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Generational Marketing Articles

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Marketing to Millennials: What You Need to Know

August 22nd, 2012 ::

By Rieva Lesonsky

Millennial consumers bring their own share of challenges to small business owners hoping to effectively market to this age group. A SymphonyIRI report released in June and reported by MediaPost has some insights into what Millennials need, what they want and how to target them as customers. The report, which defined Millennials as between the ages of 18 and 34, portrays them as a huge generation that will have a massive impact on purchasing.

For now, however, Millennials are struggling on modest incomes in a tough economy. For instance, 32 percent report they have trouble affording weekly groceries, compared to 22 percent of consumers overall. Not surprisingly, their spending habits are fairly conservative; for instance, in the past 18 months, they reported less financial confidence than average shoppers. They are more likely than the average consumer to be cutting back on expenses by dining out less often, limiting hair salon or spa visits, and cooking at home from scratch. And a whopping 86 percent said low prices were the first or second factor influencing where they shop.

But price isn’t the only factor Millennials care about. Millennials prefer retailers that are fun to shop at, and also want products that are relevant to their needs. Unique among generations, they are the first generation that’s “always connected.” The report cites University of Michigan research that 80 to 90 percent of Millennials use social media, three out of four have a profile on a social networking site, and 80 percent sleep with a cell phone next to them.

Clearly, digital media influence Millennials far more than they do the average shopper. Millennials in the study are more than three times as likely to be influenced by smartphone apps, recommendations or information from social media, or mobile advertising than the average consumer. They also rely heavily on peers when making purchasing decisions—and peers include not just friends and family, but anyone in their age range or life stage.

As you might expect given their modest incomes, Millennials are more swayed than the average shopper by low prices, coupons and loyalty card discounts. Surprisingly for this digital group, old-fashioned marketing methods such as in-store signage, product packaging and newspaper ads also carry more weight with them than they do with the average shopper. What mattered least was previous use of a product. That’s both good news and bad news for small business owners, meaning that while it’s easier to capture new Millennial customers if you show them a good value proposition, it’s also easier to lose your existing customers if they see something better come along.

SymphonyIRI suggests these tips for targeting Millenials:

  • Monitor trends among Millennial so you can anticipate and proactively address changes in their shopping needs and wants.
  • Connect with Millennials on an emotional level by offering innovative products, packaging and marketing that help them achieve their goal of “living well for less.”
  • Use both new media and traditional marketing methods to reach Millennials at all phases of their lives.

Image by Flickr user J. Cortazar (Creative Commons)

 

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Posted in Branding, Generational Marketing, Marketing, sales process, Small Business, small business, Social Media | No Comments »

Hot Market: Singles

August 15th, 2012 ::

By Rieva Lesonsky

When you think about hot markets to target for your product or service, do you think about singles? Well, maybe you should. The Census Bureau recently released some updated statistics on unmarried and single Americans. Here are some points of interest for small business:

Singles are a huge market. Some 102 million Americans 18 and older were unmarried in 2011, comprising 44.1 percent of all U.S. residents 18 and older.

Singles are primarily female. Women account for 53 percent of unmarried U.S. residents 18 and older. This is leading to an imbalance, with 89 unmarried men for every 100 unmarried women 18 and older. Some 46 percent of households, or 55 million, are headed by unmarried men.

Singles are so for many reasons. Sixty-two percent of unmarried U.S. residents 18 and older in have never been married, 24 percent were divorced, and 14 percent were widowed.

Don’t forget seniors. Seniors make up 16 percent of all singles, with a total of 17 million unmarried U.S. residents age 65 and older.

Single doesn’t necessarily mean “childless” or “living alone.” More than one-third (36 percent) of unmarried women aged 15 to 50 had had a child in the last 12 months. Some 13.6 million unmarried parents live with their children. Forty percent of opposite-sex, unmarried-partner households include at least one biological child of either partner. There were 6.8 million unmarried-partner households in 2010.

However, 33 million Americans do live alone, making up 28 percent of all households—up from 17 percent in 1970.

How can these figures help your business? Here are some lessons to take away:

Don’t generalize. Singles are far from a homogenous market, as the stats suggest. Your single customer could be a college student, a widower or a single mom with three kids. Doing your market research is an important step to determining what type of singles you’re targeting.

Don’t patronize. More and more people are choosing to live alone or stay single longer because they like it, so don’t assume your single customers are lonely or looking to change their single status.

Don’t forget them. Make sure your marketing speaks to singles, both emotionally and visually. Incorporate images of single people in the niche you’re targeting, whether that’s retired widows or twentysomething urbanites.

Image by Flickr user WarmSleepy (Creative Commons)

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Posted in Business Development, Generational Marketing, Marketing, Sales Process, sales process, Small Business, small business | No Comments »

Grab Your Share of Back-to-College Shopping

August 3rd, 2012 ::

By Rieva Lesonsky

Maria Valdez Haubrich recently blogged on this site about back-to-school shopping projections and what they mean for your small business. But back-to-college shopping is an even more profitable part of the back-to-school equation. The National Retail Federation/BIG Insight Survey recently took a look at how college spending is shaping up, with some insights into how your small business can grab your share of college students’ dollars.

Overall, the survey notes, back-to-school and college spending is projected to hit $83.8 billion this year, making it the second biggest consumer spending season for retailers (after the winter holidays). Back-to-college spending will account for $53.5 billion of that total. College students and their families will spend an average of $907.22 on everything from dorm furniture to school supplies and personal care items; that’s an increase from $808.71 last year.

Although they will be spending more than last year, 80 percent of college shoppers say the economy is affecting their budgets. To save, more shoppers will go online, more will use catalogs and more will use the Internet to comparison shop. More college-age students will also be making do with last year’s furnishings, clothes and school supplies.

What are the hottest product categories? Almost three-quarters (74.2 percent) of back-to-college shoppers plan to buy apparel and accessories, spending an average of $132.97. Electronics are also popular: 54.0 percent will buy a new computer, MP3 player, smartphone or other device, up from 45.8 percent last year, spending an average $216.40.

Dorm furnishings are in demand this year, with students spending an average of $100.27 on this category. With more children planning to live in a dorm this year (25.9 percent, up from 18.1 percent last year), spending in this area is poised to grow.

One big trend: College shoppers are spreading out spending, with an eye out for bargains between now and the start of school (or even after school begins). Nearly one-third (31.9 percent) will start shopping three weeks to one month before school starts, but almost 10 percent are waiting until after school starts.

Discounts and deals are still the way to college consumers’ hearts. Shoppers have an eye out for bargains, and the NRF suggests offering bundles, free gifts and gift cards with purchase, and free online shipping as ways to attract these value-focused consumers.

Image by Flickr user poeloq (Creative Commons)

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How to Market to Different Generations

July 20th, 2012 ::

By Rieva Lesonsky

The economy is still uncertain, but not every generation is feeling the same way about it. If you’re marketing to baby boomers and Millennials with the same approach, you’re making a big mistake. According to a survey conducted for Minyanville, there is a persistent optimism gap between baby boomers and the Millennial generation.

Even though Millennials (aged 18 to 34) are suffering from 12 percent unemployment, they report more optimism than those over 55. For example, just 10.86 percent of Millennials say now is a bad time to make a major purchase, compared to 15.1% of those over 55.

Millennials are also more optimistic that their financial position will improve in the next year (25.12%) and less likely to think that it will get worse (12.86%). By comparison, those over 55 are almost twice as likely (23.06%) to say they expect their financial situation will get worse over the next year.

Why are Millennials so optimistic and baby boomers so pessimistic? Minyanville points out that boomers have lived through a lot of economic turmoil in their lives, from the 1960s Vietnam war era to the recessions of the 1970s and 1980s and the dotcom bubble of the early 2000s. In the most recent Great Recession, much of their retirement savings have been decimated at a time in their lives when they have less time to replace the lost funds. By contrast, Millennials have their whole lives ahead of them, with their youth giving them natural optimism. How can you effectively market to these groups?

Marketing to baby boomers: Play up images of security and stability. Convince boomers your product or service is a good value and worth their hard-earned money. Acknowledge their pessimism but show how your product or service can help them ease their worries, build security or help their families. Ads should create a sense of understanding, respect and value.

Marketing to Millennials: Focus on the future. Millennials expect better things in the future even if their current financial situations are tough, so offering pay-later options or a monthly payment plan may increase your product’s appeal. Experiences are a selling point for Millennials, so emphasize how your product or service creates memories, offers a once-in-a-lifetime experience or can be shared with their friends.  Ads should create a sense of happiness, optimism and fun.

Image by Flickr user Digitized Chaos (Creative Commons)

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Do Consumers Care About Buying Green?

July 18th, 2012 ::

By Rieva Lesonsky

How much do consumers care about environmentally friendly products or services? While some shoppers are passionate about the issue, a new Ipsos poll conducted with discount site RetailMeNot.com shows many more are lukewarm.

Just 5 percent of respondents to the survey say they “always” take steps to green their home or lifestyle, such as recycling, driving energy-efficient vehicles or using eco-friendly products.  However, an additional 60 percent “sometimes” take these actions; just 15 percent “never” do.

Asked about purchasing habits, responses were similar. Only 3 percent are committed to always buying eco-friendly products, and just 6 percent never buy them. Forty percent say they buy green products when they are readily available and there is no big cost difference. Fifty-one percent buy whichever products suit their needs at the time, whether or not it’s green.

Whether or not a product is green seems to make some difference in purchasing. Nearly half (46 percent) say they are more likely to buy a product if it is environmentally friendly; 34 percent say it doesn’t make a difference. Price is still a sticking point, with 59 percent saying they aren’t willing to pay a higher price for green products or services, while 41 percent are willing to pay “a little more” for them.

Good news for the planet: More than half (57 percent) of respondents say they think about the environmental impact of products when making everyday purchases. Still, there is a knowledge gap, with 29 percent of respondents admitting they aren’t sure of the environmental impact of the products they purchase every day.

Even if the products you sell aren’t green, contributing to environmental charities could help boost your sales. More than half (54 percent) of respondents say they would be more likely or might be more likely to shop at retail stores that support environmental charities. Adults under 35 were the most likely to shop with retailers that support environmental charities.

Overall, college graduates, residents of the Northeast and young adults were the strongest supporters of buying green. If your business targets these markets, a green message is more likely to have an impact on your sales. But be sure your product information, website and packaging are clear about the benefits of your product, and that you’re honest and forthright in explaining why it’s green.

Image by Flickr user andyarthur (Creative Commons)

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7 Ways Your Travel Business Can Cater to Baby Boomer Consumers

June 6th, 2012 ::

By Rieva Lesonsky

Do you own a travel or tourism-related business? Then I sure hope you’re considering Baby Boomers in your marketing plans. Speaking as a Boomer myself, I know this generation loves to travel. The recession may have caused Boomers to cut back on spending in some ways, but when it comes to travel, it’s actually helped spur spending. Why? One takeaway from the recession for Boomers is that we’re putting more emphasis on experiences rather than “things”—and we’re willing to pay for great, life-changing experiences like travel.

Nancy Shonka Padberg of Navigate Boomer Media recently shared some insights on Boomer travelers over on MediaPost. Here are seven areas of travel she believes will be hot with Boomers in the coming years.

  1. Religion: Trips to Holy Land areas including Israel, Jordan, Egypt, Turkey, Italy, Portugal and France attract more than 900,000 people over 55 each year. While Padberg notes most Americans who make this type of trip are Christians, to me that indicates a niche for tours catering to different religions.
  2. Eco-tourism: Green consciousness isn’t just for younger consumers. Padberg reports The UN World Tourism Organization predicts some 1.6 billion environmentally oriented trips by 2020. This type of tourism can include camping, hiking, trekking and more.
  3. Adventure tourism: As I always say, today’s Boomers aren’t yesterday’s grandparents. We’re staying fitter longer and still participating in active sports like biking, running, rock climbing, scuba diving and even triathlons. Padberg cites stats from the Adventure Travel Trade Association that adventure travel racked up $89 billion in 2009 and is poised for even more growth. Put this in the category of “experiences” that Boomers want to notch on their belts.
  4. Culinary travel: Food and wine are passions for many Boomers. Padberg notes that  Holland Cruises has had great success with culinary cruises, but there are many other ways to work food and wine into travel, such as winery tours or trips themed around a particular cuisine.
  5. Destination weddings: I reported on the popularity of weddings in my book 23 Hot Businesses to Start Right Now, but Padberg notes that Boomer weddings are on the upswing, with people age 50-plus accounting for the fastest-growing group of online daters today. With no one to please but themselves, no wonder Boomers are spending their share of the $5 billion spent annually on destination weddings.
  6. Multigenerational vacations: A recent study by MetLife showed grandparents are spending more on their grandchildren, and one way they’re doing so is by buying family vacations. This could range from a family reunion in a domestic camping area or resort to an all-out trip to Europe. Padberg says such trips are often tied to big events like anniversaries or other milestones.
  7. Medical tourism: This might surprise you but Padberg says that the Medical Tourism Association reports medical travel is a $60 billion industry. With more Boomers looking to cut their skyrocketing healthcare bills, they’re heading overseas to places like Singapore, Thailand, India, Mexico, Costa Rica, Jordan, Turkey and Brazil.

As Padberg notes, these seven categories are just the tip of the Boomer travel iceberg. Think about what Boomers you know like to do, whether it’s golf, antiquing or racing cars, and you might just have the inspiration for a new branch of your travel business.

Image by Flickr user kokorowashinjin (Creative Commons)

 

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How Your Small Business Can Profit by Marketing to Grandparents

May 29th, 2012 ::

By Karen Axelton

As consumers, the Baby Boomer generation has been a force to be reckoned with since they first hit the scene. Now that many of them are grandparents, their importance to U.S. small businesses hasn’t diminished. In fact, if you’re not marketing to grandparents, your small business is missing out on a potential gold mine, according to The MetLife Report on American Grandparents.

MetLife’s study found that the number of grandparents is growing, reaching more than 65 million this year–up from 40 million in 1980. Since most of those grandparents are Baby Boomers (aged 45 to 64 years old), there are some important differences you need to know about between these grandparents and prior generations.

Today’s Baby Boomer grandparents are typically still working full-time, are more likely to be college graduates than prior generations and are more likely to be affluent. One-fourth of U.S. grandparent-age households boast incomes over $90,000.

So the recession hasn’t hit grandparents too hard—but it has hit their children. Partly as a result, MetLife’s research shows, grandparents’ spending on their grandkids has surged by more than 70 percent since 1999, reaching a total of $7.6 billion in 2009. In another MetLife report, 63 percent of grandparents say they assist their grandchildren financially, and more than one-fourth have increased their assistance compared to past years as a result of the economy.

Grandparents are buying their grandkids everything from toys and clothes to travel and accessories. To help out struggling parents, more grandparents are also shelling out for necessities like baby food, diapers, school supplies and car insurance (for older grandkids). And more grandparents are opening their homes to their kids and grandkids: MetLife found the number of households with multiple generations under one roof has risen from 1999.

How do these figures affect your business? If you sell products or services for kids, keep in mind that parents may no longer be your only customer. Try targeting your products or services to grandparents as well. And don’t envision today’s grandparents as yesterday’s seniors. Grandparents today don’t think of themselves as old, so they appreciate marketing messages that don’t treat them that way.

Image by Flickr user Juhan Sonin (Creative Commons)

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Posted in Generational Marketing, Marketing, sales process, Small Business, small business | 1 Comment »

How to Attract Socially Conscious Consumers

April 25th, 2012 ::

By Rieva Lesonsky

Consumers who care about social issues are often willing to vote with their pocketbooks by patronizing businesses that are socially conscious. What do these consumers look for when considering what companies to buy from? How can your company capture their dollars and their loyalty? A global Nielsen survey of more than 28,000 people has some answers that can help your business.

Around the world, most consumers (66 percent) prefer to buy from companies that are making a positive difference in the world by implementing programs to give back to society. That preference extends to other matters as well. Consumers also prefer to work for or invest in socially conscious companies. And almost half are willing to pay extra for products and services from these socially conscious companies.

If your business targets younger consumers, it’s important to know that they’re more likely to be socially conscious. Socially conscious consumers make up 55 percent of all consumers, but 63 percent of consumers under age 40. Younger consumers aged 15 to 39 are also more likely than older ones to be willing to pay extra for products and services from socially conscious companies (51 percent are willing to do so, compared to 37 percent of respondents over age 40).

So how can you attract these consumers to your cause?

Earn their trust. Consumers are very aware of companies that “greenwash” or make outsize claims about social responsibility. Be sure you’re not puffing up your accomplishments more than they deserve. Your website, marketing materials and even product packaging need to be clear about what you are doing and how it affects the causes you’re involved in.

Get social. Socially conscious consumers are more likely than consumers in general to trust recommendations from people they know, and to look online for opinions, reviews and information posted by others. Socially conscious consumers are more likely than others (59 percent vs. 46 percent) to say they use social media in making purchasing decisions, so if you’re not already involved in social media, it’s a great way to reach these consumers. If you are already using social media, consider advertising there: Socially conscious consumers were more likely than the average consumer to trust ads on social networks.

Choose the right advertising vehicle. Traditional advertising and marketing has a place in socially conscious consumers as well. In terms of paid advertising, socially conscious consumers most trust outdoor, TV and print media. Interestingly, they’re more trusting of all types of advertising than the average consumer.

To download the full study, visit Nielsen’s website.

Image by Flickr user tup wanders (Creative Commons)

 

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There’s Gold in the “Silver Segment”

January 6th, 2012 ::

By Rieva Lesonsky

You know that baby boomers are a hot market demographic. But did you realize just how hot they are? According to a new report by Boston Consulting Group, Global Aging: How Companies Can Adapt to the New Reality, by 2032, the “silver segment” of consumers age 55 and above will be responsible for at least 50 percent of all growth in consumer spending in the developed world.

In the U.S. market alone the population age 65 and up is currently a $1.4 trillion market. By 2032, 50 percent of the U.S. population will be age 55 or older.

What does this mean to your business? Well, if you’re designing new products, you’d be smart to target this age group. The report offers some forward-thinking recommendations for companies hoping to attract aging customers to use their products:

  • Today’s boomers are older, but don’t think of themselves that way. It’s important to design for someone who, while facing mobility, hearing or vision issues, still thinks of him- or herself as youthful.
  • The 55-plus consumer of today is very tech-savvy already, but in 20 years, the 55-plus age group (basically, today’s Generation X) will be even more comfortable with technology.
  • Older consumers prefer products that are “functional, simple, accessible, and convenient.”
  • When trying to design products to accommodate physical limitations of aging, try to emphasize “special needs” in a positive way that doesn’t sound patronizing.
  • Be aware of the different needs of seniors by age group. For instance, those aged 55 to 65 are likely to still be in the work force. Those in the 65 to 75 age group may be retired. And those in the 75 to 85 age group will likely have more mobility and health challenges.
  • To see what tomorrow’s seniors will want, try doing market research with them today (in other words, with the 45 to 55 age group). This can help you determine what they might prefer as they get older.
  • Keep in mind, however, that changing attitudes about aging make it unlikely future seniors will want to buy the same kinds of products their parents and grandparents did.

Image by Flickr user William Warby (Creative Commons)

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How to Market to the Millennial Generation

November 3rd, 2011 ::

By Maria Valdez Haubrich

Is your business marketing to young adults? If not, maybe it’s time to start. Why? Because the Millennials (sometimes called Generation Y or Echo Boomers) is bigger than the Baby Boom generation was. For anyone who knows what kind of spending power the Baby Boomers had (and continue to have), the reasons to target Millennials should now be abundantly clear.

A recent study from Barkley, Service Management Group and The Boston Consulting Group, American Millennials, has some useful information about this vast and potentially profitable pool of consumers. Here’s some of what they found:

Millennials are socially conscious. Twenty-six percent of them (compared to 9 percent of non-Millennials) are aware of cause marketing campaigns. That means getting involved with a cause that’s authentic for your business can be a great way to appeal to them.

Millennials love their mobile devices. In particular, they’re taking to mobile shopping, and 50 percent of them (compared to 21 percent of non-Millennials) will research products on their smartphones while shopping. Make sure your business has a presence on the mobile Web.

Millennials don’t watch TV. Well, they do—just not on TV. Some 42 percent watch TV shows on their computers, 40 percent use DVR and 26 percent use On-Demand services. The good news for small businesses is that instead of spending on pricey TV air time, you can focus on online advertising or other, less expensive ways of getting your brand online. Consider social media: Since many Milllennials watch TV while checking out Twitter or Facebook, this is a good way to get your message in front of them for free.

Millennials care about fashion. What’s more, they want your salespeople to care about it too. If you sell clothing or accessories, your store clerks need to be wearing the gear. If your salespeople aren’t fashionable, Millennials will pass the store by. No matter what you sell, this means your front-line employees need to embody your brand.

Millennials operate in groups. More than other age groups, Millennials like to shop with friends or family members in tow. And even when their friends aren’t physically around, Millennials use technology and social media to get instant feedback and opinions from their social circle on what to buy, eat or do.

Image by Flickr user Mike Adams (Creative Commons)

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