A new report from PYMNTS Intelligence, titled “Generation Zillennial: How They Shop,” defines zillennials as consumers born between 1991 and 1999, straddling the line between younger millennials and older Generation Z. PYMNTS Intelligence conducted a survey of 3,629 U.S. consumers from May 9 to May 29, including an oversample of 1,006 zillennials to facilitate deeper analysis. The findings, along with other insights into zillennial shopping habits, present significant implications for marketers targeting this demographic.

Digital-First Approach 

Among the key takeaways, Zillennials demonstrate a strong preference for online shopping, with 37% preferring to shop for retail products exclusively online. This rate surpasses that of both non-zillennial Gen Z (34%) and non-zillennial millennials (34%). Conversely, zillennials are the least likely to prefer in-person retail shopping, at 29%, compared to 32% for both non-zillennial Gen Z and millennials.

Price Sensitivity and Brand Loyalty 

The report finds that zillennials prioritize pricing over brand availability when choosing retail merchants. Forty-one percent of zillennials say pricing is more important than the availability of preferred brands, while only 21% prioritize brand availability. This price sensitivity is particularly pronounced among “budget-minded” zillennials, with 45% citing pricing as their top consideration.

Influence on Purchasing Decisions 

Personal recommendations play a significant role in zillennial purchasing decisions, with 39% reporting that recommendations from friends or family influenced their retail purchases in the last month. This figure is higher than the overall consumer average of 30%. Social media ads also have a strong influence, reaching 35% of zillennials.

Zillennial Personas 

PYMNTS Intelligence identifies four distinct zillennial personas based on how respondents would use an unexpected windfall:

1. Budget-minded (47% of zillennials): Would spend extra money on essentials
2. Wealth builders (37.3%): Would save or invest extra money
3. Free spenders (10%): Would use extra money for fun purchases or activities
4. Givers (3.8%): Would donate extra money to charities or gift it to friends or family

These personas exhibit varying shopping preferences and behaviors. For instance, 39% of budget-minded zillennials prefer to shop both online and in person, likely reflecting their willingness to seek out the best deals. In contrast, 53% of givers shop exclusively online.

Generational Identity 

The study finds that 73% of zillennials consider themselves typical of their generation, slightly higher than millennials (72%) and Gen Z (71%). This sense of generational identity is powerful among givers and free spenders. 61% of zillennials consider their generational group to be at least a somewhat important part of their identity.

Implications for Marketers 

These findings suggest several key considerations for marketers targeting zillennials:

1. Emphasize digital-first strategies, given the high preference for online shopping.
2. Focus on competitive pricing, mainly when targeting budget-minded zillennials.
3. Leverage personal recommendations and social media advertising as influential channels.
4. Tailor messaging to align with zillennial generational identity, which a majority find important.
5. Consider the distinct preferences of different zillennial personas in marketing strategies.

The full report is available here.