The generational shift in consumer behavior is happening faster than most businesses are prepared to handle.
Millennials now represent the largest consumer group by purchasing power, while Gen Z is projected to account for 27% of global income by 2030. The oldest members of Gen Z (born 1997-2012) are now turning 28 and establishing distinct brand preferences across every category.
The problem? Most companies continue marketing as if their primary audience is still over 55. The messaging, channels, and tactics that worked for older generations actively repel younger buyers.
Let's examine what actually works when marketing to these crucial demographics.
Millennials approach brand relationships fundamentally differently from their parents:
What They Value:
Purchase Behavior:
Lululemon didn't become a billion-dollar brand by simply selling yoga pants; they created community and lifestyle associations. Similarly, the brands succeeding with millennials aren't just selling products, they're selling belonging, values, and identity.
The newest adult consumers bring even more disruption:
What They Value:
Purchase Behavior:
Beauty brand Glossier built a cult following by turning customers into marketers. The brands capturing Gen Z are similarly creating products and experiences specifically designed to be shared on platforms like TikTok and Instagram.
Not all digital channels deliver equal results. Based on conversion data from multiple industries, these channels provide the strongest ROI:
TikTok
Email & SMS
YouTube
The outdoor brand REI excels at meeting customers across multiple touchpoints with consistent messaging. Your brand should similarly ensure that your Instagram aesthetic, email tone, and website experience feel cohesive rather than disconnected.
Younger consumers are skeptical of vague environmental claims.
What works:
What fails:
Millennials and Gen Z want to learn about products without pretension.
What works:
What fails:
The youngest consumers value what they can do with products over what they own.
What works:
What fails:
Personal connections drive purchasing decisions for younger consumers.
What works:
What fails:
Recommendations drive discovery for both millennials and Gen Z.
What works:
What fails:
Tactic: Offer small immediate discount (10-15%) on the first purchase with a larger reward (25%) on the second purchase within 60 days
Why it works: Creates two positive touchpoints instead of one, establishes a purchase pattern
Meal kit brand HelloFresh uses this exact approach, offering a modest initial discount but saving the largest incentives for the second and third orders. This drives not just acquisition but also retention.
Tactic: Reward both referrer and new customer with complementary benefits (free shipping + 10% off)
Why it works: Leverages trusted peer recommendations, which convert at significantly higher rates than traditional advertising for millennial consumers
Venmo built its entire user base through friend referrals with minimal traditional marketing. Your brand can similarly grow through strategic incentivization of natural word-of-mouth.
Tactic: Partner with complementary brands on special releases
Why it works: Creates urgency, expands audience through partner's followers, generates social media conversation
Streetwear brand Supreme built its entire business model around limited drops and unexpected collaborations. While you don't need to create artificial scarcity, special collaborative releases can drive significant interest from younger buyers.
Focus on these key performance indicators when evaluating the success of your younger consumer marketing:
Acquisition Metrics:
Engagement Metrics:
Retention Metrics:
Direct-to-consumer fitness brand Peloton attributes much of its success to obsessive measurement of these metrics, allowing them to double down on high-performing acquisition channels while quickly abandoning underperforming tactics.
The brands that thrive in the next decade won't be those with the most prestigious history or the highest market share. They'll be the ones who successfully connect with younger consumers on their own terms, through their preferred channels, with authentic messaging that resonates with their values.
The question isn't whether your business should focus on millennial and Gen Z consumers, it's whether you'll do it now, on your terms, or be forced to play catch-up later.
Ready to develop a comprehensive marketing strategy that connects with younger consumers? Start with a strategy session to discover how Deksia's integrated approach to brand development, content, and digital marketing can help you build lasting relationships with millennial and Gen Z audiences.