Learn about each generation to help you find them.
“When you speak to everyone, you speak to no one,” said Meredith Hill, a leader in the marketing industry. She’s right and in this day and age, no one can afford to speak to everyone. The reality is not everyone can be or wants to be your customer. Even for everyday products like toothpaste. Somehow Colgate competes with Aquafresh and a myriad of other toothpaste brands, which is proof there are different audiences to target for something as basic as toothpaste.
This is why understanding your target audience’s demographics and psychographics are so important. You’ll be able to better target your customers and see more success with your marketing.
Today, we’re going to help you begin to target your audience with our generation summaries. Read on to find out which generation is the best fit for your product or service.
Generation Z is known as the internet generation or iGeneration. Born in 1996 and later, This is a young group that has grown up completely in the internet era. Although you may think that these youngsters are not worth marketing to, keep in mind this generation has buying power of a whopping $44 billion.
That caught your eye? More about them that’s not surprising is how much time this internet generation spends on their mobile phones and social media.. Here’s a breakdown on how Gen Zers are spending their days:
• 74% spend their free time online (5 hours or more) • 73% prefer to use their mobile phones to chat with their friends and family • 43% of Gen Zers will review products or services on their mobile phones
If you’re still not thinking about Generation Z as a target audience, maybe you should consider them. By 2020, Gen Zers will account for 40% of consumers.
Gen Zers shop like no other generation. The iGeneration loves it when retailers offer a personalized and interactive experience, something that can be easily achieved through mobile devices and social media channels.
Statistics show 55% of Generation Z prefer to buy clothes online. In addition, 53% of Gen Zers also prefer to buy books and electronics online. E-commerce is increasingly the preferred method of shopping by our younger generations and clearly, being technologically-forward is a big attraction to these buyers.
Generation Z also cares about quality and availability of products as well as having long-term brand relationships. If you can provide the right products, the right content and the right online experiences, Gen Zers offer a lucrative and loyal customer lifetime value.
Millennials (Gen Y)
Whether it be their career prowess or how they are hurting a particular industry, Millennials are perhaps one of the most talked-about generations, with people using “Millennial” as a buzzword to describe the impact this generation has on business, technology and our personal lives.
Even researchers Neil Howe and William Strauss even called Millennials, “the next great generation.” Millennials are the people who were born in the late 1980s to the early 2000s, the children of the Baby Boomer generation.
• Millennials make up ¼ of the U.S. population • This generation is 3 times larger than Generation X and is greater than the Baby Boomer generation too • In the last 5 years, 87% of Millennials took on management positions
Unlike Generation Z, Millennials were not always surrounded by technology. However, Millennials did grow up with computers and technology. As a generation, they are particularly responsive to internet campaigns.
As Millennials worked with growing and changing technology, they have adopted spending time online and on social media. However, Millennials spend about 10 less hours online per week than the average Gen Zer.
Although Millennials are seen as technology-focused from their purchasing habits, you can see Millennials are concerned less with products and more interested in gaining new experiences. As a result, brands like Lululemon have started to offer more experience-related products like in-store fitness classes.
It’s important that if you target your marketing to Millennials, you are willing to cater your brand to their interests. Millennials have $1.3 trillion annual buying power. This gives them the most spending power of any generation.
Generation X maybe the most forgotten generation yet. On top of constantly being forgotten, Generation X is the smallest generation, comprised of about 60 million people. For a person to be a Gen Xer means they were born between 1965 to 1984. Although Gen X might be the smallest generation, they still have a strong buying power of 2.3 trillion dollars.
Right now, Gen Xers are dealing with kids, mortgages and working. Here are some stats on Gen Xers’ personal and work lives:
• 82% of them are home owners • 41% of Gen Xers consider themselves entrepreneurs • 50% of them consider paying for their kids as a major goal
Also, this generation is much more diverse than Baby Boomers in terms of race, ethnicity, religion and sexual orientation. What makes Generation X interesting is they grew up with the introduction of technology.
In fact, 80% of Gen Xers report to be actively online, using social media like Facebook, Twitter and even Myspace (who knew that was still possible?)
Although Gen Xers have adapted to technology, they still willing to go in stores to make their purchases. This doesn’t mean that Gen Xers are against online shopping, they like that too. In fact, Generation X is considered to be tech-savvy.
Gen X is a unique generation because they are still reachable through traditional marketing channels as well as online.
Last but definitely not least are the Baby Boomers. People who fall into this category are born between 1946 and 1964. As a generation, they represent 76 million people and are known for being one of the largest generations in American history.
As a group, Baby Boomers have a purchasing power of $2.3 trillion. They are also have the most disposable income for food, apparel and retirement programs. As a group, they are all in different life stages. Some of them are empty nesters, full nesters, grandparents, single, married and so on.
And for not growing up with technology, Baby Boomers have certainly adopted technology. Here are some statistics about how Baby Boomers use technology:
• 49.5% of them are on some form of social media • 75% of Baby Boomers are internet users • On average, 28.5% of Baby Boomers have smart phones
Although Baby Boomers do use technology, they don’t use it as frequently as their successors. Baby Boomers still like to use phone calls over text, they use email more than other generations, but they use social media less frequently. In addition, Baby Boomers still like to use coupons and hunt for the best bargains to save money rather than receive promotions and special deals via their mobile phones or through social media channels.
The best way to reach this audience is still through traditional marketing channels even though Baby Boomers are using technology. On top of that, this generation also values face-to-face communication, so potentially having a customer service line and people in stores to answer any purchasing questions will really help this generation make purchasing decisions.
These are the main generations that will likely make up your target market(s). Also remember that even within generations you can get more niche by using specific psychographics and demographics.
We trust that with these generation breakdowns, you are closer to understanding your audience. Tell us in the comments down below which generation is your target market.