How Brands Can Thrive by Going beyond Gen Z

Why Gen Z Alone Isn’t the Key to Success

Why are brands so often focussed on capturing the Gen Z market? Doing so overlooks the diversity of other audiences. The assumption that winning over Gen Z is the only path to success often overshadows strategic clarity.

The label 'Gen Z' itself is a broad term that doesn't accurately capture the diversity within this age group. Targeting Gen Z exclusively doesn't guarantee brand growth, and brands should broaden their perspective to recognize the potential of older age groups with significant spending power and brand loyalty.

Beyond the Hype – Seeing the Real Gen Z

There's been a lot of commentary on our culture's obsession with youth, evident in many brands' advertising. With over 70% of today's marketers under the age of 45, this bias towards youth is evident. This has led brands to adapt their marketing efforts towards younger demographics using social media, influencers, and digital experiences. While this strategy is understandable given Gen Z's growing influence, it raises the question of whether this approach is sustainable for long-term brand growth.

In an era where inclusion and diversity are paramount, focusing predominantly on youth seems misplaced. Byron Sharp's research on mass appeal and brand salience as growth levers further highlights the flaw in this strategy.

Even within the Gen Z demographic, there's considerable diversity in income, beliefs, and interests. Smart marketers understand the importance of targeting audiences across generations. Relying solely on an age cohort is risky as it creates inaccurate assumptions and stereotypes.

Intergenerational Marketing

Brands should shift from demographic opportunities to market opportunities. There's untapped potential in other cohorts, and older consumers shouldn't be an afterthought. Harvard Business Review has emphasized the need for an intergenerational approach to marketing that resonates across different age groups. Brands should move beyond strategies focused on younger consumers and create messages, products, and services that appeal to a broader age range.

The Gen Z demographic is naturally shrinking as the global population ages. According to the World Health Organization, the proportion of people aged 60 and older is expected to double by 2050. Engaging older consumers is now more important than ever. Not only does it expand a brand's reach, but it also enhances its understanding of the diverse consumer base. By acknowledging the needs and spending power of older consumers, brands can find new avenues for growth and loyalty.

Purchasing Power

There are compelling reasons for marketers to include older consumers in their growth strategies. Older demographics, like Baby Boomers and Gen X, have significant purchasing power and disposable income. Ignoring these groups means missing out on a large share of consumer spending.

Our research show that In the UK, around 30% of consumers aged 30-50 have a disposable income exceeding £1,000 per month, double that of the 16-29 age group. In the US, more than half of consumers aged 30+ have a disposable income exceeding $250, surpassing Gen Z's 43%. While 57% of Gen Z have less than $250, compared to 49% of over 30s.

Brand Loyalty

Studies have shown that older consumers are more brand-loyal than younger age groups. A recent survey by Hall & Partners found that 66% of US consumers over 30 consistently purchase the same brands, compared to just 55% of Gen Z consumers. Furthermore, 70% of over-30s prefer to stick with familiar brands, compared to 63% of Gen Z. This shows that older consumers are twice as likely to stick with familiar brands, while Gen Z is more open to new ones.

Older consumers can afford a wider range of products and are more likely to stay loyal to familiar brands. This allows them to make purchasing decisions with less hesitation, especially when it comes to brands that align with their values and needs.

Building Brands That Grow With Consumers

While some theories suggest that early brand connections can cement lifelong loyalty, reality shows that life's changes alter needs and priorities. An 18-year-old's worldview differs greatly from someone aged 30-50. The idea that early engagement ensures lasting loyalty ignores how people's needs change over time.

As people mature, their lives and desires change, making their younger selves' preferences less relevant. Brands need to evolve with consumers, offering products and services that cater to their changing lives. A marketing strategy that spans age groups with evolving content is essential for shaping lasting connections and achieving cross-generational brand loyalty.

5 Key Takeaways

1. Broaden your horizons - Winning strategies recognize that growth opportunities extend beyond Gen Z. Understanding the needs of diverse consumer groups is essential.

2. Buying power of age - The greatest opportunities lie with older demographics whose purchasing power and loyalty often surpass younger counterparts. Brands must recognize this to develop effective marketing efforts.

3. Inclusive marketing - Brands can differentiate themselves by breaking away from youth-centric marketing. They can gain relevance and respect across age groups by defying conventions.

4. Question the brief - When planning your next marketing strategy, ask where future growth will come from. Understanding the mindset and aspirations of audiences rather than focusing solely on age will provide richer ways to connect with consumers.

5. Be an ageless brand - Consider the values, needs, or shared experiences that unify your audience, since age groups alone often don't represent the bonds that connect different consumer segments. Brands can establish relevance and earn respect by resonating with consumers of all ages.

While the focus on Gen Z comes from a good place, marketers need to adopt a more holistic, ageless approach that acknowledges the diverse needs of all age groups. By embracing the realities of consumer behavior, brands can develop strategies that resonate with a broader audience and drive sustainable growth in the long term.