Top 10 misconceptions that sabotage marketing to mature audiences – #6

September 15th, 2009 by Robbie Magee

Only a few things are more personal than a person’s feelings about money. How we behave (or don’t) on our budgets—if we even have a defined budget—is as unique as we are. But it’s always been thought that older generations are far more frugal and conservative with their money than subsequent generations. While this spells trouble to advertisers, it’s actually a misconception:

#6: Older consumers are reluctant to open their pocketbooks.

I’ll give you that the mature markets have never been the darlings of consumerdom anyway. That slot has been filled by the coveted, more “spendy” younger age groups. Now, amidst a recession and in light of the increasingly aging adult population, it’s a good idea to take another look at attitudes and behaviors on spending across all audiences. Here are a few quick facts to consider:

A recent Gallup Poll shows that ALL age groups reduced spending sharply in 2009 as compared with 2008, with older consumers showing the most change.

• Members of the “Greatest Generation,” who grew up during the deprivation of the Great Depression, cut their spending from $63 to just $35 per day, on average.
• The “Silent Generation,” or those born between 1925 and 1942, reduced spending from $84 to $50 per day.
• “Baby Boomers,” who now range in age from their late forties to early sixties, cut back from $98 to $64 dollars a day.

However, similar reductions can be seen with Gen X’ers—those born between 1965 and 1976—who account for the largest share of our nation’s parents and, thus, tend to be the highest spending group. Their average daily spend went from $110 to $74.

As with the Great Depression, our current Great Recession appears to be making the entire country thriftier!

Better news ahead? Maybe not. Unlike previous generations who enjoyed the fruits or “inheritances” of their parents and grandparents’ hard work, Boomers and following generations will likely have to make due on their own.

• Only 4% of Boomers say they expect an inheritance from their parents, and only 3% say they believe they owe their children one.
• Boomers tend to think that the educational and experiential “gifts” they gave their children are a more valuable legacy. Plus, they now need their money to sustain their lifestyle throughout a longer life span.

“Millennials,” or adults in their early twenties, are coming of age during this global recession and are being greatly impacted by it. Financial experts predict they will behave more like the “Greatest Generation” than like their Boomer parents when it comes to money and saving.

The point? While it remains true that the mature market tends to be more thoughtful about their spending than younger consumers, the similarities across all generations seem to be increasing. At least for the foreseeable future, all age groups are taking a more conservative and deliberate approach to spending. Marketers who understand how to use effective communications tactics to make older audiences feel comfortable spending their hard-earned money, will at least have a head start.

— Robbie Magee

This entry was posted by Robbie Magee on Tuesday, September 15th, 2009 and is filed under Brand Strategy, MF, Marketing, Mature Market, Senior Marketing, Success. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.