Generational Marketing: Change Your Approach, Not Your Product
Why targeting your marketing to a specific generation produces results.
I have always been fascinated by generational marketing and have written about Millenials here before. But, what about other generations? Affluent shoppers are not all created equal; what some shoppers connect to strongly, others will not value as highly.
To grow, high-end home brands must segment their target audience, and age is a simple and effective way to do this. By leveraging Baby Boomer, Generation X, and Millennial groups, high-end brands can outperform their peers.
Marketing to Affluent Baby Boomers
Baby boomers have enjoyed great financial success, raised families, and stand on the edge of retirement. These individuals have already grown their incomes and developed rich relationships with premium brands. Most Boomers are less interested in new luxury goods — they already have premium furniture, cars, clothes, and more — and want to retain their style of living while indulging in unique experiences.
High-end home brands should continue to nurture their relationship with Baby Boomers, who will continue to need replacements for their premium goods, while shifting their focus and their marketing budget to those generations still looking to buy high-end goods.
Marketing to Affluent Gen X-ers
Generation X is roughly half the size of the Boomer and Millennial generations, at 40 million.
These shoppers are presently at the peak of their income. Gen X-ers are raising families or enjoying the empty nest after children attend college.
As consumers, Gen X-ers want premium goods and services. Yet, Gen X-ers tend to research products before they buy. While they enjoy purchasing high-end brands, they dislike overspending. Even if shoppers splurge, this generation cannot replace the Boomers due to its much smaller size. Premium brands will see a decline in revenue as Boomers stop shopping.
High-end brands must cultivate their relationships with Gen X-ers now to ensure success later on. While not all have the purchasing power to buy high-end goods, there are many who do.
Marketing to Affluent Millennials
Millennials number over 80 million and have enormous purchasing power. The older Millennials are reaching their peak income period, while younger members of this generation have more disposable income since they have not started families yet.
Research from Unity Marketing shows that Millennial consumers experience the desire to purchase affluent brands through repeat exposure to these brands. Their generation’s core values include freedom, work/life balance, and leisure.
By connecting high-end brand offerings to this generation’s core values, and leveraging repeat exposure, high-end home brands can cultivate the Millennial shopper’s desire to consume premium goods. Other proven methods for connecting with Millennial shoppers include social media influencers, embracing new technologies, and cause-related marketing.
Juggling the unique needs and preferences of these three generations is time-consuming for marketers. Yet, it is the best way for high-end brands to stay relevant as their stable Boomer base ages and to ensure continued success and growth.