Millennials will make up 75% of the global workforce by 2025 and Gen Z are not far behind them.
This shines a light on how our marketing tactics should adapt as generations age.
Millennials and Gen Z spending will be different as it's been shaped by new forces such as they're the first generation to be fully immersed in social media and Gen Z is the first generation to grow up with smartphones.
What are the things you should focus on when marketing to the younger generations?
Take advantage of different payment methods
Credit cards are losing their attraction with 37% of millennials less likely to own one compared to the older Australian generation. Millennials see them to be a costly risk and are less likely to sign up for one.
Both Millenials and Gen Z are turning to a less commitment focused, zero interest, flexible payment methods such as Buy Now, Pay Later.
BNPL spending is growing across all generations, however Millennials and Gen Z shoppers are using BNPL tools at higher rates to older generations. A study by Afterpay saw that Millennial BNPL spend is up 86% since January and over 200% for Gen Z.
Email is still effective
It's widely assumed that Gen Z's attachment to social media makes it the only way to reach them. But it's not!
A study by Campaign Monitor has reported that 90% of Millennials check their email multiple times a day or at least once a day, 81% of Gen Z respondents reported checking their email at the same frequency.
This proves that Millenials and Gen Z are not killing email, in fact it remains an effective marketing tool.
A huge 90% of Millennials say brand authenticity is important to them.What is brand authenticity?
Brand authenticity is a brand that has values and morals and stands by them. They have open and honest communication about their products and services. An example you may be familiar with is 'Dove' whose mission statement is that "beauty should be a source of confidence and not anxiety". Dove have released multiple campaigns that align with their mission statement such as their viral ad campaign "Dove Real Beauty Sketches".
Millennials and Gen Z want you to tell a story that speaks to their needs and motivations. They want to make a connection with your brand and want to buy in and become part of the story.
Hand in hand with authenticity, your Millennial and Gen Z customers prefer to see real people with real opinions talk about products and their opinions and experiences over brand created content. Developing campaigns with User-Generated Content will help your brand connect with the younger generation.
Results from a recent 5WPR report has shown "that 83% of Millennials find it important for the companies they buy from to align with their values'' and 76% "like when CEOs of companies speak out on issues they care about". Every purchase Millennials and Gen Zers make, demonstrates their social or political beliefs.
In fact if you don't align with their values, 65% have previously "boycotted" a company because of its stance on an issue. It's not just the brand under scrutiny but it's their CEO's and senior executives values, actions and beliefs as well.
So what does this mean for the future of business?
- Offer 'Buy Now, Pay Later' payment methods on your site to avoid cart abandonments.
- Email is not over!
- Have your brand tell a story, sharing User-Generated Content will appeal more to the younger generation that polished branded campaigns.
- Share your values and be transparent. Get to know your customers and understand their values.