Decode the Generational Differences So You Can Reach Them Where It Counts

market research Aug 24, 2022

What separates Generation Y from X? Not to mention Gen Z and Gen A!

It's something I've found many clients have questions about as they seek to understand their target customers.

We answer the question; What’s the cutoff? How old is each generation and are they really that different?

Explaining the Generations

Let's start by understanding who they are: Gen W, X, Y, Z & A.

Generational cohorts are defined (loosely) by birth year, not current age. The reason is simple — generations get older in groups.

Baby Boomers:
Baby boomers were born between 1946 and 1964. They're currently between 57-75 years old (71.6 million in the U.S.)
Gen X
Gen X was born between 1965 and 1979/80 and is currently between 41-56 years old (65.2 million people in the U.S.)
Millennials
Gen Y, or Millennials, were born between 1981 and 1994/6. They are currently between 25 and 40 years old (72.1 million in the U.S.)
Gen Z
Gen Z is the newest generation, born between 1997 and 2012. They are currently between 9 and 24 years old (nearly 68 million in the U.S.)
Gen A
Generation Alpha starts with children born in 2012 and will continue at least through 2025, maybe later (approximately 48 million people in the U.S.)

Understanding the Baby Boomers

Born between 1946 - 1964, shaped by Post-WWII optimism, the cold war, and the hippie movement
Biggest consumers of traditional media like television, radio, magazines, and newspaper.
Despite being so traditional, 90% of baby boomers have a Facebook account. They're adopting more technology in order to stay in touch with family members and reconnect with old friends.
With more Americans outliving their retirement fund, declining pensions, and social security in jeopardy, ensuring you can successfully fund retirement is a major concern for US Boomers.
US Baby Boomers have an average net worth of $1,066,000 and a median networth of $224,000. UK Boomers are also wealthier than they expected.

Irish Baby Boomers

A side effect of Irish neutrality was that there was no post-war generation, nor was there much by way of a Marshall Plan and city-rebuilding jobs boom with attendant inward migration in the 50s.

1940's Ireland was a different place indeed. Ireland's real boomers came later in those that benefited from EU Membership, The Peace Process & The Celtic Tiger.

Understanding Gen X

Born between 1965 and 1979/80. Shaped by the end of the cold war, rise of personal computing & feeling lost between the two huge generations.
Aged between 41 & 56. Still reads newspapers, magazines, watches TV but also digital savvy. Spends 7 hours p.w. on Facebook - the highest of any generational cohort.
The 'Latchkey Generation', also known as the MTV generation. They grew up in a time when there were more dual-income families, single-parent households, and children of divorce than when boomers were growing up.
Gen Xers are typically described as being resourceful, independent, and keen on maintaining work-life balance. They tend to be more liberal on social issues and more ethnically diverse than boomers.
The average Gen Xer carries $142,000 in debt, though most of this is in their mortgage. They are looking to reduce their debt while building a stable saving plan for the future.

Irish Gen X-ers

They grew up in an Ireland shaped by the Troubles, social justice movements, EU membership, the Peace Process, and the Celtic Tiger, to share their work and reflect on the social and cultural influences at home and abroad.

Gen X is trying to raise a family, payoff student debt, and take care of aging parents. These demands put a high strain on their resources.

Understanding Millennials

Also known as Gen Y, Gen Me, Gen We, Echo Boomers. Born between 1981 & 1994/96.
Shaping events include: The Great Recession, the Technological Explosion of the Internet, Social Media, 9/11, Columbine, Berlin Wall, Environmental Impact Awareness, Early Exposure to Serious Adult Issues etc
They are the dominant demographic percentage of the workplace but will soon be surpassed by Gen Z entering the workforce.
95% still watch TV, Netflix & streaming become the preferred choice. Comfortable with mobile devices, but 32% still use a computer for purchases. Multiple social media accounts.
Gen Y will work as hard as anyone else to do their work, but like Gen X they also want to have a life beyond their job. They prefer a coaching leadership style to a directive leadership style.
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 place their trust in brands with superior product history such as Apple and Google. They seek digital tools to help manage their debt & see their banks as transactional as opposed to relational.
With huge amounts of student debt, major purchases like weddings & homes are delayed. They choose access over ownership as seen in their preference for on-demand services.

Understanding Gen Z

Also known as iGeneration, Post-millennials, Homeland Generation. Born between 1997 & 2012
Shaping events include: Smart Phones, Social Media, never knowing a country not at war, and seeing the financial struggles of their parents (Gen X)
They are more pragmatic, less traditional, tech trendsetters, more entrepreneurial & always have a side hustle.
They received their first mobile phone at age 10.3. It's their preferred method of communication and on average, they spend 3 hours a day on it. They even have shorter attention spans (8 seconds!!!)
They have a strong appetite for financial education and are opening savings accounts at younger ages than prior generations.
They've seen Millennials struggle & adopt a more fiscally conservative approach. They want to avoid debt & appreciate accounts or services that help that incl. debit cards & mobile banking.
Many things that millennials foster as preferences have become expectations of Gen Z’ers, and they expect you to take them seriously.
They define themselves differently, are intrigued by group trends, are passionate about issues that their parents may not understand, and are willing to do research.

Understanding Gen A

Also known as Generation Alpha, Gen Covid or Screenagers. Born between 2010 & 2024. Within 4 years they will outnumber the Baby Boomers, and many of them will live to see the 22nd Century.
Shaping events include: Global Pandemic, Social Justice Movement, Trump Era Politics, Brexit, The Great Screen Age. Screens are placed in front of them from the youngest age as pacifiers, entertainers and educational aids.
Gen Alpha are the most materially endowed generation ever, the most technologically savvy generation ever and they will enjoy a longer life span than any previous generation.
Alphas are being raised in homes with smart speakers and devices everywhere; technology is built into everyday items. Many even had a digital presence since before they were born.
They’re digital natives that will expect fully integrated, personalized consumer experiences. Based on current data, it appears that Alphas will be one of the most highly educated and wealthy generations.
Alpha’s will be even more disconnected from the idea of cash. They will likely first encounter money as a number on a screen and spend it through apps and other forms of ecommerce.
From shorter attention spans to the gamification of education, from increased digital literacy to impaired social formation, these times impact us all but transform those in their formative years i.e. Gen A.
Because of Covid, they will value family more, admire “everyday superheroes,” and see work from home as a normal way of life. “They will be a more creative and resilient generation due to the challenges they experienced."