Millennials and Generation Zers are both notorious for shaking up the status quo in more ways than one. They’ve both broken out of a shell that generations prior were determined to mold themselves to. This fact, along with their closeness in age, have led many to believe that they have a lot of commonalities that can accommodate similar generational marketing strategies.
While they are adjacent generations, the qualities in which they have gained notoriety differ, especially as consumers. The rise of the newest wave of consumers, who make up roughly 40% of all customers in the market, is certainly creating changes as Gen Z’s desires are not perfectly aligned with their older generational neighbors. The people who make up this group were born between 1997 and 2012.
At the same time, this does not imply that advertisers should stop pushing their marketing efforts toward Millennials. Simply put, Millennials largely contribute to the U.S. economic capital with a generational wealth estimated at $24 trillion. This group is made up of people born between 1981 and 1996.
With these statistics in mind, it is important that brands learn how to make the most of both unique generational consumer behaviors. Here are different elements advertisers should keep in mind when targeting a Millennial vs. a Gen Z demographic.
Before we break down the differences these two generations have as consumers, it’s important to acknowledge they do still have quite a bit in common. First, both groups are well-versed in social media and the amount of time they spend plugged in doesn’t vary too drastically.
Even at an average of 20 minutes less per day, Millennials were young and impressionable when the age of the Internet came to be and, as such, they are just about as savvy in social media as is Gen Z.
Second, both generations place importance on diversity, equality, and progressive social values. In contrast to generations prior, Millennials and Gen Zers have questioned many social norms that Boomers and Gen Xers have accepted as reality.
Though there are undoubtedly many similarities in the grand scheme of things, these generational differences must also be considered in order for marketers to successfully cater to both.
Attitude Toward Spending
Interestingly, the way Millennials’ and Gen Zers’ finances differ is quite great.
Many Millennials were young adults when the Great Recession hit the U.S. in 2007. Growing up with a poor economy at large taught this group to place value on quality over quantity, as they remain mostly optimistic about their personal finances.
With Gen Z being quite young at the start of the economic downturn, this generation adopted the notion of practicality and financial preparation from an early age.
How Can Brands Successfully Cater to Both Spending Behaviors?
For Millennials, quality over quantity means they are looking to invest their money in brands that create a unique product or experience that will noticeably enhance their quality of living. Millennials are inclined to do significant research before making a purchase, ensuring they’ve found the most beneficial product or experience for them. This is good news for marketers, as Millennials are constantly on the lookout for the next best thing to help them in their everyday lives. All brands need to do is prove they are the ones Millennials should be investing their time and money in, and they may have customers for life.
For Gen Z, it’s best to get right to it. Let the consumer know exactly why the product or experience is the best one for them and why it’s worth the money. As previously mentioned, this generation is very focused on responsible spending as a result of their early memories of the Great Recession. So, if you want to sell to Gen Z, make sure you keep your brand’s feet firmly planted on the ground. Approach selling in a practical manner and make sure your product has a clear purpose for its consumer.
Feeling Connected Through Social Media
It is apparent that both generations are avid social media users, and the feeling of connection that social media creates is well enjoyed by both. However, the ways they best receive those feelings of connection vary.
Millennials feel most connected through the more traditional sharing, pinning, and forwarding; predominantly on Facebook, Instagram, and Twitter.
Gen Zers have had social media at their fingertips for the majority of their lives and, as a result, they consume more media on fewer platforms. This group is very visual and prefers rapid consumption, mainly through Instagram, YouTube, Snapchat and, most recently, TikTok.
How Can Brands Leverage Connection in Their Marketing Efforts?
Millennials prefer the more traditional social media platforms and sharing techniques, because they’re easy ways to feel seen and heard. Brands can leverage this in their customer journeys through interaction: asking consumers questions, encouraging them to communicate in comments sections, and more. This creates a space where Millennials feel valued and contributes to their attitude that a brand can better their lives on a deeply personal level.
Gen Z’s short attention span makes their marketing needs exclusively geared toward them. Cut to the chase and get down to benefits of the product — this is the best way to reach them on their preferred social platforms. Utilizing influencers for brand marketing is an effective way to connect to this audience. With 10-second Instagram stories and #sponsored posts, brands can use their preferred social platforms to connect in a unique way that feels authentic to Gen Z.
Embracing Generational Differences as Marketers and Advertisers
As two groups who came one after the other, it’s no surprise that Millennials and Generation Z are very similar. Both known for questioning common ideas the predecessing generations easily accepted, the two generations have redefined marketing in a new era for brands. They value authenticity, social responsibility, and inclusion. But both have different consumer behaviors when it comes to their finances and how they connect. For marketers, it is more important than ever to optimize and strategize based on their ever-changing habits as consumers