By: Mark McCrindle
The number one rule in marketing is that if you speak to everyone, you speak to no one.
It’s no wonder that customer segmentation and persona building is such an integral part of any marketing team’s activities. An often overlooked segment is the generations. In this article, we explore the consumption behaviours of each generation, with key insights from our consumer profiles infographic.
Gen Alpha: The Digital-First Consumers
While they’re the youngest consumers, Gen Alpha is growing up in a world where technology is seamlessly integrated into their lives. Although their earning power might end at pocket money and chores, they’re still having an impact on household spending, with four in five parents (79%) saying their children have influenced them to be more environmentally aware in their consumption decisions.
Gen Alpha will be raised with AI-driven recommendations, short-form videos, and other digital experiences. They’re rarely going to use cash with the majority of their financial experiences, including digital wallets, contactless payments, and even crypto, making them the most cashless generation yet. For brands targeting Gen Alpha, authenticity, engagement, and interactive digital experiences are key to building long-term engagement.
Gen Z: The Purpose-Driven Spenders
Currently in their early careers and growing their side hustles, Gen Z are likely to prioritises ethics over traditional brand loyalty. Their spending habits reflect a mix of affordability concerns and a demand for brand transparency. Marketing to Gen Z requires a strong presence on social media, particularly through short-form videos and influencer collaborations. Brands that align with their values—sustainability, social justice, and authenticity—will win their business.
Gen Y: The Convenience-Seekers
Millennials are balancing careers, parenting, mortgages, and financial commitments, making value and convenience top priorities. While they are still influenced by ethical concerns, practicality is likely to win out. Their preferred communication channels include live chat, AI-driven support, and social media. Brands that offer simplicity, sustainable solutions, and personalised experiences will resonate most with this generation.
Gen X: The Practical Decision-Makers
In their peak earning years, Gen X values reliability, quality, and convenience. They are comfortable using traditional credit methods and have extensive experience with mortgages and loans. While brand loyalty is strong, it is contingent on practical benefits such as price, durability, and customer service. This generation consumes a mix of online and traditional media, making omnichannel marketing strategies effective. Providing straightforward, high-value solutions is essential to capturing Gen X consumers.
Baby Boomers: The Brand-Loyal Consumers
Baby Boomers prioritise trust and familiarity in their purchases. With pensions and retirement savings as their financial focus, they continue to favour direct debit and cash. This generation appreciates in-person service but is increasingly engaging with online support and email communications. Brands looking to connect with Baby Boomers should emphasise reliability, customer service, and value for money while maintaining a strong presence in mass media channels such as print, TV, and radio. Bottom of Form
Generational consumer profiles
Understanding generational consumer behaviour is key to crafting targeted marketing strategies and understanding the future consumer. Our infographic (download below) breaks down the earning power, key marketing channels and consumer values of each generation.
Article supplied with thanks to McCrindle.
About the Author: McCrindle are a team of researchers and communications specialists who discover insights, and tell the story of Australians – what we do, and who we are.
Feature image: Photo by Jacek Dylag on Unsplash
