A Guide to Gen Z Through TikTok Trends, Emojis, & Language: How to Build a Successful Consumer Subscription Business

A Guide to Gen Z Through TikTok Trends, Emojis, & Language: How to Build a Successful Consumer Subscription Business

There are nearly 3 billion Gen Zs alive today, making them the largest generation on the planet. With their spending power projected to increase by 70% over the next five years, it's crucial for businesses to understand this generation and adapt their strategies accordingly.

One key aspect of Gen Z's identity is their desire for authenticity and uniqueness. Unlike Millennials who sought to fit in, Gen Zs strive to stand out. They value individual expression and avoid labels. This has led to new forms of consumption, such as valuing access over possession and using consumption as a means of expressing their unique identities. This authenticity and forthrightness can be seen in their use of language and emojis on platforms like TikTok.

Speaking of TikTok, it has become a cultural phenomenon among Gen Zs. Over half of them believe that Gen Z is more creative than previous generations, and TikTok has played a significant role in nurturing this creativity. The platform removes the friction of coming up with content ideas, allowing users to unleash their creativity without barriers. In fact, 55% of TikTok users create content for the platform, blurring the line between consumer and creator. TikTok has created a participatory culture where more and more people are shifting from consuming content to actively creating it.

Furthermore, Gen Zs have shown a pragmatic and self-directed approach to their careers. Many of them aspire to start their own companies, with 54% expressing this desire. They seek autonomy and flexibility, which traditional paths like college education may not offer. As a result, work is disaggregating, and the gig economy is booming. By 2026, America is expected to become a majority-freelance economy. Entrepreneurship has become a way for Gen Zs to reclaim agency in a system they perceive as rigged. They turn to the digital realm for work and rely on the internet for creative self-expression.

Now, let's shift our focus to building a successful consumer subscription business. It's challenging for single-product solutions to maintain long-term retention without network effects. However, launching new products can help monetize existing customers, open up new customer segments, and improve retention rates. For example, Calm, a meditation app, scaled its Sleep Stories product, attracting a larger market interested in sleep rather than just meditation. Spotify's playlist sharing feature helped drive growth by encouraging users to share lists among friends and publicly on the internet. Additionally, bundling subscription models, like Spotify and Hulu did, can help find new audiences and enhance retention for both products.

Another strategy is to expand into the B2B market. By offering a business-to-business solution, companies can target a new customer base and acquire hundreds to thousands of users at once. This new acquisition loop in sales can have tremendous outcomes when successful. Companies like Headspace and Calm have successfully transitioned from consumer roots to B2B offerings, expanding their reach and impact.

In conclusion, understanding Gen Z's values and preferences is crucial for businesses looking to succeed in the current market. Embracing authenticity, nurturing creativity, and providing autonomy and flexibility are key to capturing this generation's attention. Additionally, when building a consumer subscription business, considering network effects, launching new products, and exploring B2B opportunities can drive growth and improve retention. By adapting to the unique characteristics of Gen Z and leveraging innovative strategies, businesses can thrive in this evolving landscape.