Picture: 123RF/Mirko Vitali
Millennials and Gen Z are keen on saving the environment — both groups want to see businesses and their own employers become more involved in climate change
Millennials and Gen Z are putting increasing pressure on brands to act in a more sustainable and environmentally friendly manner, and failure to do so could be the death knell for companies trying to sell to this vital market segment.
The “Deloitte Global 2022 Gen Z and Millennial Survey” says 90% of those surveyed are making some effort to reduce their impact on the environment and many are willing to pay more to buy an environmentally sustainable product. Millennials are those now aged between 26 and 41, many of whom are at their peak purchasing potential. Gen Zers are aged between 10 and 25 and they wield huge market influence.
The survey says both groups want to see businesses and their own employers become more involved in climate change, get more involved in issues such as the banning of single-use plastics, and provide training to help people make better environmental decisions.
Both these demographic segments are a force to be reckoned with and, says brand and culture marketing expert Andile Mbete, set an agenda of what consumers want from brands.
He tells the FM: “Brands cannot simply offer competitive products; they need to have a purpose and must be clear in their practices and their values, especially around important social issues such as inclusivity and sustainability. Millennials have helped move the needle in consumer buying behaviours and many of the changes we see in the generations following them are more developed versions of the agenda set by them.”
Strategist Maphefo Mphaho, of the VMLY&R agency, says millennials remain a force but seem to have been shifted into the background since the emergence of Gen Z.
“Millennials were at the forefront of digital transformation, even before Covid accelerated it. What has happened, however, is that Gen Z has taken away some of the impact from millennials in a shifting marketing landscape.”
The biggest concern facing both market segments is the global cost of living crisis. Almost half live from pay cheque to pay cheque and more than 25% do not believe they will be able to retire comfortably. Close on 75% of almost 25,000 respondents in 46 countries say the gap between rich and poor is widening.
Marketers need to understand this global cry for help and recalibrate their efforts to become more sensitive and empathetic.
Mbete does not believe that brands always have a clear understanding of the unique needs of both segments, saying brands need to have another look at their entire business value chain and communicate more responsibly.
Mphaho says brands might be putting too much focus on the relationship between the two market segments and technology. “Technology is great, but it all gets a bit too much. Sometimes I really want to be in touch with reality, or what I control of it. Give us physical experiences, a break to play and enjoy something other than content you simply put on a screen.”
Lessons learnt from marketing to millennials have been valuable in working with the Gen Z group, she says. “More than anything, the understanding of the requirement for convenience has helped and it goes much further than just fast delivery or the best fashion at your fingertips. It extends to the workplace and understanding there is a need for flexibility and having tools and support systems that help employees progress. A simple example is providing mental health resources for free, which is convenient because the sessions fit seamlessly into my day.”
The survey says both groups feel burnt out due to the intensity and demands of their working environments; close on half have left employment due to workload pressure.
Marketing to millennials and Gen Zers also requires that brands better understand their language and tone of voice. The trade publication Adweek says when brands use abbreviations like LOL, YOLO and FOMO, they should prepare for the worst. Eighty-three percent of millennials in a study think the use of these abbreviations is a poor attempt by brands to relate to them. In fact, says Adweek, any type of slang will get your brand in trouble. Slang makes the advertiser seem especially out of touch when it incorrectly uses that language in a casual environment.
This article originally appeared in the Financial Mail
