Erosion Of Loyalty (Part 4 of 6): Loyalty By Generation

GENERATIONAL SPENDING HABITS

Every generation, same as any person, has a unique set of personalities, lifestyle choices and spending habits. Experts agree that the three key trends shaping generations are parenting, technology and economics. From an economic standpoint, statistics show the variety in ways each generation spends. That’s why it is essential to make sure you’re using the right tools and strategies to target the correct generational audiences that make sense for your brand.

Here’s our Generation Breakdown: How well do you know each generation?

• The Silent Generation

  Born Before 1945 | About 77+ years old

  Important Info:
  • Oldest living generation, many born during WW2
  • Raised by parents who were very hard-working, therefore believe in strong work ethic
  • They were raised during a period of war and economic depression

  Spending Habits:
  • Still wary of shopping online, would much rather shop in-person
  • The majority prefer direct mail, newsletters, postcards and flyers over email communications

• Baby Boomers

  Born approx. 1946-1964 | Majority are early 60s to mid 70s

  Important Info:
  • Birth rates soared after WW2, hence “baby boom”
  • Parents to Millennials

  Spending Habits:
  • 82% belong to at least one social media site, most likely Facebook
  • They average 27 hours per week online
  • People ages 50 and older spend approx. $7 billion per year online
  • Boomers actually like joining reward programs, but only if the programs are easy to understand
  • Approximately 26% are active reward members compared to only 19% of Millennials

• Gen X

  Born approx. 1965-1980 | Early 40s to late 50s

  Important Info:
  • “Generation Who?” famously forgotten in marketing, live under Boomer’s shadow
  • Parented by The Silent Generation, Parents to Gen Z

  Spending Habits:
  • Email marketing is the preferred channel by about 80% of Gen Xers
  • Busy with careers and families, they don’t always have time to read long copy
  • Keep it short with a clear call-to-action
  • Tends to be more loyal than other generations
  • They love freebies and coupons; show them some love and they will return the favor with long-term loyalty
  • They are also a “Hybrid Generation”, liking both online and in-store shopping

• Millennials/Gen Y

  Born approx. 1981-1996 | Mid 20s to Early 40s

  Important Info:
  • Most know a childhood without the internet
  • Known as the ”Self-Obsessed” generation thanks to the creation of the “Selfie”
  • Parented by Boomers, parents to Gen Alpha; very open-minded parenting style

  Spending Habits:
  • More than half consider it important to buy from companies that support their political & social beliefs
  • Very comfortable on their mobile devices but may use a computer for purchases from time to time
  • Typically have multiple social media accounts

• Gen Z/Zoomers

  Born approx. 1997-2012 | Many are now in their teens & early/mid 20s

  Important Info:
  • Elder Zoomers know a childhood without and with the internet
  • Like their grandparents, the Silents, their younger years were marked by war and recession

  Spending Habits:
  • All about experience; they’d be willing to pay more for richer experiences that add value
  • Expect more from brands because they are focused on quality products and personalization
  • Grew up in a hyper-connected world and the smartphone is their preferred communication tool
  • Average around 3 hours a day on their mobile device

^{SOURCE DISCLAIMER: The preceding data points regarding each generation were compiled by AfterMath from a large range of different sources including: studies or surveys conducted by industry leaders in marketing & advertising, marketing agency case studies and surveys as well as data collected by social media companies. If you have any questions regarding these statistics, please contact us on our website or reach out to Mike Pocci via email.}

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Who’s Next?

The youngest living generation is Gen Alpha, but they are still too young (less than 10 years old) to be making any purchase decisions on their own.

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Check out our last installment Erosion Of Loyalty (Part 3 of 6): Best Brand Practices and look out for our fifth installment of the Erosion of Loyalty Series on Thursday, November 3!

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Have questions about keeping your marketing from eroding?
Talk to Mike Pocci, Executive Director/Connections at mpocci@teamaftermath.com.