like a challenger brand Petrescu shares some simple advice: “The big question is what are you challenging? If the answer to that isn’t clear then you’re most probably not a challenger brand.”

She believes that not every brand has to be a challenger brand, in fact there are plenty of brands that successfully engage with and retain Generation Z consumers through being better packaged alternatives. As Petrescu explains: “Not every brand has to be an activist or challenger brand, but if you are able to make an impact it is a waste not to.”

By embracing the real contradictions and challenges facing Generation Z with compassion, marketers can better connect with all consumers, regardless of age. Simply recycling stereotypes is a strategy long past its use by date. 

To read Don’t Panic’s full insight paper on how Gen Z are rethinking loyalty please click here.