How to Sell to Different Generations of Customers: the Theory of Generations with Business Benefits

In every country the younger generation is always foreigners.

Germaine de Stahl

There was an explosion of interest around generational theory in 1991 when Neil Howe and William Strauss released the book Generations. Why the explosion? First, the topic was not new, but it was the first time it was delivered in a popular science format that was accessible to all. Secondly, it’s so convenient: put labels on it and think you understand people.

It is important to remember that generational theory is not the ultimate truth or a guide to action. It is only a general framework, which helps to better understand the differences between generations and find approaches to them.

Let’s understand in more detail what traits are inherent in different generations and how to use them for business.
Generational theory: what it is and the main points

The main idea of the theory is that social, political, cultural events influence the formation of personality and determine the human behavior. Therefore, people who grew up in the same conditions are similar in their behavior.

Generations are separated by year of birth:

• The traditionalist generation – 1945 and earlier.
• Baby boomer generation – 1940-1959.
• Generation X – 1960-1979.
• Generation Y (or millennials) – 1980-2000.
• Generation Z – 2000-2012.
• Generation Alpha – 2012 and later.

People of the same generation exhibit similar characteristics: brand communication preferences, purchases, motivations. This happened because they were influenced by the same trends and from similar channels (TV, online, newspapers, books and others).
How to sell to different generations of customers: a theory of generations with business benefits

You also need to consider geographic differences within the same generation. For example, a Millennial from Athens, where unemployment is insane, is very different from a Millennial from Texas, with their fantastic growth in the labor market. That’s why it’s always important to take a cross-section of your country or region to understand the needs of your audience.

Since it is almost impossible to prove generational theory, different sources add facts as they see fit, even without official corroboration. For example, several publications, citing a Microsoft study, claim that Generation Z is unable to hold focus for longer than 8 seconds. Where this myth comes from is unknown, because Microsoft has never conducted such a study, and no one has been able to find the primary source.

Other sources claim that Generation Z is prone to depression. However, this is more of a worldwide trend. Signs of depression first appear in adolescence. But this is not a peculiarity of Z-types, it is a characteristic of teenagers in general.

So find any new generational facts, think about it: is it really a generational characteristic or is it more of an age characteristic?

Next, let’s break down in detail how to work with generations X, Y, Z. Traditionalists and baby boomers are not considered, because it is an audience of advanced age and makes up a very small percentage of customers. A generation Alpha is still children, so you still have to influence their parents.

Generation X.

Who they are. These are people with experience and knowledge. They have survived the superpower race, the collapse of the Soviets, multiple crises. Loud appeals and shouted slogans are for them the usual information noise. These people are rational and need something more to convince them than a simple “believe me, we promise you. “The X’s are at the age when they are ready to live for themselves, to do things for themselves that they have never done before.

How they differ. Generation X is characterized by a willingness to change. But they are not inclined to plan much, they do not have big ambitions. More concerned about the present than the future. Although they are not prone to large-scale career and social ambitions, many of them are executives today, simply because it makes sense for their age to work their way up to that status.

How they buy in. “X’s are supporters of offline stores. They are more likely to choose places where they can buy everything at once, saving time. These shoppers value personalized attention and unique offerings because they grew up in an environment where everything was the same for everyone.

They are fastidious consumers who are picky about the smallest details. For them, being able to choose is important.

Because they grew up without the Internet, it affected their online behavior and preferences. So if you want to make them buy online, give clear instructions, direct links and simplify the interface as much as possible.

Oddly enough, it is generation X that spends the most time online. About 7 hours a week they sit on Facebook.

The motto of this generation is "My home is my fortress.

Where to “hit.” Convince them through nostalgia and a need for comfort. They crave traditional values, value their money and time, and take a long time to make decisions.

Don’t forget to work on loyalty. 84% of Gen X are loyal to their favorite brands. This means that if you get them to like you, repeat purchases will be one after another.

How businesses should conduct themselves with Generation X. To engage Generation X online, avoid surveys and quizzes. Instead, give valuable content. Collaborative research.

How businesses should conduct themselves with Generation X. To attract Generation X online, avoid surveys and quizzes. Instead, give valuable content. A joint study by Google, Ipsos Connect and Flamingo found that X’s go to Youtube for 3 types of content: nostalgia-inducing, informative and how to do.

It's important for Generation X shoppers to feel unique

Don’t over-advertise on social media to the Generation X audience. According to a September 2018 Morning Consult survey, 56% of “X’s” said there are too many ads on the social platforms they use. And according to an Adobe survey, 30% of Xs don’t trust any social media site. 27% of respondents to this survey said they weren’t comfortable sharing personal information with brands.

So try to build communication in other channels: offline stores, outdoor advertising, TV, e-mail. That way they will be more comfortable.

To interest them you have to prove the superiority of your product over others. This audience likes long texts in ads that answer all the questions: “Why do I need this? What benefit will I get? How is your product better than others?”

Generation Y

Who they are. Gen Y (aka millennials) are often referred to as the consumer generation. They want a better life, want more, are not willing to work just for the money. For them, it is important to be fashionable. They choose clothes, hobbies, profession according to this principle.

How to sell to different generations of customers: a theory of generations with business benefits

How they differ. Generation Y goes after the dream. They don’t need career recognition, it’s much more important what value they bring to their work. Planning is not the strong point of this generation. The explanation is pretty simple: the Y’s are the children of the “X’s” who haven’t had anything changed in decades, and when the millennials were growing up, changes happened almost every year.

How they buy. Data from Internet Marketing Inc. for 2017 shows that 73% of online purchases millennials make from a smartphone. “Igreks” choose long and carefully. They read reviews, look at photos, compare prices in different stores and watch for promotions. At the same time, purchases are made in parallel with other things: chatting with friends, listening to music, being on public transport. Therefore it is important that the interface of the site was clear, and the process of placing an order is simple.

When choosing brands, the Y is guided by the experience of other consumers. Except for luxury brands – their prestige is not in doubt.

Privacy is not as important to this generation.

Erica Podesta McCoy, CMO at Resonate.

Where to “hit”. Millennials have experienced many economic changes and want to catch up on everything at once. They use every hour to learn new things, so they’re critical about how much time they’ll spend on each activity: the event you’re calling for, finding information on a website, filling out a checkout form.

These are people who want to know about everything, but aren’t willing to spend a lot of time studying an issue in depth. A superficial study is enough for them. The ideal format for them: short messages or stories with infographics, concentrated presentations, comics.

How businesses deal with Generation Y. This audience doesn’t like long texts and doesn’t wait long for “when things get interesting.” It is important to capture their interest from the first seconds. Millennials may make spontaneous purchases, but more often still check out information and compare sellers. This kind of caution has been fostered in them by crises and a life of credit. Therefore, it is very important that the company has a good reputation in the network: the positive assessment on the marketplace, reviews in soets.net.

In advertising for the generation Y good working before and after formats, themes of love, beauty, health, ecology, spiritual growth, attributes of a successful life, emotional short messages, impressions of other people from the purchase, how advanced the product, non-standard ways of solving problems. Sales, giveaways, cashback, coupons – all of these appeal to the Y.

This generation is very demanding of service. If they choose to buy from you, they will demand impeccable service, 24/7 support and wow-effect. And if you “slip up” on something, the negativity will be discussed on Facebook, Instagram and all available channels.

Millennials want to feel empowered. Choose a supportive tone of voice to communicate with them, assure them that they can do anything.

Generation Z.

Who they are. “Zetas” are the digital generation. They are less susceptible to imposter syndrome because they have no doubt that they deserve the benefits they have. Chasing brands has become unimportant to them. The younger generation finds self-identity through content production. Because thanks to the Internet everyone can make content and unite like-minded people around them, this has become the main factor of self-expression.

How they differ. They perceive information at a speed that previous generations could not even dream of. But holding their attention is a real challenge, because only something worthy and unique deserves the attention of “zets”.

How to sell to different generations of customers: A theory of generations with business benefits

Their motto: "Nothing is impossible.

Self-education is a key trait of this generation. Z understand that the pace of the modern world does not allow to dwell on one thing for a long time. Therefore they strive to simplify, to absorb information faster, but more qualitatively.

They are self-centered, communicative and dependent on public opinion. And you need to keep this in mind when building a communication strategy. The paradox is that in other personalities they don’t care about appearance or education. The person is either interesting to them or not.

How they buy. According to a joint study by Google and Ipsos, “zetas” are mobile shoppers. 2/3 of teens shop online. They most often buy video games, groceries, clothes and accessories.

Z’s attach great importance to shoes and consider them a sign of coolness. The idea of supporting domestic brands is common among teenagers.

For this generation the idea of conscious consumption and sharing economy is close. And at the same time they are willing to pay more for authenticity, comfort and coolness.

They can also buy something just because it’s fashionable and popular among kids their age.

Where to “hit”. “Zetas” are not attracted to money and wealth in the classic sense. For them, it’s just the key to freedom and the pursuit of ideas. They are concerned about global issues, so most of them take a proactive stance.

How businesses should behave with Generation Z. Communicate with them online. Videos, especially viral ones, have the best effect. Because Z are visual people, you need to be memorable, to stand out. And then they’ll be ready to buy even after watching one of your YouTube videos. They respond well to creativity, surveys, interactivity, and the presence of Influencers. Make interesting content, and they’ll share it themselves.

Z’s are willing to pay for anything that gives them an experience: cool clothes and shoes, gadgets, travel, education.

But don’t forget that the oldest Zetas are only 20 years old and are not yet as free with money as X and Y.
What to do if the target audience of the company consists of 2 or more generations

Segmentation is our everything

Segmentation is one of the basic principles of marketing. Because by selling everything to everyone, you’re not selling anything to anyone. According to Website Builder, individual offers generate 18 times more revenue than generalized offers.

How to sell to different generations of customers: a theory of generations with business benefits

Segmentation is the division of the target audience into groups based on different parameters. And the generation is one of these parameters.

There are different approaches to segmentation in marketing, but in our case the most optimal – Mark Sherrington’s 5W method. It answers 5 key questions to understand your customer.

1. what. What are you selling? What does the customer wants to get?
2. Who. Who uses this product? At this step you describe the customer: age, gender, interests, marital status, preferences, aspirations, etc.
3. Why. Why does your customer need your product? What problems or benefits will she get?
4. When. When does the person need your product?
5. Where. Where do your customers “live”? Where can they contact you? Where can they see, touch, test your product?

Checklist to see if you’ve segmented correctly:

• All people from the same segment respond the same way to your offer.
• You clearly understand and detail each customer group.
• There are enough customers in each segment.
• You can manage the behavior of people from the same segment with personalized advertising.

By understanding each generation’s values, you’ll find it easier to approach them, speak their language, push their pain, and share their values. Use it. Test it. Invent it. And it will get results.