Recognizing the dynamics and personality traits of each generation is part of the pleasure — and part of the challenge — for advertisers and business owners. Simply put, Gen Z does not respond to deals and ad strategies in the same way as Millennials do, so it’s time to educate yourself about the main distinctions between how these two cohorts shop and purchase.
Recognizing each audience allows us to create the best message for the correct channels, and a thorough demographic analysis is particularly relevant if you market to a large number of young people.
At AP LBC, our experts are here to cover some of the basics that surrounds these two interesting yet important demographics.
The age range of Millennial!
Millennials are referred to as the populace born from 1981–1997. In 2021, Millennials will be in the 24-40 range.
The age range of Gen Z!
Gen Z is born between 1997 and 2015, so the age range of Gen Z’ers is between 6-24 years old in 2021.
What comes after Generation Z?
Few folks are referring to this latest populace as Generation Alpha. Generation Alpha are the one that will never know a world without smartphones.
Millennials vs. Gen Z: What separates both generations?
While they all seem to be young, Millennials and members of the corresponding Generation Z are dramatically diverse in terms of how they buy, engage with brands, and perceive money.
Many millennials than Generation Z would pay more for an improved customer experience
Millennials have greater aspirations for customer service — and they can pay for it. According to one new poll, 66 per cent of Millennials and 53 per cent of Gen Z said their consumer service expectations were stronger than ever. Seventy-six per cent of Millennials say they would pay extra for excellent customer service (vs. 71 per cent of Gen Z).
Businesses should be more innovative, according to Generation Z
Following the COVID-19 pandemic, Generation Z is more likely than Millennials to want innovative product and services (55 per cent vs. 46 per cent). In comparison, Gen Z is much more inclined than Millennials to want businesses to turn their current products and services into digital experiences (76 per cent vs. 73 per cent).
Perhaps Gen Z wants more creativity because they grew up in an era of technological advancement. Though Millennials may recall Blockbuster VHS rentals, Generation Z is perfectly comfortable in the increasingly mobile age of YouTube, TikTok, and whatever content streaming platforms that emerge next.
Gen Z is less reluctant to accept businesses than the millennial, but they can be persuaded
As per the 2020 Salesforce study, 50 per cent of Millennials trust businesses, compared to 42 per cent of Gen Z – these figures have declined slightly since 2018. According to the same survey, 59 per cent of Gen Z’ers and 57 per cent of Millennials say they have lost influence over how businesses use their personal information.
The data from 2020 shows a very different tale of how these two demographics view their confidence in businesses, which has also been diminishing in recent years. In general, Gen Z is very gullible than Millennials, and there is nothing that companies can do to win their confidence.
Millennials are idealistic, while Generation Z is realistic
Millennials were an ambitious generation who were often seen as being catered to by their parents and other adults in their lives. The stereotypical millennial participation award is evidence. Meanwhile, Generation Z is more realistic. Although Millennials were born during a period of economic expansion, Generation Z was born during a period of economic contraction.
This generation has been influenced by economic pressures experienced during their youth, when their parents and families may have struggled with jobs and finances. As a result, the most effective marketing to Gen Z relies on long-term quality and wise investments.
Millennials are more concerned with the experience, while Gen Z is more concerned with saving money!
Gen Z’ers are more interested in saving money than Millennials were at the same age. Millennials are more satisfied with the product experience of purchasing a commodity, while Gen Z is more interested in purchases that increase the value of money.
Growing up in a time of economic uncertainty has resulted in Gen Z’s interest in modest spending, and excessive eating is not appealing to them. They are wary and worried about their capital running out. When selling to them, emphasising high-quality investments and including several offers and incentives (such as free delivery or freebies) is a wise tactic.
Millennials value authenticity, but Generation Z carries that to a whole new dimension
Brands should aim for authenticity at all times. Many that do it will reap the rewards. Sixty-one per cent of Millennials believe businesses are usually authentic. The sentiment was echoed by just 53% of Generation Z.
You’re already aware that millennials favour brands that strive for openness and share their beliefs. However, Generation Z is becoming more concerned with seeking products that represent their values. Similarly, Dove’s promotional commercial showing actual women have struck a chord with younger teenagers who want to see advertising that reflects the diversity of colour, shape, and size.
Gen Z prefers content that is approachable and not too refined. Think using influencer marketing to access content that aligns with Gen Z from trendsetting individuals they already value.
They both shop online, however, Gen Z can return to brick-and-mortar stores
Millennials are savvy web shoppers. When they want something different, they take out their smartphones or laptop. They saw the world shift from AOL dial-up to always-on networking, and they took full advantage of this comfort at any opportunity.
We are now shopping online more than ever before as a result of global health pandemic. What effect does this have on shopping and purchasing for these two demographics? Sixty-two per cent of Generation Z plan to buy online as much as they did before the actual pandemic. Sixty-seven per cent of Millennials concur. As brick-and-mortar stores reopen and customer interest rises again, we will see Gen Z’ers return to stores in greater numbers than Millennials.
Consider if you can attract more teens to your stores (if you have them) by providing instructional or social media-worthy opportunities until they are safe. Special in-store interactions will most likely continue to pique the interest of Generation Z.
Millennials stay strong and faithful to brands, while Generation Z tends to be self-sufficient
Brand names were all the rage when Millennials were in middle and high school. They displayed their fashion sense by emblazoning t-shirts, denim, and sneakers with the latest names. Millennials may be able to pay more for their favourite brands now that they are adults. Sixty per cent of them claim they have an emotional connection to brands.
In comparison, Gen Z is more susceptible to being identified by a brand other than their own. They continue to enjoy their individuality, and they use social media to communicate with people who share their beliefs. 57 per cent of Millennials report an emotional brand attachment.
The best marketing strategy for Generation Z is to praise the entity, telling consumers they can be anything and whatever they want, rather than trying to impose a particular or overly-narrow picture.
Looking to achieve sales targets and increase brand exposure, At AP LBC, our experienced experts can tailor your turn-key solutions for your marketing strategies to meet your core business objectives and quickly increase your brand awareness, resulting in exuberant brand exposure.