Executive Summary
This case study explores a comprehensive research project conducted by Carlton Research, designed to understand how Gen-Z and Millennial consumers in Mexico engage with subscription services. The study delves into generational preferences for content, price, and user experience, with the goal of uncovering actionable insights for companies seeking to optimize their offerings in Mexico. Key findings reveal that content is the top priority for Gen-Z consumers, while price sensitivity drives decision-making among Millennials.
Conducted in August 2024, this research helps multinational companies align their offerings with the evolving needs of Mexican consumers.
Project Background
Carlton Research, in collaboration with Cristian Garcia, conducted this study as part of Project PasoPay, an initiative focused on understanding the subscription market in Mexico as an exploratative study to test hypotheses before designing and building software and mobile app solutions.
The survey, conducted in August 2024, was designed to gather insights on how consumers from different income levels and generational cohorts (age groups) interact with subscription services such as streaming platforms, and importantly, their attitudes toward multinational companies and payment experiences. Results of the latter relationships will be published separately. Cristian Garcia provided invaluable input to ensure the survey was culturally appropriate for Mexican respondents.
Research Objectives
The study aimed to:
- Identify the key factors that drive subscription service decisions among Gen-Z (18–27 years) and Millennials (28–43 years).
- Understand how price, content, and user experience influence consumer loyalty.
- Explore how localization strategies can enhance consumer engagement in the Mexican market.
Methodology
The research employed a survey-based methodology, distributed via WhatsApp across various regions of Mexico, including Mexico City, with a total of 230 respondents. The survey was structured to capture detailed information on how different income brackets (low, mid, high) and generations prioritize factors like content, price, and user experience. The results were analyzed using data-driven insights to identify trends across generational cohorts.
Key Findings
- Gen-Z (18-27 years): Prioritized content, with 100% of respondents citing it as the most important factor in their subscription decisions. They also valued seamless user experience, especially when accessing content across devices.
- Millennials (28-43 years): Showed strong price sensitivity, with 100% of low-income respondents emphasizing the importance of affordable subscription options. Higher-income Millennials, however, placed more emphasis on user experience and premium features.
- Both generations highlighted the need for localized content that reflects Mexican culture, indicating opportunities for companies to invest in regional programming.
Impact
The findings have significant implications for businesses offering subscription services in Mexico. Companies can leverage this research to:
- Develop localized content strategies tailored to Gen-Z and Millennials.
- Implement tiered pricing models that cater to both price-sensitive Millennials and experience-driven Gen-Z consumers.
- Invest in user-friendly platforms that provide seamless navigation and premium features for higher-income consumers.
Conclusion
By understanding the generation-based preferences of Mexican consumers, subscription service providers can make more informed decisions regarding content offerings, pricing, and user experience enhancements.
As both Gen-Z and Millennials continue to shape the market, businesses that adopt localization strategies and cater to the specific needs of these demographics will be well-positioned to thrive in Mexico’s competitive subscription market.