Are Retailers Chasing Their Tails Trying to Win Over Millennials?
In a recent article, Spencer Soper at Bloomberg contends that retailers should stop wasting so much time trying to win over millennials because they’re often broke. Instead, they should target older shoppers with more money to spend.
That’s a key finding from a report by Forrester Research Inc. called “The Future of Shopping,” which looked at income and demographic changes over the past 40 years. The bulk of consumer spending has shifted from those younger than 45, who now make up a smaller percentage of the population and are strapped with student loans, to those 45 and older, who have equity in their homes and bigger incomes.
According to Sucharita Mulpuru the analyst who wrote the report, for the past years, retailers have been obsessed with competing for the millennials’ business. “The truth”, he says, is that “millennials aren’t spending any money with anybody because they don’t have any.”
So, what does this mean to us as Direct Marketers?
Since our focus is to target the best possible prospects for a given product or service and get our message right into their hands efficiently and cost-effectively I think we need to take a step back and look at what we’re doing.
Instead of trying to focus on millennials with cool new technology and an over-emphasis on social media, let’s work with the tried and true and target the age 45+ age group with integrated marketing approach, utilizing a combination of direct mail and online media – with strong creative, appropriate messaging and appealing offers.