The Internet wrought a global revolution. And its evolution throughout that latter 20th and into the 21st centuries has altered every aspect of human life, from communication to global awareness, to health care, to finance, to leisure activity, to education, and much more.
One of the biggest disruptions of the Internet has been eCommerce – how brands market their products and services and how consumers purchase them. Virtually anything can be purchased online today – houses and cars down to the smallest of trinkets.
But nothing stands still. Brands must continually “take the temperature” of their current consumers and devise ways to attract new ones in what has become a hugely competitive marketplace.
The Big Spenders
Who are the biggest spenders today? Millennials and Gen Z, that’s who. Combined, they make up about 45.5% of the total world population and have a combined purchasing power of about $60 trillion.
The Differences
These two generations differ in their “growing up” experiences. Millennials lived through pretty good economic times. Gen Z has lived through the large recession of 2008-2009 and all of the economic trauma that the pandemic brought. These differences have colored their approach to consumption.
Millennials are more optimistic about their financial futures than Gen Z, but both are practical when it comes to making purchases.
The Demands
Despite their differences, when it comes to what both generations want from brands they choose to patronize, there are important similarities.
Brands can no longer “talk the talk;” they must “walk the walk.”
DEI
This may be a “hot potato” in the world of current politics, but these two generations will not do business with a brand whose staff and policies do not reflect diversity, equity, and inclusion.
Proving this commitment is easy. In their marketing, brands need to showcase their teams, showing the diversity of their workforce. Further, it is important that they publicize their support of related events, organizations and activities. All of this can be achieved via their websites, their blogs, and their social media accounts.
Brand Loyalty is Gone
Millennials and Gen Zers do not have brand loyalty in the way previous generations did. A lot of this is due to the fact that they shop digitally more than in brick-and-mortar locations. And they are more comfortable with it than previous generations. They have the ability to shop around with a few clicks – thus brand loyalty is not a priority at all.
These two groups do their research and they listen to their peers, especially on social media – in fact, 80% of them do so. A brand really needs to be everywhere they are with marketing copy that is relatable and demonstrates an understanding of what these young people want in the way of products and services. Which brings up the next point.
Authenticity
Young people shop and purchase according to their values and beliefs.They want products that reflect who they are, and long-standing brands have a tendency to forget this, especially in the world of fashion.
Younger shoppers make decisions based on a brand’s impact on the improvement of society as a whole – ethical practices in manufacturing, employee treatment, giving back, and sustainability initiatives, to name a few.
Levis had to find a way to use less water and to recycle and clean up the water it uses in its production of jeans, because their overuse of water became a highly publicized issue with young people.
Brands have to show that they give back to their communities in important ways. And that community is now global. Toms Shoes donates a pair of shoes for every one purchased. And it has grown its giving to eye surgeries, water cleanup and farming projects, and prenatal care in underdeveloped countries.
Speed and Efficiency
Both of these generations want what they want when they want it. This applies from how fast a website loads to the speed at which they can complete a purchase, to fast delivery, and quick and effective customer service (much of it self-service these days, because none of them will sit on hold).
Even their dating habits have changed. 43 to 50% of young adults say that they have used or are using online dating services to look for all types of relationships. Check out this dating app to get an idea of how young people date today. Just as they conduct their research before a purchase, they find it far more efficient to connect with others and get to know them well before they expend time and money on IRL dating.
In the End
These are just four of the key factors involved in brand marketing to younger generations. It’s a matter of truly knowing who they are, what they value, and what they expect from brands they will patronize. This will be an ongoing effort as generations unfold, but the results will be worth it.
