Gen Alpha in 2024: How to Prepare for the Future of Financial Marketing
Recently we shared a tip sheet on Generation Alpha. Our objective was to dig deeper into understanding what shapes and influences this generation and how marketers can better position themselves to align with Alphas born between 2010 and 2014. The takeaway from the original post—and now—is that it’s never too early to put this emerging segment on your radar. They are already consuming financial products, albeit with parental supervision, and will continue to do so into the future. In fact, older Gen Alphas will reach adulthood in the late 2020s, making now the time to prepare and strategize. According to recent research, they are the “generation expected to have the greatest spending power in history, so marketers need to start understanding them more deeply.”
In June 2024, a new study from Razorfish and GWI provided enhanced insights on Gen Alpha, adding more color and substance to the cohort and highlighting how marketers can and must differentiate their outreach efforts to Alphas versus members of Gen Z. A lift and shift approach to strategies and tactics is not likely to be effective:
“This cohort’s brand maturity may force changes to the traditional marketing playbook. When it comes to having a more grounded and adult perspective on brands, 71% of parents said their kids are well ahead of where they were at the same age. Gen Alpha’s maturity is seen through their higher affinity for brands that are enablers of inspiration and creativity, versus the snack and candy brands that Gen Z marked as their favorites in 2012.”
New and expanded insights from the new 2024 research include:
Expect Brand Maturity at a Young Age
The current research indicates “authenticity appears to be of the utmost importance to Gen Alpha.” Financial institutions (FIs) may already be addressing brand authenticity to target desirable Gen Z consumers who hold brands to a higher standard. However, FIs will need to build on those efforts well into the future.
Additional drivers of marketing and brand ambassadors point to cohort differences:
- Gen Alpha sees creators as role models.
- They have a low level of trust in TV personalities.
- Only 21% of Alphas surveyed view athletes and celebrities as role models—a significant departure from the current zeitgeist.
Gen Alpha cites a mix of tech companies and “enablers of inspiration and creativity” as brand favorites. Apple and Samsung were in the top five, as was Lego. Compare those picks to the 2012 favorites of Gen Z which included M&M’s, Oreos and Doritos.
Understand the Sophistication of Gen Alpha’s Skills—Not Only Digital Skills
Many of us view younger generations’ use of technology as a negative and assume Alphas will be less socially skilled. However, the newest data points to an interesting emerging insight: 62% of parents (who are Millennials) indicate their Alpha child is more social than they were at the same age. Research also shows Gen Alpha has twice as many interests as Gen Z.
Both early exposure to and increased use of technology and information will create “savvier future consumers…they are likely to be more discerning and informed, capable of navigating online environments and evaluating products with sophistication that surpasses previous generations.”
Master Gamification
Gen Alpha likes games, plays games and learns from games—a theme that will extend to the content they expect and value from brands. Narrative storytelling will need to give way to games to engage and capture interest.
Communicate in Snackable and Visual Content
Abandon long copy in favor of efficient and concise content. Use quick tips, shortcuts, hacks, how-to and DIY videos. Evaluate content by asking: Is it quick, and is it useful?
Fulfill the Desire for In-person Experiences—Physical and Tactical
Gen Alpha values in-person experiences and tangible, real-world interactions. Marketers will need to balance digital strategies by ensuring physical experiences and events remain part of their engagement efforts.
For category marketers, the new findings offer additional perspective for reframing product marketing and impetus for proprietary research of your own. As the decade unfolds—and Gen Alpha ages into retail bank and payment products—leading brands will be in full-court press for the cohort and the potential spending power they are expected to generate.
