Vol. 6 No. 1

Understanding generational marketing can help your next direct mail promotion

Age determines buying habits." That was the message delivered by Robert Grede at a recent AdFed meeting in Madison,Wisconsin.

Grede is president of the The Grede Company, a consulting firm based in Milwaukee that specializes in marketing and strategic planning. He explained that the United States has a demographic profile that is all their own. While the whole world was shaped by global events like The Great Depression, World War II, The Cold War and Vietnam. The U.S. generations were effected much differently. For example, the Swiss had no baby boom because they were neutral during the war. Japan and Germany had baby boomers but they grew up during reconstruction, not a post war booming economy.

There are 5 distinct generations in the U.S. totaling over 120 million households. Understanding how they think and what motivates them to buy can improve targeted direct mail campaigns.

Robert Grede teaches marketing at MarquetteUniversity. He is a syndicated columnist and author of “Naked Marketing – The Bare Essentials.” Contact him at www.thegredecompany.com.

Silvers -- Born before 1930, they represent 22% of households and just 12% of spending. This is the generation that grew up during the Great Depression and served their country during World War II. They’re frugal. They spend money on themselves, healthcare and food. They save money and plan their aging years so as not to be a burden on their kids. They stay home a lot. They buy cleaning supplies and stationary. This group still cleans the house and writes letters.

Middleescents -- Born between 1930-45, they represent 14% of households and 15% of spending. They were mostly affected by a post-war booming economy. They’ve had successful careers and have money to spend. They’re buying big toys for themselves! They own boats, snowmobiles, campers and red Mazdas. They become grandparents at the rate of 8,000 per day and love to spend money on their grandchildren. Over 25% of all children’s toys are purchased by this group.

Boomers – Born between 1945-65, they represent 46% of households and 50% of spending. This group is huge. There are 78 million baby boomers out there. It is the closest studied market in history. Their peak birth year was 1959. It was followed by peak spending and peak gains in the stock market. When these Boomers started having babies in the 90’s the peak spending and peak stock market gains were repeated. They buy new cars and big houses. They spend money on their kids education, clothes and books. They spend on entertainment, pets and vacations. More than 75% of Boomers think they look younger than their classmates. They spend money on plastic surgery, hair coloring and orthodontics to make that happen. Boomers think they’ll live forever so they don’t waste money on healthcare.

Generation X – Born between 1965-80, they represent 19% of households and 18% of spending. This group is graduating from college, starting careers and becoming new parents. They buy used cars, used furniture and rent apartments. They live a fast paced life, drive fast cars and watch TV shows with fast cuts. They are skeptical of TV and must see it on the internet to believe it. The whole X generation has attention deficit disorder. A 45 minute class is the maximum for this group. This group will pay to have things done because their time is too valuable. They don’t cut grass, clean carpet, shovel snow or do home repairs. They spend little on cleaning supplies.

Generation Y – Born between 1980-2000. They represent 8% of households and 5% of spending. This is the most skeptical group ever. Yesterday is too late. They grew up in households where both parents worked. They zip, zap or leave the room for 1/3 of all TV commercials. They are computer and internet savvy. They expect instant results and want answers now. They eat out and are on the go. Reaching them requires customized messaging through direct marketing.

"Age determines buying habits," said Grede. Knowing the age of your target audience is important to tailoring the message to their needs and lifestyle. Direct mail provides that targetability. Mailing lists can be compiled for any of these age groups. Direct mail copy should be written so that it speaks to the targeted group. A slight change in copy or photograph can be the difference in whether the recipient thinks, "hey, they’re talking to me!"

This holds true even in B2B selling. Research has shown that a younger customer is more influenced by the sales process. Product, quality and service have more impact on an older customer. Knowing a customers birth date helps build the relationship. Knowing their age will help build sales.