While there is a lot of talk and data around Millennials marketers seem to be confused by aging Boomers who, in 2017, are approaching half of the U.S. adult population and control a full 70 percent of the disposable income. By 2050, there will be 161 million 50-plus consumers, a 63 percent increase over 2010. Globally, the spending power of consumers age 60 and older will hit $15 trillion by the end of this decade, up from $8 trillion in 2010, according to research from Euromonitor.
With an estimated $2.1 trillion in spending power, moms influence 85% of all purchase decisions and buy nearly everything for everybody. Based on consumer neuroscience, a growing area for marketers looking to better understand consumers in more depth and with greater detail and precision, we know that moms and women in general use more areas of their brains to process information than men do, giving them enhanced multi-tasking, especially when it comes to shopping activities.
Macy’s reported today that sales and profit are down. The company blamed weather and increased competition for the slump. But the most disturbing reason business is declining could be the state of the average Macy’s consumer. “The consumer has not bounced back with the confidence that we were all looking for,” CEO Terry Lundgren said at the Goldman Sachs Annual Retail Conference in September.
“Mass marketing is making the same product for everyone, putting it in every store, then shouting its features and benefits to everyone. And shouting is the correct word.Your first goal in mass marketing is to be heard above the cacophony of thousands of competing messages. That’s far from what your goal should be—to generate sales and loyal customers. What’s the opposite of this noisy mass-media system of marketing? It’s to communicate directly with customers, individually, rather than blaring at them in groups. It’s to use media that permit this (and the slow and cumbersome postal system isn’t the only way). That’s the future and it’s upon us now.