Generations go well beyond standard insights to reveal what makes a cohort of consumers think and behave alike. The currency of generations is in recognizing how they relate to each other through their collective ideals and values, the experiences and events they share – both real and virtual – and their increasing ability to even transcend geography in real-time through today’s technology.
Yet, in an age of growing diversity and finite budgets, we also need to avoid generational stereotyping. We need to acknowledge that generations aren’t monolithic – recognizing their value but seeing them as just one lens in your toolkit.
Generations in action: Adapting to globalization
While we are seeing greater convergence of generations across geographies over time, this isn’t a mandate to dismiss localization. Even though Gen Z are the most global generation today, there are distinct local values that may yield stronger connections to brands. While Gen Zs in all three of these markets share values such as Authenticity and Protecting the Family, we also see very different values that would lead to different efforts for anything from fashion brands, to food and beverage, to entertainment, and even ESR.
How do we define generations to make them meaningful and revealing? For the Baby Boomer generation, birth rates provided distinct boundaries; but we’ve also learned that the greatest influences on a cohort tend to be the environmental and social events that impact them, especially in their formative years. We use these collectively shared experiences – from the AIDS epidemic to 9-11 to COVID-19 – to mark the transitions from one generation to another.
When deployed wisely, generations can help brands target consumers effectively.
1. Shaping portfolio strategy
Generational studies measure shifts over broad swaths of time, making them ideal to inform brand strategies today and tomorrow. Generational insights are now being applied to managing product portfolio strategies; this can be clearly seen in the auto industry, for example, where brands have a plethora of nameplates applicable to drivers of different generations. We also see this strategic application in the beverage industry, with different products – featuring a variety of ingredients, flavors, and benefits – catering to various generational mindsets and expectations.
2. Guiding communications and targeting
Whether you are crafting a message that needs to resonate with the cohort, optimizing media mix, or even developing programming (think about the shoutouts to Gen X in “Stranger Things” or the numerous reboots of nostalgic TV shows) – generations can provide crucial direction for communications decisions.
Consider first the media channels that each generation trusts most, as well as the messages that will align most closely with their worldviews. Other vital aspects of their identities to keep in mind include the unique impacts of major events (e.g., COVID-19, The Great Recession) on their age groups and whether each generation's values tend to be monolithic (vs. varied).
3. Identifying innovation & product opportunities
By understanding who generational consumers are today – as well as studying those before them – brands can begin to project their future needs and identify innovation opportunities, achieving a stronger idea of when to launch future products and for whom. When the iPad launched, Apple knew from its iPhone experience that the biggest hurdle to adoption would be the shift from keyboard clicks to swiping on touch-sensitive screens. Apple realized that a premium product catering to the same Gen X and late Boomers who first bought the iPhone would benefit from familiarity with swiping.
