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Posts Tagged ‘Generational Marketing’

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

Marketing to Millennials: What You Need to Know

September 23rd, 2011 ::

By Rieva Lesonsky

Are you marketing to Millennial consumers? If not, you might want to reconsider. A new study, American Millennials, from Barkley, Service Management Group and The Boston Consulting Group, reports that this generation is three times as large as Generation X and even larger than the Baby Boom generation. Also sometimes called Echo Boomers, the Millennial’s dates aren’t precisely defined but they’re generally considered those born from the late 1970s to the late 1990s or very early 2000s.

Because of this generation’s sheer size, “understanding Millennials’ needs, tastes and behaviors will clearly shape… future business decisions,” noted Barkley senior vice president Jeff Fromm in announcing the survey results. Here are some of the survey’s findings about this crucial generation and how they live, think and shop.

  • Millennials watch significantly less TV than non-Millennials, with only 26 percent watching more than 20 hours a week (compared to 49 percent of non-Millennials). When not watching live TV, Millennials are much more likely to watch shows on their laptops (42 percent), via DVR (40 percent) or On-Demand (26 percent).
  • Millennials are heavily influenced by friends and acquaintances. Some 70 percent of Millennials reported feeling more excited when their friends agreed with them about where to shop, eat and go for entertainment.
  • Although the majority of all respondents shop alone, Millennials were more likely than non-Millennials to shop with their family or friends in tow.
  • Millennials are mobile. More Millennials than non-Millennials reported using a mobile device while shopping to research products (50% versus 21%)
  • Millennials are adventurous. Some 70% of Millennials want to visit every continent in their lifetime. They also prefer excitement in shopping or dining out, generally preferring loud background music and a casual atmosphere.
  • When it comes to restaurants, Millennials are more likely than other age groups to patronize fast-casual eateries. They also love to snack, and are more than twice as likely as older customers to visit restaurants for snacks mid-morning, mid-afternoon and late at night.
  • Millennials care about style. When shopping for clothing, they demand fashionable sales associates and are more likely than other groups to leave a store (or never enter at all) if the salespeople aren’t dressed stylishly.

Image by Flicker user Saxon (Creative Commons)

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

How to Tap Into the Grandparent Market

September 19th, 2011 ::

By Rieva Lesonsky

If you think today’s grandparents are wearing housecoats, using walkers and living on skimpy pensions, think again. A new study of grandparents from Metropolitan Life, reported by MediaPost, finds that most are Baby Boomers aged 45 to 64 (still of working age) who have money to spend and are spending it “lavishly” on their grandkids.

The 46-to-64-year-old age group accounts for nearly half (46 percent) of the nation’s total household income, according to the report. Because the Millennial population is so huge and is entering the age of parenthood, the number of grandparents is growing at twice the rate of the overall population. In 2010, there were an estimated 65 million grandmothers and grandfathers; by 2020, 80 million, or one in three adults, will be grandparents.

The Great Recession has affected grandparents, but one of the interesting aspects of the survey is that grandparents’ children were hit much harder by the economy. While real income actually increased for those in the grandparent age group, the real income of households headed by those aged 25 to 44 dwindled.

As a result, while the traditional stereotype may be of seniors getting financial help from their kids, the reality is just the opposite: Many grandparents are helping their children out financially. “Many of the grandparents were affected by the economic downturn, but did relatively better than their kids did, and were able to step in and provide assistance,” John Migliaccio, director of research for the MetLife Mature Market Institute, told Marketing Daily.

Since direct assistance from parents can be hard to take, grandparents often help their children out in less direct ways such as buying things for the grandchildren. In 2009, households ages 55 or older spent $7.6 billion on infant food, equipment, clothing and toys, an increase of 71 percent since 1999. They also spent $2.43 billion on primary and secondary school tuition and supplies, about triple what they spent in 1999.

Migliaccio told Marketing Daily that grandparents aren’t doing so just to help out. He says they’re also comfortable “redefine[ing] grandparenting” just as they redefined youth during the 1960s and ‘70s.  He noted that these grandparents are sophisticated, educated and “focused on leaving a legacy.”

How can your marketing tap into this profitable market?

  • Focus on how your product or service adds value to grandchildren’s lives. Grandparents want to give their kids the same experiences they’ve had, including world travel and a good education, so products or services that serve that aim are likely to appeal.
  • Emphasize relationships. Grandparents today are close with their children and grandchildren, so they’re looking for products and services that help them nurture those relationships.
  • Don’t treat them like “old people.” Today’s grandparents don’t feel or act old, so treating them that way is sure to turn them off. These grandparents are active and healthy, so make sure the words, images and ideas in your marketing reflect the reality of this consumer group.

Image by Flickr user Jay Gorman (Creative Commons)

 

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Posted in Generational Marketing, Marketing, Small Business, small business | No Comments »

Search and Email Still Dominate Online Activities, New Study Finds

August 22nd, 2011 ::

By Rieva Lesonsky

The best way to market to your customers online is to know what they’re doing on the Web. And according to the latest data from the Pew Internet & American Life Project, search and email still dominate the list of online activities for most Americans.

These two activities not only top the list of most commonly engaged in Internet uses, but are nearly universal. Ninety-two percent of online adults use search engines to find information online and the same number use email. In fact, Pew notes, since the Pew Internet Project began measuring Internet use in the last decade, email and search have consistently ranked as the most popular actions despite the new platforms and devices affecting Internet usage.

The biggest change Pew notes is that both activities have become more habitual. In 2011, about 60 percent of online adults used search and email on a typical day; in 2002, 49 percent used email each day and just 29 percent used search daily.

Search Stats

Search engine use is most popular among the youngest users (age 18-29): 96 percent of people in this age group use search engines.  But even among the oldest Internet users (age 65+), 87 percent use search engines and 37 percent use them daily.

Aside from age, college-educated and higher-income adults are slightly more likely to use search and to use it daily.

Email Activity

Somewhat surprisingly to me, the youngest online adults (18-29) were most likely to use email. Beyond that, college-educated and higher-income Internet users were more likely to use email.

There were some interesting differences between overall email use and daily use. While white, African-American and Hispanic online adults have similar levels of overall email use, white adults were significantly more likely than African-American or Hispanic users to use email daily (63 percent v. 48 percent v. 53 percent, respectively).

What do these figures mean to you? While there are many ways to target your audience, this study shows that some good old online methods—including email newsletters, email offers, SEO and other search-related means such as using local ratings and review sites—are still very viable at reaching even the youngest and “hippest” Internet users.

Image by Flickr user Sean McEntee (Creative Commons)

 

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Posted in Email Marketing, Generational Marketing, Marketing, Search Marketing, Small Business, small business | No Comments »

Marketing to the Boomerang Generation

June 23rd, 2011 ::

By Maria Valdez Haubrich

The stalled economy has given rise to a new target market: the Boomerang generation. Although their name is reminiscent of Baby Boomers, the Boomerangers are between the ages of 22 to 29. They’re single, recent college grads who have full-time jobs. What’s so special about them, you might ask? Well…they live with their parents.

According to a study by Luminosity Marketing, 13 percent of parents with adult children report that at least one adult child has moved home in the past year. Given the tight job market, this group is poised to grow. Should your business be targeting them?

Keep in mind that Boomerangers have more disposable income than the average person their age since they are employed, but (in most cases) have limited expenses. That doesn’t mean they’re wild spenders, though. Here’s what Luminosity says you should know if you’re marketing to this demographic.

  • They’re very value-conscious. Brand names aren’t as important as functionality when it comes to higher-priced items like clothes and accessories. Surprisingly, brand names were more important for inexpensive items like household goods and groceries.
  • They’re independent. They may live with mom and dad, but nearly two-thirds say their purchasing decisions are influenced solely by themselves. Family and friends influenced just 19 and 17 percent of purchases, respectively.
  • They think it over. Nearly two-thirds of Boomerangers’ purchases involve planning. While 34 percent of purchases are on impulse, the more expensive something is, the more planning is involved.

One of the most interesting findings was that when buying clothing and accessories, Boomerangers didn’t feel the purchase was complete until they shared it with others—either by displaying it, sharing a photo or talking about it. Perhaps this is a result of how closely social media is integrated into their lives.

You might want to consider how you can incorporate this type of sharing into your business, whether by encouraging customers to Tweet or Facebook post about their latest purchase or holding a contest where customers show off their purchases.

Image by Flickr user Rob Young (Creative Commons)

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Posted in Generational Marketing, Marketing, sales process, Small Business, small business | 2 Comments »

Do Consumers Respond to Cell Phone Ads? That Depends

May 16th, 2011 ::

By Rieva Lesonsky

If your business is getting involved in mobile marketing, one avenue you might be using is sending or texting ads to customers’ mobile phones. But does this tactic really get results? That depends on whom you’re targeting.

The Survey of the American Consumer by GfK MRI reports that millennials and Gen X consumers are far more likely to pay attention and act on ads they get on their mobile phones. But baby boomers are far less responsive to cell phone advertisements.

The number of mobile users overall who respond to mobile ads is still small. Just 6.2% of adult mobile phone users (12.5 million people) had looked at an ad sent by text in the last 30 days. However, the response rate was pretty astounding: 2.65% of adult mobile phone users had used text messaging to respond to ads or buy things in that 30-day period. Clearly, although the percentage paying attention to these ads is small, they’re highly motivated.

Millennials (born between 1977 and 1994) were more motivated than the average mobile phone user. They were 57% more likely to have looked at texted ads and 93% more likely to have responded or purchased using texting.

There’s a big gap between the Millennials and the next oldest group. GenXers (born between 1965 and 1976) were only slightly more likely than the average mobile phone user to have looked at a texted ad or responded.

And as for older adults? In announcing the results, GfK MRI said companies shouldn’t bother trying to reach them by text since “if [they] were going to take to texted ads or text as a response mechanism, they would have already done so.”

I’m not so sure that’s true. GfK MRI also found that the mobile users who were comfortable with texting in general were 66% more likely than average to have viewed a texted ad and 70% more likely to have responded or purchased based on the ad. But as older generations get more familiar with texting, I contend they’re likely to get more comfortable with ads as well. Many of my Baby Boomer friends text constantly to keep up with their kids or grandkids.

Overall, text ads currently appeal to just a small percentage of consumers, making it somewhat of a “cutting edge” marketing method. But the pace of technology is changing so fast, it won’t remain cutting edge for long. And if you’re targeting Millennials or even younger groups as customers, you’d better start getting your feet wet in mobile marketing—or get left behind.

Want to learn more about mobile? Join me and Network Solutions for a Small Business Mobile Livestream event tomorrow, May 17th, from 1:30 to 2:30 pm EST. I’ll be moderating a panel of experts including small business technology expert Ramon Ray, technology therapist Jennifer Shaheen, and Navin Ganeshan, Network Solutions’ chief product strategist. Register here.

Image by Flickr user Natalia K. (Creative Commons)

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Posted in Email Marketing, Events, Generational Marketing, Marketing, Search Marketing, Uncategorized | 3 Comments »

Travel Outlook: Families Planning Vacations, But Still Budget-Conscious

March 11th, 2011 ::

By Rieva Lesonsky

Travel industry entrepreneurs have reason to be cautiously optimistic this year, according to a new survey by blog WhyMomsRule.com. The survey of 634 moms, divided among Baby Boomers, Gen X and Gen Y mothers with at least one child at home, found an increase in the number of working moms who plan to use all their paid vacation days (64 percent, up from 57 percent last year).

However, although moms are devoted to the importance of the family vacation, they will still be budget-minded in planning their trips. Rather than “putting it on plastic,” 44 percent of Baby Boom and Gen X Moms and 46 percent of Gen Y Moms will pay with monthly savings, followed by 28 percent of Gen Y and X Moms and 11 percent of Boomers using their tax refunds. Thirty percent of Boomers planned to use credit cards, compared to 21 percent of Gen X and 14 percent of Gen Y moms.

Moms are still sacrificing other aspects of the budget to pay for vacations. In last year’s survey, however, moms reported making sacrifices all year long to save for a vacation. However, this year, there was a slight shift in favor of being more frugal while on vacation. For example, last year, 42 percent said they cut back on eating out all year long to save money for a trip, but this year, only 33 percent planned to do so.

Other signs of optimism: More moms this year are planning vacations that involve flying instead of driving (36 percent, up from 28 percent last year), and 32 percent are exploring new travel destinations (32 percent, up from 25 percent last year).

If you’re involved in travel marketing, this survey is good news. What’s the takeaway? Keep moms in mind when planning your marketing strategy. Of course, you’ll want to focus on the budget or money-saving aspects of your offerings. You may also want to offer savings or deals during the vacation.

However, the importance moms place on family vacations shows that you can also market successfully by emphasizing the value of the family trip. If you have a higher-end product or service, you may be able to get around the high cost by focusing on the lasting memories and quality time that will make the extra expense worthwhile.

Image by Flickr user Alan English CPA (Creative Commons)

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Posted in Generational Marketing, Marketing, small business | 2 Comments »

Hot Market: Singles

November 5th, 2010 ::

By Rieva Lesonsky

Are you missing out on a lucrative consumer market? You could be if you’re not targeting singles in your marketing materials. Never-married singles now outnumber married couples 46 percent to 45 percent within the 25-to-34-year-old age group, according to an analysis of new Census data by the Population Reference Bureau, reported in Advertising Age.

What does it mean to your business? Today’s singles aren’t necessarily straight out of high school or college. And they’re not delaying major purchases like travel or even homes. According to statistics from the National Association of Realtors, single women accounted for 21 percent of all homebuyers in 2009, and single men accounted for 10 percent.

What else are singles spending on? Ad Age cites Bureau of Labor Statistics data showing that they spend more on alcohol, clothing and shoes, and tobacco, but less on insurance and housecleaning supplies.

Single women in particular are a hot market. A study earlier this year from strategy and research firm Reach Advisors found that single, childless women in their 20s who live in big cities and have full-time jobs earn an average of 8 percent more than men the same age—and in some cities, the pay gap is as high as 20 percent. The Reach study showed healthy foods, sporting goods and (again) homes are hot purchases with this market.

Coldwell Banker Real Estate and Norwegian Cruise Line are among the big companies reaching out to singles with products targeted for them. If you’re ready to target singles, keep these tips in mind:

  • Don’t stereotype. Singles are as diverse as any other group and like to see themselves portrayed realistically and sensitively.
  • Don’t assume they all want to get married. Many singles are quite happy as they are, so marketing messages that promote matrimony as a goal may not resonate as well as you think.
  • Appeal to their sense of adventure. Singles have more freedom than married couples or parents. Offering last-minute deals or hosting events they can take advantage of on the spur of the moment is smart marketing.

Image by Flickr user floodkoff (Creative Commons)

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Posted in Generational Marketing, Marketing | 1 Comment »

Why Does Gen Y Buy? To Show Off Status

November 2nd, 2010 ::

By Maria Valdez Haubrich

While there’s lots of data showing that Generation Y consumers are more socially conscious and less susceptible to advertising than many other generations, when it comes down to making purchasing decisions, they’re still motivated by an age-old factor: showing off their status.

According to new data from online advertising company Resonate Networks, the 18-to–34 age group is more passionate about social issues like energy (36 percent more than the population age 35 and over), climate change (48 percent more) and animal rights (24 percent more). However, in general Gen Y consumers are 15 percent to 25 percent less likely to make purchase decisions based on the social issues that they care about.

Instead, Gen Y looks to products for external validation, buying products that convey their success and personal achievements. Compared to the 35-plus population, 18-to– 34-year-olds are more likely to buy based on the following brand attributes: innovation, looks, popularity and prestige. They are five times more likely than older consumers to purchase a product that is considered prestigious, and more than twice as likely to buy a product considered popular or aesthetically appealing.

Like older consumers, Gen Y does buy products based on considerations like value, function and quality. But at the same time, they want these products to help them project the desired image.

Going forward out of the recession, Gen Y is an increasingly important target market, as many of them are affluent and have discretionary income to spend. How can you target them successfully? Here’s what Resonate recommends:

  • Align your brand’s values with the values of the various subsegments of Gen Y.
  • Your primary messaging should focus on personal achievement attributes and value, not price point
  • If possible, your secondary messaging should mention socially responsible values and actions of your company.

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Posted in Generational Marketing, Marketing | 2 Comments »

Together, we sell.

June 1st, 2010 ::

Noticing the word “together” showing up in advertisements and newly crafted company slogans? If you haven’t yet, put some attention there, and I’m betting you’ll see this theme popping up.

Come + Together – Macy’s

Let’s Build Something Together – Lowe’s

Build Together – Lego

Come + Together, says Macy's (via AGrinberg on Flickr)

And there are many, many others.

But the questions to ask are why is this happening now, what does it speak to and where is the opportunity to tap into this cultural shift?

See, about every 20 years, a new generation is born. And when this happens, it naturally becomes the new generation in childhood. That means the prior generation in childhood is now the generation rising into young adulthood. And connected to that, the generation thathas defined “young adulthood” for the most recent 20 years, now starts to define what it is to be in mid-life. And so on.

Millennials (born 1982 – 2002ish) are rising into young adulthood and bringing their core personality traits into America and the markets that wish to serve them. Who are these Millennials and why are they so different? Where their predecessors, GenX (born 1961-1981), were hardscrabble, pragmatic free agents in young adulthood, Millennials are team-oriented, achieving and confident. For a deeper exploration into what makes this generation tick, I recommend going straight to the source of generational theory and read, Millennials and the Pop Culture, by Neil Howe and William Strauss.

Another cultural pressure on this “come together” thing is that GenXers, “their fringes more powerful than their core,” (Strauss and Howe) are now in mid-life. And if you failed to notice the profound hypocrisy that Boomers (born 1943-1960) displayed when they hit mid-life and created “zero tolerance” for drugs and kids, and other such things they’d have rebelled against in a New York minute in their own youth, GenXers (as all generations) have to shift as they grow up. GenXers, by archetypal definition “the nomad,” now has to reverse their isolation and pull tighter together their tribe. GenXers will aways be more powerful in their fringes than in their core, but the X in their X-treme behaviors shifts direction in this era, which runs approximately from 2005 – 2025 (ref. The Fourth Turning).

So, if you’re still waiting for The Recovery (cue: angelic trumpets) and for things to go back to how they were, go ahead and wait. But, if you’re looking to tap into the natural energies of cultural change and the deep, archetypal forces of generational marketing, I say, “come together, right nooooowwwweehhh … ” Oh, and make it snappy.

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Posted in Generational Marketing | 1 Comment »

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