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Posts Tagged ‘Generational Marketing’

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

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

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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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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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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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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