What Gen Z wants from brands instead of the traditional sales funnel

Sponsored // May 12, 2026 What Gen Z wants from brands instead of the traditional sales funnel By SheerID Lara Compton, svp of marketing, SheerID For years, businesses have leaned on the linear sales funnel as a convenient model to measure the path to purchase.

But while the funnel is a tidy way to report on awareness and consideration, marketers have always known the reality is far more complex. Today, that complexity has reached a breaking point, and the model has become obsolete. Gen Z has effectively broken the traditional funnel.

Their journey is far from linear; it’s an infinite loop of discovery, validation and re-engagement across touchpoints. A product might surface on TikTok, get validated in a niche group and reappear through a trusted creator. Then, perhaps weeks later, a Gen Zer buys it.

But even after they do, the cycle continues through sharing, reviewing and influencing others. To meet Gen Z where they are, brands must shift from chasing them top-down to encircling them with a broad range of meaningful interactions that activate their community, provide authentic and IRL experiences, and enable data-driven lifecycle marketing.

Harnessing the power of the infinite loop Gen Z isn’t pulled through the funnel by a brand. They orbit around it, evaluating what a brand offers through independent sources. This behavior is already shaping outcomes. According to Sprout Social, 76% of users and 90% of Gen Z say social content influenced a purchase in the last six months.

But influence today is less about exposure and more about participation. In this environment, friction isn’t something to eliminate. It’s something to design. “Meaningful friction” introduces intentional barriers that reinforce value. One way to do that is to activate the Gen Z community with a verified, exclusive offer.

Creating an offer or experience for a particular group, like students or young adults, makes those customers feel special. Verifying their eligibility to redeem the offer makes them actively participate in the exchange — adding value by underscoring that the offer is just for them, which increases its appeal.

It’s like using a velvet rope to reserve a section of a club for the customers a brand most wants to let in. The brand knows they’re circling, so they create a VIP section and explicitly invite them to join. Engagement requires community and credibility Gen Z doesn’t want to be marketed to; they want to see themselves reflected in a brand.

Broad campaigns fall flat, while outreach built around Gen Z’s shared identity and experience drives engagement. Brands that activate Gen Z’s networks see stronger loyalty and advocacy. In fact, according to marketing agency Archrival research, 54% of Gen Z say their favorite brands make them feel part of a community.

Within those communities, how a brand shows up matters just as much as where. Polished ads are increasingly ineffective. According to a study by Stackla, 79% of consumers say user-generated content highly impacts their purchasing decisions, underscoring the power of authentic, creator-led content. That’s why companies, like e. l. f.

Beauty, prioritize content that feels native, not produced. For example, e. l. f. created a simple original song and invited users to make their own videos. It exploded into mi l lions of user-generated videos (5–7 million) and about 10 billion views.

Most of the content wasn’t brand-produced — it was people filming themselves, so it felt like a TikTok experience. But digital engagement alone isn’t enough. Gen Z craves real-life experiences as much as online ones.

Even though they are digital natives, their share of mall foot traffic has risen 57% year over year, according to PwC, and nearly two-thirds prefer shopping in-store, according to LEK Consulting. In fact, 73% favor making physical purchases after doing digital research, per Archrival.

Brands that connect digital identity with real-world experiences are winning. Pacsun, an apparel company that caters to teens and young adults, is a great example.

To engage this group, the brand creates pop-ups and limited-capacity events that feel both exclusive and culturally relevant, such as when it partnered with rapper A$AP Rocky to launch his AWGE collab through a limited-time pop-up in Los Angeles.

The event featured highly curated merch drops, a physical space designed to mirror the aesthetic of the collection and heavy amplification across social media before and during the event. Finding data to drive lifecycle marketing If community is the foundation, data is the engine — but only when it’s permissioned.

Gen Z is selective about what they share, but the trade-off is clear. They will provide data when they know they’ll receive value in return. Verification enables this exchange. If an offer is appealing, Gen Z will happily give a brand their data to redeem it, which is a big win. They’re revealing an important asp