Gen Z Vs Millennials: The Ultimate Breakdown

There is an ongoing misconception that Gen Z and Millennials are virtually the same. When companies create marketing campaigns to reach younger audiences, they often categorize Gen Z and Millennials into the same group. 

Indeed, the majority of them are referred to as “young adults,” and both generations grew up in the digital era. It is no wonder that marketers target them as a single target audience. 

It might seem budget-friendly and time-saving to launch only one marketing campaign for both generations. But the truth is, Gen Z and Millennials interact, shop, and purchase differently. In other words, they do not respond to marketing tactics in the same way. 

Learn the difference between Gen Z vs Millennials, and you will develop effective marketing campaigns for each group. Let’s begin with the basics!

How old are Gen Z and Millennials exactly?

Gen Zs are those born between the years 1997 to 2015. In the current year, they would be in the range of 6 to 24 years old. 

Millennials are those born between 1981 to 1997. That makes them around 24 to 40 years old this year. 

When you think about the age difference between the two generations, it’s obvious that they are spread across various stages of life. The oldest Millennials are 40 years old. On average, they would already have started their own family, settled down, and are looking to spend on larger purchases such as a house or a car. On the contrary, the youngest Gen Zs are six years old. They just enrolled in grade school, are under the care of their parents/guardian, and do not have any income to make purchases for themselves. One demographic contains customers in the market for a minivan, the other for Hot Wheels.

Why is it essential to differentiate Gen Z and Millennials?

Based on the age difference, we learn that Gen Z and Millennials do not respond to marketing tactics the same way. Not only do they have different motivations, expectations, and interests in life, but they also have different purchasing powers.

As a business owner and marketer, it is your responsibility to know who’s purchasing your products and services. Understanding your target audience is the core of any successful marketing campaign. This is because a consumer’s demographic and psychographic greatly influences their willingness to make a purchase. 

When you’re able to identify your target audience’s specific characteristics, you can create ideal content, engage with them on a deeper level, and reach a wider audience by using the right channels. This will help you drive more sales through the door, win customer-satisfaction, and ultimately build a well-known brand reputation. 

Critical differences between Gen Z and millennials

There’s more than just knowing the age difference between the generations. You have to consider various other factors that set apart how they shop, interact with companies and value money. Here are the key differences to consider:

1. Millennials prefer to pay for customer experience more than Gen Z.

A recent survey shows that 66% of Millennials have higher expectations for customer experience than 53% of Gen Z. Up to 76% of Millennials also claim to be willing to pay more if it means getting excellent customer experiences. 

2. Gen Z has higher expectations for businesses to be innovative.

Both Gen Z and Millennials are fortunate to grow up in an era of rapid technological advancements. However, Millennials had to rely on old-school technology like pagers and cassette tapes. 

In comparison, Gen Zs are native consumers of smart technology. As such, they are particular about the ability to limit friction and maximize seamless user-experience. They expect companies to develop innovative products and services that are consistently upgrading. To meet this expectation, companies should be actively engaged and responsive with Gen Zs. One way of doing this is by asking them to share their opinions and collaborate with your brand.

3. Gen Z is conscious of a company’s social and environmental initiatives. 

One study showed that 90% of Gen Z believes companies must help social and environmental issues. In addition, 75% of them will do the extra research to check if a company is honest with its stand on issues. 

Therefore, an excellent way to win Gen Z’s loyalty is by recognizing their role in encouraging positive social and environmental impacts. For example, you can promote how your company is environmentally conscious and donate a certain amount of profit to environmental organizations.

Of course, do not just jump on a bandwagon for the sake of it. Advocate for a cause that you and your company truly believe in! 

4. Gen Z admires brands that promote realistic ideals. 

As mentioned above, Gen Zs are drawn more towards companies that promote social and environmental movements. Similarly, they want to see content that is realistic against societal expectations. 

This means no over-the-top photoshopped images of your models, please. Appreciate the fact that not everyone is perfect, subvert damaging archaic stereotypes, and embrace that there is beauty in imperfection. You’ll earn the hearts of Gen Zs and any other forward-thinking consumers. 

5. Gen Z practices conservative spending more than Millennials.

Surprisingly, the younger generation is better armed and better educated on saving money. Even when Millennials were at the current age of Gen Zs, they did not prioritize being cost-efficient in the same way. 

Gen Z is determined to make every dollar worth spending. They are unlike Millennials who would pull out an extra bill for a better customer experience. 

Gen Z likely picked up conservative spending due to their early exposure to the economic recession and inflation. As such, they are more mindful of their future financial stability. 

If you’re trying to attract Gen Zs, your marketing campaign should explain how your product/service is a valuable investment. This will make them more willing to purchase from your brand. 

6. Millennials look for authenticity and transparency in companies.

By all means, every company should be honest with its audience. However, Millennials are especially attracted to companies that show authenticity and transparency. One way of attaining brand authenticity is to ensure that your marketing efforts consistently align with your company’s mission statement. 

You can build a stronger relationship with your audience by opening up with your audience, for example, posting photos of your employees and the work that goes on behind the scenes. These are valuable content that Millennials value. 

7. Gen Z may miss in-store shopping more than Millennials

Given the current pandemic, a recent study shows that retail e-commerce sales nearly doubled (+99.3%). Both generations are online shopping more than ever. Millennials, in particular, are seasoned online shoppers. Since they have experienced the world before, online shopping motivates Millennials to take advantage of this convenience as much as possible. 

On the other hand, Gen Zs are more prone to return to in-store shopping simply once it is safe. This is because they are likely to miss the unique experiences that in-store shopping offers, including visiting the physical store, trying on products or services before buying. As a part of their formative years, Gen Zs use shopping with their friends as a reason to socialize, making the most of their relatively novel independence away from parental supervision.

8. Gen Z usually makes more mobile purchases than Millennials.

While both generations enjoy online-shopping, Gen Zs are twice as likely as Millennials to make an online purchase through their mobile device. This is probably because Gen Zs are more acquainted with using their phones — after all, more than 74% of Gen Z says they spend their free time online.

If you’re targeting Gen Z, your marketing initiatives should be heavily situated towards online-shopping that is mobile-user friendly.

9. Both are active on social media, but they’re not always on the same channels.

Almost everyone in the current day and age has a social media account. Be it Instagram, Facebook, YouTube, Pinterest, LinkedIn, Twitter, or TikTok — Gen Z and Millennials love using social media. Therefore, it will be smart to implement a social media strategy in your marketing plan. 

Though take note that Gen Z and Millennials are not always on the same channels. For example, Business Insider found that Gen Z is most active on Instagram, Youtube, and Snapchat. TikTok is also a rising social media platform that recently gained popularity amongst Gen Zs worldwide. 

Millennials are known to gravitate to Facebook more than Gen Z. However, one common platform that both generations establish a strong presence is Instagram. Arguably the second-largest social network (depending on the metric utilized), the photo and video sharing application is widely used across Gen Z and Millennials. 

10. Millennial’s preferred method of communication is email rather than social media. 

According to a Campaign Monitor study, Millennials ranked their preferred communication method with email first, social media as a distant second.

In comparison, Gen Z prefers communicating through social media. 

Still, social media and email marketing are strong contenders in reaching both generations, as such, optimizing your social media and email marketing strategies will be highly beneficial.

Now that we’ve drawn the line.

Distinguishing your target audience is essential to the success of your marketing strategies. The key takeaway here is to specify your niche; know your target audience. 

Now that we’ve drawn the line between Gen Z vs Millennials, make use of this vital information and craft a winning marketing campaign that will resonate with your audience and initiate them to purchase from your brand. 

FAQ

What are the current generations today?

There are more generations aside from Gen Z and Millennials! Currently, five generations make up our society. Here’s a specific breakdown of the birth range for every generation. 

Gen Z: Born 1997 – 2015

Millennials: Born 1977 – 1997

Generation X: Born 1965 – 1977

Baby Boomers: Born 1946 – 1965

Traditionalists or Silent Generation: Born 1945 and before

It’s important to note that everyone, regardless of their generation, plays an active role in shaping our community. They might have different interests in life, but that’s what makes your job as a marketer and business owner so fun. You get to learn more about what makes your target audience unique along the way. 

How do I know which generation is my target audience? 

Identifying your target audience may be challenging, especially when the age range within a generation is so broad. An excellent way to keep track of the people who are actively engaging with your content and supporting your business is through Google Analytics or Insights, a tool available on most social media platforms like Facebook and Instagram. These tools will show you the age range of your audience. 

How can I learn more about the differences between Gen Z and Millennials?

Change is the only constant. It’s hard to say how the characteristics and preferences of both generations can change over time. As such, it would be diligent in always keeping yourself updated with their new trends. 

Do you know someone who’s Gen Z or a millennial? Talk to them and learn more about them. By doing this, you’re essentially researching your target audience, which will tremendously benefit your future marketing campaigns’ trajectory.

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