Companies tend to analyze consumer insights primarily in the context of their brands, products and services. As a result, they place the brand at the center of their research.
By flipping the lens and putting the consumer at the center, companies can change their perspective and gain a broader and more strategic view of their target audiences and clusters.
In this inverted perspective, it is crucial to analyze the entire consumer kaleidoscope, and the first clustering that is important to do is generational clustering. Understanding generational differences is helpful in developing marketing and communication strategies that resonate with different age groups.
Many aspects of who we are and what we do depend on the generation to which we belong. There are currently six generations, but only 5 generate 90% of total consumption.
So which ones are the most interesting for brands to analyze?
Born between 1995 and 2010, this generation is the first to grow up entirely in the digital age. They are often characterized as diverse, entrepreneurial, and socially conscious.
They have the pandemic as defining event, and their dominant insight is the concept of genderlessness. Although they are digital natives, they like to enter the point of sale and touch products with their hands.
Born between 1980 and 1994, this generation grew up during a time of rapid technological advancement and globalization. They are often characterized as tech-savvy, aware of global problems, and socially conscious.
They have the 2008 economic crisis as defining event, and it is with them that the concept of "sharing is caring" was born. They are among the leading advocates of recycling and alternate their purchases between online and offline, although they often browse products at the point of sale and then buy online.
Born between 1965 and 1979, this generation grew up during a time of economic and political upheaval. They are often characterized as independent, skeptical, and adaptable.
They have the digital transformation as defining event and are average users of technological tools. Their dominant insight is the pursuit of work-life balance. They shop both online and offline, but still prefer to go to stores.
Born between 1946 and 1964, this generation grew up during a time of significant social change and prosperity. They are often characterized as ambitious, idealistic, and competitive.
They have the economic miracle as defining event and have more purchasing power than any other generation. They are currently living a second youth and like to buy products by touching them with their hands, although they are increasingly moving towards online shopping (especially after the pandemic).
Born between 1928 and 1945, this generation grew up during the Great Depression and World War II.
They are often characterized as hardworking, frugal, and loyal to brands.
Each generation has its own specific characteristics, which provide an essential knowledge base for any brand: it is generational characteristics, in fact, that define 80 percent of our consumption behaviors.
Lifestyles, attitudes, behaviors, needs, consumption habits, relationship with technology and emotional purchase levers are primarily dependent on the generation to which we belong.
Analyzing generations is important for several reasons:
Overall, analyzing generations is a fundamental element of brand strategy. By gaining a deeper understanding of generational differences, retailers can develop more effective marketing strategies, identify emerging trends, and create better customer experiences. This can ultimately lead to higher sales, revenue growth, and competitive advantage in the marketplace.
Thanks to the Consumer Cluster Analysis you will discover how to analyze and use insights and data to gain a competitive advantage and increase sales.