Change in the Market
Last month, I was privileged to be the guest of Kenneth Gronbach, author of The Age Curve at a conference appearance in California. He again opened minds throughout the audience about looking at the numbers to see where marketing opportunities will be next.
Since boomers started turning 50 and slowing their spending, until now when those same boomers are going over age 65, a statistic explains the perfect storm. Gen X, following the boomers is 11% smaller as a generation, so the market shrank 11% for consumer "heavy lifters." A generation cohort is typically 20 years, so while there were still boomers spending, there was still a smaller amount of key target market to pick up the slack.
So, what does he see for the future?
- Boomers have always changed the norms, so they will redefine retirement. As the economy improves, there will be a flood of people moving to the South and Southwest.
- Gen Y is the group that speaks "cyber" as its first language and is more humanitarian and green. As the economy improves, there will be a flood of people moving to the South and Southwest. Finding the job market flooded with this large generation, they will open small businesses. While demographics are like ice flows, moving slowly through time, it will seem that demand happens suddenly.
What happens? Make new friends but keep the old, one is silver and the other gold! One key is to have good database analysis to understand the relationships that you have. Deepen those who have already economically voted that they like your business by opening accounts, buying your products and using your services. Keys to success include:
- Embrace technology to serve Gen Y in their "cyber" language
- Provide products and services that match their interests
- Create marketing programs to gain their attention and that give a nod to their parents who Gen Y turns to for guidance
Nicolette Lemmon is president and founder of LemmonTree Marketing Group (www.lemmontree.com), a full-service marketing consulting firm. Contact her at 888-536-6243 or firstname.lastname@example.org. Her blog can be found at www.MyMarketingInsights.com and her Twitter handle is @nslemmon.
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