What’s the age you’re targeting in your direct marketing? We’d be willing to guess it’s not anyone between the ages of 17 and 29 — and that could be a costly oversight.
Believe it or not, Gen-Zers — those born from 1997-2012 — looooove extended warranties. 61% buy them at a rate doubling every other generation at minimum. Obviously, if your extended warranty CRM reports drilled that deep into demographic data, that’s no surprise to you. But for many in our industry, that stat comes as a slight shock.
By the end of this blog, you’ll know why most of us have Gen-Z pegged completely wrong and what to do about it.
More Surprising Gen-Z Data
The stereotype surrounding Gen-Z is they need everything to be digital. While there’s an important caveat we’ll touch on later, that sentiment is mostly accurate.
But there are also stereotypes that are flat out false, like they don’t like driving and maybe only a sliver call themselves a homeowner. So, would it surprise you to learn that 66% use private vehicles on a weekly basis at minimum? Or, more than a quarter can say they own a home, even in these trying economic times? Not to mention theirs is the largest generational population segment.
Add it all up and it’s pretty obvious this demographic shouldn’t be an afterthought. If anything, it should be front and center.
Why Do Gen-Zers Buy Extended Warranties?
We’re not sure if you’ve noticed, but the last couple of decades have been a little wild, strictly speaking from an economic standpoint:
- Great Financial Crisis
- COVID
- Tariffs
- Forty-year-high inflation
That doesn’t even include the looming specter of AI.
Plainly put, Gen-Z hasn’t enjoyed a lot of financial stability. And this uncertainty mirrors why they shy from major purchases like cars:
- Sticker shock
- High interest rates
- Maintenance costs
Gen-Z isn’t motivated by fear because they’ve grown accustomed to it. Phony “limited time” offers don’t work because they see right through them.
No, Gen-Z buys because extended warranties offer cost-predictability.
Our suggestion? Update your sales script and really lean into re-framing your products’ benefits.
Yes, Gen-Z Does Digital. A LOT.
It’s not their fault. They’ve never known a world without the internet. A mere 14% watch more than two hours of live, “old-school” TV daily. And almost 40% watch no live TV at all.
Where do they go for their daily fix instead?
- YouTube (63%)
- Instagram (58%)
- TikTok (56%)
And They Have a Clear Content Preference
YouTube shorts. Instagram Reels. TikTok…TikToks.
These are an ADHD’s dream. So, it’s logical for comedy and memes to prevail among these media — they’re perfect for quick dopamine hits. Gen Zers eat this type of content up at a 67% favoritism clip. Educational content on the other hand? Its favoritism trails by more than 20%.
Can a CRM help you produce the latest viral video? Not yet. But ours can tell you which types of campaigns perform better. No matter what, though, don’t even think about using AI to generate your marketing. 72% of the Gen-Z generation hold negative or cautious views about this type of content.
Calling Gen-Z Skeptical Would Be an Understatement
Virtually every brand needs to prove they’re legitimately different when engaging Gen-Z. 94% of tracked brands score lower on net trust with this generation compared to the general adult population.
In other words, you’re almost guaranteed to start at a disadvantage. A simple “Trust us” message won’t come close to cutting it.
What Can You Do To Build Gen-Z’s Trust?
53% of Gen-Z rely on third-party websites to figure out which sellers to engage with and more than 60% trust reviews over brand messaging.
These stats reinforce the digital dominance this demographic prefers. That means shoring up your online presence wherever you can:
- Post reviews from real customers — including the bad ones
- Maintain a good BBB rating
- Offer transparent pricing on your website
- Admit limitations in your advertising
- Personalize your reply to their comments
- Message them directly
Maybe that list seems obvious… because it is. You don’t need to reinvent the wheel here. If you’re genuine and give someone every reason to trust you, why wouldn’t they?
Yes, Gen-Z Likes to Talk Things Out
Remember that caveat we mentioned 700 words ago? Well, here it is: Gen-Z actually likes talking on the phone for important conversations — things that deal with money and big purchases or decisions.
That being said, you want to ease into your sales pitch. A hard sell will get a hard pass.
Our advice? Try a shortened script your first conversation with them. Something along the lines of “Congrats on your new {car/home}. That’s a big purchase! If you want a predictable way to keep repair bills down, I’m glad to walk you through some options.”
Then actually discuss your recommendation without jumping to the most expensive tier first. 79% of this generation wants someone to give unbiased advice.
And your follow-up e-mail? Swap that for a follow-up text.
In Summary…
Selling to Gen-Z is a lot like selling to other generations. You just need to speak their language.
- Position your service as an affordable subscription that could save thousands (streaming connection)
- Communicate authentically, genuinely and transparently (things you should be doing, already)
- Be online (because that’s where they are)
And, of course, use a digital-first method for notes, scripts and all the rest. Get complete access to Inline CRM with a free, 30-day demo.
