Generational MarketingByRaymond D. Matkowsky
People often become skeptical of someone trying to sell them something. This is especially true when it is done in a manner that does not appeal to the prospect. As a marketer, you must tailor your marketing messages so they appeal to the group you are trying to attract. Very seldom will a message intended for one group play well with another group.
Millennial
Millennials are tech savvy that prefer demonstration videos (self-help or not) that can play well on the relatively small screen of their phones. But, what do they want to see on their phones? Millennials basically want five things. They want: 1. Convenience, 2. Choices, 3. Experiences, 4. Budget-Friendliness, 5. Recognition.
Convenience. According to a recent survey by Bankrate more than 63% of millennia regret buying a home. This in itself is a huge red flag since home ownership accounts for much of the consumer spending in the United States and Canada. Their main regret stems from the time spent on regular maintenance and its cost. They would much rather have someone else do the maintenance than take away the time from other activities. This makes renting attractive. A marketer to millennial customers would be wise to demonstrate the conveniences associated with their product. If you have a product, such as a home appliance warranty that includes parts and labor in its basic fee, this would be of great interest. Many times this type of contract is available through utility companies.
Choices. Millennials want to choose for themselves. They do not want to be told what is best for them. Present them with a choice, but not too many. It has long been known that too many choices leads to “brain paralysis.”
Experiences. Millennials crave “experiences.” It could be the experience of driving a fast, expensive car or a vacation to an exotic location. They want to talk to their friends about their experiences. They may welcome the opportunity to learn about some insight into your product that they would normally not gain.
Budget-Friendliness. The above three desires are somewhat restrained by their budgets. On a pay scale millennia are at the bottom. Plus, they are bad at money management and have a great deal of student debt. They could use specially tailored help in these areas. It could involve training, special payment plans, convenient lenders etc.
Recognition. Whether they are right or wrong, millennials feel that their contributions to everyday life and society do not get enough recognition. They want “approval” from their peers and superiors. They want tangible evidence of being included in a special club.
Marketers should keep in mind that millennials along with Generation Z members make up about 55% of HGTV viewers averaging several hours a week per viewer. It is basically a fantasy or mindless escape. Many people have it on in the background while they do other chores. It allows them to live in an alternate existence different from their true reality. This does, however, open up a possible new marketing opportunity.
Generation X
It is easy for marketers to forget about Gen X members when so many target either millennials or baby boomers. But, according to American Express, Generation X members possess about 31% of income in the U.S. economy.
Generation Xs have new families and they are family centric. They buy things and shop for bargains (including searching for coupons on and off line) that will advance the family status and environment. They were very heavily affected by their childhood economic turmoil and when they entered the workforce. So, appeal to their desire for security and their general skepticism. They could spot a sham or dishonesty a mile away. If you are dishonest with them you will lose them for good.
Women are often the breadwinners in a Generation X family. Nearly a fifth of Generation X men earn less than their wives. Consider targeting Gen X women.
This generation grew up with tech savvy developments and “old school” channels. They use all, online, radio and television, and print. Three quarters of individuals watch television shows regularly, but they also watch online videos and read newspapers. So, use all three.
Baby Boomers
Many businesses make a decision not to market directly to baby boomers. Television advertisers prefer the 19 to 49 demographics. Many boomers are not “retired” and lead active lives. Studies have indicated that 23 percent of entrepreneurs are 55 and older. This is not a generation to overlook.
Baby Boomers are the largest of the three generations. They are well educated and experienced. They are not beginners and may learn much about your product before you even get a chance to talk to them. They have the highest average pay and the most disposable income. Since they have spent 30+ years working hard, accumulating their needs and raising children, they can now justifiably spend on themselves.
Baby Boomers want to be rewarded for their hard work. They have a taste for luxury (read exclusiveness) and can afford it. They are willing to spend a premium if it has value to them. If they decide that it is of less value than advertised, they will shun the product and let the world know. There are a number of “luxury” brand items that have learned this lesson the hard way.
They do not buy on price! Do not try to sell them on price alone. Some will very likely be insulted. If your product and your competitor’s product are of equal value then price will be considered. Otherwise, they will choose to pay a higher price for the greater value.
Conclusions
Take advantage of your list of customers. Regroup them into segments according to generational interests to get a better understanding of each group and to create more personalized content for each group. Do this for subgroups also.
You may have to develop three or more marketing strategies, but it will probably be worth the effort.
If you have any further suggestions, do not keep it to yourself. Help your fellow readers!
If you have any questions, comments or suggestions drop me a line at rdm@datastats.com.
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