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Posts Tagged ‘Generational Marketing’

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Who’s Got Smartphones and Apps? Gen Y

February 1st, 2013 ::

By Rieva Lesonsky
It may not be a surprise, but Gen Y is leading the way when it comes to adoption of smartphones and smartphone and tablet apps, eMarketer reports. A study by Forrester, cited in eMarketer, found that consumers aged 24 to 32 are the most likely to own smartphones. Ninety-seven percent of Gen Y consumers have a mobile phone, and 72 percent have smartphones, higher than any other age group.

Overall, 93 percent of Americans owned mobile phones; however, only 50% have smartphones. Gen Z (age 18-23) was the second most likely group to own a smartphone, at 64 percent, followed by Gen X at 61 percent. After that, smartphone use declines rather drastically, with just 39 percent of younger boomers (47-56) owning them, 28 percent of older boomers (57-67) owning them, and 16 percent of those over 68 owning them.

Gen Y consumers are also more likely than any other age group to use smartphone and tablet apps, a different study by Flurry found. (This study defined Gen Y as 25 to 34.) Of the Gen Y users surveyed, 33 percent used smartphone apps and 26 percent used tablet apps. The 35-to-54 age group was next most likely to use apps.

You might be surprised that Gen Y are bigger users of smartphones than the younger generations, but eMarketer notes this group is in the “sweet spot” in terms of being old enough that they can afford more expensive smartphones, but young enough to want them and know how to make the most of them. In fact, the biggest reason younger customers cited for not having a smartphone was that they couldn’t afford it, while the top reason cited by older consumers was that they didn’t think it was useful or necessary for their lives.

What do these stats mean to you?

  • If your target market falls in the younger end of the spectrum, you’ll want to make sure your business website is mobile-friendly.
  • You’ll also want to consider developing useful, relevant and/or fun apps for your business that encourage sharing with friends.
  • Keep in mind that Gen Y is most likely to own iPhones, while in other age groups and overall, Samsung phones dominate.
  • Finally, keep in mind that Gen Y’s smartphone-dependency isn’t going away. As these customers move into their prime buying years, they’ll rely on their devices even more—so be ready to grow with them.

Image by Flickr user milesopie (Creative Commons)

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What Will America Look Like in 2060?

January 2nd, 2013 ::

By Rieva Lesonsky

The U.S. population is getting older and more racially and ethnically diverse, which will mean some big changes in the face of the population by 2060, say projections recently released by the U.S. Census Bureau. The projections of the nation’s population by age, sex, race and Hispanic origin between 2012 and 2060 are the population projections to be released based on the 2010 Census. Here are some of the trends the Census Bureau foresees, and what they’ll mean to your business.

  • The U.S. will become a “plurality,” with the non-Hispanic white population still the largest single group as of 2060, but beginning in 2043, no one group will be the majority.
  • The population will projected to grow much more slowly in the next several decades due to lower projected birth and immigration rates.
  • The number of seniors will increase dramatically. The population age 65 and older is projected to more than double by 2060, from 43.1 million today to 92.0 million. That would mean one in five Americans would be over 65, compared to one in seven today. The number of people age 85 and older will grow even more dramatically, more than tripling from 5.9 million to 18.2 million, or 4.3 percent of the population.
  • Baby Boomers (born between 1946 and 1964) currently make up one-fourth of the population, but by 2060, the youngest Boomers will be 96, and Boomers will account for just 0.6 percent of the population.
  • The non-Hispanic white population will peak in 2024, then gradually decrease. At the same time, the Hispanic population is expected to more than double. By 2060, almost one in three U.S. residents will be Hispanic, compared to about one in six today.
  • The Asian population is also growing strong, projected to more than double from 15.9 million in 2012 to 34.4 million, or 8.2 percent of the population, by 2060.
  • The black population will remain fairly stable, increasing just slightly from 13.1 percent of all Americans in 2012 to 14.7 percent in 2060.
  • Multiracialism will take hold, with the number of people who self-identify as being of two or more races projected to more than triple, from 7.5 million to 26.7 million, by 2060.
  • By 2060, the total minority population will double and minorities, which currently make up 37 percent of the U.S. population, will account for 57 percent of the population.
  • Older Americans will be predominately non-Hispanic white, but younger Americans will increasingly be minorities. For example, by 2060, just 32.9 percent of Americans under 18 will be non-Hispanic whites.

How will these trends affect your business? I see so many ways, but here are a few that stand out: Products and services for seniors will continue to be hot, with different options and markets depending on whether you’re pursuing the “oldest old” or their kids, the 65-to-85 age group. And if it doesn’t already, your marketing will need to reflect America’s increasingly diverse culture, especially if you’re marketing to children, families and parents.

Image by Flickr user (Creative Commons)

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How to Capture the Millennial Customer

November 30th, 2012 ::

By Rieva Lesonsky

Where are Millennial consumers spending their money? Boston Consulting Group recently conducted an in-depth survey of Millennials (age 16-34) and older consumers (age 35-74) to compare their behaviors and attitudes. The study, Millennial Passions: Food, Fashion and Friends, has some valuable insights into how companies need to market to these consumers, particularly restaurant and retail businesses.

Why do you need to care about Millennials? BCG spells it out:

  • Millennials are forming strong opinions and are vocal about sharing them, not only with friends and family but with strangers online. As such, they’re influencing the purchasing habits not only of those they actually know, but also of people far outside their social circles.
  • Millennial attitudes and preferences about marketing are early indicators of marketing methods that will ultimately take hold among a wider, non-Millennial audience.
  • The older Millennials are about to enter their peak earning and spending years—and contrary to popular belief, they like to spend money.

Restaurants

  • Eating out ranks above consumer electronics, apparel, footwear, beauty and cosmetic products and accessories in terms of where Millennials like to spend their money. This age group eats out more often than non-Millennials (no matter what their income).
  • When it comes to menus, they love fast-casual and takeout restaurants, as well as exotic, organic and Asian foods.
  • They also love to eat with friends and coworkers and are more likely than non-Millennials to do so.
  • Whether your restaurant is quick-serve or white-tablecloth, you’d better serve up a great experience—Millennials expect no less.

Retail Apparel

  • Both Millennial men and women shop for apparel more often than non-Millennials. The difference was especially striking among men (38 percent of Millennial men shop more than twice a month, compared to just 10 percent of non-Millennial men). They also spend more on apparel than non-Millennials.
  • When looking for fashion information, they turn to magazines, retailer websites, social media, fashion blogs and store associates.
  • When shopping, Millennials like to go in groups and are more likely to consider their friends’ opinions before making a purchase.
  • Just as with restaurants, the “experience” is important. Millennials care more about in-store events, store environment and getting personalized help than non-Millennials.
  • They expect in-store and online offerings to be integrated to make shopping simple and convenient.

Image by Flickr user Geoff Peters 604 (Creative Commons)

 

 

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Message to Marketers: Don’t Ignore Gen X

November 21st, 2012 ::

By Rieva Lesonsky

There’s a lot of hullabaloo about marketing to Millennials these days, but in all the frenzy, you might be forgetting about a very important demographic: Generation X. Aged 35 to 44, this often-ignored generation is important for marketers to target—but it’s important to target them correctly.

New research from SymphonyIRI’s Q3 2012 MarketPulse study found that while Gen Xers might at first glance seem similar to Baby Boomers, they actually have a lot in common with Millennials. Dubbed “cheap but cheerful” in the study, Generation X generally has a positive outlook on the economy, but are still more frugal than either Baby Boomers or seniors. They’re more likely than either group to buy products on sale, seek out the lowest price, buy products based on loyalty rewards, and avoid making unplanned impulse buys.

One reason for this frugality is that Gen-Xers had already gone through their own version of the recession pre-2008. Many of them first entered the job market after the 1987 stock market crash. Just like today’s Millennials, many of them struggled to find jobs out of college and had to move back with their parents. They also lived through the dotcom bust of the early 2000s. This “bleak” heritage has shaped their outlook on spending, just as the Great Depression left its mark on seniors and the Great Recession is shaping today’s Millennials.

Despite their past, Gen-Xers are more financially optimistic than the average shopper, SymphonyIRI found. Nearly one-quarter (24 percent) say their financial situation has improved in the last 12 months, and more than one-third (37 percent) believe their finances will improve during the next 12 months.

That doesn’t mean they’re free spenders; on the contrary, Gen X is cost-conscious. Before going shopping, 69 percent of Gen X consumers make a shopping list, 49 percent look at sales circulars and 48 percent use coupons.

One important difference between Gen X and the Boomers is that Gen X is much more tech-savvy. In fact, this generation is pretty much on par with Millennials in their use of technology for shopping. More than half of them download coupons from manufacturer, retailer or couponing websites; 35 percent go to daily deal sites; and 31 percent look for coupons on social media.

No matter what demographic you’re targeting, SymphonyIRI’s study found some good news: in general, U.S. consumers in all demographic groups have shown an increasingly positive financial outlook during the third quarter of the year.

Image by Flickr user takomabibelot (Creative Commons)

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Today’s College Students, Tomorrow’s Food Trends

September 12th, 2012 ::

By Rieva Lesonsky

Why do the nation’s 20 million 18- to 22-year old college students matter to you? If you’re in the food or restaurant business, it’s because these students—now being exposed to new cuisines at college—are going to shape the food tastes of the nation as they get older. Packaged Facts and CCD Innovation recently published a study, Collegiate Gen Y Eating: Culinary Trend Mapping Report, which looks at the Millennials’ food preferences.

The report identified four major needs college students want their food to meet (nutrition, flavorful food, comfort/indulgence, and speed/convenience), as well as seven culinary preferences that differ from prior generations:

  • Profile 1: Dining Along the Meatless Spectrum – More students identify with the less-meat to meatless spectrum of dining. They range from flexitarian to vegetarian to vegan and even raw diets.
  • Profile 2: The Mighty Chickpea – Students are crazy for this inexpensive, versatile and protein-packed food, found in many ethnic cuisines.
  • Profile 3: Nut Butters – Many of these students grew up without peanut butter thanks to so many of their peers being allergic to it. However, today college students are embracing nut butters of all kinds, including peanut butter and the more healthful almond butter.
  • Profile 4: Fruit and Vegetable Discovery – New college students are discovering unfamiliar fruits and vegetables thanks to cafeteria salad bars and retail favorites like Trader Joe’s.
  • Profile 5: Asian Love Affair – Younger Millennials have grown up eating global cuisine, and many continue the discovery in college. Dining halls are offering more ethnic foods, and nearby ethnic restaurants also give students the chance to try new foods.
  • Profile 6: Italian & Mexican – When a college student under stress needs a little comfort, something familiar, warm and filling—that is, Italian and Mexican food—fills the bill.
  • Profile 7: On-the-Go Fare – Students are busy, so they’re looking for foods that are “Easy to make.” “Portable.” “Eat quickly.” “Eat as I walk to class.”

How will these preferences affect your restaurant, food-service business or food manufacturing business in the years ahead? You’d better get ready.

Image by Flickr user Charlene Collins.Jamaica Images (Creative Commons)

 

 

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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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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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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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