On today's episode of The Sales Evangelist, we're talking to Kathleen Hessert and Krista Jasso about the newest generation and how to adjust your sales process when selling Gen Z. Kathleen launched a project called We R Gen Z because she saw a lack of information about the newest generation because the marketplace was completely focused on millennials. Her organization conducts original research with a bank of 1,000 teens on a monthly basis to understand Gen Z. Krista -- a member of Gen Z herself -- works as the social media coordinator and intern coordinator for We R Gen Z and she believes that her generation will take the world by storm. Massive spending Gen Z spends $44 billion a year in the U.S. and influences $600 billion when it comes to household spending. It's vital for the marketplace to understand that Gen Z will make up 40 percent of the U.S. population and 37 percent of the global population by the year 2020. [3;47] Organizations that exclude them will be behind in their sales efforts, and they may never catch up. Mistakes selling Gen Z Sellers often talk down to Gen Z and the generation sees it. Gen Z has what Krista calls a "strong BS filter," and they see right through lack of authenticity. The generation values authentic, genuine behavior. Gen Z is turned off by fake, flashy marketing, instead choosing brands that are transparent about what they value and believe. [6:50] Gen Z cares about who is behind the product as well as the product or service itself. They care about what top executives are saying about topics such as politics and the environment. They include countless outside factors in their decision-making and if a brand doesn't match what they are looking for, they won't support it. Gen Z trends We R Gen Z hosts a trends panel that evaluates what's hot and what's not for the generation. Organizations should understand that Gen Z are the next creators and innovators. Those companies need the young people of Gen Z more than the young people need their products or services. They will buy or shun organizations based on their values and their passion. When Nike included Colin Kaepernick in its commercials, one member of We R Gen Z put all his Adidas clothes away and wore only Nike for two weeks to honor the decision made by the company. [10:19] The founder of Tom's Shoes gave $5 million to anti-gun-violence in response to a school shooting in California, marking the largest corporate donation ever to this particular issue.  The decision resonated with Gen Z. Business is more than money, especially for Gen Z. Older marketers can miss this if they try throwing more money at the marketing effort. Instead, marketers should look at the lifetime value of a Gen Z customer, which is a lot higher than the lifetime value of an older customer who has been with the company for a number of years. [12:13] Digital natives Managers must remember that Gen Z asks why. Previous generations were taught not to question authority, but Gen Z asks why, not to be disrespectful, but to understand the reasoning behind decisions. The generation is curious and they want to understand motivations. Gen Z is also the first generation to be true digital natives. They grew up in a world where the Internet was prolific. When they seek information, their first source is Google and their second is Instagram. [14:29] They tend to seek a wide range of different perspectives on a topic. If someone tells them one thing, Gen Z tends to seek other voices before making decisions because they are used to this expansive focus. Gen Z and video Gen Z responds better to video than past generations. Primarily, the generation watches YouTube and Netflix more than they watch regular television. Many of them learn new things like how to play instruments simply by watching YouTube videos. [16:39] Companies can't take traditional routes when selling Gen Z. We R Gen Z's research shows that 48 percent of respondents said that social media influences their purchas