It Matters - Age is More Than a Number
In direct marketing it’s important to take demographics into account when developing messages for your target audience. But what some new marketers don’t realize is that using demographics is more than just looking at the surface age and income of a target audience. It’s important to look at what those particular demographics mean within the context of a bigger picture.
By looking at the latest data recorded by the U.S. Census Bureau, the average head of household is only six months away from 50. And, within the next five years as the number of households grow, 80% of those new households will be headed by people that are 55 and older. “That’s great,” you say, “but why does that matter?” Well, a large portion of that age group tends to spend more on services rather than on goods. They also become more sensitive to potential risk factors and will evaluate based upon price. So, marketing messages reaching these groups may be more effective when value, guarantees, and experience associated with a product or service are stressed.
Other age groups to take a closer look at are that of 35 to 44 and 45 to 54 year olds. Combined, these groups account for 49% of total U.S. consumer spending. Why? Well, of the other age groups, these two groups have the largest number of married couples with dual incomes - money to spend and families to spend that money on. According to projections, these groups will not grow at the same rate as the 55 and older age group. In fact, house holds headed by 35 to 44 year olds will decrease by 4% in the coming years. House holds headed by 45 to 54 year olds will also decrease, but by 1%. So, as these groups that account for almost half of total U.S. consumer spending shrink, where will U.S. spending come from?
Future spending growth will need to come from the older age groups as described above or from younger households. This younger group has different purchase-drivers and motivators than head of households that are 55 and older. According to the Bureau of Labor Statistics surveys, the 26 million households headed by age groups that are 35 or younger will direct their spending to a variety of consumer goods rather than services.
There’s much more demographic data available through governmental and private sources that examine age groups, income, spend, and regional trends. Here at QuantumDigital, we offer extensive demographic selection lists as part of the direct mail order process. We know that as marketers understand these trends and demographic clusters, they can refine their marketing message to better connect with their target audience and increase the possibility of response. So, my advice to entrepreneurs and businesses is to utilize demographic data when developing your marketing messages and plans whenever possible.
Best,
Steve