I have finished with my series of 55+ y.o. findings. I still believe that contrary to prevailing perceptions, this segment holds promise as the youthful demographic that many brands prioritize. One key lesson emerged: lumping all elderly individuals together is a misconception. Within the 55+ category, distinct age segments exhibit significant differences. This realization challenges businesses to adopt a more refined approach.
So moving on now to my subsequent interests, I took a closer look at the younger generation. Just as with the older demographic, assuming a homogenous market is a misstep. My study zoomed in on the digital preferences of Generation Z (up to 26 years old) and Generation Y (27 to 42 years old), commonly known as Millennials.
Through a comparative analysis, I aimed to understand whether their choices in utilizing various digital platforms aligned or differed. By comprehending their preferences and behaviors, businesses can uncover potential business implications.
The data in this report is from an online survey conducted between July 12 and 17, 2023, encompassing respondents from across Indonesia. Snapcart (www.snapcart.global) helped me with the data collection which was very fast and effective to reach this segment. The total sample size of 4,337 participants comprises both males and females, divided into 2,590 individuals from Generation Z and 2,347 individuals from Generation Y. Respondents have prior experience using digital platforms and have engaged in at least one transaction.
For this 1st article in the series, I looked at a range of digital platform usage categories, including online shopping, food delivery, banking, transportation, travel booking, daily necessities, streaming services, online education, and telehealth.
Key Findings: Both generations show a strong adoption of online shopping, followed by online food delivery, digital banking, and online transport. The lowest adoption is found for online education and telehealth.
Travel and Transportation: Interestingly, Gen Z and Gen Y's preferences diverge in terms of online transportation services. Generation Z appears to rely more on motorized transportation (38%) than car-based alternatives (33%), whereas Generation Y displays a more balanced usage pattern (39% motorized and 37% car). This is likely due to different charges between the two types and these generations’ spending power. This insight may guide transportation companies in tailoring their services to each generation's preferred modes of commuting.
Entertainment and Education: Generation Z demonstrates a more significant inclination towards streaming services (25%) compared to Generation Y (19%). Furthermore, the data unveils a contrast in the adoption of online education, with Gen Z embracing it at a rate of 20%, compared to a mere 8% among Gen Y respondents. These variations suggest a growing market for digital educational content, along with a potential for innovative edutainment platforms targeted at Gen Z.
Online Travel and Hotel Booking: Usage of this digital platform is significantly higher among the Gen Y which might be driven by more travel for works and higher purchase power.
Conclusion: By acknowledging and responding to these distinctions, businesses can tailor their products and services to effectively target these two vital consumer segments. This will not only enhance customer satisfaction but also contribute to the growth and innovation of various industries in the digital era.
In my next article, I will share the different preferences of the two generations on e-commerce platforms and online transport. Later I will share about their digital banking usage vs. conventional banks and the banks they use.
Stay tuned for insights that can steer industries toward more effective strategies for tailored engagement and growth.
