Marketing by Generations: Millennial vs Gen-Z
Not every generation is alike, nor should they be approached by marketers in the same way. While both Millennials and Gen-Z were born into a technological and wireless society with global boundaries getting more transparent, there are still some key differences in how each one budgets and spends based on their values and insights on brands and industries.
It's apparent that each generation is influenced by various factors, such as environmental and political events, that play a role in shaping their worldview. Each generation has unique lifestyles, expectations, experiences, and generational history that influence their buying behaviours. Pretty soon, Millennials and Gen-Z will fill up most of the workforce and will dominate the spending power, as such marketers need to understand who they are, and use audience segmentation to customise their generations Y and Z marketing strategies accordingly.
Millennials were raised in a time of fast-paced changes, which included full-employment opportunities for women, the standard of a dual-income household, significant respect for ethnic and cultural diversity including social awareness, and computers in their homes and schools. Thus, they place huge value on convenience and seamless customer experience, especially online. Younger generations, who are the first generation to not remember a life without the internet and able to navigate the online world without any friction, are more likely to purchase if they see a product is practical or truly valuable in their lives. Gen Z's, as digital natives, are known to shop online more than Millennials, but they are not as easily persuaded by just ads and discounts. A new rise in technology that we can see specifically in Gen Z is "social commerce", which means shopping entirely via social media platforms. For Gen Z users, their mobile-first mindset greatly impacts the way they navigate online shopping. They are twice as likely to complete a purchase on their smartphone compared to Millennials. As a result, mobile optimisation is key to meeting both audience's expectations.
A small difference in the social media apps preference is present between the two generations, as millennials grew up mainly with early social media sites like Facebook, Tumblr, YouTube and Instagram, Gen-Z's lean towards video-based platforms, such as TikTok, Snapchat, Instagram and YouTube. This essentially creates a difference in the marketing channels these age groups utilise for their frequent usage. On the other hand, both follow online influencers and content creators and are known to trust their recommendations, which is practical for marketing campaigns and collaborations with social media influencers and brands to target their audience. Gen Z users tend to be less trusting of companies and would rather see realistic over idealistic. Their ads preference lies in showing real people discussing products rather than celebrities endorsing a brand. And since Gen Z is currently the most diverse demographic, this generation strongly values inclusion and diversity. This is an important indicator that brands and companies must reflect on in their marketing campaigns.
Millennials have a preference for visually appealing and relatable content. They are more likely to make a purchase based on values such as convenience, affordability, and brand transparency. They heavily use social media for research and recommendations, and value peer reviews. In terms of marketing, Millennials respond well to personalised and authentic marketing campaigns, and the use of social media influencers. They also appreciate convenient and mobile-friendly purchasing options. Gen Z has a preference for authentic and personalised content that aligns with their values. They heavily rely on social media for product discovery and have a strong sense of brand loyalty. They are cost-conscious and often prefer experiential purchases over material ones. Gen Z also values sustainability and ethical considerations in their purchasing decisions. In terms of marketing, Gen Z responds well to influencer marketing, user-generated content, and interactive experiences.
Ultimately, by understanding what differentiates Gen Z and Millennial audiences, the greater chance brands have to increase customer loyalty, drive sales, and build an engaged community. The need to focus on using social media marketing to provide immediate gratification to the respective target market is primordial. Only then shall we earn new customers.
