How Each Generation Is Building Relationships With Brands In 2024

• One in five respondents report that personalized communication positively impacts their relationship with a brand.
• 22% of Gen Z, the highest of any generation, relies on recommendations from influencers to build a relationship with a brand.
• All generations agree that the quality of products is most important when maintaining loyalty to a brand.
• Gen Z and Millennials prefer personalized product recommendations more than other generations.

The ways consumers stumble upon new favorite brands reflect their generational identities. The results display a telling cross-section of discovery channels, with traditional in-store experiences still holding sway, particularly for the 60% of Boomers who report preferring in-store shopping. Meanwhile, Gen Z shows a marked preference for the digital sphere, with 51% finding new brands through TikTok, stressing the platform’s influence among the youngest consumers.

Search engines maintain a strong foothold across the board, suggesting that no matter the generation, the pursuit of something new often begins with a query. Yet, the personal touch remains influential, as recommendations from friends or family resonate significantly across generational lines, with nearly half of Boomers valuing this personal connection.

This data not only guides brands on where to focus their marketing efforts, but also highlights the diverse avenues through which today’s consumers are forging connections with new products and companies.

Brand Reputation Is Most Important to All Generations

When consumers consider the bond with their chosen brands in 2024, the integrity of a brand's reputation remains front and center. The data clearly illustrates this: 73% of Boomers rate brand reputation as their top criterion, closely followed by Gen X at 68%. Even the youngest shoppers, Gen Z, place brand reputation high on their list at 40%, showing that across ages, a solid reputation commands attention and trust.

Other factors such as free trials have universal appeal, with nearly half of Millennials and Gen X seeing this as a key way they start a relationship with a brand. Meanwhile, personalized communication is noted by over a quarter of respondents, signaling that tailored interactions hold significant weight in nurturing customer bonds.

The preferences highlighted here offer brands actionable insights into the values that resonate most across generational divides, guiding them to prioritize aspects that foster strong connections with their audience.

Gen Z Shops In-Store the Least of Any Generation

The preference for physical stores sees a generational divide in 2024. The data depicts only 28% of Gen Z choosing the tactile experience of in-store shopping, the least among all groups. Boomers show a contrasting trend, with more than half preferring to walk the aisles.

Online retail giants, such as Amazon, have captured the attention of nearly a third of Gen-X shoppers, indicating a shift toward convenience and variety in one digital location, without the need to interact with anyone. Direct purchases from a company's website or mobile app are equally distributed among Gen Z and Millennials, suggesting that direct digital channels are maintaining their relevance.

Social media platforms have evolved into shopping venues, with Gen Z leading the engagement on these platforms, although they represent a smaller fraction of the overall shopping experience. The data paints a picture of a diversified marketplace where each generation gravitates towards different purchasing experiences.

As we dig into the factors swaying purchase decisions in 2024, it’s clear that motivations are as varied as the generations themselves. Gen Z’s purchasing decisions are notably swayed by a brand’s social equality stance. Millennials give their loyalty to brands demonstrating respect for their workforce.

Gen X shows a preference for brands with airtight data protection policies, while the vast majority of Boomers similarly align with brands that safeguard their personal information. Each of these preferences marks a distinct set of expectations brands must meet to engage with their diverse audience segments.

Gen Z Prefers Brands That Advocate for Social Equality

The priorities of Gen Z consumers reflect a decisive shift towards values-driven brand relationships. 82% are more likely to purchase from brands that advocate for social equality. This preference surpasses even the importance of data protection and ethical employee treatment, proof of a generation that aligns spending with social responsibility.

Brands that align themselves with charitable organizations or demonstrate a commitment to environmental sustainability also resonate with Gen Z, but the push for equality takes precedence over anything else. These factors collectively portray a generation whose purchase decisions are firmly rooted in societal impact and ethical considerations.

Millennials Look for Brands That Treat Their Employees Well

Millennials have set the bar high for how they expect brands to operate internally, with 81% placing the treatment of employees as their top factor when making purchase decisions. This concern for employee welfare outpaces even data protection and social equality initiatives, suggesting that for Millennials, a brand's internal culture is a critical determinant of loyalty and trust.

The data also shows that environmental stewardship and partnerships with charitable organizations are important to Millennials, yet it's the ethical treatment of employees that truly commands their attention and spending power.

Brands aiming to connect with the Millennial market now have clear evidence that their internal practices can significantly influence purchasing behavior, illustratingthe need for transparency and integrity in their operations.

Gen X hops With Brands That Protect Their Personal Data

For Gen X, data protection is not just a preference but a priority, with 87% citing it as the primary factor influencing their brand loyalty and purchase decisions. This concern slightly edges out the importance they place on how a brand treats its employees, emphasizing the weight Gen X gives to security and privacy.

Environmental concerns and affiliations with charitable causes also play a role in shaping Gen X's brand preferences, yet it's the assurance of data security that sits at the pinnacle of their expectations. With such a high percentage prioritizing this aspect, brands that prioritize protecting consumer data may find themselves with a competitive edge in attracting the Gen X demographic.

Nine in 10 Boomers Look for Brands That Will Protect Their Personal Data

Data security emerges as a nonnegotiable factor for Boomers, with an overwhelming 90% indicating that personal data protection is their top consideration in choosing a brand. This concern for privacy surpasses even the fair treatment of employees and environmental responsibility, showcasing that for Boomers, the safeguarding of personal information is paramount.

While ethical considerations and environmental efforts are still on the radar for this generation, it's the confidence in data security that most significantly influences their purchasing decisions. In a digital age where personal data is often vulnerable, brands that prioritize and transparently communicate their data protection policies may find a resonant audience among Boomer consumers.

Different generations meet the intersection of technology and commerce with varying degrees of acceptance, with Boomers expressing the most reservation. The data reveals that 38% of Boomers are reluctant to endorse the use of artificial intelligence by businesses. This sentiment is particularly strong when it comes to AI’s role in personalizing interactions, such as chatbots and automated voice systems, where only a quarter give their approval.

While younger generations show greater openness, with Gen Z and Millennials more receptive to AI in their online interactions, Boomers’ skepticism stresses a demand for human connection and perhaps a wariness of the implications of data-driven technology.

In an era where personal touch is often replaced by algorithms, brands may need to balance technological advancements with a human element to cater to the preferences of this significant consumer segment.

This exploration into generational buying habits reveals a complex web of values that guide consumer choices. Brands looking to thrive must tailor their approaches to align with these distinct preferences. It’s clear that understanding and respecting these differences, from data privacy to social responsibility, is key.

For an in-depth look at the systems that can help businesses navigate these multifaceted consumer relationships, Forbes Advisor offers a series of articles on the subject. You can start with the basics of what CRM is, explore the insights possible through CRM analytics, and get practical advice on CRM implementation. These resources provide a foundation for building strong, generation-specific customer engagement strategies.

This online survey of 2,000 Americans split equally by generation was commissioned by Forbes Advisor and conducted by market research company OnePoll, in accordance with the Market Research Society’s code of conduct. Data was collected from December 6 to 14, 2023. The margin of error is +/- 2.2 points with 95% confidence. This survey was overseen by the OnePoll research team, which is a member of the MRS and has corporate membership with the American Association for Public Opinion Research (AAPOR).