I spoke recently to a group of financial advisors about generational marketing. I explained to them that understanding Generational Marketing is important and that before you can embark on a marketing program to attract any generation you need to understand what motivates a particular cohort. I told them that in order to determine what motivates a cohort you need to understand the events that have impacted their lives and shaped their worldview.
So here’s a rundown on some of the most important events that have impacted each generational cohort.
Generation Z (there is no agreement on the name or exact range of birth dates. Some sources start it at the mid or late 1990s but the more widely accepted period starts from the mid 2000s to the present day)
Gen Z was brought up in the aftermath of 9/11 and have never known a world free of global terror or war. To further rock their world many Gen Zers experienced firsthand the Great Recession and its aftermath. In fact according to a Bloomberg View article 73% say they were personally affected by the Great Recession. Those events plus the surrounding controversy of NSA surveillance, privacy issues in general and the prevalence of Cyberbullying has shaped their worldview.
Generation Z….
- Is Cynical: They tend to be more realistic — not idealistic, seemingly jaded from the tough economy, terrorism and the complexities of life.
- They are Private: Perhaps it’s because they watched their older siblings get in trouble from posting controversial content on social media, so younger teens don’t want to be tracked
- They are Entrepreneurial: 72% of current high school students want to start a business. Since they’re more jaded, they know life is hard and requires work. Witnessing the Great Recession has made them pragmatic and a generation of savers.
- They are Technology-reliant: This one won’t surprise you. If we thought Millennials were addicted to technology, get ready for more from this cohort.
Millennials (born between 1982 and 2004)
This is the first generation to have grown up never not knowing the Internet or having it integral to their lives. They are known as “Digital Natives”.
According to USNews “Millennials have been handed a daunting set of financial circumstances: underemployment or unemployment, high student debt, a slow-growth economy and fewer chances for traditional career advancement. Having witnessed the financial meltdown of 2008 and the devastation of many older family members’ retirement, home equity and hopes, Millennials are wary.”
Yet even though they are wary they remain optimistic about their future and believe they will be better off than their parents. They are risk adverse and less likely to have credit card debt, housing or mortgage debt.
Generation X (born between 1964 and 1981)
According to Financial Planning, “Gen X grew up with less economic and family security than the Baby Boomers. Oftentimes, they grew up in households with divorced or two working parents. Despite being labeled “skeptical,” “cynical” and “slackers” in their youth, Gen Xers have stepped up and generally take responsibility for their own well-being. The advent of personal computers and the Internet made them a tech-savvy generation.”
Generation X is ignored. Brands, and this includes financial services and financial advisors consistently court two generations — Baby Boomers and Millennials. Paul Taylor of Pew Research dubbed Generation X “America’s neglected ‘middle child’ ”.
There are approximately 65 million Gen Xers vs. 77 million Baby Boomers and an even larger group of Millennials at 83 million. Gen X is also known as the “baby bust” generation as there was a decline in birth rates in the early 1960s to the early 1980s. As an article in the Minneapolis-St. Paul Star Tribune states “they don’t have numerical clout” — hence they are ignored.
There were a number of economic events that have impacted Gen X as Millennial CEO points out:
- The stock market crash of 1987
- The economic recession in the late 1980’s just when many of them were graduating from college
- The dot.com bubble burst in the late 1990’s
- The Sub-Prime Mortgage Fallout of 2008
- And the ensuing Global Financial Crisis that hit major economies in Europe and Asia
Yet given this daunting set of economic circumstances Gen Xers have stepped up and generally take responsibility for their own well-being.
The Baby Boomers (born between 1946 and 1963)
The Baby Boomer generation grew up in the aftermath of World War II. After World War II the soldiers came home and began building their careers and starting families. In fact birth rates went up quickly as there was a “boom” in the number of children born.
Based on an article in English-online.at “When they (Baby Boomers) were in their teens they experienced the Roaring Sixties, a decade of war, free sex, protests and drugs. The most important events of that time were the assassination of JFK and Martin Luther King, the Vietnam War and the first American on the moon. In the 80s they became the Yuppies who laid the foundation of our business world”.
The article further says “They were also the Rock and Roll generation. From Elvis Presley to the Who and from Buddy Holly to the Rolling Stones, the 50s and 60s were dominated by this new form of music. Woodstock was a music event that up to this day has not been matched”.
According to Neil Howe (American historian, economist, and demographer, best known for his work with William Strauss on social generations and generational cycles in American history.) “We all know the Boomers’ life story. It’s as though no phase of life means anything until Boomers pass through it and can tell us about it. They started out as feed-on-demand Dr. Spock babies, then grew into the indulged Beaver Cleavers of the ’50s, then the college and inner-city rioters of the late ’60s, and finally ended up as the young family-values moms and dads of the ‘80s”.
Baby Boomers are risk takers — they have engaged in high risk activities — and there is a downside to this as Mr. Howe says “As youth, Boomers pushed the envelope on danger, propelling rates of accidents, suicide, crime, drug use, and STDs to unprecedented levels. Today, many of those indicators are rising swiftly for midlife Americans, even as they fall among youth. Risk-taking has obvious implications for economic decision-making — for example, portfolio selection. There’s also mounting evidence that Boomers have higher rates of lifestyle-related chronic disease than the previous generation at the same age”.
It should be noted that the early Baby Boomers (those who started their careers prior to 1972) emulated the saving habits of the previous generation (The Silent Generation) meaning they have saved their money and built up their l wealth. Unfortunately, the later Baby Boomers (those who began their careers in 1973 or later) did not and many find that they will have work longer to amass the money they need to secure their retirement.
The Silent Generation (born between 1929 and 1945)
The Silent Generation lived through the Korean War, The Cold War, The McCarthy Hearings and the Space Race. As youngsters many in this generation experienced firsthand economic upheaval brought by The Great Recession. They helped start the civil rights movement.
This generation, like The Greatest Generation, is disciplined, self-sacrificing but they are also cautious. Today this generation is also redefining aging — they are vibrant and active. As a matter of fact one Silent Generation gentleman I know still skis and has recently taken up skydiving and he loves it.
According to a Forbes article written by Neil Howe , “they (The Silent Generation) are without doubt the healthiest and most educated generation of elders that ever lived — and, of course, the wealthiest”. He goes on to say “Given their material good fortune, along with their instinct to help others in need, the Silent Generation, as elders, have become economic anchors for America’s new renaissance in multigenerational family living. Many routinely pay for extended-family vacations or subsidize their grown Boomer or Xer kids. Many have set up college trust funds for their grandkids — and indeed, a record share have assumed formal custody of them. Most are worried about the economic challenges facing their families — and wonder why success has become so much harder for them”.
The Greatest Generation (born between 1910–1929)
Tom Brokaw’s book “The Greatest Generation” talks about how this generation lived through events marked by economic depression (The Great Depression 1929–1939) and global unrest (World War II 1939–1945). An article in www.howstuffworks.com , which reviewed Mr. Brokaw’s book, quotes Mr. Brokaw, “these men and women developed values of “personal responsibility, duty, honor and faith.” These characteristics helped them to defeat Hitler, build the American economy, make advances in science and implement visionary programs like Medicare”.
It is those world events that shaped this cohort into a responsible civic minded group. But that’s not all — this generation is also a generation that saved their money. In fact one greatest generation woman I know told me “I worked from the time I was 16 and always saved the ‘buck’”. The “bucks” this woman saved through hard work and perseverance made her a millionaire — but you would not know it as she still lives frugally and is still “saving the buck”.
Understanding generational marketing is a key to developing effective marketing programs to attract and retain members of each generation. My blog has a number of posts that can help you advance and enhance your marketing endeavors.
Originally published at www.nancysalamone.com on July 29, 2016.
