Are you a franchise owner looking to expand or strengthen your customer base? Millennials (those born between 1981 and 1996) and Gen Z (those born between 1997 and 2012) make up the two largest generations in the U.S., with Millennials leading at 21.81% and Gen Z closely behind at 20.81% of the total population.

As consumers, these generations have unique shopping behaviors and expectations that set them apart, making it important for many franchises across industries to learn how to connect with and adapt to them. This can help franchises stand out from the competition and strengthen relationships, among other benefits.

As a franchise business owner, you can effectively target these generations by aligning your products and services with their specific values and consumer needs. This approach, known as generational marketing, can allow you to appeal to these important consumer groups, which can help secure long-term customer loyalty for years to come.

This article outlines some of the key elements these generations seek from businesses and how you can tailor your approach accordingly. We cover the following:

It is important to remember that as a franchise owner, you must follow the established business model your franchisor has put in place. Adding products or services that do not align with what your franchisor has developed is often prohibited. Instead of altering your offerings, focus on identifying areas where you can adapt to meet the needs of these generations. Keep in mind that not every shopping behavior or value will apply to your customer base, so you should adapt your strategy to your customers.

MILLENNIALS & GEN Z CONSUMERS VALUE AUTHENTICITY FROM BRANDS

Authenticity, genuineness, transparency—these are just some of the traits that both generations value. They have a strong preference toward brands that they consider as “real and organic,” which aligns with findings that indicate authenticity is more important than any other personal value for Gen Z, with 92% who say being authentic and true to oneself is extremely or very important.

From a business perspective, this sentiment translates into consumer behavior, as younger generations are increasingly rejecting inauthentic or misleading brands. In fact, 90% of Millennials indicate that brand authenticity is important to them.

For franchisees, tapping into this demand for authenticity can be extremely beneficial. Some of the ways you can do this are by:

  • Sharing genuine customer satisfaction stories and behind-the-scenes videos of products or services on social media rather than relying heavily on promotional or professionally produced content.
  • Avoiding scripted or corporate messaging by using natural and relatable language to help enhance customer communication while still aligning with the franchise’s voice and style.
  • Being vocal about the franchise business’s values and mission.

Showcasing the real people behind the brand can help attract these generations, fostering stronger customer relationships and building trust. This can be especially beneficial, as consumers will spend an average of 51% more when they trust a retailer, and 71% will buy more, emphasizing the importance of developing a strategy that prioritizes authenticity.

MILLENNIALS & GEN Z CONSUMERS APPRECIATE CONVENIENCE

We live in a fast-paced world where many people seek quick and convenient solutions, especially when engaging with businesses. In fact, almost 80% of American consumers report that convenience and speed are among the most important elements of a positive customer experience.

For younger generations, recent studies show that 87% of Millennials find convenience to be extremely or very important, compared to 82% of consumers overall. Meanwhile, Gen Z places a high value on convenience and flexibility, with 76% preferring convenience over the brand.

Franchisees can target these generations in several ways, much of which will depend on the franchise business. However, if there are ways you can highlight convenience and ease when you talk about your product/service offerings and provide solutions that make the shopping experience convenient, it can be a great way to attract these generations.

For instance, if your franchise business has an app that allows customers to easily pay for products or services, promoting it through social media, word-of-mouth to current customers, or in-store signage can be very effective. A recent report found that 64% of those in these generations choose to shop elsewhere if in-app payment options are not available, so if this is something your franchise offers, leverage it to help attract these consumers.

Other effective strategies can include enabling online booking and mobile ordering, eliminating the need for the customer to talk on the phone, which some people in younger generations are reluctant to do. Responding promptly to customer inquiries on social media can also make it a convenient, positive experience since Gen Z often turns to these platforms for customer care.

MILLENNIALS & GEN Z CONSUMERS VALUE A PERSONALIZED EXPERIENCE FROM BUSINESSES

Providing a personalized experience for consumers can be incredibly important as a franchise business owner, especially since 81% of customers say they prefer it and 74% report that personalization is key in building brand connection. However, Millennials and Gen Z consumers, in particular, have demonstrated just how much they value personalization; 73% of Gen Z and 70% of Millennials say it’s important that brands provide them with a personalized experience, and many are willing to pay a premium on products that highlight their individuality.

As a franchisee, personalization can look different depending on the business model, but if you have customer relationship management (CRM) software or a point-of-sale system, you can often leverage the data to help enhance customer relationships by tracking their behavior and preferences. You could recommend products/services based on purchasing history, send reminders if they’re due for a visit (depending on the franchise business), offer personalized discounts, etc.

Additionally, some CRMs allow you to group customers by age and behavior, which can allow you to target your promotions specifically to Millennials and Gen Z, see if there are patterns in spending, or if some products/services are more popular than others, which can help you strategize more effectively.  Gen Z and Millennials prefer personalized product recommendations compared to any other generation, so tapping into this insight can be beneficial.

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MILLENNIALS AND GEN Z SEEK BRANDS THAT ARE SOCIALLY & ENVIRONMENTALLY AWARE

Many Millennials and Gen Z are deeply invested in causes they care about, with many seeking brands that align with their values and who help make a difference. For instance, 63% of Gen Z consumers are more likely to purchase from companies that contribute to a social cause, while 92% of Gen Z and 90% of Millennialsindicate that they would support a purposeful brand.

What issues are particularly important to Millennials and Gen Z? 82% of Gen Z consumers report that they’re more likely to purchase from brands that advocate social equality, and 81% of Millennials say that how a company treats their employees impacts their purchasing decisions.

Additionally, 73% of Gen Z say they try to purchase from ethical companies and nine out of ten believe that it is companies’ responsibility to address environmental and social issues. As awareness around sustainability and eco-friendly options increases, more consumers, especially from younger generations, seek businesses that follow these practices. Here is an overview of what recent reports tell us about these generations:

If your franchise business contributes to charities through partnerships or collaborations, highlighting this to customers can be a great way to attract those who support the same cause. In fact, 63% of Gen Z and 75% of Millennials would switch to a brand that aligns with a cause they support. Plus, 70% of those in these generations believe that brands should have a purpose they believe in versus 48% of Boomers (those born between 1946 and 1964) and Matures (those born before 1945) who believe the same.

As a franchisee, there are also opportunities to partner with local community groups and organizations, such as those focused on environmental causes. This not only allows your business to make a positive impact in your community but can also help attract younger generations who support those efforts. However, it is recommended to have any partnerships approved by your franchisor beforehand.

READ MORE: How Eco-Friendly Initiatives Are Shaping Pet Franchises

POST, SHARE, AND ENGAGE ON SOCIAL MEDIA PLATFORMS TO TARGET MILLENNIAL & GEN Z CUSTOMERS

A strong social media strategy is often crucial for businesses to succeed in this digital world, but especially to reach younger consumers. Keep in mind that Gen Z didn’t grow up without the internet, making these digital natives the most internet-dependent generation.

If you’re not already on the major social media platforms (such as Instagram and TikTok, which are among the top-used platforms by Gen Z), now is the time to do so (assuming your franchisor approves it). 97% of Gen Z consumers use social media for shopping inspiration, and 51% say they find new brands through TikTok. Meanwhile, 82% of Americans aged 30-49 use social media, with 82% who interact with brands and retailers and 49% who follow their favorite brands and retailers.

These generations are also using social media platforms to find new products:

  • For Gen Z: 70% have discovered new products on social media in the past three months, 41% report that it’s their preferred channel to discover new products, and 48% of consumers prefer finding new products via short-form video (such as on platforms like TikTok and Instagram)
  • For Millennials: 43% have discovered new products on social media in the past three months, and 47% of Millennials prefer discovering new products on social media through short-form videos on similar platforms as Gen Z.

Franchisees can share behind-the-scenes video content, hop on relatable trends, engage with users in the comments, share low-fi, not overly produced photos to recommend products to make promotional content feel more “real” than marketing, etc.

70% of Gen Z and 78% of Millennials say that photos and videos are helpful when it comes to purchasing decisions, while 90% of Gen Z report that social media presence has a large impact on whether they trust a brand. By strengthening your social media content strategy, you can effectively target these generations and build a robust digital presence.

FRANCHISING WITH DOGTOPIA

At Dogtopia, we provide our franchisees with unparalleled support, including strategic marketing tools designed specifically for today’s pet parents in mind. With Millennials representing the largest share of pet owners in the U.S. and Gen Z pet ownership showing significant growth, our marketing approach is carefully tailored to engage these influential and growing demographics.

From helping our franchisees adapt to changing market trends to setting the standard for transparency in the pet industry, such as through our advanced technology efforts, becoming a Dogtopia franchisee can be a great business opportunity.

Additionally, the Dogtopia Foundation, our charitable organization, helps empower our franchisees to make meaningful differences in their communities and beyond through initiatives that support causes such as raising funds to support service dog training for veterans, therapy dogs for students, and employment opportunities for adults with autism. Our commitment to positive social impact aligns with the values of many Millennial and Gen Z consumers who seek purpose-driven brands, which can help our franchisees stand out. Find out more about whether this opportunity is right for you by reviewing our detailed FAQ page.