© Optimisa Research

The Generation Game

Optimisa Research and Nationwide

Sharron Worton, Michelle Norman and Lou Vanheems

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Click to edit Master title styleClick to edit Master text stylesOn the face of it, Gen Zs and the over 50s have little in common

Spenders – although they want to save

Savers

Here and nowWaiting for the

future

Self-motivated Disengaged

Digital natives Digital adopters

Gen Zs 50+

But just how different are they?

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Click to edit Master title styleClick to edit Master text stylesWe all talk about Gen Zs but there is still little consensus over who they actually are

Born 1992

Born 2000

Statistics Canada

1993 1994 1995 1996 1997 1998 1999

Australia’s McCrindle

Research CentreThe

Futures Company (Kantar)

Evening Standard

Centennials feature (3rd

June 2016)

Definitions of when “Gen Z” starts

Marketing Week and AdWeek

Definition

USA Today

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Click to edit Master title styleClick to edit Master text stylesLinking the over 50s to a generation is a bit easier – but not much!

Baby Boomers?

Generation X?

OR

Born between 1946 and 1964

Born between 1961 and 1981

WHAT DO WE KNOW ABOUT GEN Z?

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Click to edit Master title styleClick to edit Master text stylesGeneration Z have always known social media and rely on it heavily for their interaction

…so it’s little wonder that 41% agree that they are “hooked” Ofcom CMR 2016

Launched 2006

2006

2010

2010 2011

Social media content is getting shorter and

more visual, with Gen Z attention span said to

be 8 seconds!

2013

16-24 year olds grew up during the social media revolution…

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Click to edit Master title styleClick to edit Master text styles16-24 year olds spend half their online time on social media sites

3.25 hours a day on social media

6.5 hours online a day on average

83% use social media to follow brands

16-18 year olds spend the highest proportion of their online time on social media (58% vs. 39% for 22-24 year olds)

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When it comes to cash most find it hard to imagine life without it; current options for small payments raise concerns

1 in 10 …………won’t carry contactless on a night out

52% …………worry about contactless theft

56% …………think people will always use cash for some things

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Click to edit Master title styleClick to edit Master text stylesGen Z ‘s are inspired by ‘real’ people and success stories

People that inspire Gen Z:

Intellectuals/academics

39%

Entrepreneurs

34%Authors

24%

Musicians /pop stars

20%20%

Sports starsSig higher (24%) among

16-18 year olds

Bloggers/ Vloggers

17%

Sig higher (47%) among uni students

Sig higher (29%) among girls and lower (17%) among those

at school

Sig higher (33%) among males

Sig higher (24%) among females

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Click to edit Master title styleClick to edit Master text stylesThey want inspiration and tools – not direction

Authenticity and integrity

are important

Get to the point

Makers and Creators

Inspire, don’t tell them what

to do

THE OVER 50S HAVE SEEN HUGE CHANGES

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Click to edit Master title styleClick to edit Master text stylesThe over 50s have witnessed huge changes in their lifetime – not all of it positive

Female PM

Cheap air travel

Ever smaller, more powerful computers

Online news

Boom and bust

Supermarket wars

EU Terrorism BrexitRefugees

Email Internet Web chatOnline

transactionsHigh commuter fares / infrastructure

under pressureOyster Eurostar

TV anywhereBlogging/ Vlogging

Social media

Discount storesOnline

shoppingYear round sales

Personal debtFinancial

crimePension freedoms

Fitness culture Obesity NHS cuts Mental health

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They’ve been adapting to and adopting new technology all their adult lives

• Learning to take advantage of ever more powerful computing power

• In everything from washing machines to cars

• In terms of personal connectivity, screen size is often a bigger barrier than concerns about security

• And the internet is the first port of call for research

• Many have embraced social media – to the dismay of some Gen Zs – but a high proportion follow rather than generate content

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Click to edit Master title styleClick to edit Master text stylesAnd use multiple strategies to edit the wealth of choices they now have

49%Trusted brand

50%Read reviews

54%Comparison

sites

53% Seek a

recommendation

“It’s not just about the cheapest one, you read reviews and check it’s good quality as well”

“You’ve got to compare with what competitors are offering that’s how

you know if you’re getting a good deal”

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More than half say it’s hard to know how much things should cost

71% …………expect to look for deals

72% …………resent paying full price to companies that regularly discount

60% …………feel proud when they get a good deal

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When it comes to big financial decisions, the future feels uncertain

“Will my pension pot give me enough to live on?”

“What will Brexit really mean for me and my job?”

“Are savings rates ever going to get any better?”

“What if my mortgage payments go up?”

“Can I afford health insurance at my age?”

Most are happy to make their own decisions, but need information, support and guidance to help them

THE PROVIDER PERSPECTIVE

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Who are young workers?

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Empathic profiles help address diversity in segments

HIGH FINANCIAL LITERACY

LOW FINANCIAL LITERACY

LOW ENGAGEMENT HIGH ENGAGEMENT

“Do it with me”

“Do it for me”

“Let me do it myself”

“Help me do it”

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Click to edit Master title styleClick to edit Master text stylesSo – is it time to stop focussing on age and start thinking about what customers are really like?

M&S targets attitude not age to rebuild fashion business

Two articles have caught our attention recently:

Marketing Week 7th Nov 2016

Millennials are dead. Long live Generation C.Ryan Holmes, Hootsuite, LinkedIn 30th Oct 2016

QUESTIONS?