Can Generational Segmentation Unlock Growth Strategies?

by Mary Ellen Dugan

I am a generational fan-girl. How are generations similar? How are they different? Do generations matter as a potential go-to-market impact? These questions have nagged at me for six years.

In 2018, as CMO of WP Engine, I commissioned the first of four priority research studies with Jason Dorsey and The Center of Generational Kinetics. The initial research reports, titled Reality Bytes Generational Look, and Generation Influence U.S., focused on how different generations embrace digital experiences. I candidly thought this work would be a great source of thought leadership and content for our WordPress events. The reports delved into how different generations behave, buy, and build online. They examined the role of personalization and online entrepreneurial desires. Like much generational commentary, we zeroed in on Gen Z, as they felt like outliers. Gen Z was polled as the first generation to think of the internet primarily as Entertainment and secondarily as Information. Sixty-four percent preferred to have access to the internet vs. obtaining a college degree. This findings indicated significant cultural shifts in behavior and, let’s be honest, provided great sound bites for social posts.

Generational Digital Divides and $$

From a business perspective, however, the more critical data was that every generation preferred to buy online via a website vs. an app. This represented a huge potential for driving discussions with brands and agencies on how owned websites could exert greater influence and direct revenue. Loyalty also emerged as another big revenue opportunity, potentially increasing acquisition rates and reducing churn. Gen X reported being 10-13% more loyal to brands than Gen Z. Most CFOs might advise increasing investment to acquire the Gen X crowd. Chief Customer Officers would also find this loyalty data valuable in their efforts to achieve negative net churn. This generationlal research could have made a compelling Gen X business case, but back then, I had the team focused on Gen

Generational Views on Wealth 

As CMO of Envestnet, Inc, in 2022, I embarked on the next series of generational studies. As a wealth tech company, these studies focused on how different generations percieved wealth, finances, and where they might go for help. The first study, The Intelligent Financial Life National Study, aimed to define what people considered their daily financial issues, as well as, their future ones. Once again, we uncovered some great sound bites on consumer behavior. For example, 47% of respondents checked their Crypto accounts daily, while they checked their stock investment only monthly or quarterly. This highlighted the allure of new financial instruments and the use of gamification as a marketing tool to drive behavior.

At this point, I recognized the significant business impact of these studies and how they could help financial advisors better target their wealth client base. This data was a demand-gen blueprint for reaching customers. The other aha was the disproportionate importance of Gen X. The data could serve as a strategic lever for go-to-market initiatives and guide revenue driving campaigns.

The Evolution 

So, what began as a passive interest in generational trends evolved into a belief that companies could drive more business with generational data – a lofty premise that I wanted to test with other high-powered C-Suite executives.

This led me to reach out to Julia Fitzgerald. As a serial CMO, Julia had the creds to shoot down my thoughts or confirm them. She had built her career in B2C brands ranging from Vtech, to Sears Holdings to the American Lung Association to Build A Bear. As a largely B2B expert, I was curious if she would categorize her work as generationally focused. After all, you don’t build a go-to-market in toys without targeting the needs of at least two generations; the influencing kids and their parental buyers. I hypothesized that at the American Lung Association, she had to appeal to wealthier older generations aged 45+. In my view, she had aligned on the needs of various generations to drive revenue.

I contacted her, hoping she shared my belief that Gen X represented an untapped growth factor for both B2B and B2C brands. In less than sixty seconds, she agreed! Her perspective was that every successful business is grounded in deeply understanding the customer. And that through the course of her career, she had been intensely focused on Gen Xers – especially the Moms, as they navigated family, careers, wellness, and their homes. She also questioned why this demographic had largely been overlooked in marketing and business conversations.

Her quote was “I’ve been working with this generation for years. Now that they collectively have more economic power, all we can do is talk about their Gen Z kids!  There is an opportunity hiding in plain view.” 

And so, we got started building XFactor Impact.

We both agreed on the need to steer discussions towards actionable business strategies, rather than just nostalgic insights about Gen X.

And, we decided our aim was to rebrand Gen X as the “impact generation” not the forgotten one.

Day one begins. Watch this space.