Connecting with Generation Z, a demographic born between the late 1990s and the early 2010s, can be a challenge for many industries. These digital natives are quick, efficient, and tech-savvy, displaying a unique set of behaviors and preferences when it comes to the content they absorb. One industry that is affected by this shift is the mortgage sector, where loan originators (LOs) must adapt to reach Gen Z effectively. This article will explore how loan originators can use short-form video content as a powerful tool to engage with Generation Z, becoming more relatable, relevant, and engaging for this demographic.
Generation Z’s content consumption habits can be grouped into three broad categories: they favor video over text, prefer shorter content, and desire authenticity.
Video content, especially those delivered via social media platforms, has become the default medium for communication and learning. As digital natives, Gen Z grew up with a smart device in their hands, making it their primary source of information. Video content is appealing to them as it is more engaging, personal, and easier to digest compared to other content formats. The multimedia nature of videos helps information retention, thus making it an effective communication tool.
Regarding shorter content, Gen Z has shown a preference for compact, ‘snackable’ content. Their reduced attention spans, a product of the fast and vast digital world they’ve been brought up in, necessitate information to be conveyed in the shortest possible time. It’s not that they cannot focus, but rather they prefer to utilize their time effectively.
Linked to the previous point is the desire for authenticity. Unlike previous generations, Gen Z is more resistant to traditional advertising techniques. They appreciate transparency, authenticity, and personalization, rating these qualities over expert endorsements or celebrity influence. To be effective, communications must be honest, real, and personal.
This changing landscape of content preference presents both challenges and opportunities for the mortgage industry and loan originators. To capitalize, LOs should cater to these preferences, particularly through strategies leveraging short-form video content.
1. Embrace Social Media Platforms
Short-form videos, commonly found on platforms like Snapchat, Instagram, and TikTok, have resonated well with the Gen Z population. LOs should take advantage of these platforms’ inherently visual and short-format nature to deliver impactful messages.
2. Provide Educational Content
Educational short-form videos can help demystify the complex world of mortgage lending in simple, easy-to-understand terms for Gen Z homebuyers. Mini explainer videos where complex concepts are broken down can work wonders.
3. Personalize and be authentic
Generation Z values transparency and authenticity. LOs should take care to avoid salesy language and marketing pitches in their video content. Instead, they should aim for real and relatable storytelling, adding a personal touch where possible.
4. Engage, don’t just broadcast
Unlike traditional one-way communication, social media platforms allow LOs to engage with Generation Z. In addition to posting content, LOs can respond to comments, answer queries, and create interactive content such as polls and quizzes.
5. Make it mobile-friendly
With Gen Z’s adoption of mobile devices, your video content should be mobile-friendly. It includes simple things like ensuring that the text is large enough to be read on a small screen, animations are clear and uncluttered, and videos are shot with a mobile-first perspective.
6. Use influencers
While traditional celebrity endorsements might not work, Gen Z shows affinity for influencers, especially those they perceive to be authentic and passionate. Leveraging influencers who reflect your core values can help attract and engage Gen Z.
7. Experiment with new formats
Don’t be afraid to try out new video formats. Whether it’s 15-second TikTok skits, Instagram Reels, or Snapchat Stories, each format offers a different way to capture Generation Z’s attention.
8. Be timely and relevant
Gen Z is highly aware of and connected to global issues. Align your content with current trends, movements or causes they believe in to make it more relatable and impactful.
9. Leverage User Generated Content (UGC)
UGC, where customers create content for the brand, is another way to drive authenticity. Encourage Gen Z followers to share their own experiences and stories, whether it be a home tour after purchasing with your mortgage, or sharing tips on the home-buying process.
To connect with Generation Z, loan originators need to understand their unique preferences, tailor their communication strategies accordingly, and most importantly, be willing to adapt. The adaptation could mean learning about new social media platforms, video formats, or communication styles. Generation Z makes up a significant part of the market, and their influence is only set to grow in the future. By tapping into their preferences for short-form video content, LOs can not only effectively engage with this generation but build meaningful, long-term relationships.
In conclusion, the mortgage industry has an opportunity to seize. By capitalizing on the powerful tool of short-form video content and aligning it with Gen Z’s communication preferences, LOs can build a solid foundation for the future. As the industry continues to evolve with technology trends and generational shifts, it’s imperative loan originators learn to speak the language of their audiences. For Generation Z, that language is short, fast-paced, authentic, and very much in video format. In the grand scheme of the mortgage industry’s future, adaptability to these changes will be essential for long-term success.
Embrace the digital evolution, understand Generation Z, and take advantage of the opportune growth that awaits in the landscape of short-form video content. In doing so, loan originators establish themselves not just as mortgage professionals, but as approachable, tech-savvy communicators who resonate with the audience of the future.
