This week, we debunk the idea that ESG is a younger generation’s game. As it turns out, if you focus your brand’s ESG efforts on attracting Millennials and GenZ, you might be missing out on a significant opportunity!
On the surface, it appears that interest in ESG has been lionized by values-driven Millennial and GenZ consumers, but a closer look reveals a lot more nuance. Our data shows that customers’ product priorities change as they go through life stages, and the impact that ESG has on their decision-making changes as well.
As age increases, the level of impact that ESG has on technology purchases declines. A total of 34% of GenZ respondents say that ESG influences their decisions when buying technology products, while this number shrinks to just 7% for Boomers. In the technology industry, ESG efforts are best directed at attracting Millennial and Gen Z consumers.
On average, ESG is impacting 22% of those purchasing investment products, with 27% of GenZ customers reporting ESG as an influence on their purchase decision making, but just 11% of Boomers reporting the same. Investment brands that focus their ESG efforts on capturing and retaining Gen Z’s attention can create customers for the long-term.
PERSONAL CARE PRODUCTS:
As is the case with technology products, ESG is having the greatest impact on younger generations’ personal care purchase decisions. A total of 41% of GenZ customers report ESG as a deciding factor in their personal care product purchases, while just 10% of Boomers do. Going forward, the personal care industry’s ESG efforts are best focused on engaging Millennial and Gen Z consumers.
FINANCIAL SERVICES PRODUCTS:
In the financial sector, ESG is having the greatest impact on the youngest and oldest clients, with 40% of GenZ and 49% of Boomers reporting its influence on their financial services purchases. By creating a thoughtful, targeted approach to their ESG strategy, financial services brands have a significant opportunity to create a loyal customer base from this older cohort.
While healthcare consumers generally care about a brand’s level of ESG effort, Boomers really do! A whopping 65% of Boomers report that ESG significantly impacts their healthcare and pharma-related purchase decisions. Brands that sell healthcare and Pharma products/services have a unique opportunity to capture and grow their relationships with Boomer customers if they can strategize and act quickly.
Stay tuned as we dip deeper and bring new perspective on ESG and its importance!
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