With the right data, marketers can segment their consumers according to shared similarities, then develop personalized strategies for driving sales and ROI. Common characteristics can range from basic demographics like what they do and where they live to deeper insights like what they buy and where they shop. One of the most effective segmentation tactics is generational marketing, as it gives brands five distinctive buyer personas with similar values, experiences, and purchase behaviors. What is generational marketing, and what strategies should marketers apply to each respective generation for nurturing customer loyalty?

What is generational marketing?

In generational marketing, consumers are segmented and targeted according to the generation they belong to, determined by the year they were born. Currently, we have six generations: the silent generation, baby boomers, Generation X, Generation Y (millennials), Generation Z, and Generation Alpha. While most marketers focus on the middle four, Gen Alpha are becoming increasingly relevant as their influence and purchasing power grows over time.

Generational marketing is effective because each generation has its own set of beliefs, preferences, and shared experiences, influencing the way they think, act, and shop. For example, cultural and sociopolitical factors like financial and economic development can affect their attitudes towards money and brands. Generations that grew up in a recession may be more frugal than others, while those who grew attached to certain products during childhood may continue buying them out of nostalgia. New technologies like virtual reality and checkout-free shopping may change the way they research and purchase products. People who grew up during the rise of the personal computer will likely have different perspectives compared to people who grew up during the development of the smartphone.

While generational marketing can help brands create well-rounded consumer profiles, marketers should also take other factors like location, income, and individual interests into consideration. They should also exercise caution around targeting and portraying generational stereotypes, such as their spending habits or technological expertise. As long as brands have the right first-party data on their own customers’ needs, interests, and knowledge, generational segmentation can be a strong foundation for personalized marketing campaigns.

Baby boomers

Baby boomers were born in the mid-1940s to the early 1960s. They’re best known for being a post-war generation that grew up in a time of financial and economic growth. They were also the first generation to have children and teenagers with purchasing power. Their sociopolitical perspectives were shaped by events like the civil rights movement, women’s liberation, and the rise of television as both an information source and a marketing medium.

Most baby boomers are either retired or close to retirement, holding the most purchasing power and disposable income. Some are frugal due to recent economic instability, but generally no longer need to save money for education, housing, or family. They are highly brand loyal and are unlikely to consider peer recommendations. Baby boomers are the least likely to factor in a brand’s environmental, social, and governance policies when choosing a product.

Email marketing

While baby boomers didn’t grow up with modern technology, many have adapted to it, owning smartphones, tablets, and Facebook accounts. About 96% use search engines, 95% use email, and 92% shop online. Blog articles and email campaigns can be especially effective for engaging baby boomers as they value clear, concise, and helpful information over flashy visuals and hyperbolic copy.

When creating content for a baby boomer audience, brands need to prioritize mobile responsiveness, avoid clickbait tactics and generational stereotypes, and provide lifestyle-based value. For example, marketers should design email campaigns with straightforward subject lines and clear outlines of what they offer and how consumers will benefit. They also need to position themselves as reliable, trustworthy, and knowledgeable, and avoid using terms like “aging”, “elderly”, and “senior citizens”.

In this email campaign, Travelocity offered consumers an online tool to find the best travel deals, including flights, hotels, and car rentals. They clearly outlined the offer, its benefits, and the actions needed to begin. The accessible design, navigation menu, and mobile app links all help to drive engagement and conversions from baby boomers.

Gift with purchase programs

Despite being characterized as a wealthy generation, having benefited from low interest rates and inflated housing prices, an estimated 45% of baby boomers don’t have any retirement savings, leading to increased frugality. As a result, they’re looking for opportunities to get as much value for their money’s worth as possible - they’re willing to spend, but want to spend wisely. Currently, around 96% of American baby boomers use coupons to save money.

To appeal to baby boomers’ desire to spend and save at the same time, marketers should consider running a gift with purchase program. Consumers either purchase a specific product or spend a specified amount to earn a gift in return, such as a free item or a gift card. Gift with purchase programs also help brands generate leads, drive sales, foster customer loyalty, and capture actionable user insights.

In Reckitt Benckiser’s ‘New Year New Care’ gift with purchase promotion, consumers were asked to purchase $25 worth of participating Reckitt Benckiser vitamin products in one transaction from participating retailers to receive a $10 digital PayPal or Venmo cash back reward. By offering cost-saving value, Reckitt Benckiser was able to drive product purchasing and collect data on baby boomers’ product preferences.

Generation X

Generation X, or Gen X, were born in the mid-1960s to the early 1980s. They’re best known for being one of the smallest generations, resulting in them often being overlooked in comparison to baby boomers and millennials. Their sociopolitical perspectives were influenced by developments in space exploration, the increased importance of higher education, and the rise of the personal computer, leading to the transition from analog to digital technology.

Since Gen Xers grew up during a recession, they’re relatively cautious about spending money. They’re also known to be resourceful, independent, and skeptical, aligning themselves with brands who value authenticity and leverage nostalgia. This also makes them the most brand-loyal generation, as they’re hesitant to try new products and innovations. Brands can appeal to Gen X by focusing on topics like family, health and wellness, and financial security.

Social media marketing

75% of Gen Xers describe social media as an essential part of their life, and can primarily be found on Facebook and YouTube. Marketers should create product demonstrations, tutorials, and explainer videos to drive consumer engagement and reinforce their brand values. Gen X influencers can also be found on Instagram and TikTok, connecting with their generational cohort through authenticity, nostalgia, and humor.

To appeal to Gen Xers, brands need to focus on crafting genuine messages and imagery instead of staged content. Like with baby boomers, their approach to social media should be clear, concise, and free of vague statements and promises. Marketers should also consider partnering with Gen X influencers and offering solutions to relatable issues like financial struggles and health concerns.

Headspace is a popular guided meditation app that promotes mindfulness through short exercises and gamification tactics. Their Facebook ads are especially effective for Gen Xers, as they provide a clear solution for common issues like stress and highlight specific benefits of their service, such as “reduc[ing] negative emotions by 28%”. This genuine appeal to help improve users’ mental health can lead to greater brand engagement among Gen X consumers.

Loyalty programs

As the most brand-loyal generation, Gen Xers want to be rewarded for their dedication to specific products and brands. Marketers can nurture and recognize customer loyalty through product reviews, referral and advocacy programs, satisfaction surveys, and loyalty programs.

Loyalty programs are a long-term, full-scale marketing tactic that consist of three components: objectives, actions, and rewards. For example, a brand’s main objective may be to drive sales and ROI. To achieve this, they can ask consumers to make purchases in exchange for digital rewards. Loyalty programs help to nurture trust and transparency, deepen brand relationships, and increase customer lifetime value, benefiting both companies and Gen X consumers.

Members of TENA®’s Consumer Rewards Program purchase qualifying TENA® products to earn points. They can also earn points by watching educational videos, reading informative articles, answering surveys, and sharing the program on Facebook. Their points are then redeemed for digital Visa prepaid cards. The program rewards Gen Xers for their loyalty and allows TENA® to collect and leverage data about their product preferences and purchasing behaviors.

Millennials

Generation Y, commonly referred to as millennials, were born in the mid-1980s to the mid-1990s. They’re best known for being both the largest generation in the workforce and the largest generation in history. Their sociopolitical perspectives were shaped by the legalization of gay marriage in multiple countries, the increasing number of wars and natural disasters, and the rise of modern technology like social media and smart devices.

Millennials are often the most targeted generation in every industry due to their size, diversity, and purchasing power. They’re highly influenced by word-of-mouth advertising, as they value brand relatability and social advocacy, and are most likely to show loyalty by recommending products to family and friends. However, they’re also the least brand-loyal generation, with a tendency to switch brands after increases in prices or poor customer service.

SMS marketing

Around 98% of millennials own a smartphone, with 19% of them only using smartphones to browse the internet. Over 65% of Americans check their phones up to 96 times per day, or approximately every 9 minutes. As smartphones become more prevalent, brands can easily find and connect with millennial consumers through text messages, also known as SMS marketing.

With SMS (short message service) marketing, brands send text messages about new products and services, sales and offers, quizzes and surveys, and special events. They can also leverage MMS (multimedia message service) marketing to include static images and animated GIFs. SMS marketing is especially effective for millennials because it creates personalized buyer’s journeys informed by their consumer data. For example, brands may send special deals based on their location or their past purchases, driving additional sales and increased customer loyalty.

In GOYA®’s ‘Marc Anthony SMS’ consumer engagement program, shoppers were to purchase a qualifying GOYA® product to get the chance to win 1 of 18 pairs of tickets and meet-and-greet passes to a Marc Anthony concert. By asking shoppers to text a region-specific keyword and send a picture of their receipt, GOYA® was able to quickly connect with millennial consumers via text and capture data about their purchasing habits at the same time.

User-generated content

Millennials are more likely to trust personal recommendations than a brand’s marketing campaigns, as they highly value social proof and peer acceptance. Approximately 84% of them say that user-generated content influences their purchase decisions, while consumers in general find it more memorable and unique compared to non-UGC content.

User-generated content is any type of original content created by a brand’s audience, rather than by the brand itself, and can include product reviews, photos and videos, and comments, testimonials, and feedback. UGC helps brands provide consumer-driven credibility and influence millennials’ purchasing decisions while keeping their marketing costs low.

Starbucks incorporates user-generated content into their social media strategy by sharing consumers’ photos and creating UGC-specific hashtags. In this example, they encouraged customers to draw on their Starbucks cups and post their artistic creations with the hashtag #RedCupArt. This not only drives sales of Starbucks drinks, but it also creates a sense of community and like-mindedness, leading to stronger customer loyalty among millennials.

Generation Z

Generation Z, or Gen Z, were born in the mid-1990s to the early 2010s. They’re best known for being the most diverse and most tech-savvy generation to date, with many already holding a significant amount of spending power. Their sociopolitical perspectives were influenced by the growing emphasis on widespread DEI (diversity, equity, inclusion), corporate social responsibility, and social networking.

Like millennials, Gen Zers trust peer recommendations and user-generated content more than a brand’s marketing campaigns due to their inherent social proof. However, they also differ from millennials in many respects, as they’re more influenced by content creators, visual-based social media, and a brand’s emotional appeal. Lastly, Gen Z prioritize sustainable consumption through eco-friendly products and secondhand marketplaces.

Influencer marketing

Gen Zers are often referred to as “digital natives”, meaning they grew up under the influence of the internet and other modern technologies, spending an average of around 3 hours per day on social media. They value inclusive and interconnected digital communities, and often look to content creators who provide social context to the products they’re recommending.

About 72% of Gen Zers follow influencers on social media platforms like TikTok, Instagram, and Twitch to find inspiration, learn about new trends, and consume engaging content. They value influencers with authenticity, humor, and knowledge over traits like physical attractiveness and wealth. Brands partner with influencers through sponsored content and marketing campaigns, essentially “borrowing” the trust and respect they’ve established with their followers.

When choosing an influencer to work with, marketers need to ensure that their personal brand aligns with the company’s brand narrative to avoid forming an inauthentic partnership. In this example, General Mills partnered with multiple micro-influencers known for their vibrant lifestyle content to promote their new Lucky Charms product, giving them the opportunity to reach and engage with their respective audiences.

Brand activism

Gen Z often participates in protests and other forms of activism, speaking out on issues like climate change, racial and gender equality, and mental health. A survey conducted across 7 countries found that 75% of Gen Zers believe “being politically or socially engaged is very important to their identity”, with 63% using social media to stay informed about current events.

More and more consumers, especially millennials and Gen Zers, want brands to take a clear stance on pressing issues; 76% “find it important to buy from brands that celebrate diversity”, while 31% stopped buying from brands whose values didn’t align with their own. Brands can successfully nurture customer loyalty in Gen Z consumers by practicing social responsibility, supporting young activists, and donating to relevant organizations.

Aerie, an apparel brand aimed at young women, offers some of the best examples of impactful brand activism. To start, their untouched product photos feature models of different backgrounds and body types, as well as models with disabilities and illnesses. Their ongoing #AerieREAL campaign, summit, and ambassador program inspires consumers to change the world “through leadership, advocacy, workshops and philanthropic partnerships”. Lastly, they regularly partner with organizations like the Crisis Text Line, the It Gets Better Project, and the Special Olympics.

Generation Alpha

Generation Alpha, or Gen Alpha, were born in the early-to-mid 2010s to the mid-2020s. They are the first generation to be born entirely in the 21st century, and may potentially surpass their millennial parents to become the biggest generation in history. Their sociopolitical perspectives are shaped by the creator economy, climate change, and the COVID-19 pandemic, resulting in their unofficial nickname, “Generation COVID” or “Gen C”.

While Gen Alpha currently holds little spending power of their own, they’re often referred to as “mini-millennials”, with high levels of influence over their parents’ purchasing decisions. As a result, marketers target Gen Alpha by appealing to their parents through social commerce, direct-to-consumer strategies, and minimalistic branding. However, Gen Alpha themselves are also heavily influenced by responsive technology, kid entrepreneurs, and online communities.

Gamification marketing

While Gen X were the first generation to play video games with 1972’s Pong, younger generations like Gen Z and Gen Alpha have more interest and more exposure to games and game mechanics than ever before. As a result, brands often use gamification marketing to connect with Gen Alpha, as well as through gamified education, athletics, and healthcare.

Gamification is especially effective on Gen Alpha because of its ability to create fun, memorable experiences that require active participation and ongoing engagement, appealing to their shorter attention spans. Game mechanics like points, badges, leaderboards, and rewards help to capture Gen Alpha’s interest and foster customer loyalty.

Duolingo is one of the best examples of gamification, leveraging multiple types of game mechanics to retain users’ attention and increase consumer engagement. Gen Alpha users can learn a new language and earn experience points, badges, and special achievements at the same time. They’re also encouraged to maintain a daily streak and compete against other users on the leaderboard.

Augmented reality

Brands can take game mechanics one step further with virtual reality and augmented reality. Gen Alpha is both digital-first and tech-driven, being placed in front of screens earlier and more often than any other generation. With VR/AR technology, they can fully immerse themselves in next-generation brand experiences.

In virtual reality, consumers use specialized hardware typically associated with video games to view three-dimensional images. In augmented reality, consumers use devices like smartphones to view the real world with additional visual, haptic (touch), or olfactory (smell) elements. Both technologies give users the chance to experience a brand’s products or services without having to visit a physical location, optimizing their user experience.

For example, LEGO®’s Hidden Side™ mobile app turns Gen Alpha’s smartphones into a ghost hunting tool and augmented reality game. Consumers use the app to scan specific LEGO® pieces in a Hidden Side™ playset, then locate and “defeat” ghosts. Virtual and augmented reality helps users shape their own brand experiences and form deeper connections with companies over time, resulting in stronger customer loyalty.

Create generational marketing promotions to foster customer loyalty

Whether you’re engaging with baby boomers through informative email campaigns or Generation Alpha through innovative gamification tactics, generational marketing can provide a strong foundation for segmenting and targeting your consumers. To avoid stereotypes and misunderstandings, brands should make sure to continuously capture and leverage user first-party data to gain a full understanding of each generational cohort.

With 3 tier logic’s PLATFORM³, brands can identify, target, and connect with consumers of all ages through loyalty programs, SMS marketing, gamification strategies, gift with purchase promotions, and more. Modules like Dynamic Messaging, Points and Gamification, and Data Capture & Analytics give marketers the knowledge and capabilities they need to drive sales, ROI, and long-term customer loyalty. To learn more, chat with an expert today.

10 Generational Marketing Strategies For Winning Customer Loyalty