Why do marketers need to learn more about generations? A short travel from the Lost Gen to Gen Alpha.

Why do you think marketers are researching generations so fiercely? What is the rationale behind their passion for this topic? Let me tell you. Their ultimate goal is to increase the marketing ROI. I hear you’re asking, then what is the relation between generations and ROI? Look, in order to increase the ROI you either have to shrink the marketing cost or increase revenue. And what would be better than knowing your target audience needs and wants as a group when it comes to getting maximum from each spending dollar?

Strauss–Howe Generational Theory in short

The contemporary characterization of generations used in media borrows mostly from the Strauss–Howe Generational Theory which was devised by William Strauss and Neil Howe, describing a theorized recurring generation cycle in American and global history. According to this theory historical events are associated with recurring generational personas. Each generational persona unleashes a new era lasting 20–25 years, in which a new social, political, and economic climate exists. They are part of a larger saeculum - a long human life, which usually spans between 80 and 100 years. The theory states that a crisis recurs in American history after every saeculum, which is followed by a recovery.

Lesser-Known Generations

The Lost Generation

The Lost Generation is defined as the cohort born from 1883 to 1900 who reached adulthood during or immediately following World War I. Having witnessed what they considered pointless death on such a massive scale during the war, many members of this cohort rejected more traditional ideas of proper behavior and morality. They were considered to be “lost” due to their tendency to act aimlessly, even recklessly, often focusing on the hedonistic accumulation of personal wealth.

The Greatest Generation

The Greatest Generation, born from 1901 to 1927, includes people who came of age during the Great Depression and World War II. They were named the Greatest Generation by Tom Brokaw, famous News Broadcaster, because they fought for what was right rather than fighting for selfish reasons. They certainly made great self sacrifices, fighting to protect people in other countries from Hitler, Mussolini and Japanese Kamikaze suicide bombers. They are the parents of the Baby Boomers.

The Silent Generation

The Silent Generation, also known as the “Lucky Few”, is the cohort who came of age in the post–World War II era. They were born from 1928 to 1945 and grew up expecting a hard life. This was the era when a Christmas present might be an orange or a full meal. They are called the Silent Generation because as a group they were not loud and there were no major wars to protest.

Classics

Baby Boomers

Baby Boomers are the people born right after World War II. The reason why they are called baby boomers is the unprecedentedly increased birth rates observed during the postwar era. They grew up in a time of prosperity and an absence of world wars. Unlike their parents who grew up during the Great Depression, Boomers became the great consumers. They became famous for spending every dollar they earned. This was the first Western Generation to grow up with two cars in every garage and a chicken in every pot.

They are the biggest consumers of traditional media like television, radio, magazines, and newspapers. Despite being so traditional, 90% of baby boomers have a Facebook account. This generation has begun to adopt more technology in order to stay in touch with family members and reconnect with old friends. When it comes to transactions they prefer to go into a branch and they still prefer to use cash for purchases.

Most of the current CEOs, business owners, politicians are represented by this group and therefore the Boomers have the most wealth.

Generation X

Generation X is generally defined as people born between 1965 and 1980. In the U.S., some called them the “baby bust” generation because of a drop in birth rates following the baby boom.

Currently being in the range of 43–57 years old, Gen X is also called the MTV generation. Although they still read newspapers, magazines, listen to the radio, and watche TV, they are quite digital savvy. According to Pew Research Center Gen X watches TV about 40 hours per week and spends roughly 7 hours a week on Facebook.

Since they are digitally savvy, Gen X will do some research and financial management online, but still prefer to do transactions in person. They believe banking is a person-to-person business and demonstrate brand loyalty.

Millennials

Millennials, also known as Generation Y, are the group who grew up around the turn of the 3rd millennium.

The Millennials grew up and began their careers in a time when the technological explosion of the internet and social media happened and almost every home in the west had an internet connection and a computer. The explosive growth of tech giants such as Google, Facebook, Amazon, LinkedIn, EBay, PayPal etc. has also started in these years. Working from home, flex-time and freelancing started to be widely accepted with Millennials.

95% of Millennials still watch TV, but Netflix edges out traditional cable as the preferred provider. This generation is extremely comfortable with mobile devices, but 32% will still use a computer for purchases. They typically have multiple social media accounts.

Millennials have less brand loyalty than previous generations. They prefer to shop products and features first, and have little patience for inefficient or poor service. They see their operations with banks rather transactional, than relational.

Generation Z

Generation Z are the people succeeding the Millennials. Pew Research Center describes Generation Z as spanning from 1997 to 2012. More social media savvy than their millennial peers, Gen Z are more aware of social justice and political issues than many of their older generations were at the same age, largely due to their heavy social media use. More likely to use TikTok and Instagram than Facebook tho.

Gen Z are the first truly digital native generation, with many receiving their first cell phones before 11 years old. Many Gen Z-er grew up playing with their parents’ mobile phones or tablets. They have grown up in a hyper-connected world and the smartphone is their preferred method of communication. On average, they spend 3 hours a day on their mobile device.

They are much more tolerant of others — different cultures, sexual orientations, races. They prefer less “face to face” contact with others due to more time connecting via smart phones and heavy use of gaming. Perhaps these are the reasons why Gen Z, possibly more depressed than prior generations, feels more lonely, and not needed. Despite low rate of drinking and drug taking they got a higher suicide rate than their precedents.

Generation Alpha

Generation Alpha is the first to be born entirely in the 21st century and it is expected to reach two billion people by 2025.

A picture of Generation Alpha, if a blurry one, is gradually starting to emerge. In various articles about its members, analysts have stated that they are or will grow up to be the best-educated generation ever, the most technologically immersed, and the wealthiest.

This newest generation are part of an unintentional global experiment where screens are placed in front of them from the youngest age as pacifiers, entertainers and educational aids. This impacts a lot especially in their formative years.

Alphas are being raised in homes with smart speakers and devices everywhere; technology is built into everyday items. Many of them attended school virtually thanks to the global pandemic and are gravitating toward online learning with programs such as Khan Academy and/or Coursera. Many have even had a digital presence since before they were born, with their Millennial parents creating social media handles for their infants.

I hope this article will give you at least a rough idea about generations. By the way, roughly one and a half months ago I had a privilege to talk about generations from a consumer behavior perspective. Below you can find the video. English subtitles are available.